~~[X]~~ ☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~[ ]~~ ☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ~~[X]~~ ☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ~~[X]~~ ☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ~~[ ]~~☐ Accelerated filer ~~[ ]~~ ☐ Non-accelerated filer ~~[X]~~ ☒ Smaller reporting company ~~[X]~~☒ Emerging growth company ~~[X]~~☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ~~[ ]~~☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ~~[ ]~~ ☐ No ~~[X]~~ ☒

Indicate the number of shares outstanding of each of the issuer’s classes of ~~common stock,~~Common Stock, as of the latest practicable date.

~~31,981,374~~ 38,505,554shares of ~~common stock,~~Common Stock, $0.000001 par value, as of August ~~5, 2020~~13, 2021

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

For the Three and Six Months Ended June 30, 2021 and 2020 ~~and 2019~~ (unaudited)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)~~EVmo, Inc.

For the Three and Six Months Ended June 30, 2021 and 2020 ~~and 2019~~ (unaudited)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Notes to Condensed Consolidated Financial Statements

~~YayYo,~~EVmo, Inc. ~~(“YayYo” or the~~(the “Company”) was ~~incorporated~~organized on June 21, 2016under the laws of the state of Delaware ~~originally~~ as a limited liability ~~company and~~company. It subsequently ~~changed~~converted to a C ~~corporation. The accompanying financial statements are retroactively restated to present~~corporation, also incorporated in Delaware, named YayYo, Inc. On September 11, 2020, the Company ~~as a C corporation from June 21, 2016.~~changed its name to Rideshare Rental, Inc. and on March 1, 2021, the Company again changed its name, this time to EVmo, Inc. The ~~Company rents cars~~Company’s principal business is to rent vehicles to drivers who work for ridesharing Transportation Network Companies (“TNCs”) such as Uber and Lyft, ~~drivers.~~as well as to drivers in the delivery gig-economy that work for companies such as DoorDash and GrubHub.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ~~(GAAP)~~(“GAAP”).

~~In December 2019, a novel strain of coronavirus surfaced in China, which has and is continuing to spread throughout the world, including the United States.~~

On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, ~~the World Health Organization~~it characterized the outbreak as a ~~“pandemic”. The governors of New York, California~~“pandemic.” In response, numerous states and ~~several other states, as well as mayors on many~~ cities ~~have~~ ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and ~~to stay in their homes as much as possible in the coming weeks, as the nation confronts the escalating coronavirus outbreak, and~~ similar restrictions ~~have been~~were recommended by the federal ~~authorities and authorities~~government. Beginning in ~~many other states and cities. Since~~ the ~~beginning~~first quarter of 2020, ~~and~~which saw the initial rapid spread of COVID-19, rideshare companies ~~have increasingly been~~were severely and negatively ~~impacted. As Americans practice social distancing and self-isolation, Uber, Lyft, and other rideshare companies have seen a steep decline in ridership and revenue,~~impacted, as ~~a result. Given that rideshare drivers are both at risk themselves and of risk to~~demand plummeted. Consequently, the ~~public, and in addition to decreased demand overall, less people are even still driving. The~~ Company ~~has seen~~experienced a decline in revenue during the first half of 2020, which ~~is having~~had a negative impact on ~~the~~our cash flows, ~~of the business,~~ but we then saw a positive upward movement in revenue during the ~~latter part~~second half of 2020, which has continued into the first half of 2021. As of the ~~second quarter~~date of this quarterly report, several vaccinations for COVID-19 have received emergency-use authorization from the Food and Drug Administration and many of the lockdown restrictions imposed by state and local governments have abated. Still, the pandemic has not yet ended, ~~June 30, 2020. The Company has seen increased demand from drivers wanting to rent cars for ridesharing purposes~~ and ~~new drivers renting cars for~~there have been multiple waves where infections, hospitalizations, and deaths have sharply increased. Most recently, variants of the original virus have been identified, and many Americans have resisted obtaining one of the vaccinations, both ~~rideshare and delivery gig economy. With the recent increase~~of which have resulted in increases in the aggregate number of ~~positive COVID-19 cases, the Company is not able to~~infections. We therefore cannot predict the ultimate impact that ~~COVID -19 will~~COVID-19 may have on ~~its business. If another lockdown were to occur,~~our business over the Company could be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company. The Company cannot at this time estimate the long term effectentirety of this ~~unprecedented situation on the rideshare market or delivery gig economy in general or the Company in particular.~~year, and possibly beyond.

The unaudited ~~interim~~condensed consolidated financial statements ~~included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been~~are prepared by the Company, ~~without audit,~~ pursuant to the rules and regulations of the Securities and Exchange Commission ~~(“SEC”~~(the “SEC”). ~~Certain~~The information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosure are adequate to make the information presented not misleading.

~~These statements reflect~~furnished herein reflects all ~~adjustment,~~adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are necessary to fairly state the Company’s financial position, the results of its operations, and cash flows for ~~fair presentation of~~ the periods presented. Certain information ~~contained therein. It is suggested that these interim~~and footnote disclosures normally present in annual financial statements ~~be read~~prepared in ~~conjunction~~accordance with accounting principles generally accepted in the ~~financial statements~~United States of ~~the Company~~America were omitted pursuant to such rules and regulations. The results of operations for the six months ended June 30, ~~2019 and notes thereto. The Company follows~~2021 are not necessarily indicative of the ~~same accounting policies in the preparation of interim report. Results of operations~~results expected for the ~~interim period are not indicative of annual results.~~year ending December 31, 2021.

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned operating subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, ~~LLC, RideYayYo, LLC and Savy,~~ LLC. All significant intercompany transactions and balances have been eliminated.

The preparation of financial statements in conformity with ~~generally accepted accounting principles~~GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved.

For the purpose of the statement of cash flows, cash equivalents include time deposits, certificate of deposits, and all highly liquid debt instruments with original maturities of three months or less.

~~Equipment~~Property and ~~Rental Vehicles~~equipment and rental vehicles are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of equipment and rental vehicles is provided using the straight-line method for substantially all assets with estimated lives as follows:

The Company applies the provisions of ~~ASC~~the Financial Standards Accounting Board (“FASB”)’s Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Based on its review at June 30, ~~2020,~~2021, the Company determined that no 0impairment charge was necessary.

The Company recognizes all of its material revenue from renting its fleet of cars to ~~Uber and Lyft~~TNC drivers. Revenue is recognized based on the rental agreements, which are generally entered into on a weekly basis. The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue From Contracts with Customers. Generally, this enables us to both recognize revenue when we have satisfied our obligations under our rental agreement, i.e. when we have provided the vehicle to our renter, and to recognize the entire amount we expect to receive pursuant to the agreement, including estimates.

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. ~~FASB~~ ASC ~~Topic~~ 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee’s requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees, ~~and non-employees.~~as well as non-employees, which is permitted under ASC 718. There were ~~1,631,250~~ 2,006,250 warrants and 1,515,000 options outstanding as of June 30, 2021 and 1,631,250 warrants and 716,000 options outstanding as of June 30, 2020.

Earnings per share (“EPS”) is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic ~~earnings per share (“EPS”)~~EPS is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive securities are converted. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase shares of the Company’s common stock, par value $0.000001 (the “Common Stock”) at the average market price during the period. Due to the net loss incurred, potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented. There were 3,521,250 and 2,347,250 potentially dilutive ~~securities~~options and warrants outstanding at June 30, ~~2020.~~2021 and 2020, respectively, and 750,000 shares potentially issuable upon the conversion of an outstanding convertible note at June 30, 2021.

The Company expenses the cost of advertising as incurred. Advertising costs for the six months ended June 30, 2021 and 2020 were $230,564and ~~2019 were $210,642 and $102,606,~~$210,642, respectively.

The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:

For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.

At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value.

In ~~June 2018,~~December 2019, the ~~Financial Accounting Standards Board (“FASB”)~~FASB issued Accounting Standards Update (“ASU”) ~~ASU 2018-07,~~ ~~Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting~~, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have an impact on its financial statements.

~~In May 2014, the FASB issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers~~. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company adopted this ASU beginning on January 1, 2018 and used the modified retrospective method of adoption. The adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures.

~~In December 2019, the FASB issued ASU~~ 2019-12, Simplifying the Accounting for Income Taxes, which amends ASC 740 Income Taxes ~~(ASC 740)~~. This update is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application of ASC 740. This update is effective for fiscal years beginning after December 15, 2021. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis with earlier application permitted. The Company is currently evaluating the effect of this ASU on the Company’s consolidated financial statements and related disclosures.

In August 2020, the FASB issued ASU 2020-06,Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract. ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under ASC Subtopic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity, and clarify the scope and certain requirements under Subtopic 815-40. In addition, ASU 2020-06 improves the guidance related to the disclosures and EPS for convertible instruments and contract in an entity’s own equity. ASU 2020-06 is effective for public business entities that meet the definition of a SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, which includes the Company, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, and whether it intends to early adopt.

Management does not believe that any recently issued, but not yet effective, accounting ~~standards~~updates could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

At June 30, ~~2020~~2021 and December 31, ~~2019~~2020, property and equipment consisted of the following:

Depreciation expense for equipment for the six months ended June 30, 2021 and 2020 was $2,488and ~~2019 was $744 and $158,~~$744, respectively.

At June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, all of the Company’s rental vehicles consisted of the following:

The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five years. Depreciation expense for leased assets for the six months ended June 30, 2021 and 2020 was $992,635and ~~2019 was $668,623 and $514,244,~~$668,623, respectively. The lease terms are generally for 30 to 36 months and the Company has the right to purchase the leased assets at the end of the lease terms for generally a nominal amount.

Notes payable at June 30, ~~2020~~2021 and December 31, ~~2019~~2020 consisted of the following:

(A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the six months ended June 30, 2020 and 2019, $19,906 and $19,797, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $12,383 at June 30, 2020.

A ~~rollforward~~roll-forward of notes payable from December 31, ~~2019~~2020 to June 30, ~~2020~~2021 is below:

~~Lease obligations at June 30, 2020 and December 31, 2019 consisted of the following:~~

On January 8, 2021, the Company, issued a stand-alone $500,000 convertible promissory note to Mr. John Gray, principal of one of the Company’s largest stockholders, the Gray Mars Venus Trust, Arizona 2015, an Arizona asset management limited partnership. The convertible note accrued interest at a fixed rate of 6% and ~~2019 (unaudited)~~had a maturity date of January 6, 2022. Any unpaid principal balance on the convertible note could be converted at any time, at the option of Mr. Gray, into shares of Common Stock at a price of $0.50 per share. The Company recorded a beneficial conversion feature associated with this convertible note of $30,000, which was recorded as a debt discount. On February 12, 2021, Mr. Gray converted the full amount of the convertible promissory note into 1,000,000 shares of Common Stock.

