YayYo, Inc. Announces Results for 2019

Annual revenue up 110.2% year over year to $6,914,910
Net loss down 70.2% or $9,258,901 to $3,930,221 year over year
Geographic footprint increased to 8 US owned fleet locations through 2019

BEVERLY HILLS, CA / ACCESSWIRE / April 1, 2020 / YayYo, Inc. ("YayYo" or "the Company") (OTCPINK: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 year ended December 31, 2019.

"We are pleased with our performance in 2019 commented" said Ramy El-Batrawi, CEO."

2019 Highlights

Increase in revenue due to additional cars in fleet
Gross margin improved to 32.4% compared to 27.8% for 2018 due to fleet mix optimization and demand-driven pricing
Additional revenues and higher gross margin led to lower net loss
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.

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.

The foregoing is only a summary of our results for 2109 and is not complete and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the "SEC") on March 31, 2020, including the financial statements and notes thereto included therein. We file periodic and current reports, proxy statements and other information with the SEC. Our filings are available to the public over the Internet at the SEC's web site at http://www.sec.gov.

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.

Company Contact:

Ramy El-Batrawi
Investors@yayyo.com
888-209-5643

YAYYO, INC.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2019 and 2018

 
2019
 
 
2018
 

ASSETS

Current Assets:

Cash

 
$ 
1,256,429
 
 
$ 
277,444
 

Accounts receivable

 
 
59,331
 
 
 
–
 

Prepaid expenses

 
 
782,900
 
 
 
108,900
 

Total current assets

 
 
2,098,660
 
 
 
386,344
 

Equipment, net

 
 
3,395
 
 
 
5,092
 

Rental vehicles, net

 
 
4,737,047
 
 
 
5,115,117
 

Deposit on vehicles

 
 
164,080
 
 
 
–
 

Deferred offering costs

 
 
–
 
 
 
66,500
 

Other assets

 
 
200,000
 
 
 
–
 

TOTAL ASSETS

 
$ 
7,203,182
 
 
$ 
5,573,053
 

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:

Accounts payable (including $394,183 and $334,471 to related party)

 
$ 
545,254
 
 
$ 
719,386
 

Accrued expenses (including $171,665 and $419,593 to related party)

 
 
405,977
 
 
 
494,066
 

Notes payables, current (net of discount of $32,289 and $72,211)

 
 
287,378
 
 
 
2,617,970
 

Finance lease obligations, current

 
 
1,416,446
 
 
 
1,562,651
 

Total current liabilities

 
 
2,655,055
 
 
 
5,394,073
 

Finance lease obligations, net of current portion

 
 
984,119
 
 
 
2,227,496
 

TOTAL LIABILITIES

 
 
3,639,174
 
 
 
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; 29,427,803 and 26,718,676 shares issued and outstanding

 
 
29
 
 
 
27
 

Additional paid-in capital

 
 
28,735,894
 
 
 
19,193,151
 

Accumulated deficit

 
 
(25,171,915
)
 
 
(21,241,694
)

Total stockholders' deficit

 
 
3,564,008
 
 
 
(2,048,516
)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 
$ 
7,203,182
 
 
$ 
5,573,053
 

YAYYO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2019 and 2018

 
2019
 
 
2018
 

Revenue

 
$ 
6,914,910
 
 
$ 
3,289,478
 

Cost of revenue

 
 
4,673,870
 
 
 
2,374,397
 

Gross profit

 
 
2,241,040
 
 
 
915,081
 

Operating expenses:

Selling and marketing expenses

 
 
765,441
 
 
 
482,811
 

Product development

 
 
13,500
 
 
 
9,699
 

General and administrative expenses

 
 
4,023,921
 
 
 
6,584,251
 

Impairment of leased assets

 
 
–
 
 
 
2,388,000
 

Loss on the settlement of debt

 
 
252,900
 
 
 
–
 

Total operating expenses

 
 
5,055,762
 
 
 
9,464,761
 

Loss from operations

 
 
(2,814,722
)
 
 
(8,549,680
)

Other income (expense):

Interest and financing costs

 
 
(1,115,499
)
 
 
(4,639,442
)

Total other income (expense)

 
 
(1,115,499
)
 
 
(4,639,442
)

Net loss

 
$ 
(3,930,221
)
 
$ 
(13,189,122
)

Weighted average shares outstanding :

