Filed 10 May 19

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2019May 09, 2019
Document and Entity Information [Abstract]
Entity Registrant NameHyreCar Inc.
Entity Central Index Key0001713832
Trading SymbolHYRE
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Document Type10-Q
Document Period End DateMar. 31,
2019
Document Fiscal Period FocusQ1
Document Fiscal Year Focus2019
Entity Filer CategoryNon-accelerated Filer
Entity Ex Transition Periodfalse
Entity Small Businesstrue
Entity Emerging Growth Companytrue
Entity Common Stock, Shares Outstanding12,214,146

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)Mar. 31, 2019Dec. 31, 2018
Current assets:
Cash and cash equivalent $ 6,338,871 $ 6,764,870
Accounts receivable152,027 161,177
Deferred offering costs
Deferred expenses18,286 20,927
Other current assets162,955 128,337
Total current assets6,672,139 7,075,311
Property and equipment, net12,244 10,613
Intangible assets, net209,311 221,623
Other assets95,000 90,000
Total assets6,988,694 7,397,547
Current liabilities:
Accounts payable1,037,288 856,925
Accrued liabilities637,025 775,857
Insurance reserve370,461 348,442
Deferred revenue71,875 53,764
Related party advances9,629 9,629
Total current liabilities2,126,278 2,044,617
Total liabilities2,126,278 2,044,617
Commitments and contingencies (Note 3)
Stockholders' equity:
Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively
Common stock, 50,000,000 shares authorized, par value $0.00001, 12,191,508 and 11,708,041 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively122 117
Additional paid-in capital23,064,096 21,857,017
Subscription receivable - related party(7,447)(7,447)
Accumulated deficit(18,194,355)(16,496,757)
Total stockholders' equity4,862,416 5,352,930
Total liabilities and stockholders' equity $ 6,988,694 $ 7,397,547

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - $ / sharesMar. 31, 2019Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, shares authorized15,000,000 15,000,000
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares issued0 0
Preferred stock, shares outstanding0 0
Common stock, shares authorized50,000,000 50,000,000
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares issued12,191,508 11,708,041
Common stock, shares outstanding12,191,508 11,708,041

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Income Statement [Abstract]
Revenues $ 3,510,725 $ 1,714,183
Cost of revenues1,559,275 1,290,872
Gross profit1,951,450 423,311
Operating Expenses:
General and administrative2,035,552 889,254
Sales and marketing1,164,791 883,027
Research and development479,996 225,087
Total operating expenses3,680,339 1,997,368
Operating loss(1,728,889)(1,574,057)
Other (income) expense :
Interest expense810 161,773
Other (income) expense(32,101)31,201
Total other (income) expense(31,291)192,974
Net loss $ (1,697,598) $ (1,767,031)
Weighted average shares outstanding - basic and diluted11,883,460 5,252,953
Weighted average net loss per share - basic and diluted $ (0.14) $ (0.34)

Statement of Changes in Stockho

Statement of Changes in Stockholders’ Equity (Unaudited) - USD ($)Preferred StockCommon StockAdditional Paid-in CapitalSubscription Receivable - Related PartiesAccumulated DeficitTotal
Balance at Dec. 31, 2017 $ 1,591,886 $ 52 $ 2,553,672 $ (140,087) $ (5,252,854) $ (1,247,331)
Balance, shares at Dec. 31, 20172,429,638 5,252,953
Stock option compensation 48,917 $ 48,917
Stock compensation on forfeitable restricted common stock 161,458 161,458
Interest on subscription receivable 347 (347)
Net loss(1,767,031)(1,767,031)
Balance at Mar. 31, 2018 $ 1,591,886 $ 52 2,764,394 (140,434)(7,019,885)(2,803,987)
Balance, shares at Mar. 31, 20182,429,638 5,252,953
Balance at Dec. 31, 2018 $ 117 21,857,017 (7,447)(16,496,757)5,352,930
Balance, shares at Dec. 31, 2018 11,708,041
Stock option compensation219,710 253,681
Restricted stock unit compensation34,511 34,511
Warrants exercised $ 3 873,400 873,403
Warrants exercised, shares274,224
Stock options exercised 52,500 52,500
Stock options exercised, shares30,000
Shares issued for services 27,500 27,500
Shares issued for services, shares10,000
Warrants exercised – cashless $ 2 (2)
Warrants exercised – cashless, shares 169,243
Net loss(1,697,598)(1,697,598)
Balance at Mar. 31, 2019 $ 122 $ 23,064,096 $ (7,447) $ (18,194,355) $ 4,862,416
Balance, shares at Mar. 31, 2019 12,191,508

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,697,598) $ (1,767,031)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization12,930 143
Amortization of debt discount 103,453
Stock-based compensation281,181 210,375
Changes in operating assets and liabilities:
Accounts receivable9,150 8,800
Deferred expense2,641 (11,894)
Other current assets(34,618)
Accounts payable180,363 (344,604)
Accrued liabilities(138,832)135,062
Insurance Reserve22,019
Deferred revenues18,111 20,006
Settlement paid (18,333)
Net cash used in operating activities(1,344,653)(1,664,023)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment(2,249)(3,720)
Deposits and other(5,000)(9,540)
Net cash used in investing activities(7,249)(13,260)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants873,403
Proceeds from stock options52,500
Proceeds from convertible debt 2,318,579
Offering costs (45,121)
Net cash provided by financing activities925,903 2,273,458
Increase (decrease) in cash and cash equivalents(425,999)596,175
Cash and cash equivalents, beginning of period6,764,870 213,944
Cash and cash equivalents, end of period6,338,871 810,119
Supplemental disclosures of cash flow information:
Cash paid for interest810 3,125
Cash paid for income taxes 800
Non cash investing and financing activities:
Interest on subscription receivable – related party $ 347

Nature of Operations

Nature of Operations3 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONSNOTE 1 – NATURE OF OPERATIONS HyreCar Inc. (which may
be referred to as “HyreCar,” the “Company,” “we,” “us” or “our”) was
incorporated on November 24, 2014 (“Inception”) in the State of Delaware. The Company’s headquarters is located
in Los Angeles, California. The Company operates a web-based marketplace that allows car and fleet owners to rent their
idle cars to Uber and Lyft drivers safely, securely and reliably. The financial statements of HyreCar Inc. are prepared in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Initial Public Offering On June 29, 2018, the Company closed its initial public offering (“IPO”), in which the Company
issued and sold 2,520,000 shares of common stock at $5.00 per share for gross proceeds of $12,600,000,
before deducting underwriters’ discounts and commissions totaling $1,260,000. Accordingly, net proceeds from the IPO totaled
$11,340,000, before deducting offering costs of $569,665. In connection with the
closing of the Company’s IPO, all outstanding shares of convertible preferred stock were converted into 2,429,638 shares
of common stock.

