Highlights
Q3 2020 revenue was up 21.5% over Q3 2019, hitting the highest quarterly revenue in the company’s history
Q3 2020 revenue was up 31.0% over Q2 2020, marking a significant recovery from the COVID-19 shutdown
Gross margin for Q3 2020 was 42.3% up from 37.9% in Q3 2019
BEVERLY HILLS, Calif., Nov. 12, 2020 (GLOBE NEWSWIRE) -- Rideshare Rental, Inc. ("RSR" or the “Company") (Other OTC:YAYO), a leading provider of vehicles to the rideshare and delivery gig economy industry, through its wholly-owned subsidiary, Rideshare Car Rentals, LLC, today announced financial results for the quarter ended September 30, 2020.
"We are very pleased with our performance in Q3 2020," commented Ramy El-Batrawi, CEO. "Although the COVID-19 shutdowns caused our quarterly revenue to decrease in the beginning of the second quarter of 2020 compared to the same period in 2019, we saw a positive upward movement in revenue by the end of the second quarter. Q3 was up 21% year over year and was up 31% over Q2 2020, hitting the highest quarterly revenue in the Company’s history. Gross margins grew to 42% up from 38% from Q3 2019, making the Company’s core rental operations profitable before taking into account corporate overhead and one-time costs.”
"This significant increase in revenue is a result of our immediate pivot in marketing to the delivery gig industry, a sector which continued activity throughout the COVID-19 shutdown. With Proposition 22 passing that established workers as independent contractors, superseding a California law that aimed to make gig workers, including ride-hailing and food delivery drivers, employees with full benefits, will create more demand as drivers make more money. This is important because the majority of our fleet are in California. We anticipate seeing continued growth in revenue as we add more cars, demand is strong not only in California but also in all cities we service. We are running at a 95% utilization rate on available cars to rent in all areas," CEO Ramy El-Batrawi added.
Rideshare Car Rentals LLC, our wholly-owned subsidiary, is an online rideshare vehicle booking platform to service the ridesharing and delivery gig economy which includes both our owned-fleet and third party fleets.
Fleet Management
Distinct Cars LLC, our wholly-owned subsidiary, maintains a fleet of passenger vehicles that are commercially available for rent by gig-economy drivers.
About Rideshare Rental, Inc.
Rideshare Rental, Inc. bridges the gap between rideshare drivers in need of a suitable vehicle and rideshare companies that depend on attracting and keeping drivers. Rideshare Rental, Inc. uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs. Rideshare Rental, Inc. is a leading provider of rental vehicles to drivers in the ever-expanding gig economy.
Rideshare Rental, Inc. provides SEC filings, investor events, press and earnings releases about our financial performance on the investor relations section of our website (www.yayyo.com).
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results.
Public Relations Contact
Ramy El-Batrawi
Phone: 888-209-5643
Email: investors@yayyo.com
RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)
CONDENSED CONSOLIDATED BALANCE SHEETS
As of September 30, 2020 and December 31, 2019
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 84,732 | $ | 1,256,429 | ||||
| Accounts receivable | 53,338 | 59,331 | ||||||
| Prepaid expenses | 431,973 | 782,900 | ||||||
| Total current assets | 570,043 | 2,098,660 | ||||||
| Equipment, net | 2,280 | 3,395 | ||||||
| Rental vehicles, net | 7,140,289 | 4,737,047 | ||||||
| Deposit on vehicles | - | 164,080 | ||||||
| Other assets | 200,000 | 200,000 | ||||||
| TOTAL ASSETS | $ | 7,912,612 | $ | 7,203,182 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable (including $692,386 and $394,183 to related party) | $ | 1,453,305 | $ | 545,254 | ||||
| Accrued expenses (including $0 and $171,665 to related party) | 432,815 | 405,977 | ||||||
| Notes payables, current (net of discount of $4,570 and $32,289) | 497,872 | 287,378 | ||||||
| Advance from related party | 50,000 | - | ||||||
| Finance lease obligations, current | 1,689,534 | 1,416,446 | ||||||
| Total current liabilities | 4,123,526 | 2,655,055 | ||||||
| Note payable, net of current portion | 149,900 | - | ||||||
| Finance lease obligations, net of current portion | 1,978,238 | 984,119 | ||||||
| TOTAL LIABILITIES | 6,251,664 | 3,639,174 | ||||||
| Commitments and contingencies | - | - | ||||||
| STOCKHOLDERS’ DEFICIT | ||||||||
| Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding | - | - | ||||||
| Common stock, $0.000001 par value; 90,000,000 shares authorized; 31,981,374 and 29,427,803 shares issued and outstanding | 32 | 29 | ||||||
| Additional paid-in capital | 29,708,377 | 28,735,894 | ||||||
| Accumulated deficit | (28,047,461 | ) | (25,171,915 | ) | ||||
| Total stockholders’ deficit | 1,660,948 | 3,564,008 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 7,912,612 | $ | 7,203,182 | ||||
RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 2,070,821 | $ | 1,718,439 | $ | 5,399,018 | $ | 5,193,957 | ||||||||
