UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~June~~September 30, 2021

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

For the transition period from _____ to _______

Commission File Number: 001-39132

EVMO,INC.

(exact name of registrant as specified in its charter)

RIDESHARE RENTAL, INC.

(former name of registrant as specified in its charter)

Delaware		95-3261426
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

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

(310) 926-2643

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

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 ☒ 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 ☒ 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 ☒ Smaller reporting company ☒ Emerging growth company ☒

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 ☒

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

~~38,505,554~~35,758,149 shares of Common Stock, $0.000001 par value, as of ~~August 13,~~November 12, 2021

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION:

Item 1.	Financial Statements	1

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

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

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

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

	Notes to Condensed Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1817

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2423

Item 4.	Controls and Procedures	2423

PART II OTHER INFORMATION:

Item 1.	Legal Proceedings	2524

Item 1A.	Risk Factors	2624

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2624

Item 3.	Defaults Upon Senior Securities	2624

Item 4.	Mine Safety Disclosures	2624

Item 5.	Other Information	2624

Item 6.	Exhibits	2624

	Signatures	2725

PART I – FINANCIAL INFORMATION

Item 1.

EVmo, Inc.

Condensed Consolidated Balance Sheets

As of ~~June~~September 30, 2021 and December 31, 2020

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
September 30, December 31,
2021 2020
(unaudited)
ASSETS
Current Assets:
Cash $ 3,540,212 $ 72,890
Accounts receivable 635,736 119,239
Prepaid expenses 192,492 23,861
Deferred offering costs 479,330 -
Total current assets 4,847,770 215,990

Property and equipment, net 46,471 1,908
Rental vehicles, net 10,366,373 6,196,433
Right of use asset 180,860 -
Other assets 100,000 200,000
TOTAL ASSETS $ 15,541,474 $ 6,614,331

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable (including $670,047 and $590,176 to related party) $ 2,849,876 $ 1,157,299
Accrued expenses 1,097,658 961,704
Notes payables, current (net of discount of $0 and $1,973) 156,225 666,132
Customer deposit - related party - 150,000
Advance from related parties - 100,000
Finance lease obligations, current 1,920,254 1,426,425
Operating lease obligations, current 138,630 -
Total current liabilities 6,162,643 4,461,560

Note payable, net of current portion (net of discount of $1,316,029 and $0) 6,027,746 149,414
Finance lease obligations, net of current portion 2,495,616 926,453
Operating lease obligations, net of current portion 50,996 -
TOTAL LIABILITIES 14,737,001 5,537,427

Commitments and contingencies - -

Series B Preferred stock, $0.000001 par value; 230,550 shares authorized;
230,375 and nil shares issued and outstanding

2,303,750

-

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; 35,758,149 and 31,981,374 shares issued and outstanding 36 32
Additional paid-in capital 38,206,344 29,750,864
Accumulated deficit (39,705,657 ) (28,673,992 )
Total stockholders’ equity (1,499,277 ) 1,076,904
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 15,541,474 $ 6,614,331

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.
1

EVmo, Inc.
Condensed Consolidated Statements of Operations
For the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2021 and 2020 (unaudited)

Three Months Ended June 30, Six Months Ended June 30,
Three Months Ended
September 30,

Nine Months Ended
September 30,

2021 2020 2021 2020 2021 2020 2021 2020

Revenue $ 2,652,083 $ 1,580,555 $ 4,946,615 $ 3,328,197 $ 2,724,180 $ 2,070,821 $ 7,670,795 $ 5,399,018

Cost of revenue 1,915,294 1,295,059 3,696,197 2,696,350 2,285,878 1,194,957 5,982,075 3,891,307

Gross profit 736,789 285,496 1,250,418 631,847 438,302 875,864 1,688,720 1,507,711

Operating expenses:
Selling and marketing expenses 64,816 79,133 230,564 210,642 26,565 113,904 257,129 324,546
Product development 50,766 - 60,266 - 46,500 - 106,766 -
General and administrative expenses 1,493,494 861,410 2,932,595 2,757,616 3,218,912 1,088,152 6,151,507 3,845,768
Total operating expenses 1,609,076 940,543 3,223,425 2,968,258 3,291,977 1,202,056 6,515,402 4,170,314

Loss from operations (872,287 ) (655,047 ) (1,973,007 ) (2,336,411 ) (2,853,675 ) (326,192 ) (4,826,682 ) (2,662,603 )

Other income (expense):
Interest and financing costs (964,387 ) (67,795 ) (4,289,330 ) (147,651 ) (2,007,194 ) (65,292 ) (6,296,524 ) (212,943 )
Other income 83,541 - 83,541 -
Gain on forgiveness of debt - - 8,000 - - - 8,000 -
Total other income (expense) (964,387 ) (67,795 ) (4,281,330 ) (147,651 ) (1,923,653 ) (65,292 ) (6,204,983 ) (212,943 )

Net loss $ (1,836,674 ) $ (722,842 ) $ (6,254,337 ) $ (2,484,062 ) $ (4,777,328 ) $ (391,484 ) $ (11,031,665) $ (2,875,546 )

Weighted average shares outstanding :
Basic 35,333,924 31,064,184 34,364,066 30,245,994 35,715,024 31,981,374 34,819,334 30,828,676
Diluted 35,333,924 31,064,184 34,364,066 30,245,994 35,715,024 31,981,374 34,819,334 30,828,676