Summary of Significant Accounti

Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESNOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES Basis of Presentation
– Unaudited Interim Financial Information The unaudited interim
financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) for interim financial information, within the rules and regulations of the United
States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the
annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and
in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair
presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance
sheet. The financial data and the other information disclosed in these notes to the interim financial statements related to the
three-month periods are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal
year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company
for the year ended December 31, 2018 and notes thereto that are included in the Company’s Annual Report on Form 10-K. Management’s
Plans We have incurred operating
losses since Inception and historically relied on debt and equity financing for working capital. Throughout the next 12 months,
the Company intends to fund its operations through increased revenue from operations and the remaining capital raised through the
IPO. Based on increasing revenue and margin in the normal course of business, our current capital and the ability to reduce expense
levels if needed, we believe the doubt regarding the Company’s ability to continue as a going concern has been alleviated. Use of Estimates The preparation of financial
statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities, and the reported amount of revenues and expenses during the reporting period. Actual results
could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term. The Company’s most
significant estimates and judgments involve recognition of revenue, calculating insurance reserves, the measurement of the Company’s
stock-based compensation, including the estimation of the underlying deemed fair value of common stock in periods prior to the
date of the Company’s IPO, the estimation of the fair value of market-based awards, the valuation of warrants, allowance
for doubtful accounts, estimates for future contingent customer incentive obligations, and the fair value of financial instruments. Fair Value of Financial
Instruments Fair value is defined
as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date.
Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use
of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market
data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions
about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may
be used to measure fair value:
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.
Level 3 - Unobservable inputs which are supported by little or no market activity. The
fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. Fair-value
estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March
31, 2019 and December 31, 2018. The respective carrying value of certain on-balance-sheet financial instruments approximated their
fair values. These financial instruments include cash and cash equivalents, accounts payable, and accrued liabilities. Fair values
for these items were assumed to approximate carrying values because of their short-term nature or they are payable on demand. Cash and Cash Equivalents For purpose of the statement
of cash flows, the Company considers institutional money market funds and all highly liquid debt instruments purchased with an
original maturity of three months or less to be cash equivalents. Insurance Reserve The Company records a loss reserve for insurance deductible or damage that the Company pays to car owners
based on the Company’s policy in relation to the insurance policy in effect at the time. This reserve represents an estimate
for both reported accidents claims not yet paid, and claims incurred but not yet reported and are recorded on a non-discounted
basis. The lag time in reported claims is minimal and as such represents a low risk of unreported claims being excluded from the
loss reserve assessment. The adequacy of the reserve is monitored quarterly and is subject to adjustment in the future based
upon changes in claims experience, including the number of incidents for which the Company is ultimately responsible and changes
in the cost per claim, or changes to the Company’s policy as to what amounts of the deductible or claim will be paid by the
Company. As of March 31 Liability insurance claims
may take several years to completely settle, and the Company has limited historical loss experience. Because of the limited operational
history, the Company makes certain assumptions based on currently available information to estimate the reserves as well as third
party claims adjuster data provided on existing claims. A number of factors can affect the actual cost of a claim, including the
length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore,
claims may emerge in future periods for events that occurred in a prior period that differs from expectations. Accordingly, actual
losses may vary significantly from the estimated amounts reported in the financial statements. Reserves are continually reviewed
and adjusted as necessary as experience develops or new information becomes known. However, ultimate results may differ from the
Company’s estimates, which could result in losses over the Company’s reserved amounts. Such adjustments are recorded
in general and administrative expenses. Revenue Recognition The Company generates the majority of its revenue
from its ridesharing marketplace that connects vehicle owners and drivers and the related insurance issued for each rental. The Company also recognizes
revenue from other sources such as referrals, motor vehicle record fees (application fees), late rental fees, and other fees charged
to drivers in specific situations. The Company has adopted
Accounting Standards Codification Topic 606 (“ASC 606”) – Revenue from Contracts with Customers, as of January
1, 2019 using the modified retrospective method. The adoption of ASC 606 did not materially impact the way the Company recognizes
revenue. In applying the guidance
of ASC 606, the Company 1) identifies the contract with the customer 2) identifies the performance obligations in the contract
3) determines the transaction price, 4) determines if an allocation of that transaction price is required to the performance obligations
in the contract, and 5) recognizes revenue when or as the companies satisfies a performance obligation. Refunds may occur
when the driver returns the owner vehicle early based on the terms of the original contract. In limited circumstances, the
Company provides contingent consideration in the form of a rebate that is redeemable only if the customer completes a specific
level of transaction over a specific time period. In such cases, the rebate or refund obligation is recognized as a reduction of
revenues. The Company defers revenue in all instances when the earnings process is not yet complete. The following
is a breakout of revenue components by subcategory for the three-months ended March 31, 2019 and 2018.
2019 2018
Insurance and administration fees $ 1,766,702 $ 957,167
Transaction fees 1,259,291 694,938
Other fees 627,292 150,351
Incentives and rebates (142,560 ) (88,263 )
Net revenue $ 3,510,725 $ 1,714,193 Principal Agent Considerations The Company evaluates
our service offerings to determine if we are acting as the principal or as an agent, which we consider in determining if revenue
should be reported gross or net. One of our primary revenue sources is a transaction fee made from a confirmed booking of a vehicle
on our platform. Key indicators that we evaluate to reach this determination include:
● the terms and conditions of our contracts;
● whether we are paid a fixed percentage of the arrangement’s consideration or a fixed fee for each transaction;
● the party which sets the pricing with the end-user, has the credit risk and provides customer support; and
● the party responsible for delivery/fulfillment of the product or service to the end consumer. We have determined we
act as the agent in the transaction for vehicle bookings, as we are not the primary obligor of the arrangement and receive a fixed
percentage of the transaction. Therefore, revenue is recognized on a net basis. For other fees such as
insurance, referrals, and motor vehicle records (application fees) we have determined revenue should be recorded on a gross basis.
In such arrangements, the Company sets pricing, has risk of economic loss, has certain credit risk, provides support services related
to these transactions, and has decision making ability about service providers used. Cost of Revenues Cost of revenues primarily
include direct fees paid for driver insurance premiums, merchant processing fees, and motor vehicle record fees incurred for paid
driver applications. Advertising The Company expenses the
cost of advertising and promotions as incurred. Advertising expense was $335,396 and $407,538 for the years ended March, 2019 and
2018, respectively. Research and Development We incur research and
development costs during the process of researching and developing our technologies and future offerings. Our research and development
costs consist primarily of non-capitalized development and maintenance costs. We expense these costs as incurred unless such costs
qualify for capitalization under applicable guidance. Stock-Based Compensation The Company accounts
for stock options issued under ASC 718, Compensation – Stock Compensation. Under ASC 718, stock-based compensation cost is
measured at the grant date, based on the estimated fair value of the award. Stock-based compensation is recognized as expense over
the employee’s requisite vesting period and over the nonemployee’s period of providing goods or services. The fair
value of each stock option or warrant award is estimated on the date of grant using the Black-Scholes option valuation model. Stock-based compensation is included in operating
expenses in the statements of operations as follows:
Three months ended Three months ended
General and administrative $ 169,238 $ 182,071
Sales and marketing 99,479 21,711
Research and development $ 12,464 $ 6,593 Loss per Common Share The Company presents
basic loss per share (“EPS”) and diluted EPS on the face of the statements of operations. Basic loss per share is
computed as net loss divided by the weighted average number of common shares outstanding for the period. For periods in which
we incur a net loss, the effects of potentially dilutive securities would be antidilutive and would be excluded from diluted EPS
calculations. For the three months ended March 31, 2019 and 2018, there were 2,888,883 and 1,315,490 options or warrants excluded,
respectively. As of March 31, 2019, there were 138,800 restricted stock units subject to vesting and 400,000 forfeitable restricted
stock shares that vest upon achieving specific performance and strategic milestones, excluded as the effects would be anti-dilutive.
As of March 31, 2018, there were 2,429,638 shares of preferred stock convertible into common stock and 264,285 of unvested forfeitable
restricted shares common stock not considered outstanding as the effects would be anti-dilutive. Concentration of Credit
Risk The Company maintains
its cash with a major financial institution located in the United States of America which it believes to be credit worthy. Balances
are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company maintains balances in
excess of the federally insured limits. Other Concentrations The Company relies on
one insurance agency to provide all insurance on vehicles in service. The loss of this insurance carrier would have a negative
effect on our operations. The
Company has one major customer, Lyft, that accounted for $385,386 and $88,830 of sales for the three month’s ended
March 31, 2019 and March 31, 2018 respectively, and accounted for all accounts receivable as of March 31, 2019 and 2018. The
Company believes the loss of this customer would not have a negative impact on our operations New Accounting Standards In June 2018, the
Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation
– Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of current stock
compensation recognition standards to include share-based payment transactions for acquiring goods or services from nonemployees.
The Company adopted ASU 2018-07 on January 1, 2019 and the adoption did not have a material impact on its consolidated financial
statements. In January 2017, the FASB
issued ASU No. 2017-04, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the subsequent
measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments also eliminate the requirements
for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative
test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for
a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for the annual or any
interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or
annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company reviewed the provisions of the new
standard, but believes it is not applicable to the Company. In February 2016,
the FASB issued ASU No. 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements
in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report
useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease.
Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of
twelve months or less. Lessors’ accounting is largely unchanged from the previous accounting standard. In addition, Topic
842 expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition
approach, which includes several practical expedients. This guidance is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2019 due to our status as an emerging growth company, with early adoption permitted.
The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has
issued subsequent amendments to this guidance. This new standard will replace all current guidance on this topic and eliminate
all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue
is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods
or services. The guidance is effective for interim and annual periods beginning after December 15, 2017 for public business entities
and December 15, 2018 for all other entities. The standard may be applied either retrospectively to each period presented or as
a cumulative-effect adjustment as of the date of adoption. The Company has adopted ASC 606 as of January 1, 2019 using the modified
retrospective method and based on our analysis did not have a material effect on revenue recognition. The FASB issues ASUs to
amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original
text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to us or (iv) are not expected to have a significant impact our financial statements.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIESNOTE 3 – COMMITMENTS
AND CONTINGENCIES Settlement and Legal In September 2015, two former founders (the “Claimant
Founders”) made an arbitration claim against the Company for alleged violations of an agreement among the founders of the
Company (the “Founders’ Agreement”). The Claimant Founders and the Company arbitrated the dispute but,
prior to the arbitrator rendering a decision, the Company and the Claimant Founders settled the dispute without any party admitting
liability or fault. Under the terms of the April 25, 2016 settlement (the “Settlement Agreement”), each of the
Claimant Founders would maintain 190,177 shares of their common stock restricted per the Founders’ Agreement and with certain
additional restrictions. Additionally, the Claimant Founders agreed to remit the remaining balance of stock previously held by
them back to the Company. The Settlement Agreement provided that the Claimant Founders’ stock ownership would be diluted
upon subsequent money raises, stock option offerings, and stock option vesting, however, any dilution would remain consistent and
proportional to the remaining founders’ dilution ratios. The claimants also received a total of $110,000 paid out over
eighteen (18) months starting on November 1, 2016. The remaining balance of $24,444 owed as of December 31, 2017 to the Claimant
Founders under the Settlement Agreement was paid in 2018 and no additional monies are now due under the Settlement Agreement. Thereafter, on November 13, 2018, the same two
Claimant Founders, initiated two lawsuits in the Superior Court of California, County of San Francisco, entitled Nathaniel Farber
v. HyreCar Inc. Josiah Larkin v. HyreCar Inc. The Company is
involved in claims and litigation from time to time in the normal course of business. At March 31, 2019, the Company believes there
are no pending matters, except as noted above, that could be expected to have a material adverse effect on the business of the
Company, its financial condition, results of operations or cash flows. Other In November 2017, the
Company entered into a lease in Los Angeles, California commencing April 1, 2018, with the ability to occupy the facility in January
2018. The lease term is 39 months from the commencement date. Annual base rent is as follows: 2019 - $342,480, 2020 - $356,145,
2021 - $183,489, respectively. The lease required a deposit of $90,000. Per the lease agreement, the monthly rate will range from
$27,708 to $31,167 a month.