On April 12, 2021, the Company entered into a securities purchase agreement with a certain investor in connection with the issuance, as of that same date, of a 12.5% original issue discount convertible promissory note and a Common Stock purchase warrant. The note had an original principal amount of $2,250,000, with an original issue discount of $250,000. It bore interest at a fixed rate of 10%, was convertible into shares of Common Stock at a price of $3.00 per share (subject to adjustment as set forth in the note), and was to mature on January 12, 2022. The warrant grants the right to purchase 187,500 shares of Common Stock at an exercise price of $3.00, subject to adjustment as set forth therein, and is exercisable at any time within five years of the date of issuance. The agreement provides that additional warrants, each for 93,750 shares of Common Stock with an exercise price of $3.00 per share, will be issued by the Company to the investor on the 12th day of each month that the note remained outstanding. Both the note and the warrant include anti-dilution provisions in which the conversion price of the note and the exercise price of the warrant will be reduced to equal the conversion or exercise price, as applicable, of any subsequently-issued derivative security to acquire shares of Common Stock, or their equivalent, should that conversion or exercise price be lower than that of the note or the warrant. To account for the note and warrant, the Company first determined the value of the note and the fair value of the detachable warrants issued in connection with this convertible note. The estimated value of the warrants of $623,373 was determined using the Black-Scholes option pricing model and the following assumptions: a term of five years, a risk-free interest rate of .089%, a dividend yield of 0% and volatility of 190%. The face amount of the convertible note of $2,250,000 was proportionately allocated to the convertible note and the warrant in the amount of $1,761,866 and $488,134, respectively. Since the Company’s stock price exceeded the conversion price on the transaction date, there is an embedded beneficial conversion feature present in the convertible note of $810,633. The combined discount of $1,298,767 plus the original issue discount are recorded as a debt discount to the convertible note and are being amortized over the year life of the note.

Please see Note 13- Subsequent Events for a description of how the note described immediately above has since been cancelled, and Series B convertible preferred stock has been issued to the investor.

A ~~rollforward~~roll-forward of convertible notes from December 31, 2020 to June 30, 2021 is below:

Lease obligations at June 30, 2021 and December 31, 2020 consisted of the following:

A roll-forward of lease obligations from December 31, ~~2019~~2020 to June 30, ~~2020~~2021 is below:

The Company determines whether a contract is or contains a lease at inception and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

The Company leases its corporate office space under an operating lease that expires in 2023. The Company accounts for this lease under the provisions of ASC Topic 842, Leases.

The table below presents the lease-related assets and liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2021:

The lease expense for the six months ended June 30, 2021 was $63,010. The cash paid under operating leases for the six months ended June 30, 2021 was $52,600. At June 30, 2021, the weighted-average remaining lease term was 1.51 years and the weighted-average discount rate was 15%.

The Company authorized 100,000,000 shares of capital stock with consists of 90,000,000 shares of ~~common stock, $0.000001~~Common Stock, $0.000001 par value per share and 10,000,000 shares of preferred stock, ~~$0.000001~~$0.000001 par value per share.

The exercise price for options outstanding and exercisable at June 30, ~~2020:~~2021:

In connection with a convertible note discussed in Note 6, the Company has issued an aggregate of 187,500 warrants since the convertible note remained outstanding as of June 30, 2021. The fair value of the warrants was determined to be $451,415, using a Black-Scholes model, and has been recorded as financing costs in the accompanying statements of operations for the six months ended June 30, 2021. The Company used the following assumptions in determining the fair value:

During the six months ended June 30, ~~2020~~2021 and 2019, the Company paid management fees of $0 and $120,000, respectively, to a company that is owned by the Company’s Chief Executive Officer and director. Beginning on February 1, 2019, the Company entered into a consulting agreement with this individual and paid $167,000 under the consulting agreement. The consulting agreement was terminated effective September 1, 2019. Also during the six months ended June 30, 2020, ~~the Company’s CEO and director advanced the Company $150,000 and the Company repaid the amount in full. At June 30, 2020, $0 was owed to the Company’s CEO and director related to this advance.~~

~~During the six months ended June 30, 2020 and 2019,~~ the Company expensed ~~$32,173~~ $1,618,441 and $53,507, respectively, in advertising expenses from a company whose CEO was also a former director of the Company. At June 30, 2020 and December 31, 2019, $324,920 and $394,183, respectively, was owed to this company and is included in accounts payable in the accompanying consolidated balance sheets.

~~During the six months ended June 30, 2020 and 2019, the Company expensed $1,103,460 and $1,024,907,~~$1,103,460, respectively, in insurance expense related to insuring the Company fleet of vehicles from an insurance brokerage firm whose owner is also a principal stockholder of the Company. At June 30, ~~2020~~2021 and December 31, ~~2019, $201,156~~ 2020, $546,746 and ~~$171,665,~~$265,257, respectively, was owed to this insurance brokerage from and is included in accounts payable ~~and accrued expenses~~ in the accompanying consolidated balance sheets.

The Company’s Executive Chairman, Terren S. Peizer, and its former chief executive officer (“CEO”), Ramy El-Batrawi, each made financial advances to the Company that were outstanding during the first six months of fiscal 2021. At December 31, 2020, the Company owed its former CEO $100,000. During the six months ended June 30, 2021, Mr. Peizer loaned the Company $503,767 and was repaid $503,767 and Mr. El-Batrawi was repaid the $100,000 outstanding from fiscal 2020. At June 30, 2021, the Company owed its Executive Chairman and its former CEO $0 and $0, respectively.

From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. The Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash ~~flows.~~flows, other than those described below.

This action was filed on February 11, 2020, in the Superior Court of the State of California for the County of Los Angeles. Plaintiff Social Reality Inc. is a media company that claims to have provided media services to the Company. Plaintiff has sued the Company for breach of contract and related causes of action, arising from its claims that the Company has failed to pay for past outstanding invoices for services rendered. The plaintiff has also filed a motion for prejudgment attachment which was heard on July 28, 2020. The Superior Court denied the writ of attachment on the merits. The parties have a case management conference scheduled for August 18, 2020. The Company believes that it has valid defenses to the lawsuit, and expects to file counterclaims that will offset or negate any monies owed to plaintiff; it will vigorously defend the lawsuit.

~~This action~~A complaint was filed on March 5, 2020, in the Los Angeles Superior Court ~~of the State of California for the County of Los Angeles. Plaintiff~~by plaintiff Anthony Davis, who was hired by the Company as its ~~Chief Executive Officer in~~CEO and as a director on or about December ~~2016, although he worked there for only a matter of months.~~2016. Mr. ~~El-Batrawi is the founder of~~Davis’s employment with the Company ~~and our current Chief Executive Officer and director, and was involved, the complaint alleges, in Plaintiff’s hiring.~~ended after several months. As part of his compensation, Mr. Davis ~~claims~~alleges that he expected to receive stock options in the Company. ~~He has alleged~~In his pleadings, Mr. Davis admits that ~~“after several months of unsuccessfully attempting to persuade the Company’s founder to implement certain protocols and procedures” Davis~~he resigned from his executive officer and director positions, ~~and entered into a written settlement agreement with~~but asserts that he did not receive certain compensation in the ~~Company as a consultant. Mr. Davis claims that the Company breached its agreement to award him certain~~form of stock options ~~and includes~~(he has also included a claim for wage and hour ~~violations. The lawsuit also includes a request for declaratory and injunctive relief. Davis also included a claim under California Unfair Practices Act.~~violations). The Company denies liability and ~~asserts~~has asserted that it has paid Mr. Davis all amounts due to him under ~~the contract, and~~his employment agreement, while also asserting that Mr. Davis failed to exercise his stock options before they expired on December 31, 2018. ItThe Company has filed a demurrer to the first amended complaint, which is expected to be heard on September 8, 2021 in Superior Court. The Company’s position is that the lawsuit entirely lacks merit, and intends to ~~vigorously~~ defend ~~the lawsuit, and has agreed to pursue mediation pursuant to the contract with plaintiff.~~it vigorously.

Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 and Michael Vanbecelaere v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV28066 (Vanbecelaere)(hereafter the “State Cases”)

~~This action was filed on~~On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior ~~Court of~~Court. The complaints underlying the State ~~of California for the County of Los Angeles. Plaintiff~~Cases differ only by a few words and some random punctuation marks, and are therefore virtually identical. Plaintiffs Ivan Rung ~~claims~~and Michael Vanbecelaere each claimed to have purchased the Common Stock as part of the Company’s ~~stock and purports~~initial public offering (the “IPO”); they purport to bring a securities class action on behalf of all purchasers of ~~YayYo’s stock~~the Common Stock pursuant to the ~~Registration Statement~~registration statement and ~~Prospectus issued~~prospectus filed with the SEC and distributed in connection with ~~YayYo’s~~the Company’s IPO, which was launched on November 14, 2019 initial public stock offering (IPO”). Mr. El-Batrawi is the founder and current CEO of the Company but at the time of the IPO was only a shareholder of the Company having stepped down as CEO, Director and a controlling shareholder of the Company.2019. The ~~complaint is vague about alleged misrepresentation~~State Case complaints allege misrepresentations and material omissions ~~detailing instead a supposed chronology~~in the SEC filings in violation of ~~events leading~~Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”). The Company has and continues to vigorously deny any and all liability and asserts that the State Cases are baseless. It is the Company’s ~~voluntary decision to delist its stock from NASDAQ, a decision the Company announced in an 8K filed on February10, 2020. The Company denies liability and asserts~~firm position that it accurately and completely disclosed all ~~materially adverse~~material facts and ~~occurrences~~circumstances in its ~~Registration Statement, related public~~SEC filings relating to the IPO, and ~~other public statements,~~subsequently in its periodic SEC reports, including those that were potentially adverse to the Company’s operations and business prospects. The State Cases litigation is presently stayed pending the ~~Complaint’s alleged violations of Sections 11 & 15~~outcome of the ~~Securities Act of 1933 are baseless. It intends~~federal securities case discussed below (Hamlin v. YayYo, Inc.)