| Cost of revenue | 1,194,957 | 1,067,373 | 3,891,307 | 3,111,614 | ||||||||||||
| Gross profit | 875,864 | 651,066 | 1,507,711 | 2,082,343 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and marketing expenses | 113,904 | 80,039 | 324,546 | 182,645 | ||||||||||||
| General and administrative expenses | 1,088,152 | 761,151 | 3,845,768 | 2,221,962 | ||||||||||||
| Loss on the settlement of debt | - | - | - | 252,900 | ||||||||||||
| Total operating expenses | 1,202,056 | 841,190 | 4,170,314 | 2,657,507 | ||||||||||||
| Loss from operations | (326,192 | ) | (190,124 | ) | (2,662,603 | ) | (575,164 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest and financing costs | (65,292 | ) | (180,531 | ) | (212,943 | ) | (792,406 | ) | ||||||||
| Total other income (expense) | (65,292 | ) | (180,531 | ) | (212,943 | ) | (792,406 | ) | ||||||||
| Net loss | $ | (391,484 | ) | $ | (370,655 | ) | $ | (2,875,546 | ) | $ | (1,367,570 | ) | ||||
| Weighted average shares outstanding : | ||||||||||||||||
| Basic | 31,981,374 | 26,802,803 | 30,828,676 | 26,774,636 | ||||||||||||
| Diluted | 31,981,374 | 26,802,803 | 30,828,676 | 26,774,636 | ||||||||||||
| Loss per share | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
| Diluted | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.09 | ) | $ | (0.05 | ) | ||||
RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
For the Three and Nine Months Ended September 30, 2020 and 2019 (unaudited)
| Additional | Total | |||||||||||||||||||
| Common Stock | Paid-in | Accumulated | Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||
| Balance, December 31, 2019 | 29,427,803 | $ | 29 | $ | 28,735,894 | $ | (25,171,915 | ) | $ | 3,564,008 | ||||||||||
| Stock option expense | 457,242 | 457,242 | ||||||||||||||||||
| Net loss | (1,761,220 | ) | (1,761,220 | ) | ||||||||||||||||
| Balance, March 31, 2020 | 29,427,803 | 29 | 29,193,136 | (26,933,135 | ) | 2,260,030 | ||||||||||||||
| Issuance of common stock for cash | 2,553,571 | 3 | 274,997 | 275,000 | ||||||||||||||||
| Net loss | (722,842 | ) | (722,842 | ) | ||||||||||||||||
| Balance, June 30, 2020 | 31,981,374 | 32 | 29,468,133 | (27,655,977 | ) | 1,812,188 | ||||||||||||||
| Stock option expense | 240,244 | 240,244 | ||||||||||||||||||
| Net loss | (391,484 | ) | (391,484 | ) | ||||||||||||||||
| Balance, September 30, 2020 | 31,981,374 | $ | 32 | $ | 29,708,377 | $ | (28,047,461 | ) | $ | 1,660,948 | ||||||||||
| Balance, December 31, 2018 | 26,718,676 | $ | 27 | $ | 19,193,151 | $ | (21,241,694 | ) | $ | (2,048,516 | ) | |||||||||
| Issuance of common stock for settlement of debt | 80,000 | 640,000 | 640,000 | |||||||||||||||||
| Net loss | (579,463 | ) | (579,463 | ) | ||||||||||||||||
| Balance, March 31, 2019 | 26,798,676 | 27 | 19,833,151 | (21,821,157 | ) | (1,987,979 | ) | |||||||||||||
| Issuance of common stock for settlement of debt | 4,300 | 34,400 | 34,400 | |||||||||||||||||
| Net loss | (417,452 | ) | (417,452 | ) | ||||||||||||||||
| Balance, June 30, 2019 | 26,802,976 | 27 | 19,867,551 | (22,238,609 | ) | (2,371,031 | ) | |||||||||||||
| Correction to outstanding shares | (173 | ) | ||||||||||||||||||
| Net loss | (370,655 | ) | (370,655 | ) | ||||||||||||||||
| Balance, September 30, 2019 | 26,802,803 | $ | 27 | $ | 19,867,551 | $ | (22,609,264 | ) | $ | (2,741,686 | ) | |||||||||
RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2020 and 2019 (unaudited)
| 2020 | 2019 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (2,875,546 | ) | $ | (1,367,570 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,047,075 | 730,610 | ||||||
| Stock option expense | 697,486 | - | ||||||
| Common stock issued for services | - | - | ||||||
| Amortization of debt discounts | 27,719 | 29,860 | ||||||
| Loss on the settlement of debt | - | 252,900 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 5,993 | (78,643 | ) | |||||
| Prepaid expenses | 350,927 | 1,394 | ||||||
| Accounts payable | 908,051 | (419,958 | ) | |||||
| Accrued expenses | 26,838 | 697,518 | ||||||
| Net cash provided by (used in) operating activities | 188,543 | (153,889 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from notes payable | 342,675 | 1,951,300 | ||||||
| Proceeds from sale of common stock | 275,000 | - | ||||||
| Proceeds from advance from related party | 200,000 | - | ||||||
| Repayment of advance from related party | (150,000 | ) | - | |||||
| Repayment of notes payable | (10,000 | ) | (967,652 | ) | ||||
| Repayment of finance lease obligations | (2,017,915 | ) | (1,025,863 | ) | ||||
| Net cash used in financing activities | (1,360,240 | ) | (42,215 | ) | ||||
| NET INCREASE (DECREASE) IN CASH | (1,171,697 | ) | (196,104 | ) | ||||
| CASH, BEGINNING OF PERIOD | 1,256,429 | 277,444 | ||||||
| CASH, END OF PERIOD | $ | 84,732 | $ | 81,340 | ||||
| CASH PAID FOR: | ||||||||
| Interest | $ | 185,224 | $ | 715,250 | ||||
| Income taxes | $ | - | $ | - | ||||
| SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||
| Payment of accounts payable/accrued expenses with common stock | $ | - | $ | 421,500 | ||||
| Value of equity recorded as debt discounts | $ | - | $ | - | ||||
| Finance lease obligations | $ | 3,400,922 | $ | 510,136 | ||||