Debt and Liabilities

Debt and Liabilities3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT AND LIABILITIESNOTE 4 – DEBT AND LIABILITIES Accrued
Liabilities A summary of accrued liabilities for the years
ended March 31, 2019 and December 31, 2018 is as follows:
2019 2018
Accrued payables $ 251,470 $ 452,307
Driver deposit 240,021 192,769
Deferred rent 71,574 73,886
Payroll liabilities 6,662 3,154
Other accrued liabilities 67,298 53,741
Accrued liabilities $ 637,025 $ 775,857 2018
Convertible Notes and Warrants During the first and second quarter of
2018, pursuant to a securities purchase agreement, the Company issued and sold senior secured convertible promissory notes (the
“2018 Convertible Notes”) to accredited investors in the aggregate principal amount of $3,046,281. Gross principal
amounts were net of $267,702 withheld, resulting in for net proceeds to the Company of $2,778,579. The Company incurred additional
offering costs of $67,882 for a total debt discount of $335,584, which was fully amortized by the IPO date. The 2018 Convertible
Notes bore interest at the rate of 13% per annum and were due eight months from the original issue date, which ranged from September
to December 2018 (the “Maturity Dates”). The 2018 Convertible Notes provided that the principal and all accrued and
unpaid interest on the 2018 Convertible Notes were convertible into shares of common stock at a conversion rate equal to the lesser
of $2.5480 per share or seventy percent (70%) of the IPO price per share. Upon pricing the IPO, at the option of the holders, all
outstanding principal plus accrued interest underlying the 2018 Convertible Notes was converted into 1,231,165 shares of common
stock at a conversion rate of $2.5480. In
connection with the issuance of the 2018 Convertible Notes, each holder also received contingent five-year warrants to purchase
common stock in an amount equal to 50% of the shares of common stock that the holder was entitled to in connection with the conversion
of the holder’s 2018 Convertible Note when such note first became convertible, which was at the time the IPO was priced.
Prior to the 2018 Convertible Note being convertible, the holder did not have a right to exercise these warrants. At the IPO pricing
date, 615,585 warrants to purchase common stock became exercisable upon the conversion of the outstanding balance of the 2018
Convertible Notes, including accrued interest. The warrants have an exercise price of 125% of the conversion price, or $3.185.
The Company calculated the fair value of the warrants at $1,741,334 using a Black-Scholes pricing model. The Company valued the
warrants at $2.8288 per warrant using a common stock fair value of $5.00, a term of five years, a volatility of 45% and a risk-free
interest rate of 2.75%. The Company allocated the debt proceeds on a relative fair value basis between the note and warrant, in
which the Company recognized a note discount for $1,107,982. This was immediately recognized in interest expense as of the note
conversion date.

