Rideshare Rental, Inc. Announces Results for Q3 2020


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