Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 13, 2021 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HyreCar Inc. | |
Entity Central Index Key | 0001713832 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Trading Symbol | HYRE | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Local Phone Number | 688-6769 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Quarterly Report | true | |
Entity Ex Transition Period | false | |
Entity Tax Identification Number | 47-2480487 | |
Entity Address, Address Line One | 355 South Grand Avenue | |
Entity Address, Address Line Two | Suite 1650 | |
City Area Code | 888 | |
Entity Address, Postal Zip Code | 90071 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,374,320 | |
Entity File Number | 001-38561 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | DE | |
Security Exchange Name | NASDAQ | |
Title of 12(g) Security | Common Stock, par value $0.00001 per share |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalent | $ 25,499,635 | $ 4,923,515 |
Restricted cash | 751,625 | |
Accounts receivable | 132,827 | 109,366 |
Deferred offering costs | 33,164 | |
Insurance deposits | 1,749,454 | 749,454 |
Other current assets | 644,099 | 313,812 |
Total current assets | 28,777,640 | 6,129,311 |
Property and equipment, net | 7,624 | 8,425 |
Intangible assets, net | 61,562 | 80,031 |
Other assets | 95,000 | |
Total assets | 28,846,826 | 6,312,767 |
Current liabilities: | ||
Accounts payable | 4,497,276 | 2,275,559 |
Accrued liabilities | 826,724 | 4,359,348 |
Insurance reserve | 1,747,134 | 2,113,039 |
Note payable, current portion | 1,890,062 | 1,554,548 |
Deferred revenue | 60,056 | 76,059 |
Total current liabilities | 9,021,252 | 10,378,553 |
Note payable, net of current portion | 109,113 | 444,627 |
Total liabilities | 9,130,365 | 10,823,180 |
Commitments and contingencies (Note 3) | ||
Stockholders' equity (deficit): | ||
Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | ||
Common stock, 50,000,000 shares authorized, par value $0.00001, 20,353,429 and 17,741,713 issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 203 | 177 |
Additional paid-in capital | 71,158,828 | 39,725,445 |
Accumulated deficit | (51,442,570) | (44,236,035) |
Total stockholders' equity (deficit) | 19,716,461 | (4,510,413) |
Total liabilities and stockholders' equity (deficit) | $ 28,846,826 | $ 6,312,767 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized | 15,000,000 | 15,000,000 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares issued | 20,353,429 | 20,353,429 |
Common stock, shares outstanding | 17,741,713 | 17,741,713 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 7,448,400 | $ 5,780,413 |
Cost of revenues | 4,716,150 | 3,605,301 |
Gross profit | 2,732,250 | 2,175,112 |
Operating Expenses: | ||
General and administrative | 5,704,453 | 3,228,172 |
Sales and marketing | 2,707,191 | 2,290,172 |
Research and development | 1,526,718 | 743,813 |
Total operating expenses | 9,938,362 | 6,262,157 |
Operating loss | (7,206,112) | (4,087,045) |
Other (income) expense | ||
Interest expense | 1,906 | 19 |
Other income | (1,483) | (29,648) |
Total other income | 423 | (29,629) |
Loss before provision for income taxes | (7,206,535) | (4,057,416) |
Provision for income taxes | 800 | |
Net loss | $ (7,206,535) | $ (4,058,216) |
Weighted average shares outstanding - basic and diluted | 19,234,382 | 16,424,969 |
Weighted average net loss per share - basic and diluted | $ (0.37) | $ (0.25) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Subscription Receivable - Related Parties | Accumulated Deficit |
Balance at Dec. 31, 2019 | $ 6,835,418 | $ 164 | $ 35,857,835 | $ (7,447) | $ (29,015,134) | |
Balance, shares at Dec. 31, 2019 | 16,393,171 | |||||
Stock option compensation | 252,072 | 252,072 | ||||
Restricted stock unit compensation | 163,100 | 163,100 | ||||
Stock options exercised | 28,575 | 28,575 | ||||
Stock options exercised, shares | 40,869 | |||||
Stock options exercised - cashless | ||||||
Stock options exercised - cashless, shares | 2,645 | |||||
Shares issued for vested restricted stock units | ||||||
Shares issued for vested restricted stock units, shares | 36,650 | |||||
Net loss | (4,058,216) | (4,058,216) | ||||
Balance at Mar. 31, 2020 | 3,220,949 | $ 164 | 36,301,582 | (7,447) | (33,073,350) | |
Balance, shares at Mar. 31, 2020 | 16,473,335 | |||||
Balance at Dec. 31, 2020 | (4,510,413) | $ 177 | 39,725,445 | (44,236,035) | ||
Balance, shares at Dec. 31, 2020 | 17,741,713 | |||||
Stock option compensation | 6,647 | 6,647 | ||||
Restricted stock unit compensation | 3,761,027 | 3,761,027 | ||||
Warrants exercised | 64,540 | $ 1 | 64,539 | |||
Warrants exercised, shares | 20,232 | |||||
Warrants exercised – cashless | ||||||
Warrants exercised – cashless, shares | 61,484 | |||||
Shares issued for vested restricted stock units | ||||||
Shares issued for vested restricted stock units, shares | ||||||
Common stock issued for cash, shares | 2,530,000 | |||||
Common stock issued for cash | 29,727,500 | $ 25 | 29,727,475 | |||
Offering costs | (2,126,305) | (2,126,305) | ||||
Net loss | (7,206,535) | (7,206,535) | ||||
Balance at Mar. 31, 2021 | $ 19,716,461 | $ 203 | $ 71,158,828 | $ (51,442,570) | ||