Stockholders' Deficit

Stockholders' Deficit3 Months Ended
Mar. 31, 2019
Equity [Abstract]
STOCKHOLDERS' DEFICITNOTE 5 – STOCKHOLDERS’
DEFICIT Preferred Stock The Company is authorized
to issue 15,000,000 shares of preferred stock, $0.00001 par value per share. Of these, the Company designated 4,471,489 shares
as Series Seed 1 Convertible Preferred Stock (“Series Seed 1”). Each share of Series Seed 1 shall be entitled to cast
the number of votes equal to the number of whole shares of common stock into which the shares of Series Seed 1 held are convertible
as of the record date. Series Seed 1 and common stock vote together as a single class, except as provided by law or by other provisions
of the certificate of incorporation. As described in Note 1,
on June 29, 2018, at the closing of the IPO, 2,429,638 shares of outstanding Series Seed 1 Convertible Preferred Stock automatically
converted into 2,429,638 shares of common stock. Common Stock The Company is authorized
to issue 50,000,000 shares of common stock, $0.00001 par value per share. Stock Options In 2016, the Board of Directors adopted the HyreCar
Inc. 2016 Incentive Plan (the “2016 Plan”). The 2016 Plan provides for the grant of equity awards to highly qualified
personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares
of common stock. Up to 2,227,777 shares of common stock may be issued pursuant to awards granted under the 2016 Plan. The 2016
Plan is administered by the Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board. In 2018,
the Board of Directors adopted the HyreCar Inc. 2018 Incentive Plan (the “2018 Plan”). The 2018 Plan provides for the
grant of equity awards to purchase shares of common stock. Up to 3,000,000 shares of common stock may be issued pursuant to awards
granted under the 2018 Plan, subject to increases that occur starting in 2021. The 2018 Plan is administered by the Board of Directors,
and expires ten years after adoption, unless terminated earlier by the Board. During the three months ended March 31, 2019
and 2018, the board of directors approved the grant of 975,000 and 0 stock options to various contractors and employees, respectively.
The 2019 granted options had an exercise prices ranging from $3.20, expire in ten years, and vest over four years. The total grant
date fair value of these options was approximately $1,762,180 for the three months ended March 31, 2019. The Company
used the Black-Scholes option mode to value stock option awards with inputs noted below. Stock-based compensation expense for stock
options for the three months ended March 31, 2019 and 2018 was and $219,170 and $48,917, respectively. The Company estimates the fair value of
stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. The range of input
assumptions used by the Company, including those used to reevaluate contractor options during the three months ended March 31,
2018, were as follows:
Three Months Ended
March 31, 2019 March 31, 2018
Expected volatility 45% 45%
Risk-free interest rate 2.61% 2.56%
Expected life in years 6.25 5.25 – 6.00
Expected dividend yield 0% 0% Shares Issued for Services, Restricted Shares and Restricted
Stock Units During the three months ended March 31, 2019,
the Company granted 10,000 shares of common stock to one consultant for services based on agreement entered into in
January 2019. The Company valued the shares based on the closing price of the Company’s common stock on the date of the agreement
and recognized $27,500 in stock-based compensation. Included in the agreement were 400,000 forfeitable restricted stock shares
that vest upon achieving specific performance and strategic milestones. Currently, it is not probable the performance and strategic
targets will be achieved. During the three months ended March 31, 2019,
the company granted 140,000 restricted stock units to employees of the Company that generally vest between one and four years. Stock-based compensation related to restricted
shares and restricted stock units was of $34,511 and $161,458 during the three months ended March 31, 2019 and 2018, respectively.
Unrecognized compensation expense related to the unvested restricted stock units described above is approximately $532,000 as
of March 31, 2019 and is expected to be recognized over approximately 2.9 years. During the three months ended March 31, 2019,
1,200 restricted stock units were forfeited. Warrants During March 2019
several of warrant holders exercised 274,224 warrants received with the 2018 Convertible Notes (Note 4). Total proceeds from the
exercise of warrants was $873,403. During the three months
ended March 31, 2019 several of warrant holders exercised 461,294 warrants in cashless exercises, which resulted in the issuance of 169,243
shares of common stock.

