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Rideshare Rental, Inc., Formerly YayYo, Inc., Announces Results for Q3 2020

YayYo, Inc.
·9 min read

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. 16, 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