YayYo, Inc. Announces Results for Third Quarter 2019

Quarterly revenue up 95.0% year over year to $1,718,439

Nine-month revenue up 170.7% or $3,275,481 to $5,193,957 year over year

Net quarterly loss down 94.1% or $5,944,463 to $370,655 year over year

Geographic footprint increased to eight US Rideshare Rentals locations through Q3

$10.5M IPO proceeds used to reduce corporate debt and accelerate both vehicle deployment and geographic footprint growth to 12 cities as of December, 2019

BEVERLY HILLS, CA / ACCESSWIRE / December 23, 2019 / YayYo, Inc. ("YayYo" or "the Company") (NASDAQ:YAYO), a leading provider of vehicles to the rideshare industry, through its wholly-owned subsidiary, Rideshare Car Rentals, LLC, today announced financial results for the quarter ended September 30, 2019.

"Our November IPO and subsequent public announcements represent the most recent data; however, the September quarter-end has important highlights including increased gross margins and year-over-year growth." Commented Jon Rosen, CEO. "We're pleased with the acceleration of auto inventory enabled by our Initial Public Offering in November. The IPO significantly reduced our debt and allowed us to generate valuable operating capital to rapidly acquire and deploy vehicles. We have a simple, strategic business model serving a massive and growing gig-economy. We operate with strong unit economics supporting robust demand among rideshare and delivery drivers." He added, "We expect the optimization of our balance sheet from the IPO to fuel near-term US footprint expansion, increase vehicle inventories, approach profitability and lead the market in 2020."

Third Quarter 2019 Highlights

Increase in revenue due to additional cars in fleet
Gross margin improved to 38% compared to 28% for the third quarter of 2018 due to fleet mix optimization and demand-driven pricing
Additional revenues and higher gross margin led to lower net quarterly loss
Deployment of vehicles into 8 key US geographical markets
Pre-IPO 350 vehicle rental fleet size with an approximate 40% gross margins per transaction

Additional

YayYo recently opened offices in Miami, Dallas, Hoboken, Seattle, Chicago and San Diego
YayYo completed a post-IPO acquisition of a rental fleet extending the company's reach to the New Jersey ridesharing market.
The company diversified its lease partners to include United MileFleet and LMP Automotive Holdings. The partnership with LMP also included fleet sourcing, adding to the company's vehicle diversity and faster, regional availability of cars for our rental fleet.

Our operations are organized into rideshare operations and fleet management.

Rideshare

Rideshare Car Rentals LLC, our wholly-owned subsidiary, is an online rideshare vehicle booking platform to service the ridesharing 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 YayYo, Inc.

YayYo bridges the gap between rideshare drivers needing a suitable vehicle and rideshare companies that depend on attracting and keeping drivers. YayYo uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs. YayYo seeks to become the preeminent provider of rental vehicles to drivers in the ever-expanding ridesharing economy.

YayYo Inc provides SEC filings, investor events, press and earnings releases, about our financial performance, on the investor relations section of our website (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.

Contact:

Jon Rosen
CEO, Yayyo & Rideshare Rentals
Phone: 310 734-7406
Email: jon@yayyo.com

Public Relations Contact:

MJ Clyburn
TraDigital IR
Phone: 212 389-9782 x 101
Email: clyburn@tradigitalir.com

## Financial Tables to Follow ##

YAYYO, INC.
 
 

CONDENSED CONSOLIDATED BALANCE SHEETS
 
 

As of September 30, 2019 and December 31, 2018
 
 

 
September 30,
 
 
December 31,
 

 
2019
 
 
2018
 

 
(unaudited)
 
 
 
 

ASSETS

Current Assets:

Cash

 
$
81,340
 
 
$
277,444
 

Accounts receivable

 
 
78,643
 
 
 
–
 

Prepaid expenses

 
 
107,506
 
 
 
108,900
 

Total current assets

 
 
267,489
 
 
 
386,344
 

Equipment, net

 
 
4,881
 
 
 
5,092
 

Leased assets, net

 
 
4,125,845
 
 
 
5,115,117
 

Deferred offering costs

 
 
93,000
 
 
 
66,500
 

TOTAL ASSETS

 
$
4,491,215
 
 
$
5,573,053
 

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:

Accounts payable

 
$
325,928
 
 
$
719,386
 

Accrued expenses

 
 