Related Party Transactions

Related Party Transactions3 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONSNOTE 6 – RELATED
PARTY TRANSACTIONS Related Party Advances From time to time prior to 2017, the Company received
advances from related parties for short-term working capital. Such advances are considered short-term and non-interest bearing
and due on demand. As of March 31, 2019 and December 31, 2018 $9,629, remained outstanding. Insurance The president
of the Company’s primary insurance broker, providing gap coverage for vehicles on the platform, when existing policy coverage
is not applicable, is also a minority stockholder and holder of 2017 Notes with related warrants. As of March 31, 2019 and December
31, 2018, the Company had outstanding balances to the insurer totaling $196,515 and $275,290, included in accounts payable, respectively.
During the three months ended March 31, 2019 and the year ended December 31, 2018 and 2017, the Company paid the insurer approximately
$1,347,000 and $1,411,000, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation – Unaudited Interim Financial InformationBasis of Presentation
– Unaudited Interim Financial Information The unaudited interim
financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United
States of America (“U.S. GAAP”) for interim financial information, within the rules and regulations of the United
States Securities and Exchange Commission (the “SEC”). Certain information and disclosures normally included in the
annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.
The unaudited interim financial statements have been prepared on a basis consistent with the audited financial statements and
in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair
presentation of the results for the interim periods presented and of the financial condition as of the date of the interim balance
sheet. The financial data and the other information disclosed in these notes to the interim financial statements related to the
three month periods are unaudited. Unaudited interim results are not necessarily indicative of the results for the full fiscal
year. These unaudited interim financial statements should be read in conjunction with the financial statements of the Company
for the year ended December 31, 2018 and notes thereto that are included in the Company’s Annual Report on Form 10-K.
Management's PlansManagement’s
Plans We have incurred operating
losses since Inception and historically relied on debt and equity financing for working capital. Throughout the next 12 months,
the Company intends to fund its operations through increased revenue from operations and the remaining capital raised through the
IPO. Based on increasing revenue and margin in the normal course of business, our current capital and the ability to reduce expense
levels if needed, we believe the doubt regarding the Company’s ability to continue as a going concern has been alleviated.
Use of EstimatesUse of Estimates The preparation of financial
statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported
amounts of assets and liabilities, and the reported amount of revenues and expenses during the reporting period. Actual results
could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term. The Company’s most
significant estimates and judgments involve recognition of revenue, calculating insurance reserves, the measurement of the Company’s
stock-based compensation, including the estimation of the underlying deemed fair value of common stock in periods prior to the
date of the Company’s IPO, the estimation of the fair value of market-based awards, the valuation of warrants, allowance
for doubtful accounts, estimates for future contingent customer incentive obligations, and the fair value of financial instruments.
Fair Value of Financial InstrumentsFair Value of Financial
Instruments Fair value is defined
as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date.
Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use
of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market
data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions
about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may
be used to measure fair value:
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.
Level 3 - Unobservable inputs which are supported by little or no market activity. The
fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. Fair-value
estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March
31, 2019 and December 31, 2018. The respective carrying value of certain on-balance-sheet financial instruments approximated their
fair values. These financial instruments include cash and cash equivalents, accounts payable, and accrued liabilities. Fair values
for these items were assumed to approximate carrying values because of their short-term nature or they are payable on demand.
Cash and Cash EquivalentsCash and Cash Equivalents For purpose of the statement
of cash flows, the Company considers institutional money market funds and all highly liquid debt instruments purchased with an
original maturity of three months or less to be cash equivalents.
Insurance ReserveInsurance Reserve The Company records a loss reserve for insurance deductible or damage that the Company pays to car owners
based on the Company’s policy in relation to the insurance policy in effect at the time. This reserve represents an estimate
for both reported accidents claims not yet paid, and claims incurred but not yet reported and are recorded on a non-discounted
basis. The lag time in reported claims is minimal and as such represents a low risk of unreported claims being excluded from the
loss reserve assessment. The adequacy of the reserve is monitored quarterly and is subject to adjustment in the future based
upon changes in claims experience, including the number of incidents for which the Company is ultimately responsible and changes
in the cost per claim, or changes to the Company’s policy as to what amounts of the deductible or claim will be paid by the
Company. As of March 31 Liability insurance claims
may take several years to completely settle, and the Company has limited historical loss experience. Because of the limited operational
history, the Company makes certain assumptions based on currently available information to estimate the reserves as well as third
party claims adjuster data provided on existing claims. A number of factors can affect the actual cost of a claim, including the
length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore,
claims may emerge in future periods for events that occurred in a prior period that differs from expectations. Accordingly, actual
losses may vary significantly from the estimated amounts reported in the financial statements. Reserves are continually reviewed
and adjusted as necessary as experience develops or new information becomes known. However, ultimate results may differ from the
Company’s estimates, which could result in losses over the Company’s reserved amounts. Such adjustments are recorded
in general and administrative expenses.
Revenue RecognitionRevenue Recognition The Company generates the majority of its revenue
from its ridesharing marketplace that connects vehicle owners and drivers and the related insurance issued for each rental. The Company also recognizes
revenue from other sources such as referrals, motor vehicle record fees (application fees), late rental fees, and other fees charged
to drivers in specific situations. The Company has adopted
Accounting Standards Codification Topic 606 (“ASC 606”) – Revenue from Contracts with Customers, as of January
1, 2019 using the modified retrospective method. The adoption of ASC 606 did not materially impact the way the Company recognizes
revenue. In applying the guidance
of ASC 606, the Company 1) identifies the contract with the customer 2) identifies the performance obligations in the contract
3) determines the transaction price, 4) determines if an allocation of that transaction price is required to the performance obligations
in the contract, and 5) recognizes revenue when or as the companies satisfies a performance obligation. Refunds may occur
when the driver returns the owner vehicle early based on the terms of the original contract. In limited circumstances, the
Company provides contingent consideration in the form of a rebate that is redeemable only if the customer completes a specific
level of transaction over a specific time period. In such cases, the rebate or refund obligation is recognized as a reduction of
revenues. The Company defers revenue in all instances when the earnings process is not yet complete. The following