~~Michael Vanbecelaere~~Jason Hamlin v. YayYo, Inc., Ramy El-Batrawi, et al., ~~20STCV28066~~20-cv-8235 (SVW) and William Koch v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8591 (SVW)(now consolidated as “In re YayYo Securities Litigation”)

~~This action was~~These two actions were filed on ~~July 23,~~September 9, 2020 and September 18, 2020, respectively, in the ~~Superior~~United States District Court ~~of the State of California~~ for the ~~County~~Central District of ~~Los Angeles, also as a purported class action. Plaintiff Michael Vanbecelaere claims~~California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the ~~Company’s stock “traceable to~~Common Stock as part of the ~~IPO”~~IPO and, like ~~Rung, brings~~the plaintiffs in the State Cases, purport to bring a securities class action pursuant to Sections 11 &and 15 of the Securities Act, as well as and Section 17(a) and 10(b)(5) of ~~1933~~the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on behalf of all purchasers of ~~YayYo’s stock.~~the Common Stock in the IPO. The first amended complaint, like the ~~preceding action, Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 (“Rung”)~~State Cases, alleges false statements and material ~~omission pursuant to the Registration Statement and Prospectus issued~~omissions of material fact in connection with ~~YayYo’s November 14, 201 9 initial public stock offering (IPO).~~the SEC filings distributed in connection with the IPO. The defendants ~~are identical to~~include directors of the ~~defendants in~~Company and the ~~action filed~~underwriters of the ~~day before, on July 22, 2020.~~IPO, WestPark Capital, Inc. (“WestPark”) and Aegis Capital Corp. The federal court has consolidated the two complaints are virtual cookie cutter versions of each other including a false allegation of fact about YayYo that appears in an identical paragraph 13: “On or about June 21, 2016, defendant EI-Batrawi incorporated YayYo in Delaware. The Company then rented cars to Uber and Lyft drivers.” (The business model of YayYo was different on June 21, 2016.)matters for all practical purposes. As with the ~~Rung case,~~State Cases, the Company denies liability and asserts that it accurately and completely disclosed all ~~materially adverse~~material facts ~~events~~ and ~~occurrences~~circumstances in its ~~Registration Statement and related public~~SEC filings, and that the ~~Complaint’s~~complaint’s alleged violations of ~~Sections 11 & 15 of the Securities Act of 1933~~securities laws are baseless. The ~~actions will be “low numbered” to~~Company’s motion for judgment on the ~~same Superior Court judge~~pleadings was recently denied, and ~~consolidated.~~the plaintiff’s motion for class action certification is presently pending. The Company intends to vigorously defend the ~~lawsuit.~~lawsuit in federal court. The Court has set a trial date of October 5, 2021.

On October 12, 2020 a complaint was filed in Delaware District Court, which has since been transferred to the U.S. District Court for the Central District of California, and assigned as a related case to the judge in the pending federal securities action described immediately above. This case is a purported shareholder derivative action, which alleges that the Company’s executive officers and directors at the time of its IPO made false and misleading statements relating the Company’s business, operations, and future prospects and that the directors breached their fiduciary duties in doing so. The Company believes that the allegations of the complaint are spurious and will vigorously defend the case at trial.

On February 11, 2021, the Company, entered into a settlement agreement and mutual release (the “Settlement Agreement”) with FirstFire Global Opportunities Fund, LLC, a Delaware limited liability company (“FirstFire”), relating to a pending action in the U.S. District Court in the Southern District of New York, FirstFire Global Opportunities Fund, LLC v. WestPark Capital, Inc. et. al., No. 1:20-cv-03327-LLS. The other parties to the Settlement Agreement were the Company’s co-defendants in the litigation, WestPark, Mr. Richard A. Rappaport and Mr. Ramy El-Batrawi, former chief executive officer of the Company.

This litigation was commenced by FirstFire in April 2020 and subsequently amended in December 2020. FirstFire was a subscriber to the Company’s IPO. It alleged in the litigation that the Company and the other named defendants had, in connection with the IPO and the registration statement on Form S-1 filed thereto, committed violations of Sections 11, 12(a) and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated under the Exchange Act. Each of the Company, WestPark, Mr. Rappaport and Mr. El-Batrawi vigorously denied and disputed these allegations.

In consideration of the releases, covenants, terms and conditions set forth in the Settlement Agreement, FirstFire agreed to dismiss the litigation with prejudice, to not file any further litigation relating to the IPO, and to waive and relinquish any and all claims on shares of Common Stock other than as specified in the Settlement Agreement. The Company agreed to sell to FirstFire one hundred fifty thousand (150,000) shares of Common Stock (the “Settlement Shares”), with such shares issued pursuant to the exemption from registration under Rule 506(b) of the Act. The purchase price of the Settlement Shares was $0.066667 per share, or an aggregate of $10,000. Any resale of the Settlement Shares by FirstFire shall be subject to the conditions of Rule 144 of the Act. None of WestPark, Mr. Rappaport or Mr. El-Batrawi contributed to the Settlement Shares or any other consideration under the Settlement Agreement.

On February 19, 2021, the Company entered into a confidential settlement agreement and mutual release with SRAX, Inc., a Delaware corporation formerly known as Social Reality, Inc. (“SRAX”), relating to an action brought by SRAX against the Company in Los Angeles Superior Court on or around February 11, 2020. A description of this litigation has been included by the Company in its prior filings.

The Company and SRAX mutually agreed to keep the material terms of this settlement confidential, subject to disclosure as required by applicable law or regulation.

~~In July 2020, the~~The Company ~~issued a total of 2,505,000 stock options to officers, directors and employees. Included~~has evaluated subsequent events through August 13, 2021. The Company has determined there were no subsequent events that require recognition or disclosure in the ~~total options~~financial statements, except as discussed below.

During the two months subsequent to June 30, 2021, the Company has issued ~~were: 1,000,000~~an aggregate of 187,500 warrants pursuant to the ~~CEO; 750,000 to~~terms of the ~~COO; 250,000 to the CFO and 5,000 each to four independent directors.~~convertible note agreement discussed in Note 6.

InOn July ~~2020,~~9, 2021 (the “Closing Date”), the Company entered into a ~~new employment agreement~~Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with ~~Laurie DiGiovanni,~~EICF Agent LLC (“EICF”), as agent for the lenders, and Energy Impact Credit Fund I, LP, as lender (the “Lender”), providing for a secured term loan facility in an aggregate principal amount of up to $15.0 million (collectively, the “Term Loans”), consisting of a $7.5 million closing date term loan facility (the “Closing Date Term Loan”) and up to $7.5 million of borrowings under a delayed draw term loan facility (the “Delayed Draw Term Loan Facility”). The Closing Date Term Loan was fully drawn on the Closing Date, while the Delayed Draw Term Loan Facility is available upon the satisfaction of certain conditions precedent specified in the Term Loan Agreement. The Term Loan Agreement matures on July 9, 2026. Borrowings under the Term Loan Agreement bear interest at the London Interbank Offered Rate (“LIBOR”), plus a margin of 10.0%. As a condition precedent to the Agent and the Lender entering into the Term Loan Agreement, the Company issued to the Lender a common stock purchase warrant, dated as of the Closing Date (the “Warrant”), which grants the Lender the right to purchase up to 1.5 million shares of the common stock of the Company, par value $0.000001 (the “Common Stock”), at an exercise price of $2.10, subject to adjustment as set forth in the Warrant. The Warrant is subject to vesting, with 450,000 shares of Common Stock exercisable as of the Closing Date and the remainder exercisable only in the event that the Company borrows under the Delayed Draw Term Loan Facility or fails to consummate a qualifying equity transaction on or before October 7, 2021. The Warrant has no expiration date.

In connection with the Company’s ~~COO~~entry into the Term Loan Agreement, the Company entered into an exchange agreement, dated as of July 8, 2021 (the “Exchange Agreement”), with the holder (the “Holder”) of the Company’s 12.5% OID convertible promissory notes (see Note 6) due January 12, 2022issued on April 12, 2021 (the “Prior Notes”).

Pursuant to the Exchange Agreement, the Holder agreed to exchange the Prior Notes for 230,375 shares of Series B convertible preferred stock, par value $0.000001 per share (the “Preferred Stock”), and a warrant (the “Exchange Warrant”). The Exchange Warrant grants the Holder the right to purchase 93,750 shares of Common Stock at an ~~annual salary~~exercise price of ~~$200,000 plus 750,000 stock options~~$3.00, subject to adjustment as set forth therein. The Exchange Warrant is exercisable in full at any time within five (5) years of the date of issuance. Additional warrants on substantially identical terms as the Exchange Warrant will be issued by the Company to the Holder monthly until such time as the Preferred Stock is redeemed in full, upon which a final warrant will be issued.

The Preferred Stock is convertible at any time at the option of the holder thereof into if not previously converted into shares of Common Stock at an initial conversion price of $3.00 per share, subject to adjustment as set forth in the Certificate of Designation (as defined below).

The Preferred Stock is subject to mandatory redemption in full at a redemption price initially equal to $10.00 per share, within 15 business days after the date on which the Company has completed an equity financing resulting in total proceeds of at least $10 million. At any time after January 12, 2022, provided that ~~become fully vested over three years.~~the Company has paid in full all obligations outstanding under the Term Loan Agreement, the holders of a majority of the outstanding shares of Preferred Stock shall be entitled to require the Company to redeem the Preferred Stock at the then applicable redemption price, and any such redemption of Preferred Stock shall be prior and superior to the redemption of any and all other equity securities of the Company duly tendered for redemption.

If at any time while the Preferred Stock is outstanding, the Company completes any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the holders of the Preferred Stock may, in their sole discretion, elect to apply all, or any portion, of the then outstanding Preferred Stock and any accrued but unpaid dividends, as purchase consideration for such Future Transaction. The conversion price applicable to such conversion shall equal seventy percent (70%) of the cash purchase price paid per share, unit or other security denomination for the securities of the Company issued to other investors in the Future Transaction.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

~~Certain~~This quarterly report on Form 10-Q may contain “forward-looking statements, ~~made herein, as well as in other filings we make with~~” within the ~~SEC and other written and oral information we release, regarding our future performance constitute “forward-looking statements” as defined in~~meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of ~~1995.~~1995. Forward-looking statements can be identified by words such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” and similar references to future periods. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. ~~The~~Any forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of ~~business. Assumptions relating to the foregoing involve~~our business, which involves judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe our assumptions underlying ~~the~~any forward-looking statements are reasonable, ~~any of the assumptions~~they could prove to be inaccurate and therefore, there can be no assurance ~~the~~that forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in ~~the~~ forward-looking statements, ~~included herein,~~ the inclusion of such information should not be regarded as a representation by us ~~or any other person~~ that our objectives and plans will be achieved. Our actual results may differ materially from those anticipated in ~~these~~any forward-looking statements as a result of various factors, including those described in Part II, Item 1A, “Risk Factors” and elsewhere in this report and as also may be described from time to time in future reports we file with the SEC. You should read such information in conjunction with our consolidated financial statements and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report.factors. There also may be other factors that we cannot anticipate or that are not described in this report, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations.

Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the SEC.

The Company was ~~formed~~organized in Delaware on June 21, 2016 as a limited liability company under the name “YayYo, ~~LLC,~~LLC.” ~~which was~~It subsequently converted into a Delaware corporation ~~pursuant to the unanimous written consent of our former manager~~ and ~~members in a transaction intended to be tax-free under the Internal Revenue Code (the “Conversion”). All~~all of YayYo, LLC’s liabilities and assets ~~including its intellectual property,~~ were ~~automatically transferred to~~assumed by the Company. On September 11, 2020, the Company changed its name to Rideshare Rental, Inc. and on March 1, 2021, the Company ~~has assumed ownership of such assets and liabilities. The Company now operates as a “C” corporation formed under the laws of the State of Delaware.~~again changed its name, this time to EVmo, Inc.

The Company is a holding company operating through its principal wholly-owned subsidiaries, ~~including~~ Distinct Cars, LLC ~~a Delaware limited liability company~~ (“Distinct Cars”) and Rideshare Car Rentals, LLC ~~a Delaware limited liability company~~ (“~~Rideshare”~~Rideshare Car Rentals”).

~~On August 12, 2017, we announced that we were shifting our primary corporate focus in the transportation/ridesharing industry away from the development of the Metasearch App.~~

~~The Company’s operating business divisions include (i)~~Rideshare Car Rentals is an online rideshare vehicle booking platform designed to service the ridesharing economy, ~~through~~i.e. the ~~Company’s wholly-owned subsidiary~~ Rideshare ~~(the “Rideshare Platform”),~~Platform, particularly ridesharing companies such as Uber and ~~(ii) the maintenance of~~Lyft and delivery-gig companies like DoorDash and GrubHub. Distinct Cars maintains a fleet of standard and, increasingly, electric passenger vehicles ~~to be made commercially~~ available for rent ~~through~~to drivers in both the ~~Company’s wholly-owned subsidiary Distinct Cars (“Fleet Management”). Through~~ridesharing and delivery-gig industries. The Company seeks to turn over its entire vehicle fleet to electric vehicles over the ~~Company’s wholly-owned subsidiaries Rideshare and Distinct Cars, the Company seeks~~next several years in order to become the leading provider of ~~a standard~~electric rental vehicles to drivers in the ridesharing ~~economy.~~and delivery-gig economies.

On March 16, 2018, we ~~closed our Regulation A+~~completed an offering under Regulation AA+ of the Securities Act, which was qualified by the SEC on March 15, ~~2017. We~~2017, and sold a total of 365,306 shares of ~~our common stock.~~Common Stock. We received cash proceeds of $1.8 million, net of commissions and other costs associated with the gross offering proceeds or payable by us.

On November 15, 2019, the Company ~~closed~~effected its ~~initial public offering~~IPO, selling 2,625,000 shares of ~~2,625,000 common shares~~Common Stock at $4.00 per share, for gross proceeds, before underwriting discounts and commissions and expenses, of $10.5 ~~million.~~million, and ~~the shares became~~our Common Stock was then listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol ~~“YAYO”.~~“YAYO.”

On February 10, 2020, the Company notified Nasdaq of its intent to voluntarily delist its Common Stock from Nasdaq. In connection therewith, the Company ~~notified Nasdaq of the Company’s intention to file~~filed a Form 25 with the SEC on ~~or about~~ February 20, 2020. The Company elected to effect the voluntary delisting of its ~~common stock~~Common Stock after discussions with Nasdaq’s staff, and based on the determination of the Company’s board of directors that voluntarily delisting the Common Stock from Nasdaq was in the best interests at that time of the Company and its stockholders. Following delisting from Nasdaq, the ~~Company’s~~ Common Stock ~~now trades~~has traded on the ~~OTC~~ Pink Open Market, still under the trading symbol, “YAYO.”

~~In December 2019, a novel strain of coronavirus surfaced in China, which has and is continuing to spread throughout the world, including the United States.~~

On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, ~~the World Health Organization~~it characterized the outbreak as a “pandemic.” ~~The governors of New York, California~~In response, numerous states and ~~several other states, as well as mayors on many~~ cities ~~have~~ ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and ~~to stay in their homes as much as possible in the coming weeks, as the nation confronts the escalating coronavirus outbreak, and~~ similar restrictions ~~have been~~were recommended by the federal ~~authorities and authorities~~government. Beginning in ~~many other states and cities. Since~~ the ~~beginning~~first quarter of 2020, ~~and~~which saw the initial rapid spread of COVID-19, rideshare companies ~~have increasingly been~~were severely and negatively impacted. According to its recent investor update call, Uber’s gross bookings in Seattle are down by 60-70%, and Uber assumes similar declines in other big cities hit by COVID-19. As Americans practice social distancing and self-isolation, Uber, Lyft, and other rideshare companies have seen a steep decline in ridership and revenue,impacted, as ~~a result. Given that rideshare drivers are both at risk themselves and of risk to~~demand plummeted. Consequently, the ~~public, and in addition to decreased demand overall, less people are even still driving. The~~ Company ~~has seen~~experienced a decline in revenue during the first half of 2020, which ~~is having~~had a negative impact on ~~the~~our cash flows, ~~of the business,~~ but we then saw a positive upward movement in revenue during the ~~latter part~~second half of 2020, which has continued into the first half of 2021. As of the ~~second quarter~~date of this quarterly report, several vaccinations for COVID-19 have received emergency-use authorization from the Food and Drug Administration and many of the lockdown restrictions imposed by state and local governments have abated. Still, the pandemic has not yet ended, ~~June 30, 2020. The Company has seen increased demand from drivers wanting to rent cars for ridesharing purposes~~ and ~~new drivers renting cars for~~there have been multiple waves where infections, hospitalizations, and deaths have sharply increased. Most recently, variants of the original virus have been identified, and many Americans have resisted obtaining one of the vaccinations, both ~~rideshare and delivery gig economy. With the recent increase~~of which have resulted in increases in the aggregate number of ~~positive COVID-19 cases, the Company is not able to~~infections. We therefore cannot predict the ultimate impact that ~~COVID -19 will~~COVID-19 may have on ~~its business. If another lockdown were to occur,~~our business over the Company could be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company. The Company cannot at this time estimate the long term effectentirety of this ~~unprecedented situation on the rideshare market or delivery gig economy in general or the Company in particular.~~year, and possibly beyond.

The accompanying consolidated financial statements include the accounts of the Company and its ~~wholly owned~~principal wholly-owned subsidiaries, Distinct Cars ~~LLC, a Delaware limited liability company (“Distinct Cars”), Savy LLC, a Delaware limited liability company (“Savy”), Rideyayyo LLC, a Delaware limited liability company (“Rideyayyo”~~) and ~~Rideshare~~RideShare Car ~~Rentals LLC, a Delaware limited liability company (“Rideshare”). Savy~~Rentals. All significant intercompany transactions and ~~Rideyayyo~~balances have ~~not had operations to date.~~been eliminated.

Consolidated Results of Operations—Three Months Ended June 30, ~~2020,~~2021, Compared to Three Months Ended June 30, ~~2019.~~2020

Revenue for the three months ended June 30, ~~2020~~2021 was ~~$1,580,555, a decrease~~$2,652,083, an increase of ~~$116,362~~$1,071,528 or ~~6.9%~~67.8% compared to revenue for the three months ended June 30, ~~2019~~2020 of ~~$1,696,917.~~$1,580,555. The ~~decrease~~increase is principally due to ~~us not being able to maintain~~an increase in rentals of our ~~average weekly rental income levels due to the COVID-19 outbreak.~~vehicle fleet. During the three months ended June 30, ~~2020,~~2021, the average weekly rental income per vehicle placed in service was ~~$292~~$413 compared to ~~$331~~$292 for the same period in ~~2019.~~2020. Our revenues declined in ~~March and April~~March-April of 2020 due to ~~COVID -19~~the impact of COVID-19 and began to recover in ~~May and June~~May-June 2020. Our revenue since June 2020 has now exceeded pre-COVID-19 levels, but there is no assurance that this trend will continue.

The principal components of costs of revenue are depreciation of our fleet vehicles, vehicle insurance, and vehicle maintenance.

Cost of revenues for the ~~month~~three months ended June 30, 2021 was $1,915,294, an increase of $620,235 or 49.9% compared to cost of revenues for the three months ended June 30, 2020 of $1,295,059. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet size. For the three months ended June 30, 2021 and 2020 our cost of revenue was ~~back~~72.2% and 81.9% of our revenue, respectively. The decrease in the cost of revenue as a percentage of revenue is due to higher weekly rental rates.

Selling and marketing expenses for the three months ended June 30, 2021 were $64,816, representing a decrease of $14,317 or 18.1% over the three months ended June 30, 2020 of $79,133. The decrease is due to a decrease in advertising to gig-economy drivers as we have maintained a high utilization rate for our vehicles.

General and administrative expenses for the three months ended June 30, 2021 were $1,493,494, representing an increase of $632,084 or 73.4% over the three months ended June 30, 2020 of $861,410. The increase is principally due to higher professional fees, salaries and stock option expense during the three months ended June 30, 2021.

Total operating expenses for the three months ended June 30, 2021 were $1,609,076, representing an increase of $668,533 or 71.1% compared to the three months ended June 30, 2020 of $940,543. The increase is due to the reasons described immediately above.

Interest and financing expenses for the three months ended June 30, 2021 were $964,387 compared to $67,795 for the three months ended June 30, 2020. The increase in interest and financing cost for the three months ended June 30, 2021 was due to amortization of debt discounts and issuance of additional warrants associated with the $2.250 million convertible note.

The net loss for the three months ended June 30, 2021 was $1,836,674, representing an increase of $1,113,832 or 154.1% compared to the three months ended June 30, 2020 of $722,842. The increase is due to the higher total operating expenses described above.

Consolidated Results of Operations—Six Months Ended June 30, 2021, Compared to Six Months Ended June 30, 2020

Revenue for the six months ended June 30, 2021 was $4,946,615, an increase of $1,618,418 or 48.6% compared to revenue for the six months ended June 30, 2020 of $3,328,197. The increase is principally due to an increase in rentals of our vehicle fleet. During the six months ended June 30, 2021, the average weekly rental income per vehicle placed in service was $409 compared to $309 for the same period in 2020.