Balance, shares at Mar. 31, 2021 | 20,353,429 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,206,535) | $ (4,058,216) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 19,270 | 19,157 |
Stock-based compensation | 3,767,674 | 415,172 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (23,461) | 6,131 |
Insurance deposit | (1,000,000) | |
Other current assets | (235,287) | 17,637 |
Accounts payable | 1,808,861 | 646,484 |
Accrued liabilities | (3,532,625) | (18,914) |
Insurance reserve | (365,905) | 120,365 |
Deferred revenues | (16,003) | (10,564) |
Net cash used in operating activities | (6,784,011) | (2,862,748) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used in investing activities | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 29,727,500 | |
Offering costs | (1,680,284) | |
Proceeds from exercise of warrants | 64,540 | |
Proceeds from exercise of stock options | 28,575 | |
Net cash provided by financing activities | 28,111,756 | 28,575 |
Increase (Decrease) in cash, cash equivalents and restricted cash | 21,327,745 | (2,834,173) |
Cash, cash equivalents and restricted cash - beginning of period | 4,923,515 | 10,657,140 |
Cash, cash equivalents and restricted cash - end of period | 26,251,260 | 7,822,967 |
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets | ||
Total cash, and cash equivalents and restricted cash to the consolidated balance sheets | 26,251,260 | 7,822,967 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 19 | |
Cash paid for income taxes | ||
Non-cash investing and financing activities: | ||
Offering costs within accounts payable | 446,021 | |
Reclass of prior year offering costs | $ 33,164 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 – NATURE OF OPERATIONS HyreCar Inc. (which may be referred to herein as "HyreCar," the "Company," "we," "us" or "our") was incorporated on November 24, 2014 ("Inception") in the State of Delaware. The Company's headquarters are located in Los Angeles, California. The Company operates a web-based marketplace that allows car and fleet owners to rent their cars to Uber, Lyft and other gig economy service drivers safely, securely and reliably. The consolidated financial statements of HyreCar Inc. are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Strategic Partnership and Recent Public Offering On January 28, 2021, the Company announced new and expanded strategic partnerships to On February 4, 2021, the Company entered into an underwriting agreement with Lake Street Capital Markets, LLC and Northland Securities, Inc., as representatives of the several underwriters, in connection with the public offering (the "2021 offering") of a total of 2,530,000 shares of Company common stock. The initial closing of the offering occurred on February 8, 2021. The net proceeds from the 2021 offering was approximately $27.6 million, after deducting the underwriting discounts and commissions and offering expenses payable by the Company. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 revenue from operations, the remaining capital raised through the 2021 offering described in Note 1 In March 2020, COVID-19 began spreading rapidly throughout the world, prompting governments and businesses to take unprecedented measures in response. Such measures included restrictions on travel and business operations, temporary closures of businesses, quarantines and shelter-in-place orders. The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is currently uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the development and availability of effective treatments and vaccines, and the imposition of protective public safety measures. Basis of Presentation – Unaudited Interim Financial Information The unaudited interim consolidated financial statements and related notes have been prepared in accordance with 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 consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim consolidated financial statements have been prepared on a basis consistent with the audited consolidated 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 consolidated balance sheet. The financial data and the other information disclosed in these notes to the interim consolidated financial statements related to the three-month periods are unaudited. Unaudited interim consolidated results are not necessarily indicative of the results for the full fiscal year. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2020 and notes thereto that are included in the Company's Annual Report on Form 10-K. Basis of Presentation and The preparation of consolidated financial statements and accompanying notes 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. All significant intercompany accounts and transactions are eliminated upon consolidation. The Company’s most significant estimates and judgments involve recognition of revenue and estimates for future contingent customer incentive obligations, insurance reserves, and the measurement of the Company’s stock-based compensation. 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, 2021 and December 31, 2020. 