Loss per share
Basic $ (0.05 ) $ (0.02 ) $ (0.18 ) $ (0.08 ) $ (0.13 ) $ (0.01 ) $ (0.32 ) $ (0.09 )
Diluted $ (0.05 ) $ (0.02 ) $ (0.18 ) $ (0.08 ) $ (0.13 ) $ (0.01 ) $ (0.32 ) $ (0.09 )
The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.
2

EVmo, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
For the Three and ~~Six~~Nine Months Ended ~~June~~September 30, 2021 and 2020 (unaudited)

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

Balance, December 31, 2019 29,427,803 $ 29 $ 28,735,894 $ (25,171,915 ) $ 3,564,008

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

Balance, March 31, 2020 29,427,803 29 29,193,136 (26,933,135 ) 2,260,030

Issuance of common stock for cash 2,553,571 3 274,997 275,000
Net loss - - - (722,842 ) (722,842 )

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

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
Value of warrants issued with note payable
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

Issuance of common stock for exercise of stock options 26,875 - 5,778 - 5,778
Issuance of common stock for cashless exercise of stock options 312,500 1 (1 ) - -
Issuance of common stock for settlement of litigation 31,250 - 42,018 - 42,018
Value of warrants issued with note payable - -
778,697
-
778,697

Fair value of warrants issued for financing costs - - 503,690 - 503,690
Stock option expense - - 58,253 - 58,253
Net loss - - - (4,777,328 ) (4,777,328 )

Balance, September 30, 2021 35,758,149 $ 36 $
38,206,344
$ (39,705,657 ) $ (1,499,277 )

Balance, December 31, 2019 29,427,803 $ 29 $ 28,735,894 $ (25,171,915 ) $ 3,564,008

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

Balance, March 31, 2020 29,427,803 29 29,193,136 (26,933,135 ) 2,260,030

Issuance of common stock for cash 2,553,571 3 274,997 275,000
Net loss - - - (722,842 ) (722,842 )

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

Stock option expense - - 240,244 - 240,244
Net loss - - (391,484 ) (391,484 )

Balance, September 30, 2020 31,981,374 $ 32 $ 29,708,377 $ (28,047,461 ) $ 1,660,948
Balance 31,981,374 $ 32 $ 29,708,377 $ (28,047,461 ) $ 1,660,948
The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.
3

EVmo, Inc.
Condensed Consolidated Statements of Cash Flows
For the ~~Six~~Nine Months Ended ~~June~~September 30, 2021 and 2020 (unaudited)

2021 2020 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (6,254,337 ) $ (2,484,062 ) $ (11,031,665 ) $ (2,875,546 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 995,123 669,367 1,525,332 1,047,075
Stock option expense 297,974 457,242 356,227 697,486
Amortization of debt discounts 476,891 19,906 1,643,408 27,719
Common stock issued for financing costs 1,440 - 1,440 -
Preferred stock issued for financing costs 53,750 -
Common stock issued for settlement agreement 3,240,600 - 3,240,600 -
Common stock issued for litigation settlement 42,018 -
Gain on forgiveness of debt (8,000 ) - (8,000 ) -
Fair value of warrants issued for financing costs 457,417 - 961,107 -
Operating lease expense 47,458 - 77,361 -
Changes in operating assets and liabilities:
Accounts receivable (309,384 ) 15,769 (516,497 ) 5,993
Prepaid expenses (147,544 ) 233,496
Prepaid expenses and other assets (68,631 ) 350,927
Accounts payable 1,308,562 789,267 1,656,997 908,051
Accrued expenses (163,637 ) (40,184 ) 830,954 26,838
Customer deposit - related party (150,000 ) - (150,000 ) -
Operating lease liability (37,047 ) - (68,595 ) -
Net cash used in operating activities (244,484 ) (339,199 ) (1,454,194 ) 188,543

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (47,051 ) - (47,051 ) -
Net cash used in investing activities (47,051 ) - (47,051 ) -

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock 50,000 275,000 50,000 275,000
Proceeds from exercise of stock options 87,100 - 92,878 -
Proceeds from advance from related parties 503,766 150,000 503,766 200,000
Repayment of advance from related parties (603,766 ) (150,000 ) (603,766 ) (150,000 )
Proceeds from convertible note payable 2,500,000 - 2,500,000 -
Proceeds from notes payable - 342,675
Proceeds from notes payable, net 6,900,000 342,675
Repayment of notes payable (48,776 ) - (809,519 ) (10,000 )
Repayment of finance lease obligations (2,071,952 ) (1,431,665 ) (3,629,792 ) (2,017,915 )
Payment of deferred offering costs (35,000 ) - (35,000 ) -
Net cash provided by (used in) financing activities 381,372 (813,990 ) 4,968,567 (1,360,240 )

NET INCREASE (DECREASE) IN CASH 89,837 (1,153,189 ) 3,467,322 (1,171,697 )

CASH, BEGINNING OF PERIOD 72,890 1,256,429 72,890 1,256,429

CASH, END OF PERIOD $ 162,727 $ 103,240 $ 3,540,212 $ 84,732

CASH PAID FOR:
Interest $ 102,446 $ 127,745 $ 157,809 $ 185,224
Income taxes $ - $ - $ - $ -

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES
Payment of accounts payable/accrued expenses with common stock $ 1,103,750 $ - $ 1,103,750 $ -
Finance lease obligations $ 3,705,417 $ 2,246,285 $ 5,692,784 $ 3,400,922
The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.
4