Our revenues declined in March- April of 2020 due to the impact of COVID-19 and began to recover in May-June 2020. Our revenue since June 2020 has now exceeded pre-COVID-19 levels, but there is no assurance that this trend will continue.

The principal components of costs of revenue are depreciation of the vehicles, vehicle insurance, and vehicle maintenance.

Cost of revenues for the ~~three~~six months ended June 30, ~~2020 were $1,295,059,~~2021 was $3,696,197, an increase of ~~$332,988~~$999,847 or ~~34.6%~~37.1% compared to cost of revenues for the ~~three~~six months ended June 30, ~~2019~~2020 of ~~$962,071.~~$2,696,350. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet ~~size and higher repairs and maintenance due to the age of the fleet.~~size. For the ~~three~~six months ended June 30, ~~2020~~2021 and ~~2019~~2020 our cost of ~~revenue~~revenues was ~~81.9%~~74.7% and ~~56.7%~~81.0% of our revenue, respectively. The ~~increase~~decrease in the cost of revenue as a percentage of revenue is due to ~~the decrease in average~~higher weekly rental ~~income due to the COVID – 19 outbreak.~~rates.

Selling and marketing expenses for the ~~three~~six months ended June 30, 2021 were $230,564, representing an increase of $19,922 or 9.5% over the six months ended June 30, 2020 ~~were $79,153, representing an increase~~ of ~~$58,265 or 279.2% over the three months ended June 30, 2019 of $20,868.~~$210,642. The increase is due to an increase in advertising our rentals to ~~Uber and Lyft~~gig-economy drivers.

General and administrative expenses for the three months ended June 30, 2020 were $861,410, representing an increase of $185,782 or 27.5% over the three months ended June 30, 2019 of $675,628. The increase is principally due to higher payroll costs as we hired additional personnel for our expanding operations and higher management salaries; and higher occupancy costs.

Loss on the settlement of debt for the three months ended June 30, 2020 was $0 as compared to $12,900 for the same period in 2019. During the months ended June 30, 2019, we settled outstanding debt of $21,500 with 4,300 shares of common stock valued at $34,400.

Total operating expenses for the three months ended June 30, 2020 were $940,543, representing an increase of $231,147 or 32.6% compared to the three months ended June 30, 2019 of $709,396. The increase is due to the reasons described above.

Interest and financing expenses for the three months ended June 30, 2020 were $67,795 compared to $442,902 for the three months ended June 30, 2019. The decrease in interest and financing cost for the three months ended June 30, 2020 due to a decrease in high interest rate debt outstanding.

The net loss for the three months ended June 30, 2020 was $722,842, representing an increase of $305,390 or 73.2% compared to the three months ended June 30, 2019 of $417,452. The increase is due to the reasons described above.

~~Consolidated Results of Operations~~—~~Six Months Ended June 30, 2020, Compared to Six Months Ended June 30, 2019.~~

Revenue for the six months ended June 30, 2020 was $3,328,197, a decrease of $147,321 or 4.2% compared to revenue for the six months ended June 30, 2019 of $3,475,518. The decrease is due to us not being able to maintain our average weekly rental income levels due to the COVID-19 outbreak. During the six months ended June 30, 2020, the average weekly rental income per vehicle placed in service was $309 compared to $341 for the same period in 2019. Our revenues declined in March and April due to COVID -19 and began to recover in May and June 2020. Our revenue for the month of June was back to pre-COVID-19 levels, but there is no assurance that this trend will continue.

Cost of revenues for the six months ended June 30, 2020 were $2,696,350, an increase of $652,109 or 31.9% compared to cost of revenues for the six months ended June 30, 2019 of $2,044,241. The increase is due to higher depreciation expense due to an increase in fleet size and higher repairs and maintenance due to the age of the fleet. For the six months ended June 30, 2020 and 2019 our cost of revenue was 81.0% and 58.8% of our revenue, respectively. The increase in the cost of revenue as a percentage of revenue is due to the decrease in average weekly rental income due to the COVID – 19 outbreak.

Selling and marketing expenses for the six months ended June 30, 2020 were $210,642, representing an increase of $108,036 or 105.3% over the six months ended June 30, 2019 of $102,606. The increase is due to an increase in advertising our rentals to Uber and Lyft drivers.

General and administrative expenses for the six months ended June 30, ~~2020~~2021 were ~~$2,757,616,~~$2,932,595, representing an increase of ~~$1,296,805~~$174,979 or ~~88.8%~~6.3% over the six months ended June 30, ~~2019~~2020 of ~~$1,460,811.~~$2,757,616. The increase is principally due to higher ~~payroll costs (including~~professional fees and salaries offset by a decrease in stock option ~~expense) as we hired additional personnel for our expanding operations and higher management salaries; and higher occupancy costs.~~

~~Loss on the settlement of debt for~~expense during the six months ended June 30, ~~2020 was $0 as compared to $252,900 for the same period in 2019. During the months ended June 30, 2019, we settled outstanding debt of $421,500 with 84,300 shares of common stock valued at $674,400.~~2021.

Total operating expenses for the six months ended June 30, ~~2020~~2021 were ~~$2,968,258,~~$3,223,425, representing an increase of ~~$1,151,941~~$255,167 or ~~63.4%~~8.6% compared to the six months ended June 30, ~~2019~~2020 of ~~$1,816,317.~~$2,968,258. The increase is due to the reasons described immediately above.

Interest and financing expenses for the six months ended June 30, ~~2020~~2021 were ~~$147,651~~$4,289,330 compared to ~~$611,875~~$147,651 for the six months ended June 30, ~~2019.~~2020. The ~~decrease~~increase in interest and financing cost for the six months ended June 30, ~~2020~~2021 was due to the issuance of 825,000 shares of Common Stock to Acuitas, now the Company’s largest shareholder, in connection with a ~~decrease~~settlement agreement between it and X, LLC, a limited liability company controlled by the Company’s former CEO. The value of the shares was $3,240,600, which was based on the market price of the Common Stock at the date of the settlement agreement. The $3,240,600 was expensed as financing costs, as the dispute underlying the settlement agreement related to the anti-dilution of a prior investment in ~~outstanding debt.~~the Company by Acuitas. Also, the increase is due to amortization of debt discounts and issuance of additional warrants associated with the $2.250 million convertible note.

Gain on forgiveness of debt for the six months June 30, 2021 was $8,000 as compared to $0 for the same period in 2020, as, during the six months ended June 30, 2021, the remaining amount we received under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act was forgiven.

The net loss for the six months ended June 30, ~~2020~~2021 was ~~$2,484,062,~~$6,254,337, representing an increase of ~~$1,487,147~~$3,770,275 or ~~149.2%~~151.8% compared to the six months ended June 30, ~~2019~~2020 of ~~$996,915.~~$2,484,062. The increase is due to the ~~reasons~~higher total operating expenses described above.

~~Initial Public Offering.~~On November 15, 2019, ~~we closed~~ our ~~initial~~IPO of 2,625,000 shares of Common Stock was effected. Our public offering ~~of common stock registered on an S-1 Registration Statement under the Securities Act, which~~price was ~~declared effective on November 13, 2019. We sold a total of 2,625,000 common shares at a price of~~ $4.00 per share. Total gross proceeds from the offering were $10,500,000, before deducting underwriting discounts and commissions and other offering expenses.

During the year ended December 31, 2020, we sold an aggregate of 2,553,571 shares of Common Stock to three investors for cash proceeds of $275,000, of which 125,000 shares was sold to a member of our Board of Directors for cash consideration of $25,000.

On January 8, 2021, we received $500,000 from a convertible note from one of our stockholders. The note was convertible into shares of Common Stock at $0.50 per share and was converted into 1,000,000 shares of Common Stock in February 2021.

On April 12, 2021, we entered into a securities purchase agreement with a certain investor in connection with the issuance of a 12.5% original issue discount convertible promissory note and a common stock purchase warrant. The note had an original principal amount of $2,250,000, with an original issue discount of $250,000. It bore interest at a fixed rate of 10%, was convertible into shares of common stock at a price of $3.00 per share (subject to adjustment as set forth in the note), and was to mature on January 12, 2022.

On July 9, 2021, we entered into a Term Loan Agreement with EICF Agent LLC, as agent for the lenders, and Energy Impact Credit Fund I, LP, as lender, providing for a secured term loan facility in an aggregate principal amount of up to $15.0 million, consisting of a $7.5 million closing date term loan facility and up to $7.5 million of borrowings under a delayed draw term loan facility. The initial term loan has been fully drawn, while the remainder is available upon the satisfaction of certain conditions precedent specified in the agreement. The Term Loan Agreement matures on July 9, 2026. Borrowings under the Term Loan Agreement bear interest at the LIBOR, plus a margin of 10.0%.

During the six months ended June 30, 2021, we sold 100,000 shares of Common Stock to a member of our Board of Directors for cash consideration of $50,000.

At June 30, ~~2020,~~2021, the Company’s current assets totaled ~~$696,206,~~$1,014,673, current liabilities totaled ~~$3,991,172,~~$5,801,006, and working capital was a deficit of ~~$3,294,966.~~$4,786,333. At December 31, ~~2019,~~2020, the Company’s current assets totaled ~~$2,098,660,~~$215,990, current liabilities totaled ~~$2,655,055,~~$4,461,560, and working capital was a deficit of ~~$556,395.~~$4,245,570. As of June 30, 2021, the Company had $162,727 in cash. The Company used $244,484 of cash for operating activities for the six months ended June 30, 2021.

Regarding current liabilities, the amounts categorized as accounts payable and accrued expenses totaled ~~$1,700,314~~$2,377,096 and ~~$951,231~~$2,119,003 as of June 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, ~~an increase~~a decrease of ~~$749,083~~$258,093 or ~~78.7%.~~12.2%, due to Common Stock issued for legal settlements that were previously included in accrued expenses.

Since inception, our principal sources of operating funds have been proceeds from debt and equity ~~financing~~financings, including the sale of our ~~common stock~~Common Stock to ~~initial~~ investors known to management and principal shareholders of the ~~Company. We do not~~Company, our IPO in November 2019, and the Term Loan Agreement entered into in July 2021 described above. As of the date of this quarterly report, we expect that our current cash on hand will be sufficient to fund our existing operations and future business ~~growth. We will need to raise additional capital in order execute our business plan and~~ growth ~~goals~~ for at least the next ~~twelve-month period thereafter. If~~twelve months. In addition to the July 2021 term loan, the Company is unable to raise sufficient additional funds, it will have to execute a slower than planned growth path, reduce overhead and scale back its business plan until sufficient additional capital is raised to support further operational expansion and growth. As of June 30, 2020, the Company had $103,240 in cash. The Company used $339,199 of cash for operating activities for the six months ended June 30, 2020. The Company iscurrently seeking to raise additional capital. If the Company is not successful in raising additional capital it ~~will~~may be forced to ~~significantly~~ scale back, perhaps significantly, its business operations and it growth plans. In addition, the COVID-19 virus and the related impact it is having on the U.S. economy is currently having a negative impact on the cash flows of our business. However, we were able to obtain two loans totaling $342,675 related to new legislation passed as a result of COVID-19.