is a breakout of revenue components by subcategory for the three-months ended March 31, 2019 and 2018.
2019 2018
Insurance and administration fees $ 1,766,702 $ 957,167
Transaction fees 1,259,291 694,938
Other fees 627,292 150,351
Incentives and rebates (142,560 ) (88,263 )
Net revenue $ 3,510,725 $ 1,714,193
Principal Agent ConsiderationsPrincipal Agent Considerations The Company evaluates
our service offerings to determine if we are acting as the principal or as an agent, which we consider in determining if revenue
should be reported gross or net. One of our primary revenue sources is a transaction fee made from a confirmed booking of a vehicle
on our platform. Key indicators that we evaluate to reach this determination include:
● the terms and conditions of our contracts;
● whether we are paid a fixed percentage of the arrangement’s consideration or a fixed fee for each transaction;
● the party which sets the pricing with the end-user, has the credit risk and provides customer support; and
● the party responsible for delivery/fulfillment of the product or service to the end consumer. We have determined we
act as the agent in the transaction for vehicle bookings, as we are not the primary obligor of the arrangement and receive a fixed
percentage of the transaction. Therefore, revenue is recognized on a net basis. For other fees such as
insurance, referrals, and motor vehicle records (application fees) we have determined revenue should be recorded on a gross basis.
In such arrangements, the Company sets pricing, has risk of economic loss, has certain credit risk, provides support services related
to these transactions, and has decision making ability about service providers used.
Cost of RevenuesCost of Revenues Cost of revenues primarily
include direct fees paid for driver insurance premiums, merchant processing fees, and motor vehicle record fees incurred for paid
driver applications.
AdvertisingAdvertising The Company expenses the
cost of advertising and promotions as incurred. Advertising expense was $335,396 and $407,538 for the years ended March, 2019 and
2018, respectively.
Research and DevelopmentResearch and Development We incur research and
development costs during the process of researching and developing our technologies and future offerings. Our research and development
costs consist primarily of non-capitalized development and maintenance costs. We expense these costs as incurred unless such costs
qualify for capitalization under applicable guidance.
Stock-Based CompensationStock-Based Compensation The Company accounts
for stock options issued under ASC 718, Compensation – Stock Compensation. Under ASC 718, stock-based compensation cost is
measured at the grant date, based on the estimated fair value of the award. Stock-based compensation is recognized as expense over
the employee’s requisite vesting period and over the nonemployee’s period of providing goods or services. The fair
value of each stock option or warrant award is estimated on the date of grant using the Black-Scholes option valuation model. Stock-based compensation is included in operating
expenses in the statements of operations as follows:
Three months ended Three months ended
General and administrative $ 169,238 $ 182,071
Sales and marketing 99,479 21,711
Research and development $ 12,464 $ 6,593
Loss per Common ShareLoss per Common Share The Company presents
basic loss per share (“EPS”) and diluted EPS on the face of the statements of operations. Basic loss per share is
computed as net loss divided by the weighted average number of common shares outstanding for the period. For periods in which
we incur a net loss, the effects of potentially dilutive securities would be antidilutive and would be excluded from diluted EPS
calculations. For the three months ended March 31, 2019 and 2018, there were 2,888,883 and 1,315,490 options or warrants excluded,
respectively. As of March 31, 2019, there were 138,800 restricted stock units subject to vesting and 400,000 forfeitable restricted
stock shares that vest upon achieving specific performance and strategic milestones, excluded as the effects would be anti-dilutive.
As of March 31, 2018, there were 2,429,638 shares of preferred stock convertible into common stock and 264,285 of unvested forfeitable
restricted shares common stock not considered outstanding as the effects would be anti-dilutive.
Concentration of Credit RiskConcentration of Credit
Risk The Company maintains
its cash with a major financial institution located in the United States of America which it believes to be credit worthy. Balances
are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company maintains balances in
excess of the federally insured limits.
Other ConcentrationsOther Concentrations The Company relies on
one insurance agency to provide all insurance on vehicles in service. The loss of this insurance carrier would have a negative
effect on our operations. The
Company has one major customer, Lyft, that accounted for $385,386 and $88,830 of sales for the three month’s ended
March 31, 2019 and March 31, 2018 respectively, and accounted for all accounts receivable as of March 31, 2019 and 2018. The
Company believes the loss of this customer would not have a negative impact on our operations
New Accounting StandardsNew Accounting Standards In June 2018, the
Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, Compensation
– Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of current stock
compensation recognition standards to include share-based payment transactions for acquiring goods or services from nonemployees.
The Company adopted ASU 2018-07 on January 1, 2019 and the adoption did not have a material impact on its consolidated financial
statements. In January 2017, the FASB
issued ASU No. 2017-04, Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the subsequent
measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments also eliminate the requirements
for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative
test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for
a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for the annual or any
interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or
annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company reviewed the provisions of the new
standard, but believes it is not applicable to the Company. In February 2016,
the FASB issued ASU No. 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements
in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report
useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease.
Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of
twelve months or less. Lessors’ accounting is largely unchanged from the previous accounting standard. In addition, Topic
842 expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition
approach, which includes several practical expedients. This guidance is effective for fiscal years, and interim periods within
those fiscal years, beginning after December 15, 2019 due to our status as an emerging growth company, with early adoption permitted.
The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and has
issued subsequent amendments to this guidance. This new standard will replace all current guidance on this topic and eliminate
all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue
is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods
or services. The guidance is effective for interim and annual periods beginning after December 15, 2017 for public business entities
and December 15, 2018 for all other entities. The standard may be applied either retrospectively to each period presented or as
a cumulative-effect adjustment as of the date of adoption. The Company has adopted ASC 606 as of January 1, 2019 using the modified
retrospective method and based on our analysis did not have a material effect on revenue recognition. The FASB issues ASUs to
amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original
text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections,
(iii) are not applicable to us or (iv) are not expected to have a significant impact our financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of revenue by subcategory2019 2018
Insurance and administration fees $ 1,766,702 $ 957,167
Transaction fees 1,259,291 694,938
Other fees 627,292 150,351
Incentives and rebates (142,560 ) (88,263 )
Net revenue $ 3,510,725 $ 1,714,193
Schedule of stock-based compensationThree months ended Three months ended
General and administrative $ 169,238 $ 182,071
Sales and marketing 99,479 21,711
Research and development $ 12,464 $ 6,593