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
Note 1 - Organization and Basis of Presentation

Organization and Line of Business

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

Basis of Presentation

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

Risk and Uncertainties

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, itthe World Health Organization characterized the outbreak as a “pandemic.” In response, numerous states and cities ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and similar restrictions were recommended by the federal government. Beginning in the first quarter of 2020, which saw the initial rapid spread of COVID-19, rideshare companies were severely and negatively impacted, as demand plummeted. Consequently, the Company experienced a decline in revenue during the first half of 2020, which had a negative impact on ~~our~~its cash flows, but weit then saw a positive upward movement in revenue during the second half of 2020, which ~~has~~ continued into the first half of 2021. ~~As of the date of this quarterly report,~~In early 2021, 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,~~including those of the markets in which the Company operates, appear to be abating. The pandemic has not yet ended, however, and 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 of which have resulted in increases in the aggregate number of infections. WeThe Company therefore cannot predict the ultimate impact that COVID-19 may have on ~~our~~its business ~~over the entirety of~~ this year, and possibly beyond.

Interim financial statements

The unaudited condensed consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished herein reflects all 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 the periods presented. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to such rules and regulations. The results of operations for the ~~six~~nine months ended ~~June~~September 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021.

Note 2 – Summary of Significant Accounting Policies

Principles of Consolidation

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. All significant intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with ~~GAAP~~generally accepted accounting principles 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.

5

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
Cash Equivalents

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.

Property and Equipment and Rental Vehicles

Property and ~~equipment~~Equipment and ~~rental vehicles~~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:
Schedule of Estimated Lives of Equipment
Computer equipment 5 years ~~years~~
Officer furniture 7 years ~~years~~
Leasehold improvements 15 years or term of lease whichever is less
Vehicles 5 years ~~years~~

Long-Lived Assets

The Company applies the provisions of ~~the Financial Standards Accounting Board (“FASB”)’s Accounting Standards Codification (“ASC”)~~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~~September 30, 2021, the Company determined that 0no impairment charge was necessary.

Revenue Recognition

The Company recognizes all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized generally on a weekly basis based on the rental ~~agreements, which are generally entered into on a weekly basis.~~agreements. 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.

Income Taxes

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.
6
~~EVmo, Inc.~~
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~

Stock-Based Compensation

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 ~~as well as non-employees, which is permitted under ASC 718.~~and non-employees. There were ~~2,006,250~~ 2,737,500warrants and ~~1,515,000~~ 758,125options outstanding as of ~~June~~September 30, 2021 and 1,631,250warrants and ~~716,000~~3,221,000 options outstanding as of ~~June~~September 30, 2020.

6
EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the Nine months Ended September 30, 2021 and 2020 (unaudited)
Basic and Diluted Earnings Per Share

Earnings per share ~~(“EPS”)~~ is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic ~~EPS~~earnings per share (“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~~ (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~~ 3,495,625and ~~2,347,250~~ 4,852,250potentially dilutive options and warrants outstanding at ~~June~~September 30, 2021 and 2020, respectively, and 750,000shares potentially issuable upon the conversion of an outstanding ~~convertible note~~shares of Series B Preferred Stock at ~~June~~September 30, 2021.

Advertising Costs

The Company expenses the cost of advertising as incurred. Advertising costs for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 were $~~230,564~~257,129 and $~~210,642~~324,546, respectively.

Fair Value Measurements

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:

● 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.

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

Recent Accounting Pronouncements

In December 2019, the FASB issued ~~Accounting Standards Update (“ASU”)~~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.

7

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
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~~earnings-per-share (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.~~statements.

Management does not believe that any recently issued, but not yet effective, accounting ~~updates~~standards 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.
Note 3 – Property and Equipment

At ~~June~~September 30, 2021 and December 31, 2020, property and equipment consisted of the following:
Schedule of Property and Equipment
June 30, December 31, September 30, December 31,
2021 2020 2021 2020

Computer equipment $ 6,046 $ 6,046 $ 6,046 $ 6,046
Office furniture 17,401 - 17,401 -
Leasehold improvement 29,650 - 29,650 -
53,097 6,046 53,097 6,046
Less accumulated depreciation (6,626 ) (4,138 ) (6,626 ) (4,138 )
Equipment, net $ 46,471 $ 1,908 $ 46,471 $ 1,908

Depreciation expense for equipment for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 was $2,488 and $~~744~~1,115, respectively.

Note 4 – Rental Vehicles

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

Rental vehicles $ 11,874,137 $ 9,067,885 $ 14,760,669 $ 9,067,885
11,874,137 9,067,885 14,760,669 9,067,885
Less accumulated depreciation (3,864,087 ) (2,871,452 ) (4,394,296 ) (2,871,452 )
Rental vehicles, net $ 8,010,050 $ 6,196,433 $ 10,366,373 $ 6,196,433

The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five years ~~years.~~. Depreciation expense for leased assets for the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 was $~~992,635~~1,522,844 and $~~668,623~~1,045,960, respectively. The lease terms are generally for 30 to 36 months ~~months~~ and the Company has the right to purchase the leased assets at the end of the lease terms for generally a nominal amount.