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 consolidated 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. Restricted Cash Restricted cash consist primarily of amounts held in restricted bank account as collateral for the amount pledged to secure certain revolving line of credit. Accounts Receivable Accounts receivable are reported net of allowance for expected losses. It represents the amount management expects to collect from outstanding balances. Differences between the amount due and the amount management expects to collect are charged to operations in the year in which those differences are determined, with an offsetting entry to a valuation allowance. As of and as of Insurance Reserve and Insurance Deposits The Company records a loss reserve for physical damage and other liability coverage caused to owner vehicles up to the Company's insurance deductibles or relevant limits. 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 insurance policy which dictates what amounts of a claim will be paid by the Company . Effective March 1, 2021 the Company entered into a two-year claim adjusting agreement with Sedgwick which included an escrow account requirement of $1,750,000 to be held by Sedgwick for claim payments. This escrow account is replenished by the Company on a quarterly basis dependent on the actual claims paid during that quarter. As of March 31, 2021 and December 31, 2020, $1,747,134 and $2,113,039 was included in the accompanying consolidated balance sheets, respectively, related to the loss reserve, where the expense is included in costs of revenues. While certain liability claims may take several years to completely settle, the Company's liability exposure limit is generally met in the near term. Due to our limited operational history, the Company makes certain assumptions based on both currently available information to estimate the insurance 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 consolidated financial statements. Reserves are reviewed quarterly 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 costs of revenues 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. Vehicle owners and drivers agree to terms of service with the Company in order to use the HyreCar platform and enter into a rental contract that governs each rental. In entering into a rental agreement, the driver is charged in a single transaction: the base rental fee as agreed upon between the driver and vehicle owner, a 10% HyreCar fee on the base rental fee, and a daily insurance charge (“Insurance and administrative fees”), all based on the number of days the vehicle is to be rented within the contract. HyreCar retains 15-25% of the base rental fee and remits the remaining portion to the vehicle owner. The 10% fee collected from the driver and 15-25% retained from the owner are considered “Transaction Fees” and the recorded on a net basis as described below. The Company recognizes revenue daily during the rental periods as the Company is required to maintain insurance underlying the transaction and as a customary business practice, a driver can return a vehicle early for a refund of the unused rental period. Insurance and transaction fees are charged to a driver in a single transaction. Drivers currently do not have an option to decline insurance at any point during the transaction. 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 . 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 or cancels the rental prior to completing the exchange. 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, 2021 and 2020. 2021 2020 Insurance and administration fees $ 3,748,199 $ 2,873,843 Transaction fees 3,416,721 2,558,295 Other fees 331,327 507,477 Incentives and rebates (47,847 ) (159,202 ) Net revenue $ 7,448,400 $ 5,780,413 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 o n 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 (Transaction Fees), 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 insurance to cover the vehicle driver and owner, insurance claim payments and estimated liabilities based on the policy in effect at the time of loss, merchant processing fees, technology and hosting costs, and motor vehicle record fees incurred for paid driver applications. General liability insurance that covers corporate risk from activity on our platform is included in general and administrative costs Advertising The Company expenses the cost of advertising and promotions as incurred. Advertising expense was $582,244 and $785,228 for the three months ended March 31, 2021 and 2020, 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 awards 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. Restricted shares are measured based on the fair market value of the underlying stock on the grant date. Stock-based compensation is included in the consolidated statements of operations as follows: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 General and administrative $ 2,405,436 $ 281,953 Sales and marketing 664,463 41,282 Research and development $ 697,775 $ 91,937 Loss per Common Share The Company presents basic loss per share ("EPS") and diluted EPS on the face of the consolidated 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, 2021 and 2020, there were 251,846 and 2,680,093 options and warrants excluded, and 789,289 and 403,100 restricted stock units excluded, respectively. Further, there were no forfeitable restricted stock shares excluded for the three months ended March 31, 2021 and 2020. 