Debt and Liabilities (Tables)

Debt and Liabilities (Tables)3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]
Summary of accrued liabilities2019 2018
Accrued payables $ 251,470 $ 452,307
Driver deposit 240,021 192,769
Deferred rent 71,574 73,886
Payroll liabilities 6,662 3,154
Other accrued liabilities 67,298 53,741
Accrued liabilities $ 637,025 $ 775,857

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)3 Months Ended
Mar. 31, 2019
Equity [Abstract]
Schedule of Black Scholes pricing model with range of inputsThree Months Ended
March 31, 2019 March 31, 2018
Expected volatility 45% 45%
Risk-free interest rate 2.61% 2.56%
Expected life in years 6.25 5.25 – 6.00
Expected dividend yield 0% 0%

Nature of Operations (Details)

Nature of Operations (Details) - USD ($)1 Months Ended
Jun. 29, 2018Mar. 31, 2018
Nature of Operations (Textual)
Convertible preferred stock2,429,638
Initial Public Offering [Member]
Nature of Operations (Textual)
Issued of shares of common stock2,520,000
Sale of stock price $ 5
Offering costs $ 569,665
Convertible preferred stock2,429,638
Proceeds from the IPO $ 11,340,000
Aggregate proceeds of underwriters'12,600,000
Underwriters' discounts and commissions $ 1,260,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Accounting Policies [Abstract]
Insurance and administration fees $ 1,766,702 $ 957,167
Transaction fees1,259,291 694,938
Other fees627,292 150,351
Incentives and rebates(142,560)(88,263)
Net revenue $ 3,510,725 $ 1,714,193

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 2) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018
General and administrative [Member]
Stock-based compensation $ 169,238 $ 182,071
Sales and marketing [Member]
Stock-based compensation99,479 21,711
Research and development [Member]
Stock-based compensation $ 12,464 $ 6,593

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details Textual) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018
Summary of Significant Accounting Policies (Textual)
Antidiluted securities2,888,883 1,315,490
Accrued liabilities related to self-insurance reserves $ 370,461 $ 348,442
Advertising expense335,396 $ 407,538
Unvested forfeitable restricted shares common stock264,285
Sales $ 3,510,725 $ 1,714,183
Restricted stock vesting138,800
Preferred stock convertible into common stock2,429,638
Forfeitable restricted stock400,000
One major customer [Member]
Summary of Significant Accounting Policies (Textual)
Sales $ 385,386 $ 88,830

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)Apr. 25, 2016Nov. 30, 2017Dec. 31, 2018Nov. 01, 2016
Commitments and Contingencies (Textual)
Loss contingency, settlement shares190,177
Loss contingency receivable $ 24,444 $ 110,000
Lease term39 months
Annual base rent 2019 $ 342,480
Annual base rent 2020356,145
Annual base rent 2021183,489
Lease deposit90,000
Minimum [Member]
Commitments and Contingencies (Textual)
Monthly rate rent27,708
Maximum [Member]
Commitments and Contingencies (Textual)
Monthly rate rent $ 31,167

Debt and Liabilities (Details)