8

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
Note 5 – Notes Payable

Notes payable at ~~June~~September 30, 2021 and December 31, 2020 consisted of the following:
Schedule of Notes Payable
September 30, December 31,
2021 2020
$ - $ 304,667
Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured $ - $ 304,667
Note payable to the Small Business Administration. The note bears interest at 3.75% per annum, requires monthly payments of $731 after 24 months from funding and is due 30 years from the date of issuance. - 149,414
Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months and accrues interest at 1% per annum. During the year ended December 31, 2020, $184,775 of this loan has been forgiven as provided for in the CARES Act. - 8,000
Notes payable to a finance company, default interest at 14% per annum; monthly principal payments ranging from $10,000 to $40,000 with unpaid principal due on December 15, 2021 - 355,438
Notes payable to a finance company, interest at LIBOR plus 10% per annum; monthly principal payments of 0.4166% of principal balance beginning August 1, 2022, with unpaid principal due on July 9, 2026 (A) 7,500,000 -
Total notes payable 7,500,000 817,519
Unamortized debt discount (1,316,029 ) (1,973 )
Notes payable, net discount 6,183,971 815,546
Less current portion (156,225 ) (666,132 )
Long-term portion $ 6,027,746 $ 149,414
June 30, December 31,
2021 2020
Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured (A) $ 304,667 $ 304,667
Note payable to the Small Business Administration. The note bears interest at 3.75% per annum, requires monthly payments of $731 after 24 months from funding and is due 30 years from the date of issuance. 148,863 149,414
Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months and accrues interest at 1% per annum. During the year ended December 31, 2020, $184,775 of this loan has been forgiven as provided for in the CARES Act. - 8,000
Notes payable to a finance company, default interest at 14% per annum; monthly principal payments ranging from $10,000 to $40,000 with unpaid principal due on December 15, 2021 307,213 355,438
Total notes payable 760,743 817,519
Unamortized debt discount 0 (1,973 )
Notes payable, net discount 760,743 815,546
Less current portion (611,880 ) (666,132 )
Long-term portion $ 148,863 $ 149,414
(A) ~~In connection with the issuance of these notes payable in 2018 and 2017,~~On July 9, 2021 (the “Closing Date”), the Company ~~also issued~~entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with 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~~24,050~~ 1.5 million shares of ~~its Common Stock~~the common stock of the Company, par value $0.000001 (the “Common Stock”), at an exercise price of $2.10, subject to ~~these note holders~~adjustment as ~~additional incentive~~set forth in the Warrant. The Warrant is subject to ~~make the loans. The aggregate fair value of these~~vesting, with 450,000 shares of Common Stock ~~was $119,875~~ ~~and was recorded~~exercisable 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~~Closing Date and the ~~six months ended June 30, 2021 and 2020, $1,973~~ ~~and $19,906, respectively, was charged~~remainder exercisable only in the event that the Company borrows under the Delayed Draw Term Loan Facility or fails to ~~interest expense as amortization of the discounts, with an unamortized balance of $~~0 ~~at June 30,~~consummate a qualifying equity transaction on or before October 7, 2021. The Warrant has no expiration date.

~~A roll-forward of notes payable from December 31, 2020 to June 30, 2021 is below:~~
~~Schedule of Outstanding Notes Payable~~

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
9

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
In connection with the Company’s 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, 2022 issued on April 12, 2021 (the “Prior Notes”).
In connection with the issuance of this note payable, the Company also issued 450,000 warrants to purchase shares of its Common Stock with an exercise price of $2.10 per shares. The aggregate relative fair value of these warrants was $778,697 and was recorded as a discount on the note payable and as additional paid in capital. In addition, the Company incurred $600,000 of cost related to this note payable. The total discount of $1,378,697 is being amortized over the term of the notes payable.
A roll forward of notes payable from December 31, 2020 to September 30, 2021 is below:
Schedule of Outstanding Notes Payable

Notes payable, December 31, 2020 $ 815,546
Issued for cash 7,500,000
Payment of cost associated with issuance of note payable (600,000 )
Debt discount related to notes payable (778,697 )
Forgiveness of note payable (8,000 )
Repayments (809,519 )
Amortization of debt discounts 64,641
Notes payable, September 30, 2021 $ 6,183,971
Note 6 – Convertible Notes

On January 8, 2021, the Company, issued a stand-alone $500,000convertible 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~~accrues interest at a fixed rate of 6% 6% and ~~had a maturity date of~~will mature on January 6, 2022. Any unpaid principal balance on the convertible note ~~could~~may be converted at any time, at the option of Mr. Gray, into shares of the Company’s Common Stock at a price of $0.50per share. The Company recorded a beneficial conversion feature associated with this convertible note of $30,000which was recorded as a debt discount. On February 12, 2021, Mr. Gray converted the full amount of the convertible promissory note into 1,000,000shares of the Company’s 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%~~ 12.5% original issue discount convertible promissory note and a ~~Common Stock~~common stock purchase warrant. The note ~~had~~has an original principal amount of $2,250,000, with an original issue discount of $250,000. It ~~bore~~bears interest at a fixed rate of ~~10%~~10%, ~~was~~is convertible into shares of Common Stock at a price of $3.00per share (subject to adjustment as set forth in the note), and ~~was to mature~~matures on January 12, 2022. The warrant grants the right to purchase 187,500shares of ~~Common Stock~~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 93,750shares of ~~Common Stock~~common stock with an exercise price of ~~$3.00~~$3.00 per share, will be issued by the Company to the investor on the ~~12th~~12^th day of each month that the note ~~remained~~remains 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,~~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 $623,373was determined using the Black-Scholes option pricing model and the following assumptions: a term of five years~~years,~~, a ~~risk-free~~risk free interest rate of ~~.089%~~.089%, a dividend yield of 0% 0% and volatility of ~~190%~~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 $1,761,866and $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 $1,298,767plus 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. In July 2021, the Company and noteholder agreed to convert the convertible note into 230,250 shares of the Company’s Series B Preferred Stock.
10
EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the Nine months Ended September 30, 2021 and 2020 (unaudited)