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 has historically relied on a single insurance broker and underwriter at any given time to provide all automobile insurance on vehicles rentals on the HyreCar platform. There are multiple brokers and carriers who issue this type of insurance coverage, and the Company is regularly reviewing leading insurers in the transportation and mobility sectors as this is an important part of our operations. The Company does not believe the loss of our current broker or underwriter would have a material effect on our operations . New Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 consolidated 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, 2021 for emerging growth companies, 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 December 2019, the FASB issued guidance that simplifies the accounting for income taxes by removing certain exceptions in existing guidance and improves consistency in application by clarifying and amending existing guidance. This guidance is effective for annual periods beginning after December 15, 2021, and interim periods within those annual periods, where the transition method varies depending upon the specific amendment. Early adoption is permitted, including adoption in any interim period. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period, and all amendments must be adopted in the same period. The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company 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 consolidated financial statements |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 3 – COMMITMENTS AND CONTINGENCIES Settlement and Legal We are not currently a party to any on-going legal proceedings, and we are not aware of any claims or actions pending or threatened against us. In the future, we might from time to time become involved in litigation relating to claims arising from our ordinary course of business, the resolution of which we do not anticipate would have a material adverse impact on our financial position, results of operations or cash flows. On November 13, 2018, two founders of the Company (the “Claimant Founders”), initiated two lawsuits in the Superior Court of California, County of San Francisco, entitled Nathaniel Farber v. HyreCar Inc., Case No. CGC-18-571257 and Josiah Larkin v. HyreCar Inc., Case No. CGC-18-571258. The complaints for the lawsuits, which were largely duplicative, alleged that the Company breached a Settlement Agreement by and between the Company and the Claimant Founders by not allowing the Claimant Founders to sell stock in the Company’s initial public offering (“IPO”), failing to buyback Claimant Founders’ stock at the time of the IPO, allowing the issuance of certain stock without proportionately increasing the stock ownership of Claimant Founders, and not providing certain required information to the Claimant Founders. The Company strongly disagreed with all of the allegations and vigorously contested both lawsuits. The Company believe that, at all times, its actions were consistent with the terms, conditions, and context of the Settlement Agreement, as well as applicable law. Pursuant to a motion brought by the Company, the two lawsuits were joined for pretrial and trial purposes. As the case progressed, the Claimant Founders narrowed their allegations significantly. Mr. Larkin dismissed all of his claims. Mr. Farber dismissed all of his allegations except for an allegation that the Company failed to buyback the Claimant Founders’ stock at the time of the IPO. The Company believed that the remaining claim was without merit, but without admitting fault, agreed to settle any and all claims between the Claimant Founders and the Company. As part of the settlement, the Company agreed to issue 78,431 shares of the Company’s common stock to Mr. Farber at an agreed upon value of $200,000. |
Debt and Liabilities
Debt and Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT AND LIABILITIES | NOTE 4 – DEBT AND LIABILITIES Accrued Liabilities A summary of accrued liabilities as of and December 31, 2020 is as follows: March 31, 2021 December 31, 2020 Accrued payables $ 347,861 $ 747,361 Insurance premiums 120,000 3,243,509 Driver deposit 196,572 168,855 Deferred rent 24,932 46,261 Payroll liabilities 77,303 77,303 Other accrued liabilities 60,056 76,059 Accrued liabilities $ 826,724 $ 4,359,348 Notes Payable On April 13, 2020, the Company entered into a loan with Chase Bank, N.A. as the lender (“Lender”) in an aggregate principal amount of $ pursuant to the Paycheck Protection Program ("PPP") under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a promissory note (“Note”). Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of percent ( %) per annum, with the first months of interest deferred, has an initial term of two years , and is unsecured and guaranteed by the Small Business Administration. The Company may apply to the Lender for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of payroll costs, covered rent, and covered utility payments incurred by the Company during the -week period beginning on April 13, 2020, calculated in accordance with the terms of the CARES Act. The Note provides for customary events of default including, among other things, cross-defaults on any other loan with the Lender. The PPP Loan may be accelerated upon the occurrence of an event of default. As of March 31, 2021, the amount payable under the Note is $1,999,175. The PPP Loan proceeds were used for payroll, covered rent and other covered payments and the loan is expected to be forgiven based on current information available. The Company is in the process of applying to the Lender for forgiveness of the PPP Loan as of the date of this report and we expect the full PPP Loan amount to be forgiven. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | NOTE 5 – STOCKHOLDERS' EQUITY (DEFICIT) 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 2016 2016 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 In 2018, the Board of Directors adopted the HyreCar Inc. 2018 Incentive Plan (the "2018 Plan"). The Plan provides for the grant of equity awards to purchase shares of common stock. Three million shares of common stock were initially reserved under the 2018 Plan for issuance pursuant to awards granted under the Plan, with share reserve number subject to increases that occur starting in . The Plan is administered by the Board of Directors, and expires years after adoption, unless terminated earlier by the Board. No stock options were granted during the three months ended March 31, 2021 or March 31, 2020. Stock-based compensation expense for the vesting of stock options for the three months ended March 31, 2021 and 2020 was $6,647 and $252,072, respectively. As of March 31, 2021, the total estimated remaining stock-based compensation expense for unvested stock options is approximately $4,000 which is expected to be recognized over a weighted average period of 0.2 years. On April 29, 2020, the Compensation Committee of the Board of Directors approved an exchange (the “Exchange”) of grants under the 2018 Plan previously made to executive officers and directors of the Company (the “Grantees”). The Board of Directors, upon recommendation from the Compensation Committee, approved the Exchange on April 29, 2020. Pursuant to the Exchange, the Grantees agreed to the cancellation of options to purchase an aggregate of 1,487,500 shares of the Company’s common stock under the 2018 Plan in exchange for the issuance of an aggregate of 822,500 shares of fully vested restricted stock under the 2018 Plan. The Exchange was a cancellation of stock options with a concurrent replacement award and was accounted for as a modification. For the three and six months ended June 30, 2020, the Company recognized additional compensation expense of $1,434,132 pertaining to this modification. As there was no future service or performance conditions associated with the replacement award, this compensation cost was fully recognized during the second quarter of 2020. Restricted Stock Units and Shares Issued for Services During the three months ended March 31, 2021, the Company granted 390,366 and 265,000 restricted stock units to the employees and executives, respectively, of which a large portion was vested upon issuance. Further, the restricted stock units granted to the executives are subject to their acceptance. Stock-based compensation related to restricted stock units for the three months ended March 31, 2021 and 2020 3,761,027 unrecognized compensation expense related to the unvested restricted stock units is $ and is expected to be recognized over approximately years. As of March 31, 2021, approximately 670,983 of vested restricted stock units have yet to be issued. During the restricted stock units that vest based on specified milestones and business objectives. None of these milestones or objectives have been achieved to date and none are expected to vest under current circumstances . Warrants During the three months ended March 31, 2021, several warrant holders exercised an aggregate of 20,232 warrants for total proceeds from the exercise of $64,540. There were also 199,617 warrants exercised in cashless exercises resulting in 61,484 shares of common stock being issued. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 6 – RELATED PARTY TRANSACTIONS Insurance The president of the Company’s former primary insurance broker through June 2020 is also a minority Company stockholder and holder of warrants , included in accounts payable or accrued liabilities, respectively. During the three months ended March 31, 2021 and 2020, the Company paid the insurer approximately $0 and $1,388,000, respectively. On June 15, 2020, the Company completed moving its primary and excess automobile insurance liability programs over to a new insurance broker and is no longer using the related party broker. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 – SUBSEQUENT EVENTS On April 12, 2021, the Company granted a total of 206,068 restricted stock units to certain members of the Board of Directors. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Management's Plans | 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 revenue from operations, the remaining capital raised through the 2021 offering described in Note 1 In March 2020, COVID-19 began spreading rapidly throughout the world, prompting governments and businesses to take unprecedented measures in response. Such measures included restrictions on travel and business operations, temporary closures of businesses, quarantines and shelter-in-place orders. The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is currently uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic, the development and availability of effective treatments and vaccines, and the imposition of protective public safety measures. |