During the six months ended June 30, ~~2020,~~2021, the Company had capital expenditures of ~~$2,246,285~~$3,049,261 in leased vehicles. At June 30, ~~2020,~~2021, most of the Company’s vehicles were ~~finance~~financed with leases. At June 30, ~~2020~~2021 the Company had ~~$8,468,168~~$11,874,137 of rental vehicles, net of accumulated depreciation in the amount of ~~$2,105,179,~~$3,864,087, totaling ~~$6,362,989~~$8,010,050 in net rental vehicles. At December 31, ~~2019~~2020 the Company had ~~$6,284,211~~$9,067,885 of rental vehicles, net of accumulated depreciation in the amount of ~~$1,547,164,~~$2,871,452, totaling ~~$4,737,047~~$6,196,433 in net rental vehicles. The Company’s rental vehicles are depreciated over their estimated useful life of five years. The ~~lease terms~~term for those rental vehicles that ~~are leased are~~we lease is generally ~~for~~ three years and the Company has the right to purchase the ~~leased assets~~vehicles for $1 each at the end of the lease ~~terms.~~term.

Net cash used in operating activities for the six months ended June 30, ~~2020~~2021 totaled ~~$339,199,~~$244,484, which was ~~an increase~~a decrease of ~~$278,829~~$94,715 or ~~461.9%~~27.9% from the net cash used in operating activities of ~~$60,370~~$339,199 for the same period in ~~2019.~~2020. The ~~increase~~decrease is principally due to the change in operating assets and liabilities, and non-cash expense items.

Net cash used in investing activities for the six months ended June 30, 2021 totaled $47,051, which was an increase of $47,051 from $0 for the same period in ~~net loss.~~2020. The change is principally due to the purchase of property and equipment.

Net cash ~~used in~~provided by financing activities for the six months ended June 30, ~~2020~~2021 totaled ~~$813,990,~~$381,372, which was a change of ~~$631,297~~$1,195,362 from the net cash ~~provided by~~used in financing activities of ~~$182,693~~$813,990 for the same period in ~~2019.~~2020. The change is principally due to cash received from the sale of Common Stock, the exercise of both stock options and a convertible note in 2021, offset by an increase in payments on financing lease ~~obligations in 2020 and proceeds of $1.051.300 from notes payable in 2019 compared to $342,675 in 2020. In addition, we sold $275,000 of common stock in 2020 compared to $0 in 2019.~~obligations.

Our plan of operations is currently focused on the growth and ongoing development of our operating ~~business segments:~~businesses: (i) ~~our~~the Rideshare Platform, offered through ~~the Company’s wholly-owned subsidiary~~ Rideshare Rentals, and (ii) our ~~Fleet Management business, made~~vehicle fleet, which is commercially available through ~~the Company’s wholly-owned subsidiary~~ Distinct Cars. We expect to incur substantial expenditures in the foreseeable future for the ~~potential~~enhanced operations of our ~~business segments~~businesses and related, ongoing, internal research and development. Moreover, we have embarked on “EV strategy” in which we intend to replace our entire fleet of vehicles with all electric vehicles over the next several years. At this time, we cannot reliably estimate the ~~nature,~~ timing or aggregate amount of such costs. Our Rideshare Platform will require extensive technical evaluation, potential regulatory review and approval, significant marketing efforts and substantial investment before it or any successors could provide usall of the costs associated with ~~any revenue. Further, we intend to continue to build our corporate and operational infrastructure and to build interest in our product and service offerings.~~these efforts.

~~As noted above, the~~The continuation of our ~~current~~expansion plan ~~of operations requires~~may require us to raise significant additional capital ~~immediately. If we are successful in raising capital, we believe that the Company will have sufficient cash resources to fund its plan~~within a short period of ~~operations.~~time. The cash flow from our ~~current vehicle leasing business~~Rideshare Platform and particularly our Distinct Cars businesses and our existing capital resources are sufficient for us to continue our ~~current~~ operations, but ~~for us to~~ fully ~~execute~~executing our future business ~~plan we will~~plans may require significant additional ~~capital.~~capital, which we are currently seeking to raise.

We continually ~~evaluate~~reevaluate our plan of operations ~~discussed above~~ to determine the manner in which we can most effectively utilize our ~~limited cash~~ resources. The timing of completion of any aspect of our plan of operations is highly dependent upon the ready availability of cash to implement that aspect of the plan and other factors beyond our control. There is no assurance that our current capital resources will be sufficient to continue to fund our ongoing operations, nor can there be any assurance that, if we require additional capital, we will successfully obtain ~~the required~~it on favorable terms, or at all. The inadequacy of our existing capital or ~~revenues, or, if obtained, that~~ the ~~amounts will be sufficient to fund our ongoing operations. The~~ inability to secure additional capital ~~would~~could have a material adverse effect on us, including the possibility that we would have to sell or forego a portion or all of our assets or cease operations. If we discontinue our operations, we ~~will~~may not have sufficient funds to pay any amounts to our stockholders.

~~Even if we raise additional capital in the near future, if~~If our operating ~~business segments~~businesses fail to achieve anticipated financial results, our existing capital will likely be depleted more quickly than we anticipate and our ability to raise additional capital in the future to fund our ~~operating business segments~~operations would likely be seriously impaired. If in the future we are not able to demonstrate favorable financial results or projections from our operating ~~business segments,~~businesses, we ~~will~~may not be able to raise the capital we need to continue ~~our then current business operations and business activities, and we will likely not have sufficient liquidity or cash resources to continue operating.~~operations.

~~Because~~Similarly, because our working capital requirements depend upon numerous factors there can be no assurance that our current cash resources will be sufficient to fund our operations. At present, we have no committed external sources of capital, and do not expect any significant product revenues for the foreseeable future. Thus, we will require immediate additional financing to fund future operations. There can be no assurance, however, that we will be able to obtain funds on acceptable terms, if at all.

During fiscal years 2017, 2018 and 2019, the Company entered into a series of monthly vehicle leasing agreements with ACME Auto Leasing, LMP Financial Services and United Mile Fleet, each with an approximate lease term of 12 to 36 months. As of June 30, 2020 and December 31, 2019, the Company had total lease obligations in the amount of $3,099,385 and $2,400,565, respectively. The Company owes monthly payments under each Lease Agreement ranging from approximately $342 per month to $621 per month. At the end of the term of the Lease Agreement, lessee has the right to purchase ownership and title of the subject vehicle for a nominal payment. In addition, the Lease Agreements are subject to and secured by a grant of a purchase money security interest on each leased vehicle.

We leased and maintained primary offices at 433 North Camden Drive, Suite 600, Beverly Hills, California 90210 and 6600 Sunset Blvd., Los Angeles, CA 90028, the latter being the location where the majority of our operations and staff conduct activities on a daily basis. We do not currently own any real property.

In the ordinary course of our business, we are not exposed to market risk of the sort that may arise from changes in interest rates or foreign currency exchange rates, or that may otherwise arise from transactions in derivatives.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. Preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable. In many instances, we could have reasonably used different accounting estimates and in other instances changes in the accounting estimates are reasonably likely to occur from period to period. This applies in particular to useful lives of non-current assets and valuation allowance for deferred tax assets. Actual results could differ significantly from our estimates. To the extent that there are material differences between these estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving our judgments and estimates.

Property and equipment and rental vehicles are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of equipment and rental vehicles is provided using the straight-line method for substantially all assets with estimated lives as follows:

The Company has not changed its estimate for the useful lives of its equipment and rental vehicles, but would expect that a decrease in the estimated useful lives of equipment and rental vehicles of one year would result in an annual increase to depreciation expense of approximately $600,000, and an increase in the estimated useful lives of equipment and rental vehicles of one year would result in an annual decrease to depreciation expense of approximately $400,000.

The Company recognizes revenue primarily from renting its fleet of cars to ~~Uber and Lyft drivers. Revenue is recognized based on the rental agreements which are generally on a weekly basis.~~drivers for TNC companies. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers. Generally, this enables us to both recognize revenue when we have satisfied our obligations under our rental agreement, i.e. when we have provided the vehicle to our renter, and to recognize the entire amount we expect to receive pursuant to the agreement, including estimates.

We consider a signed contract or other similar documentation reflecting the terms and conditions under which products will be provided to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including payment history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash.

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee’s requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees.

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management, in consultation with its legal counsel as appropriate, assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

We maintain a set of disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC.

In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of our management, including our ~~Chief Executive Officer (“CEO”)~~CEO and Chief Financial Officer (“CFO”), to assess the effectiveness of our disclosure controls and procedures as of June 30, ~~2020.~~2021. Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure due to a material weakness.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

To address this material weakness, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~From time to time,~~For a description of the ~~Company may become involved in lawsuits and other~~pending legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. The Company is currently not aware of any legal proceedings or potential claims against it whose outcome wouldcould be ~~likely, individually or in the aggregate, to have a~~ material ~~adverse effect on the Company’s business, financial condition, operating results, or cash flows.~~

This action was filed on February 11, 2020, in the Superior Court of the State of California for the County of Los Angeles. Plaintiff Social Reality Inc. is a media company that claims to have provided media services to the ~~Company. Plaintiff has sued the~~ Company, for breach of contract and related causes of action, arising from its claims that the Company has failed to pay for past outstanding invoices for services rendered. The plaintiff has also filed a motion for prejudgment attachment which was heard on July 28, 2020. The Superior Court denied the writ of attachment on the merits. The parties have a case management conference scheduled for August 18, 2020. The Company believes that it has valid defenses to the lawsuit, and expects to file counterclaims that will offset or negate any monies owed to plaintiff; it will vigorously defend the lawsuit.