~~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 ~~roll-forward~~roll forward of convertible notes from December 31, 2020 to ~~June~~September 30, 2021 is below:
Schedule of Outstanding Convertible Notes Payable

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
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 )
Conversion to preferred stock (2,250,000 )
Amortization of debt discounts 1,578,767
Convertible notes, September 30, 2021 $ -
Note 7 – Financing Lease Obligations

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

Lease obligations $ 4,415,870 $ 2,352,878
Less current portion (1,920,254 ) (1,426,425 )
Long-term portion $ 2,495,616 $ 926,453

June 30, December 31,
2021 2020

Lease obligations $ 3,087,178 $ 2,352,878
Less current portion (1,532,320 ) (1,426,425 )
Long-term portion $ 1,554,858 $ 926,453
10
~~EVmo, Inc.~~
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~
A ~~roll-forward~~rollforward of lease obligations from December 31, 2020 to ~~June~~September 30, 2021 is below:
Schedule of Outstanding Lease Obligations

Lease obligations, December 31, 2020 $ 2,352,878 $ 2,352,878
New lease obligations 3,049,261 5,692,784
Disposal of leased vehicles (243,009 )
Payments on lease obligations (2,071,952 ) (3,629,792 )
Lease obligations, June 30, 2021 $ 3,087,178
Lease obligations, September 30, 2021 $ 4,415,870

Future payments under lease obligations are as follows:
Schedule of Future Lease Obligations
Twelve Months Ending June 30,
Twelve Months Ending September 30,
2022 $ 1,663,320 $ 2,033,761
2023 1,099,666 1,500,065
2024 540,146 1,058,833
Total payments 3,303,132 4,592,659
Amount representing interest (215,954 ) (176,789 )
Lease obligation, net $ 3,087,178 $ 4,415,870

Note 8 –Operating Lease Obligations

The Company determines whether a contract is or contains a lease at inception of the contract 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:~~
~~Schedule of Operating Lease Obligations~~
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
~~Lease obligations at June 30, 2021 consisted of the following:~~
~~Schedule of Lease Obligation Maturity~~
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
11

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, 2021:
Schedule of Operating Lease Obligations
September 30,
Classification on Balance Sheet 2021
Assets
Operating lease assets Operating lease right of use assets $ 180,860
Total lease assets $ 180,860

Liabilities
Current liabilities
Operating lease liability Current operating lease liability $ 138,630
Noncurrent liabilities
Operating lease liability Long-term operating lease liability 50,996
Total lease liability $ 189,626
Lease obligations at September 30, 2021 consisted of the following:
Schedule of Lease Obligation Maturity
Twelve Months Ending September 30, Leases
2022 $ 157,800
2023 52,600
Total payments 210,400
Less: imputed interest (20,774 )
Total obligation 189,626
Less: current portion (138,630 )
Non-current capital leases obligations $ 50,996
The lease expense for the ~~six~~nine months ended ~~June~~September 30, 2021 was $~~63,010~~100,817. The cash paid under operating leases for the ~~six~~nine months ended ~~June~~September 30, 2021 was $~~52,600~~92,050. At ~~June~~September 30, 2021, the ~~weighted-average~~weighted average remaining lease ~~term was~~terms were ~~1.51~~ 1.25years and the ~~weighted-average~~weighted average discount rate was ~~15%~~15%.
Note 98 – Stockholders’ Equity

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

Series B Preferred Stock
Pursuant to the Exchange Agreement (see Note 5), 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 “Series B 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 exercise price of $3.00, subject to adjustment as set forth therein. The Exchange Warrant is exercisable in full at any time within five 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 Series B Preferred Stock is redeemed in full, upon which a final warrant will be issued.
Shares of the Series B Preferred Stock is convertible at any time at the option of the holder thereof 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.
The Series B 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 the Company has paid in full all obligations outstanding under the Term Loan Agreement, the holders of a majority of the outstanding shares of Series B 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 Series B Preferred Stock shall be prior and superior to the redemption of any and all other equity securities of the Company duly tendered for redemption.
12
EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the Nine months Ended September 30, 2021 and 2020 (unaudited)
If, at any time while the Series B 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 Series B 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.
Common Stock

During the ~~six~~nine months ended ~~June~~September 30, 2021, the Company:

● 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~~321,875 stock options for cash consideration of $~~87,100~~92,878;
● issued ~~960,550~~1,273,050 shares of Common Stock for the cashless exercise of ~~1,000,000~~1,348,525 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~~256,250 shares of Common Stock in connection with legal settlements. The shares were valued at $~~1,103,750~~1,145,768 which was based on the market price of the Common Stock on the grant date; and
● issued 825,000shares 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~~owned by the Company’s former chief executive officer. The board of directors deemed it was in the best interest of the Company to issue the shares to Acuitas. The value of the shares was $3,240,600which ~~was~~is based on the market price of the Company’s Common Stock at the ~~date of the settlement agreement.~~grant date. The $3,240,600was expensed as financing costs as the dispute underlying the settlement agreement related to ~~the~~an anti-dilution of a prior investment in the Company by Acuitas.