Basis of Presentation - Unaudited Interim Financial Information | Basis of Presentation – Unaudited Interim Financial Information The unaudited interim consolidated financial statements and related notes have been prepared in accordance with 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 consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim consolidated financial statements have been prepared on a basis consistent with the audited consolidated 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 consolidated balance sheet. The financial data and the other information disclosed in these notes to the interim consolidated financial statements related to the three-month periods are unaudited. Unaudited interim consolidated results are not necessarily indicative of the results for the full fiscal year. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2020 and notes thereto that are included in the Company's Annual Report on Form 10-K. |
Use of Estimates | Basis of Presentation and The preparation of consolidated financial statements and accompanying notes 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. All significant intercompany accounts and transactions are eliminated upon consolidation. The Company’s most significant estimates and judgments involve recognition of revenue and estimates for future contingent customer incentive obligations, insurance reserves, and the measurement of the Company’s stock-based compensation. |
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, 2021 and December 31, 2020. 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 | Cash and Cash Equivalents For purpose of the consolidated 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. |
Restricted Cash | Restricted Cash Restricted cash consist primarily of amounts held in restricted bank account as collateral for the amount pledged to secure certain revolving line of credit. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported net of allowance for expected losses. It represents the amount management expects to collect from outstanding balances. Differences between the amount due and the amount management expects to collect are charged to operations in the year in which those differences are determined, with an offsetting entry to a valuation allowance. As of and as of |
Insurance Reserves | Insurance Reserve and Insurance Deposits The Company records a loss reserve for physical damage and other liability coverage caused to owner vehicles up to the Company's insurance deductibles or relevant limits. 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 insurance policy which dictates what amounts of a claim will be paid by the Company . Effective March 1, 2021 the Company entered into a two-year claim adjusting agreement with Sedgwick which included an escrow account requirement of $1,750,000 to be held by Sedgwick for claim payments. This escrow account is replenished by the Company on a quarterly basis dependent on the actual claims paid during that quarter. As of March 31, 2021 and December 31, 2020, $1,747,134 and $2,113,039 was included in the accompanying consolidated balance sheets, respectively, related to the loss reserve, where the expense is included in costs of revenues. While certain liability claims may take several years to completely settle, the Company's liability exposure limit is generally met in the near term. Due to our limited operational history, the Company makes certain assumptions based on both currently available information to estimate the insurance 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 consolidated financial statements. Reserves are reviewed quarterly 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 costs of revenues |
Revenue Recognition | 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. Vehicle owners and drivers agree to terms of service with the Company in order to use the HyreCar platform and enter into a rental contract that governs each rental. In entering into a rental agreement, the driver is charged in a single transaction: the base rental fee as agreed upon between the driver and vehicle owner, a 10% HyreCar fee on the base rental fee, and a daily insurance charge (“Insurance and administrative fees”), all based on the number of days the vehicle is to be rented within the contract. HyreCar retains 15-25% of the base rental fee and remits the remaining portion to the vehicle owner. The 10% fee collected from the driver and 15-25% retained from the owner are considered “Transaction Fees” and the recorded on a net basis as described below. The Company recognizes revenue daily during the rental periods as the Company is required to maintain insurance underlying the transaction and as a customary business practice, a driver can return a vehicle early for a refund of the unused rental period. Insurance and transaction fees are charged to a driver in a single transaction. Drivers currently do not have an option to decline insurance at any point during the transaction. 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 . 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 or cancels the rental prior to completing the exchange. 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, 2021 and 2020. 2021 2020 Insurance and administration fees $ 3,748,199 $ 2,873,843 Transaction fees 3,416,721 2,558,295 Other fees 331,327 507,477 Incentives and rebates (47,847 ) (159,202 ) Net revenue $ 7,448,400 $ 5,780,413 |