This action was filed on March 5, 2020, in the Superior Court of the State of California for the County of Los Angeles. Plaintiff Anthony Davis was hired by the Company as its Chief Executive Officer in or about December 2016, although he worked there for only a matter of months. Mr. El-Batrawi is the founder of the Company and our current Chief Executive Officer and director, and was involved, the complaint alleges, in Plaintiff’s hiring. As part of his compensation, Mr. Davis claims that he expected to receive stock options in the Company. He has alleged that “after several months of unsuccessfully attempting to persuade the Company’s founder to implement certain protocols and procedures” Davis resigned from his executive officer and director positions, and entered into a written settlement agreement with the Company as a consultant. Mr. Davis claims that the Company breached its agreement to award him certain stock options and includes a claim for wage and hour violations. The lawsuit also includes a request for declaratory and injunctive relief. Davis also included a claim under California Unfair Practices Act. The Company denies liability and asserts that it has paid Davis all amounts due to him under the contract, and that Davis failed to exercise his stock options before they expired on December 31, 2018. It intends to vigorously defend the lawsuit, and has agreed to pursue mediation pursuant to the contract with plaintiff.

This action was filed on July 22, 2020, in the Superior Court of the State of California for the County of Los Angeles. Plaintiff Ivan Rung claims to have purchased the Company’s stock and purports to bring a securities class action on behalf of all purchasers of YayYo’s stock pursuant to the Registration Statement and Prospectus issued in connection with YayYo’s November 14, 2019 initial public stock offering (IPO”). Mr. El-Batrawi is the founder and current CEO of the Company but at the time of the IPO was only a shareholder of the Company having stepped down as CEO, Director and a controlling shareholder of the Company. The complaint is vague about alleged misrepresentation and material omissions, detailing instead a supposed chronology of events leading to the Company’s voluntary decision to delist its stock from NASDAQ, a decision the Company announced in an 8K filed on February10, 2020. The Company denies liability and asserts that it accurately and completely disclosed all materially adverse facts and occurrences in its Registration Statement, related public filings and other public statements, and the Complaint’s alleged violations of Sections 11 & 15 of the Securities Act of 1933 are baseless. It intends to vigorously defend the lawsuit.

This action was filed on July 23, 2020, in the Superior Court of the State of California for the County of Los Angeles, also as a purported class action. Plaintiff Michael Vanbecelaere claims to have purchased the Company’s stock “traceable to the IPO” and like Rung, brings a securities class action pursuant to Sections 11 & 15 of the Securities Act of 1933 on behalf of all purchasers of YayYo’s stock. The complaint like the preceding action, Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 (“Rung”) alleges false statements and material omission pursuant to the Registration Statement and Prospectus issued in connection with YayYo’s November 14, 201 9 initial public stock offering (IPO). The defendants are identical to the defendants in the action filed the day before, on July 22, 2020. The two complaints are virtual cookie cutter versions of each other including a false allegation of fact about YayYo that appears in an identical paragraph 13: “On or about June 21, 2016, defendant EI-Batrawi incorporated YayYo in Delaware. The Company then rented cars to Uber and Lyft drivers.” (The business model of YayYo was different on June 21, 2016.) As with the Rung case, the Company denies liability and asserts that it accurately and completely disclosed all materially adverse facts, events and occurrences in its Registration Statement and related public filings, and the Complaint’s alleged violations of Sections 11 & 15 of the Securities Act of 1933 are baseless. The actions will be “low numbered” to the same Superior Court judge and consolidated. The Company intends to vigorously defend the lawsuit.please see Note 11- Contingencies.

In December 2019, a novel strain of coronavirus surfaced in China, which has and is continuing to spread throughout the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” The governors of New York, California and several other states, as well as mayors on many cities, have ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and to stay in their homes as much as possible in the coming weeks, as the nation confronts the escalating coronavirus outbreak, and similar restrictions have been recommended by the federal authorities and authorities in many other states and cities. Since the beginning of 2020 and the spread of COVID-19, rideshare companies have increasingly been negatively impacted. According to its recent investor update call, Uber’s gross bookings in Seattle are down by 60-70%, and Uber assumes similar declines in other big cities hit by COVID-19. As Americans practice social distancing and self-isolation, Uber, Lyft, and other rideshare companies have seen a steep decline in ridership and revenue, as a result. Given that rideshare drivers are both at risk themselves and of risk to the public, and in addition to decreased demand overall, less people are even still driving. The Company has seen a decline in revenue during the first half of 2020 which is having a negative impact on the cash flows of the business, but saw a positive upward movement in revenue the latter part of the second quarter ended June 30, 2020. The Company has seen increased demand from drivers wanting to rent carsNot required under Regulation S-K for ridesharing purposes and new drivers renting cars for both rideshare and delivery gig economy. With the recent increase in the number of positive COVID-19 cases, the Company is not able to predict the ultimate impact that COVID -19 will have on its business. If another lockdown were to occur, the Company could be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company. The Company cannot at this time estimate the long term effect of this unprecedented situation on the rideshare market or delivery gig economy in general or the Company in particular.“smaller reporting companies.”

~~During the three months ended June 30, 2020, the Company sold an aggregate of 2,553,571 shares of common stock to three investors for cash proceeds of $25,000~~None.

The offer, sale and issuance of the above securities was made to accredited investors and the Company relied upon the exemptions contained in Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Rule 506 of Regulation D promulgated thereunder with regard to the sale. No advertising or general solicitation was employed in offering the securities. The offer and sales were made to accredited investors and transfer of the common stock will be restricted by the Company in accordance with the requirements of the Securities Act of 1933, as amended.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	27
	~~Date:~~	~~August 5, 2020~~


433 N. Camden Drive, Suite 600 Beverly Hills, California		90210
(Address of principal executive offices)		(Zip Code)

Title of each class		Trading Symbol		Name of each exchange on which registered
None		N/A		N/A

PART I FINANCIAL INFORMATION:

Item 1.	Financial Statements	1

	Condensed Consolidated Balance Sheets as of June 30, ~~2020~~2021 and December 31, ~~2019~~2020 (unaudited)	1

	Condensed Consolidated Statements of Operations for the Three and Six ~~Months~~months Ended June 30, 2021 and 2020 ~~and 2019~~ (unaudited)	2

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six ~~Months~~months Ended June 30, 2021 and 2020 ~~and 2019~~ (unaudited)	3

	Condensed Consolidated Statements of Cash Flows for the Six ~~Months~~months Ended June 30, 2021 and 2020 ~~and 2019~~ (unaudited)	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1318

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1924

Item 4.	Controls and Procedures	1924

PART II OTHER INFORMATION:

Item 1.	Legal Proceedings	2025

Item 1A.	Risk Factors	2126

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2126

Item 3.	Defaults Upon Senior Securities	2126

Item 4.	Mine Safety Disclosures	2126

Item 5.	Other Information	2126

Item 6.	Exhibits	2126

	Signatures	2227

	June 30,			December 31,
	2021			2020
	(unaudited)
ASSETS
Current Assets:
Cash	$	162,727		$	72,890
Accounts receivable		428,623			119,239
Prepaid expenses		171,405			23,861
Deferred offering costs		251,918			-
Total current assets		1,014,673			215,990

Property and equipment, net		46,471			1,908
Rental vehicles, net		8,010,050			6,196,433
Right of use asset		210,763			-
Other assets		200,000			200,000
TOTAL ASSETS	$	9,481,957		$	6,614,331

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable (including $546,746 and $590,176 to related party)	$	2,274,029		$	1,157,299
Accrued expenses		103,067			961,704
Convertible note payable, (net of discount of $1,103,849 and $0)		1,146,151			-
Notes payables, current (net of discount of $0 and $1,973)		611,880			666,132
Customer deposit - related party		-			150,000
Advance from related parties		-			100,000
Finance lease obligations, current		1,532,320			1,426,425
Operating lease obligations, current		133,559			-
Total current liabilities		5,801,006			4,461,560

Note payable, net of current portion		148,863			149,414
Finance lease obligations, net of current portion		1,554,858			926,453
Operating lease obligations, net of current portion		87,615			-
TOTAL LIABILITIES		7,592,342			5,537,427

Commitments and contingencies		-			-

STOCKHOLDERS’ EQUITY
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; 35,387,524 and 31,981,374 shares issued and outstanding		35			32
Additional paid-in capital		36,817,909			29,750,864
Accumulated deficit		(34,928,329	)		(28,673,992	)
Total stockholders’ equity		1,889,615			1,076,904
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	9,481,957		$	6,614,331

	June 30,			December 31,
	2020			2019
	(unaudited)
ASSETS
Current Assets:
Cash	$	103,240		$	1,256,429
Accounts receivable		43,562			59,331
Prepaid expenses		549,404			782,900
Total current assets		696,206			2,098,660

Equipment, net		2,651			3,395
Rental vehicles, net		6,362,989			4,737,047
Deposit on vehicles		-			164,080
Other assets		200,000			200,000
TOTAL ASSETS	$	7,261,846		$	7,203,182

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current Liabilities:
Accounts payable (including $526,076 and $394,183 to related party)	$	1,334,521		$	545,254
Accrued expenses (including $0 and $171,665 to related party)		365,793			405,977
Notes payables, current (net of discount of $12,383 and $32,289)		500,059			287,378
Finance lease obligations, current		1,640,899			1,416,446
Total current liabilities		3,841,272			2,655,055

Note payable, net of current portion		149,900			-
Finance lease obligations, net of current portion		1,458,486			984,119

TOTAL LIABILITIES		5,449,658			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		29,468,133			28,735,894
Accumulated deficit		(27,655,977	)		(25,171,915	)
Total stockholders’ deficit		1,812,188			3,564,008
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	7,261,846		$	7,203,182


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019			2021			2020			2021			2020

Revenue	$	1,580,555		$	1,696,917		$	3,328,197		$	3,475,518		$	2,652,083		$	1,580,555		$	4,946,615		$	3,328,197

Cost of revenue		1,295,059			962,071			2,696,350			2,044,241			1,915,294			1,295,059			3,696,197			2,696,350

Gross profit		285,496			734,846			631,847			1,431,277			736,789			285,496			1,250,418			631,847

Operating expenses:
Selling and marketing expenses		79,133			20,868			210,642			102,606			64,816			79,133			230,564			210,642
Product development														50,766			-			60,266			-
General and administrative expenses		861,410			675,628			2,757,616			1,460,811			1,493,494			861,410			2,932,595			2,757,616
Loss on the settlement of debt		-			12,900			-			252,900
Total operating expenses		940,543			709,396			2,968,258			1,816,317			1,609,076			940,543			3,223,425			2,968,258

Loss from operations		(655,047	)		25,450			(2,336,411	)		(385,040	)		(872,287	)		(655,047	)		(1,973,007	)		(2,336,411	)

Other income (expense):
Interest and financing costs		(67,795	)		(442,902	)		(147,651	)		(611,875	)		(964,387	)		(67,795	)		(4,289,330	)		(147,651	)
Gain on forgiveness of debt														-			-			8,000			-
Total other income (expense)		(67,795	)		(442,902	)		(147,651	)		(611,875	)		(964,387	)		(67,795	)		(4,281,330	)		(147,651	)