Stock Options ~~and Warrants~~

The following is a summary of stock option activity:
Summary of Stock Option Activity
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 290,000 0.84
Forfeited (401,475 ) 0.22
Exercised (1,670,400 ) 0.230
Outstanding, September 30, 2021 758,125 $ 0.42 3.93 $ 514,928
Exercisable, September 30, 2021 413,875 $ 0.56 3.99 $ 262,473

The exercise price for options outstanding and exercisable at September 30, 2021:
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
Schedule of Options Outstanding by Exercise Price Range
Outstanding Exercisable
Number of Exercise Number of Exercise
Options Price Options Price
20,000 $ 0.210 20,000 $ 0.210
528,125 0.215 252,625 0.215
15,000 0.220 2,500 0.220
155,000 0.530 98,750 0.530
20,000 2.120 20,000 2.120
20,000 3.800 20,000 3.800
758,125 413,875

12 13

EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the ~~Six Months~~Nine months Ended ~~June~~September 30, 2021 and 2020 (unaudited)
~~The exercise price for options outstanding and exercisable at June 30, 2021:~~
~~Schedule of Options Outstanding by Exercise Price Range~~Warrants
Outstanding Exercisable
Number of Exercise Number of Exercise
Options Price Options Price
20,000 $ 0.210 15,000 $ 0.210
1,305,000 0.215 648,125 0.215
15,000 0.220 0 0.220
155,000 0.530 89,375 0.530
20,000 3.800 20,000 3.800
1,515,000 772,500

The following is a summary of warrant activity:
Summary of Warrant Activity
Weighted
Weighted Average
Average Remaining Aggregate
Warrants Exercise Contractual Intrinsic
Outstanding Price Life Value
Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ -
Granted 375,000 3.00
Forfeited -
Exercised -
Outstanding, June 30, 2021 2,006,250 $ 3.88 2.44 $ -
Exercisable, June 30, 2021 2,006,250 $ 3.88 2.44 $ -
Weighted
Weighted Average
Average Remaining Aggregate
Warrants Exercise Contractual Intrinsic
Outstanding Price Life Value
Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ -
Granted 1,106,250 2.64
Forfeited -
Exercised -
Outstanding, September 30, 2021 2,737,500 $ 3.50 2.89 $ -
Exercisable, September 30, 2021 2,737,500 $ 3.50 2.89 $ -

The exercise price for warrants outstanding at ~~June~~September 30, 2021:
Schedule of Warrants Outstanding by Exercise Price Range
Outstanding and Exercisable Outstanding and Exercisable Outstanding and Exercisable
Number of Number of Exercise Exercise
Warrants Warrants Price Price
375,000 $3.00
1,500,000 4.00
131,250 5.00
2,006,250
450,000 $ 2.10
656,250 3.00
1,500,000 4.00
131,250 5.00
2,737,500

In connection with a convertible note discussed in Note 6, the Company has issued an aggregate of ~~187,500~~468,750 ~~warrants since the convertible note remained outstanding as of June 30, 2021.~~warrants. The fair value of the warrants was determined to be $~~451,415~~961,106, using a Black-Scholes model, and has been recorded as financing costs in the accompanying statements of operations for the ~~six~~nine months ended ~~June~~September 30, 2021. The Company used the following assumptions in determining the fair value:
Schedule of Stock Options Value Assumptions ~~Used~~
Risk-free interest rate 0.76 – 0.87% %
Expected life of the options 5 years
Expected volatility 180%-190 %
Expected dividend yield 0 %
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~~EVmo, Inc.~~
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~
Note 10 – Related Party Transactions

During the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020, the Company expensed $~~1,618,441~~ 2,356,924and $~~1,103,460~~1,715,237, 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~~September 30, 2021 and December 31, 2020, $~~546,746~~ 670,047and $265,257, respectively, was owed to this insurance brokerage from and is included in accounts payable 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~~.have made advances the Company. During the ~~six~~nine months ended ~~June~~September 30, 2021, ~~Mr. Peizer~~the Company’s Executive Chairman loaned the Company $503,767and was repaid $503,767. The Company’s former CEO loaned the Company $100,000 in 2020, and, ~~Mr. El-Batrawi~~during the nine months ended September 30, 2021 was repaid ~~the~~ $100,000 ~~outstanding from fiscal 2020~~. At ~~June~~September 30, 2021, the Company owed its Executive Chairman and ~~its~~ former CEO $0and $0, respectively.