Principal Agent Considerations | 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 o n 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 (Transaction Fees), 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 Cost of revenues primarily include direct fees paid for insurance to cover the vehicle driver and owner, insurance claim payments and estimated liabilities based on the policy in effect at the time of loss, merchant processing fees, technology and hosting costs, and motor vehicle record fees incurred for paid driver applications. General liability insurance that covers corporate risk from activity on our platform is included in general and administrative costs |
Advertising | Advertising The Company expenses the cost of advertising and promotions as incurred. Advertising expense was $582,244 and $785,228 for the three months ended March 31, 2021 and 2020, respectively. |
Research and Development | 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 | Stock-Based Compensation The Company accounts for stock awards 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. Restricted shares are measured based on the fair market value of the underlying stock on the grant date. Stock-based compensation is included in the consolidated statements of operations as follows: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 General and administrative $ 2,405,436 $ 281,953 Sales and marketing 664,463 41,282 Research and development $ 697,775 $ 91,937 |
Loss per Common Share | Loss per Common Share The Company presents basic loss per share ("EPS") and diluted EPS on the face of the consolidated 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, 2021 and 2020, there were 251,846 and 2,680,093 options and warrants excluded, and 789,289 and 403,100 restricted stock units excluded, respectively. Further, there were no forfeitable restricted stock shares excluded for the three months ended March 31, 2021 and 2020. |
Concentration of Credit Risk | 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 | Other Concentrations The Company has historically relied on a single insurance broker and underwriter at any given time to provide all automobile insurance on vehicles rentals on the HyreCar platform. There are multiple brokers and carriers who issue this type of insurance coverage, and the Company is regularly reviewing leading insurers in the transportation and mobility sectors as this is an important part of our operations. The Company does not believe the loss of our current broker or underwriter would have a material effect on our operations . |
New Accounting Standards | New Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 consolidated 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, 2021 for emerging growth companies, 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 December 2019, the FASB issued guidance that simplifies the accounting for income taxes by removing certain exceptions in existing guidance and improves consistency in application by clarifying and amending existing guidance. This guidance is effective for annual periods beginning after December 15, 2021, and interim periods within those annual periods, where the transition method varies depending upon the specific amendment. Early adoption is permitted, including adoption in any interim period. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period, and all amendments must be adopted in the same period. The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company 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 consolidated financial statements |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of breakout of revenue components by subcategory | 2021 2020 Insurance and administration fees $ 3,748,199 $ 2,873,843 Transaction fees 3,416,721 2,558,295 Other fees 331,327 507,477 Incentives and rebates (47,847 ) (159,202 ) Net revenue $ 7,448,400 $ 5,780,413 |
Schedule of stock-based compensation | Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 General and administrative $ 2,405,436 $ 281,953 Sales and marketing 664,463 41,282 Research and development $ 697,775 $ 91,937 |
Debt and Liabilities (Tables)
Debt and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of summary of accrued liabilities | March 31, 2021 December 31, 2020 Accrued payables $ 347,861 $ 747,361 Insurance premiums 120,000 3,243,509 Driver deposit 196,572 168,855 Deferred rent 24,932 46,261 Payroll liabilities 77,303 77,303 Other accrued liabilities 60,056 76,059 Accrued liabilities $ 826,724 $ 4,359,348 |
Nature of Operations (Details)
Nature of Operations (Details) - USD ($) | Feb. 04, 2021 | Jan. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | |||||
Common stock, par value | $ 0.00001 | $ 0.00001 | |||
Restricted stock units | $ 3,761,027 | $ 163,100 | |||
Initial Public Offering [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Issuance of common stock shares | 2,530,000 | ||||