Net loss	$	(722,842	)	$	(417,452	)	$	(2,484,062	)	$	(996,915	)	$	(1,836,674	)	$	(722,842	)	$	(6,254,337	)	$	(2,484,062	)

Weighted average shares outstanding :
Basic		31,064,184			26,798,865			30,245,994			26,760,318			35,333,924			31,064,184			34,364,066			30,245,994
Diluted		31,064,184			26,798,865			30,245,994			26,760,318			35,333,924			31,064,184			34,364,066			30,245,994

Loss per share
Basic	$	(0.02	)	$	(0.02	)	$	(0.08	)	$	(0.04	)	$	(0.05	)	$	(0.02	)	$	(0.18	)	$	(0.08	)
Diluted	$	(0.02	)	$	(0.02	)	$	(0.08	)	$	(0.04	)	$	(0.05	)	$	(0.02	)	$	(0.18	)	$	(0.08	)

					Additional					Total
	Common Stock				Paid-in		Accumulated			Stockholders’							Additional						Total
													Common Stock				Paid-in			Accumulated			Stockholders’
													Shares		Amount		Capital			Deficit			Equity (Deficit)
Balance, December 31, 2020														31,981,374	$	32	$	29,750,864		$	(28,673,992	)	$	1,076,904

Issuance of common stock for cash														100,000		-		50,000			-			50,000
Issuance of common stock for exercise of stock options														35,000		-		15,400			-			15,400
Issuance of common stock for cashless exercise of stock options														960,550		1		(1	)		-			-
Issuance of common stock for settlement of litigation														225,000		-		1,103,750			-			1,103,750
Issuance of common stock for conversion of convertible debt														1,000,000		1		499,999			-			500,000
Issuance of common stock for settlement agreement														825,000		1		3,240,599			-			3,240,600
Issuance of common stock for financing cost														600		-		1,440			-			1,440
Beneficial conversion feature associated with convertible debt														-		-		30,000			-			30,000
Value of warrants issued with convertible debt
Fair value of warrants issued for financing costs
Stock option expense														-		-		193,587			-			193,587
Net loss														-		-		-			(4,417,663	)		(4,417,663	)

Balance, March 31, 2021														35,127,524		35		34,885,638			(33,091,655	)		1,794,018

Issuance of common stock for exercise of stock options														260,000		-		71,700			-			71,700
Issuance of common stock for settlement of litigation																					-			-
Issuance of common stock for conversion of convertible debt																					-			-
Issuance of common stock for settlement agreement																					-			-
Issuance of common stock for financing cost																					-			-
Beneficial conversion feature associated with convertible debt														-		-		810,634			-			810,634
Value of warrants issued with convertible debt														-		-		488,133			-			488,133
Fair value of warrants issued for financing costs														-		-		457,417			-			457,417
Stock option expense														-		-		104,387			-			104,387
Net loss														-		-		-			(1,836,674	)		(1,836,674	)

Balance, June 30, 2021														35,387,524	$	35	$	36,817,909		$	(34,928,329	)	$	1,889,615
	Shares		Amount		Capital		Deficit			Equity (Deficit)
Balance, December 31, 2019		29,427,803	$	29	$	28,735,894	$	(25,171,915	)	$	3,564,008			29,427,803	$	29	$	28,735,894		$	(25,171,915	)	$	3,564,008

Stock option expense						457,242					457,242			-		-		457,242			-			457,242
Net loss								(1,761,220	)		(1,761,220	)		-		-		-			(1,761,220	)		(1,761,220	)

Balance, March 31, 2020		29,427,803		29		29,193,136		(26,933,135	)		2,260,030			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			2,553,571		3		274,997						275,000
Net loss								(722,842	)		(722,842	)		-		-		-			(722,842	)		(722,842	)

Balance, June 30, 2020		31,981,374	$	32	$	29,468,133	$	(27,655,977	)	$	1,812,188			31,981,374	$	32	$	29,468,133		$	(27,655,977	)	$	1,812,188

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	)

	2019			2018

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,484,062	)	$	(996,915	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		669,367			514,402
Stock option expense		457,242			-
Common stock issued for services		-			-
Amortization of debt discounts		19,906			19,797
Loss on the settlement of debt		-			252,900
Changes in operating assets and liabilities:
Accounts receivable		15,769			(65,115	)
Prepaid expenses		233,496			(36,697	)
Accounts payable		789,267			(214,585	)
Accrued expenses		(40,184	)		465,843
Net cash used in operating activities		(339,199	)		(60,370	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable		342,675			1,051,300
Proceeds from sale of common stock		275,000			-
Proceeds from advance from related party		150,000			-
Repayment of advance from related party		(150,000	)		-
Repayment of notes payable		-			(508,394	)
Repayment of finance lease obligations		(1,431,665	)		(725,599	)
Net cash provided by (used in) financing activities		(813,990	)		(182,693	)

NET INCREASE (DECREASE) IN CASH		(1,153,189	)		(243,063	)

CASH, BEGINNING OF PERIOD		1,256,429			277,444

CASH, END OF PERIOD	$	103,240		$	34,381

CASH PAID FOR:
Interest	$	127,745		$	564,961
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	$	2,246,285		$	510,136

	Computer equipment	5 years
~~Vehicles~~	Officer furniture	7 years
	Leasehold improvements	15 years or term of lease whichever is less
	Vehicles	5 years

	●	Level 1 inputs to the valuation methodology are quoted, unadjusted prices for identical assets or liabilities in active markets.

	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, as well as other than quoted prices for identical assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.


Notes payable, December 31, 2020	$	815,546
Forgiveness of note payable		(8,000	)
Repayments		(48,776	)
Amortization of debt discounts		1,973
Notes payable, June 30, 2021	$	760,743

Notes payable, December 31, 2019	$	287,378
Issued for cash		342,675
Amortization of debt discounts		19,906
Notes payable, June 30, 2020	$	649,959


Convertible notes, December 31, 2020	$	-
Issued for cash		2,500,000
Issued for original issue discount		250,000
Debt discount related to convertible notes		(1,578,767	)
Conversion to Common Stock		(500,000	)
Amortization of debt discounts		474,918
Convertible notes, June 30, 2021	$	1,146,151

Lease obligations, December 31, 2019	$	2,400,565
New lease obligations		2,246,285
Disposal of leased vehicles		(115,800	)
Payments on lease obligations		(1,431,665	)
Lease obligations, June 30, 2020	$	3,099,385


Lease obligations, December 31, 2020	$	2,352,878
New lease obligations		3,049,261
Disposal of leased vehicles		(243,009	)
Payments on lease obligations		(2,071,952	)
Lease obligations, June 30, 2021	$	3,087,178

Twelve Months Ending June 30,
2022	$	1,663,320
2023		1,099,666
2024		540,146
Total payments		3,303,132
Amount representing interest		(215,954	)
Lease obligation, net	$	3,087,178

		June 30,
	Classification on Balance Sheet	2021
Assets
Operating lease assets	Operating lease right of use assets	$	210,763
Total lease assets		$	210,763

Liabilities
Current liabilities
Operating lease liability	Current operating lease liability	$	133,559
Noncurrent liabilities
Operating lease liability	Long-term operating lease liability		87,615
Total lease liability		$	221,174

Twelve Months Ending June 30,
2022	$	157,800
2023		92,050
Total payments		249,850
Less: imputed interest		(28,676	)
Total obligation		221,174
Less: current portion		(133,559	)
Non-current capital leases obligations	$	87,615

Twelve months ending June 30,
2021	$	1,807,191
2022		860,581
2023		693,016
Total payments		3,360,788
Amount representing interest		(261,403	)
Lease obligation, net	$	3,099,385

	●	issued 100,0000 shares of Common Stock to a member of the Company’s Board of Directors, in a negotiated transaction for $0.50 per share, or aggregate cash consideration of $50,000;
	●	issued 295,000 shares of Common Stock for the exercise of 295,000 stock options for cash consideration of $87,100;
	●	issued 960,550 shares of Common Stock for the cashless exercise of 1,000,000 stock options;
	●	issued 600 shares of Common Stock to an investor in connection with a prior note payable agreement;
	●	issued 1,000,000 shares of Common Stock in connection with the conversion of a convertible note payable for $500,000;
	●	issued an aggregate of 225,000 shares of Common Stock in connection with legal settlements. The shares were valued at $1,103,750 which was based on the market price of the Common Stock on the grant date; and
	●	issued 825,000 shares to Acuitas Group Holdings, LLC, (“Acuitas”) which is now the Company’s largest shareholder, in connection with a settlement agreement between Acuitas and X, LLC, a limited liability company controlled by the Company’s former chief executive officer. The value of the shares was $3,240,600, which was based on the market price of the Common Stock at the date of the settlement agreement. The $3,240,600 was expensed as financing costs, as the dispute underlying the settlement agreement related to the anti-dilution of a prior investment in the Company by Acuitas.

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life		Value
Outstanding, December 31, 2020		2,540,000		$	0.22		4.52	$	1,074,245
Granted		270,000			0.51
Forfeited		-			0.00
Exercised		(1,295,000	)		0.230
Outstanding, June 30, 2021		1,515,000		$	0.29		4.09	$	2,769,275
Exercisable, June 30, 2021		772,500		$	0.34		4.11	$	1,390,384

Outstanding				Exercisable
Number of		Exercise		Number of		Exercise
Options		Price		Options		Price
	416,000	$	4.00		416,000	$	4.00
	300,000		8.00		300,000		8.00
	716,000				716,000

Outstanding and Exercisable
Number of		Exercise
Warrants		Price
375,000		$3.00
	1,500,000		4.00
	131,250		5.00
	2,006,250

Risk-free interest rate	0.76 – 0.87%
Expected life of the options	5 years
Expected volatility	190	%
Expected dividend yield	0	%

Outstanding and Exerciseable
Number of	Exercise
Warrants	Price
1,500,000	$	4.00
131,250		5.00
1,631,250

Exhibit		Description
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)
31.2		Certification of the Chief Financial Officer and Secretary pursuant to Rule 13a-14(a)
32.1		Certification of the Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of the Chief Financial Officer and Secretary furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

	~~YAYYO,~~EVMO, INC. (Registrant)

	By:	/s/ ~~Ramy El-Batrawi~~Stephen Sanchez
		~~Ramy El-Batrawi,~~Stephen Sanchez, Chief Executive Officer

		/s/ Ryan Saathoff
		Ryan Saathoff, Chief Financial Officer