Basic

 
 
27,112,557
 
 
 
26,321,137
 

Diluted

 
 
27,112,557
 
 
 
26,321,137
 

Loss per share

Basic

 
$ 
(0.14
)
 
$ 
(0.50
)

Diluted

 
$ 
(0.14
)
 
$ 
(0.50
)

YAYYO, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the Years Ended December 31, 2019 and 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 

 
Common Stock
 
 
Additional
Paid-in
 
 
Accumulated
 
 
Stockholders'
Equity
 

 
Shares
 
 
Amount
 
 
Capital
 
 
Deficit
 
 
(Deficit)
 

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

 
 
298,500
 
 
 
 
 
 
 
2,388,000
 
 
 
 
 
 
 
2,388,000
 

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

 
 
 
 
 
 
 
 
 
 
904,468
 
 
 
 
 
 
 
904,468
 

Net loss

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(13,189,122
)
 
 
(13,189,122
)

Balance, December 31, 2018

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

Correction to outstanding shares

 
 
(173
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
–
 

Proceeds from the sale of common stock

 
 
2,625,000
 
 
 
2
 
 
 
10,499,998
 
 
 
 
 
 
 
10,500,000
 

Offering costs

 
 
 
 
 
 
 
 
 
 
(1,631,655
)
 
 
 
 
 
 
(1,631,655
)

Issuance of common stock for settlement of debt

 
 
84,300
 
 
 
 
 
 
 
674,400
 
 
 
 
 
 
 
674,400
 

Net loss

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,930,221
)
 
 
(3,930,221
)

Balance, December 31, 2019

 
 
29,427,803
 
 
$ 
29
 
 
$ 
28,735,894
 
 
$ 
(25,171,915
)
 
$ 
3,564,008
 

YAYYO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2019 and 2018

 
2019
 
 
2018
 

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

 
$ 
(3,930,221
)
 
$ 
(13,189,122
)

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

Depreciation and amortization

 
 
995,228
 
 
 
500,622
 

Stock option expense

 
 
–
 
 
 
904,468
 

Common stock issued for services

 
 
–
 
 
 
3,460,000
 

Amortization of debt discounts

 
 
39,922
 
 
 
4,460,931
 

Gain on disposal of assets

 
 
–
 
 
 
(17,360
)

Impairment of leased assets

 
 
–
 
 
 
2,388,000
 

Loss on the settlement of debt

 
 
252,900
 
 
 
–
 

Changes in operating assets and liabilities:

Accounts receivable

 
 
(59,331
)
 
 
–
 

Prepaid expenses

 
 
(674,000
)
 
 
(95,494
)

Other assets

 
 
(200,000
)
 
 
–
 

Accounts payable

 
 
(174,132
)
 
 
673,836
 

Accrued expenses

 
 
333,411
 
 
 
489,963
 

Net cash used in operating activities

 
 
(3,416,223
)
 
 
(424,156
)

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of equipment

 
 
–
 
 
 
(2,840
)

Purchase of vehicles

 
 
(225,000
)
 
 
–
 

Deposit for vehicles

 
 
(164,080
)
 
 
–
 

Net cash used in investing activities

 
 
(389,080
)
 
 
(2,840
)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from sale of common stock

 
 
10,500,000
 
 
 
307,924
 

Offering costs paid

 
 
(1,565,155
)
 
 
–
 

Proceeds from notes payable

 
 
2,009,300
 
 
 
7,746,378
 

Repayment of notes payable

 
 
(4,379,814
)
 
 
(6,111,263
)

Payment for debt issuance costs

 
 
–
 
 
 
(178,228
)

Repayment of finance lease obligations

 
 
(1,780,043
)
 
 
(1,369,109
)

Net cash provided by (used in) financing activities

 
 
4,784,288
 
 
 
395,702
 

NET INCREASE (DECREASE) IN CASH

 
 
978,985
 
 
 
(31,294
)

CASH, BEGINNING OF PERIOD

 
 
277,444
 
 
 
308,738
 

CASH, END OF PERIOD

 
$ 
1,256,429
 
 
$ 
277,444
 

CASH PAID FOR:

Interest

 
$ 
1,105,049
 
 
$ 
139,825
 

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

 
$ 
1,159,470
 
 
$ 
3,700,674
 

SOURCE: YayYo, Inc.

ReleaseID: 583393