Debt and Liabilities (Details) - USD ($)Mar. 31, 2019Mar. 31, 2018
Debt Disclosure [Abstract]
Accrued payable $ 251,470 $ 452,307
Driver deposit240,021 192,769
Deferred rent71,574 73,886
Payroll liabilities6,662 3,154
Other accrued liabilities67,298 53,741
Accrued liabilities $ 637,025 $ 775,857

Debt and Liabilities (Details T

Debt and Liabilities (Details Textual) - USD ($)3 Months Ended
Mar. 31, 2019Jun. 30, 2018Mar. 31, 2018Dec. 31, 2018
Debt and Liabilities (Textual)
Accreted discount to interest expense $ 103,453
Net proceeds $ 2,318,579
Additional offering costs
2018 Convertible Notes and Warrants [Member]
Debt and Liabilities (Textual)
Percentage of convertible debt bore interest rate13.00%13.00%
Warrants to purchase of common stock873,403
Debt instrument accreted amount $ 335,584 $ 335,584
Aggregate principal amount3,046,281 3,046,281
Net proceeds2,778,579 2,778,579
Gross principal amount267,702 267,702
Additional offering costs $ 67,882 $ 67,882
Conversion of bridge notes, descriptionThe 2018 Convertible Notes, each holder also received contingent five-year warrants to purchase common stock in an amount equal to 50% of the shares of common stock that the holder was entitled to in connection with the conversion of the holder's 2018 Convertible Note when such note first became convertible, which was at the time the IPO was priced. Prior to the 2018 Convertible Note being convertible, the holder did not have a right to exercise these warrants. At the IPO pricing date, 615,585 warrants to purchase common stock became exercisable upon the conversion of the outstanding balance of the 2018 Convertible Notes, including accrued interest. The warrants have an exercise price of 125% of the conversion price, or $3.185. The Company calculated the fair value of the warrants at $1,741,334 using a Black-Scholes pricing model. The Company valued the warrants at $2.8288 per warrant using a common stock fair value of $5.00, a term of five years, a volatility of 45% and a risk-free interest rate of 2.75%. The Company allocated the debt proceeds on a relative fair value basis between the note and warrant, in which the Company recognized a note discount for $1,107,982. This was immediately recognized in interest expense as of the note conversion date.The 2018 Convertible Notes provided that the principal and all accrued and unpaid interest on the 2018 Convertible Notes were convertible into shares of common stock at a conversion rate equal to the lesser of $2.5480 per share or seventy percent (70%) of the IPO price per share. Upon pricing the IPO, at the option of the holders, all outstanding principal plus accrued interest underlying the 2018 Convertible Notes was converted into 1,231,165 shares of common stock at a conversion rate of $2.5480.The 2018 Convertible Notes provided that the principal and all accrued and unpaid interest on the 2018 Convertible Notes were convertible into shares of common stock at a conversion rate equal to the lesser of $2.5480 per share or seventy percent (70%) of the IPO price per share. Upon pricing the IPO, at the option of the holders, all outstanding principal plus accrued interest underlying the 2018 Convertible Notes was converted into 1,231,165 shares of common stock at a conversion rate of $2.5480.

Stockholders' Deficit (Details)

Stockholders' Deficit (Details)3 Months Ended12 Months Ended
Mar. 31, 2019Dec. 31, 2018
Expected volatility45.00%45.00%
Risk-free interest rate2.61%2.56%
Expected life in years6 years 2 months 30 days
Expected dividend yield0.00%0.00%
Minimum [Member]
Expected life in years5 years 2 months 30 days
Maximum [Member]
Expected life in years6 years

Stockholders' Deficit (Details

Stockholders' Deficit (Details Textual) - USD ($)Jun. 30, 2018Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018
Stockholders' Deficit (Textual)
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, authorized15,000,000 15,000,000
Designated shares4,471,489
Common stock authorized50,000,000 50,000,000
Common stock par value $ 0.00001 $ 0.00001
Non-vested granted forfeitable shares
Shares of restricted common stock10,000
Warrants, exercisable $ 274,224
Stock-based compensation expense weighted average period term2 years 1 month 6 days
Number of shares, Granted975,000 0
Stock-based compensation expense for stock options $ 219,170 $ 48,917
Stock-based compensation $ 27,500
Stock-based compensation expenses, descriptionStock-based compensation related to restricted shares and restricted stock units was of $34,511 and $161,458 during the three months ended March 31, 2019 and 2018, respectively. Unrecognized compensation expense related to the unvested restricted stock units described above is approximately $532,000 as of March 31, 2019 and is expected to be recognized over approximately 2.9 years. During the three months ended March 31, 2019, 1,200 restricted stock units were forfeited.
Warrant shares274,224
Stock option, descriptionThe 2019 granted options had an exercise prices ranging from $3.20, expire in ten years, and vest over four years. The total grant date fair value of these options was approximately $1,762,180 for the three months ended March 31, 2019, respectively.The 2018 Plan provides for the grant of equity awards to purchase shares of common stock. Up to 3,000,000 shares of common stock may be issued pursuant to awards granted under the 2018 Plan, subject to increases that occur starting in 2021. The 2018 Plan is administered by the Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board.
Acquisition of stock, descriptionThe 2016 Plan provides for the grant of equity awards to highly qualified personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares of common stock. Up to 2,227,777 shares of common stock may be issued pursuant to awards granted under the 2016 Plan.
Total proceeds from the exercise of warrants $ 873,403
Forfeitable restricted stock shares400,000
Employees [Member]
Stockholders' Deficit (Textual)
Number of shares, Granted140,000
Issuance of common stock169,243
Warrants exercised461,294
Initial Public Offering [Member]
Stockholders' Deficit (Textual)
Series Seed 1 shares issued2,429,638
Preferred stock converted into common stock $ 2,429,638

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)12 Months Ended
Dec. 31, 2018Dec. 31, 2017Mar. 31, 2019
Related Party Transactions [Abstract]
Related party outstanding $ 9,629 $ 9,629
Outstanding balances to insurer275,290 $ 196,515
Payment to insurer $ 1,347,000 $ 1,411,000