770,084
 
 
 
494,066
 

Notes payables, current (net of discount of $42,351 and $72,211)

 
 
3,631,478
 
 
 
2,617,970
 

Finance lease obligations, current

 
 
1,358,002
 
 
 
1,562,651
 

Total current liabilities

 
 
6,085,492
 
 
 
5,394,073
 

Finance lease obligations, net of current portion

 
 
1,147,409
 
 
 
2,227,496
 

TOTAL LIABILITIES

 
 
7,232,901
 
 
 
7,621,569
 

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; 26,802,803 and 26,718,676 shares issued and outstanding

 
 
27
 
 
 
27
 

Additional paid-in capital

 
 
19,867,551
 
 
 
19,193,151
 

Accumulated deficit

 
 
(22,609,264
)
 
 
(21,241,694
)

Total stockholders' deficit

 
 
(2,741,686
)
 
 
(2,048,516
)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 
$
4,491,215
 
 
$
5,573,053
 

YAYYO, INC.
 
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 

For the Three and Nine Months Ended September 30, 2019 and 2018 (unaudited)
 
 

 
Three Months Ended September 30,
 
 
Nine Months Ended September 30,
 

 
2019
 
 
2018
 
 
2019
 
 
2018
 

Revenue

 
$
1,718,439
 
 
$
881,061
 
 
$
5,193,957
 
 
$
1,918,476
 

Cost of revenue

 
 
1,067,373
 
 
 
632,681
 
 
 
3,111,614
 
 
 
1,360,305
 

Gross profit

 
 
651,066
 
 
 
248,380
 
 
 
2,082,343
 
 
 
558,171
 

Operating expenses:

Selling and marketing expenses

 
 
80,039
 
 
 
34,500
 
 
 
182,645
 
 
 
125,995
 

Product development

 
 
–
 
 
 
–
 
 
 
–
 
 
 
9,699
 

General and administrative expenses

 
 
761,151
 
 
 
1,687,231
 
 
 
2,221,962
 
 
 
5,660,146
 

Impairment of leased assets

 
 
–
 
 
 
732,000
 
 
 
–
 
 
 
732,000
 

Loss on the settlement of debt

 
 
–
 
 
 
–
 
 
 
252,900
 
 
 
–
 

Total operating expenses

 
 
841,190
 
 
 
2,453,731
 
 
 
2,657,507
 
 
 
6,527,840
 

Loss from operations

 
 
(190,124
)
 
 
(2,205,351
)
 
 
(575,164
)
 
 
(5,969,669
)

Other income (expense):

Interest and financing costs

 
 
(180,531
)
 
 
(4,109,767
)
 
 
(792,406
)
 
 
(4,490,639
)

Total other income (expense)

 
 
(180,531
)
 
 
(4,109,767
)
 
 
(792,406
)
 
 
(4,490,639
)

Net loss

 
$
(370,655
)
 
$
(6,315,118
)
 
$
(1,367,570
)
 
$
(10,460,308
)

Weighted average shares outstanding :

Basic

 
 
26,802,803
 
 
 
26,501,331
 
 
 
26,774,636
 
 
 
26,226,596
 

Diluted

 
 
26,802,803
 
 
 
26,501,331
 
 
 
26,774,636
 
 
 
26,226,596
 

Loss per share

Basic

 
$
(0.01
)
 
$
(0.24
)
 
$
(0.05
)
 
$
(0.40
)

Diluted

 
$
(0.01
)
 
$
(0.24
)
 
$
(0.05
)
 
$
(0.40
)

YAYYO, INC.
 
 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
 
 

For the Nine Months Ended September 30, 2019 and 2018 (unaudited)
 
 

 
 
 
 
 
 
 
Additional
 
 
 
 
 
Total
 

 
Common Stock
 
 
Paid-in
 
 
Accumulated
 
 
Stockholders'
 

 
Shares
 
 
Amount
 
 
Capital
 
 
Deficit
 
 
Deficit
 

Balance, December 31, 2018

 
 
26,718,676
 
 
$
27
 
 
$
19,193,151
 
 
$
(21,241,694
)
 
$
(2,048,516
)

Correction to outstanding shares

 
 
(173
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
–
 

Issuance of common stock for settlement of debt

 
 
84,300
 
 
 
 
 
 
 