Net proceeds from the sale after deducting the underwriting discounts and commissions and other expenses | $ 27,600,000 | ||||
Revolving line of credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, collateral amount | $ 750,000 | ||||
Line of credit facility, commitment fee percentage | 5.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Insurance and administration fees | $ 3,748,199 | $ 2,873,843 |
Transaction fees | 3,416,721 | 2,558,295 |
Other fees | 331,327 | 507,477 |
Incentives and rebates | (47,847) | (159,202) |
Net revenue | $ 7,448,400 | $ 5,780,413 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 2) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
General and administrative [Member] | ||
Stock-based compensation | $ 2,405,436 | $ 281,953 |
Sales and marketing [Member] | ||
Stock-based compensation | 664,463 | 41,282 |
Research and development [Member] | ||
Stock-based compensation | $ 697,775 | $ 91,937 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Textual) | |||
Insurance reserve | $ 1,747,134 | $ 2,113,039 | |
Advertising expense | $ 582,244 | $ 785,228 | |
Stock options and warrants | 251,846 | 2,680,093 | |
Restricted stock | 789,289 | 403,100 | |
Insured by Federal Deposit Insurance Corporation | $ 250,000 | ||
Accounts receivable, reserve allowance | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Nov. 13, 2018USD ($)shares |
Commitments and Contingencies Disclosure [Abstract] | |
Stock issued for settlement | shares | 78,431 |
Settlement payment | $ | $ 200,000 |
Debt and Liabilities (Details)
Debt and Liabilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Accrued payables | $ 347,861 | $ 747,361 |
Insurance premium | 120,000 | 3,243,509 |
Driver deposit | 196,572 | 168,855 |
Deferred rent | 24,932 | 46,261 |
Payroll liabilities | 77,303 | 77,303 |
Other accrued liabilities | 60,056 | 76,059 |
Accrued liabilities | $ 826,724 | $ 4,359,348 |
Debt and Liabilities (Details T
Debt and Liabilities (Details Textual) - USD ($) | Apr. 13, 2020 | Mar. 31, 2021 |
Debt Disclosure [Abstract] | ||
Convertible debt | $ 2,004,175 | |
Percentage of fixed rate | 1.00% | |
Initial term | 2 years | |
Note payable | $ 1,999,175 |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Textual) - USD ($) | Apr. 29, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | ||||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||||||
Warrants exercised for cash | $ 64,540 | |||||||
Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Warrants exercised for cash | $ 1 | |||||||
Warrant [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Several of warrant exercised | 20,232 | |||||||
Warrants exercised for cash | $ 64,540 | |||||||
Warrants exercised - cashless, shares | 199,617 | |||||||
Warrants to purchase of common stock shares | 61,484 | |||||||
Restricted stock [Member] | Equity Incentive Plan 2018 [Member] | Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate number of issuance of shares, fully vested under the plan | 822,500 | |||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expenses, description | Stock-based compensation related to restricted stock units for the three months ended March 31, 2021 and 2020 was $3,761,027 and $163,100, respectively. As of March 31, 2021, unrecognized compensation expense related to the unvested restricted stock units is $5,721,961 and is expected to be recognized over approximately 3.0 years. As of March 31, 2021, approximately 670,983 of vested restricted stock units have yet to be issued. | |||||||
Unvested restricted stock expense | $ 3,761,027 | $ 163,100 | ||||||
Granted restricted stock | 100,000 | 100,000 | ||||||
Restricted Stock Units [Member] | Employee [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted to employees | 390,366 | |||||||
Restricted Stock Units [Member] | Executive Officer [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted to employees | 265,000 | |||||||
Restricted Stock Units [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares granted to employees, vesting period | 1 year | |||||||
Stock Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Acquisition of stock, description | 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. | 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. | ||||||
Number of shares, Granted | 0 | 0 | ||||||
Stock-based compensation expense | $ 6,647 | $ 252,072 | ||||||
Stock-based compensation expense for unvested stock options | $ 4,000 | |||||||
Stock-based compensation expense for unvested stock options, expected to be recognized over a weighted average period | 2 months 12 days | |||||||
Stock Options [Member] | Equity Incentive Plan 2018 [Member] | Common Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate number of cancellation of options to purchase shares under the plan | 1,487,500 | |||||||
Recognized additional compensation expense pertaining to plan modification | $ 1,434,132 | $ 1,434,132 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transactions (Textual) | |||
Outstanding liabilities to insurer | $ 0 | $ 144,669 | |
Payment to insurer | $ 0 | $ 1,388,000 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 12, 2021shares |
Subsequent Event [Member] | Restricted Stock Units [Member] | |
SUBSEQUENT EVENTS | |
Shares granted to certain members of the Board of Directors | 206,068 |