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EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the Nine months Ended September 30, 2021 and 2020 (unaudited)
Note 11 – Contingencies
Legal Proceedings
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, other than those described below.
Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi
A complaint was filed on March 5, 2020, in the Los Angeles Superior Court by plaintiff Anthony Davis, who was hired by the Company as its CEO and as a director on or about December 2016. Mr. Davis’s employment with the Company ended after several months. As part of his compensation, Mr. Davis alleges that he expected to receive stock options in the Company. In his pleadings, Mr. Davis admits that he resigned from his executive officer and director positions, but asserts that he did not receive certain compensation in the form of stock options (he has also included a claim for wage and hour violations). The Company denies liability and has asserted that it has paid Mr. Davis all amounts due to him under his employment agreement, while also asserting that Mr. Davis failed to exercise his stock options before they expired on December 31, 2018. The Company ~~has~~ filed a demurrer to the first amended complaint, which ~~is expected to be heard~~the Superior Court granted in part and denied in part on September 8, ~~2021 in Superior Court.~~2021. The Plaintiff since filed a second amended complaint, to which the Company has filed an answer. The Company’s position is that the lawsuit entirely lacks merit, and the Company intends to defend 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”)
On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior Court. The complaints underlying the State Cases differ only by a few words and some random punctuation marks, and are therefore virtually identical. Plaintiffs Ivan Rung and Michael Vanbecelaere each claimed to have purchased the Common Stock as part of the Company’s initial public offering (the “IPO”); they purport to bring a securities class action on behalf of all purchasers of the Common Stock pursuant to the registration statement and prospectus filed with the SEC and distributed in connection with the Company’s IPO, which was launched on November 14, 2019. The State Case complaints allege misrepresentations and material omissions in the SEC filings in violation of 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 firm position that it accurately and completely disclosed all material facts and circumstances in its SEC filings relating to the IPO, and 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 outcome of the federal securities case discussed below (Hamlin v. YayYo, Inc.)
14
~~EVmo, Inc.~~, as to which, as noted below, the parties have announced a “settlement in principle”, which is subject to court approval in the district court. The Company anticipates filing motions to dismiss the purported class actions in Superior Court on the basis of the anticipated approval of the federal settlement.
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~
Jason Hamlin v. YayYo, Inc., Ramy El-Batrawi, et al., 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”)
These two actions were filed on September 9, 2020 and September 18, 2020, respectively, in the United States District Court for the Central District of California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the Common Stock as part of the IPO and, like 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 the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on behalf of all purchasers of the Common Stock in the IPO. The first amended complaint, like the State Cases, alleges false statements and material omissions of material fact in connection with the SEC filings distributed in connection with the IPO. The defendants include directors of the Company and the underwriters of the IPO, WestPark Capital, Inc. (“WestPark”) and Aegis Capital Corp. The federal court has consolidated the two matters for all practical purposes. As with the State Cases, the Company denies liability and asserts that it accurately and completely disclosed all material facts and circumstances in its SEC filings, and that the complaint’s alleged violations of securities laws are baseless. ~~The Company’s motion~~Please see Note 13- Subsequent Events for judgment on the pleadings was recently denied, and the plaintiff’s motion for class action certification is presently pending. The Company intends to vigorously defend the lawsuit in federal court. The Court has set a ~~trial date~~description of ~~October 5, 2021.~~a provisional settlement of this litigation.
Konop v. El-Batrawi, et al., 1:20-cv-1379- MN (Filed in Del. District Court)
15
EVmo, Inc.
Notes to Condensed Consolidated Financial Statements
For the Nine months Ended September 30, 2021 and 2020 (unaudited)
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, in which ~~alleges~~the Company is a nominal defendant, alleging that the Company’s executive officers and directors at the time of its IPO made false and misleading statements relating to 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.
15
~~EVmo, Inc.~~
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~

Note 12 – Settlements

FirstFire Settlement

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~~are 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.~~initial public offering of Common Stock, in November 2019 (the “IPO”). It alleged in the ~~litigation~~lLitigation 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 of 1933, as amended (the “Securities Act”), Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (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.

Social Reality Settlement

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.

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~~EVmo, Inc.~~
~~Notes to Condensed Consolidated Financial Statements~~
~~For the Six Months Ended June 30, 2021 and 2020 (unaudited)~~
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.

Note 13 – Subsequent Events

The Company has evaluated subsequent events through ~~August 13,~~November 12, 2021. The Company has determined there were no subsequent events that require recognition or disclosure in the financial statements, except as discussed ~~below.~~below:

~~During the two months subsequent to June 30, 2021, the~~ ~~Company has issued an aggregate of~~ ~~187,500~~ ~~warrants pursuant to the terms of the convertible note agreement discussed in Note 6.~~
● The Company issued an aggregate of 187,500 warrants pursuant to the terms of the convertible note agreement discussed in Note 6.
● The parties to the In re YayYo Securities Litigation described in Note 11 above have, after extensive negotiations, recently filed a “Notice of Pending Settlement” with the court, which is subject to approval by the district court and which, if approved, will resolve the pending class actions upon payment by the Company of approximately $1,000,000 to the class. The Company’s Executive Chairman has provided his personal guarantee for the whole amount due to the plaintiffs, and the Board of Directors has agreed to issue 2,000,000 shares of Common Stock as consideration for the guarantee. The motion for approval of the settlement is scheduled to be heard by the court on or around November 19, 2021.
On July 9, 2021 (the “Closing Date”), the Company entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with 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 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 exercise price of $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 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.

17 16

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

Cautionary Note Regarding Forward-Looking Statements

~~This quarterly report on Form 10-Q may contain~~Certain statements made herein, as well as in other filings we make with the SEC and other written and oral information we release, regarding our future performance constitute “forward-looking ~~statements,”~~ ~~within~~statements” as defined in the ~~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. ~~Any~~The 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 ~~our~~ business, which ~~involves~~assumptions involve 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 ~~any~~the forward-looking statements are reasonable, ~~they~~any of the assumptions could prove ~~to be~~ inaccurate, and, therefore, there can be no assurance ~~that~~the 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 ~~any~~these forward-looking statements as a result of various ~~factors.~~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. 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.