674,400
 
 
 
 
 
 
 
674,400
 

Net loss

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,367,570
)
 
 
(1,367,570
)

Balance, September 30, 2019 (unaudited)

 
 
26,802,803
 
 
$
27
 
 
$
19,867,551
 
 
$
(22,609,264
)
 
$
(2,741,686
)

Balance, December 31, 2017

 
 
25,770,551
 
 
 
26
 
 
 
7,879,189
 
 
 
(8,052,572
)
 
 
(173,357
)

Issuance of common stock for cash

 
 
46,330
 
 
 
 
 
 
 
307,924
 
 
 
 
 
 
 
307,924
 

Value of common stock issued with notes payable

 
 
155,850
 
 
 
 
 
 
 
407,791
 
 
 
 
 
 
 
407,791
 

Value of warrants issued with notes payable

 
 
 
 
 
 
 
 
 
 
3,726,506
 
 
 
 
 
 
 
3,726,506
 

Value of common stock issued with capital lease obligation

 
 
91,500
 
 
 
 
 
 
 
732,000
 
 
 
 
 
 
 
732,000
 

Issuance of common stock for services

 
 
432,500
 
 
 
1
 
 
 
3,459,999
 
 
 
 
 
 
 
3,460,000
 

Issuance of common stock for accounts payable

 
 
14,945
 
 
 
 
 
 
 
119,274
 
 
 
 
 
 
 
119,274
 

Stock option expense

 
 
 
 
 
 
 
 
 
 
678,351
 
 
 
 
 
 
 
678,351
 

Net loss

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,460,308
)
 
 
(10,460,308
)

Balance, September 30, 2018 (unaudited)

 
 
26,511,676
 
 
$
27
 
 
$
17,311,034
 
 
$
(18,512,880
)
 
$
(1,201,819
)

YAYYO, INC.
 
 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 

For the Nine Months Ended September 30, 2019 and 2018 (unaudited)
 
 

 
2019
 
 
2018
 

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

 
$
(1,367,570
)
 
$
(10,460,308
)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

 
 
730,610
 
 
 
313,051
 

Stock option expense

 
 
–
 
 
 
678,351
 

Common stock issued for services

 
 
–
 
 
 
3,460,000
 

Amortization of debt discounts

 
 
29,860
 
 
 
4,366,180
 

Gain on disposal of assets

 
 
–
 
 
 
(17,360
)

Impairment of leased assets

 
 
–
 
 
 
732,000
 

Loss on the settlement of debt

 
 
252,900
 
 
 
–
 

Changes in operating assets and liabilities:

Accounts receivable

 
 
(78,643
)
 
 
(17,051
)

Prepaid expenses

 
 
1,394
 
 
 
(1,972
)

Accounts payable

 
 
(419,958
)
 
 
76,916
 

Accrued expenses

 
 
697,518
 
 
 
171,432
 

Net cash used in operating activities

 
 
(153,889
)
 
 
(698,761
)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of equipment

 
 
–
 
 
 
(2,840
)

Net cash used in investing activities

 
 
–
 
 
 
(2,840
)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from sale of common stock

 
 
–
 
 
 
307,924
 

Proceeds from notes payable

 
 
1,951,300
 
 
 
7,346,378
 

Repayment of note payable

 
 
(967,652
)
 
 
(6,024,041
)

Payment for debt issuance costs

 
 
–
 
 
 
(178,228
)

Repayment of finance lease obligations

 
 
(1,025,863
)
 
 
(599,670
)

Net cash provided by (used in) financing activities

 
 
(42,215
)
 
 
852,363
 

NET INCREASE (DECREASE) IN CASH

 
 
(196,104
)
 
 
150,762
 

CASH, BEGINNING OF PERIOD

 
 
277,444
 
 
 
308,738
 

CASH, END OF PERIOD

 
$
81,340
 
 
$
459,500
 

CASH PAID FOR:

Interest

 
$
715,250
 
 
$
75,455
 

Income taxes

 
$
–
 
 
$
–
 

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES

Payment of accounts payable/accrued expenses with common stock

 
$
421,500
 
 
$
119,274
 

Value of equity recorded as debt discounts

 
$
–
 
 
$
4,134,297
 

Finance lease obligations

 
$
510,136
 
 
$
1,228,067
 

SOURCE: YayYo Inc.

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