Our Corporate History and Background

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

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

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

On March 16, 2018, we completed an offering under Regulation A+ of the Securities Act, which was qualified by the SEC on March 15, ~~2017, and~~2017. We sold a total of 365,306 shares of 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 ~~effected~~closed its ~~IPO, selling~~initial public offering of 2,625,000 common shares ~~of Common Stock~~ at $4.00 per share, for gross proceeds, before underwriting discounts and commissions and expenses, of $10.5 million, and ~~our Common Stock was then~~the shares became listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol “YAYO.”
17

On February 10, 2020, the Company notified Nasdaq of its intent to voluntarily delist its Common Stock from Nasdaq. In connection therewith, the Company ~~filed~~notified Nasdaq of the Company’s intention to file a Form 25 with the SEC on or about February 20, 2020. The Company elected to effect the voluntary delisting of its Common Stock after discussions with Nasdaq’s staff and based on the determination of the Company’s ~~board~~Board of ~~directors~~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 Common Stock ~~has traded~~now trades on the Pink Open Market, still under the trading symbol, “YAYO.”
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Impact of COVID-19 on our business

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, itthe World Health Organization characterized the outbreak as a “pandemic.” In response, numerous states and cities ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and similar restrictions were recommended by the federal government. Beginning in the first quarter of 2020, which saw the initial rapid spread of COVID-19, rideshare companies were severely and negatively impacted, as demand plummeted. Consequently, the Company experienced a decline in revenue during the first half of 2020, which had a negative impact on ~~our~~its cash flows, but weit then saw a positive upward movement in revenue during the second half of 2020, which has continued into the first half of 2021. ~~As of the date of this quarterly report,~~In early 2021, 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,~~including those of the markets in which the Company operates, appear to be abating. The pandemic has not yet ended, however, and 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 of which have resulted in increases in the aggregate number of infections. WeThe Company therefore cannot predict the ultimate impact that COVID-19 may have on ~~our~~its business ~~over the entirety of~~ this year, and possibly beyond.
Principles of consolidation

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

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

Total Revenues.

Revenue for the three months ended ~~June~~September 30, 2021 was ~~$2,652,083,~~$2,724,180, an increase of ~~$1,071,528~~$653,359 or ~~67.8%~~31.6% compared to revenue for the three months ended ~~June~~September 30, 2020 of ~~$1,580,555.~~$2,070,821. The increase is principally due to an increase in ~~rentals of~~ our ~~vehicle~~rental fleet. During the three months ended ~~June~~September 30, 2021, the average weekly rental income per vehicle placed in service was ~~$413~~$416 compared to ~~$292~~$339 for the same period in 2020. Our revenues declined in ~~March-April~~March and April of 2020 due to ~~the impact of COVID-19~~COVID -19 and began to recover in ~~May-June~~May and June 2020. Our revenue since June 2020 ~~has now exceeded~~is back to pre-COVID-19 levels, but there is no assurance that this trend will continue.

Cost of Revenues.

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

Cost of revenues for the three months ended ~~June~~September 30, 2021 ~~was $1,915,294,~~were $2,285,878, an increase of ~~$620,235~~$1,090,921 or ~~49.9%~~91.3% compared to cost of revenues for the three months ended ~~June~~September 30, 2020 of ~~$1,295,059.~~$1,194,957. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet ~~size.~~size and higher maintenance costs. For the three months ended ~~June~~September 30, 2021 and 2020 our cost of revenue was ~~72.2%~~83.9% and ~~81.9%~~57.7% of our revenue, respectively. The ~~decrease~~increase in the cost of revenue as a percentage of revenue is due to higher ~~weekly rental rates.~~maintenance and insurance costs.

Selling and Marketing Expenses.

Selling and marketing expenses for the three months ended ~~June~~September 30, 2021 were ~~$64,816,~~$26,565, representing a decrease of ~~$14,317~~$87,339 or ~~18.1%~~76.7% over the three months ended ~~June~~September 30, 2020 of ~~$79,133.~~$113,904. 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.

General and administrative expenses for the three months ended ~~June~~September 30, 2021 were ~~$1,493,494,~~$3,218,912, representing an increase of ~~$632,084~~$2,130,760 or ~~73.4%~~195.8% over the three months ended ~~June~~September 30, 2020 of ~~$861,410.~~$1,088,152. The increase is principally due to higher professional fees, salaries, and ~~stock option expense~~litigation settlement during the three months ended ~~June~~September 30, 2021.
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Total Operating Expenses

Total operating expenses for the three months ended ~~June~~September 30, 2021 were ~~$1,609,076,~~$3,291,977, representing an increase of ~~$668,533~~$2,089,921 or ~~71.1%~~173.9% compared to the three months ended ~~June~~September 30, 2020 of ~~$940,543.~~$1,202,056. The increase is due to the reasons described ~~immediately~~ above.
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Interest expense and financing cost

Interest and financing expenses for the three months ended ~~June~~September 30, 2021 were ~~$964,387~~$2,007,194 compared to ~~$67,795~~$65,292 for the three months ended ~~June~~September 30, 2020. The increase in interest and financing cost for the three months ended ~~June~~September 30, 2021 was due to full amortization of debt discounts due to the $2.250 million convertible note being converted to preferred stock and issuance of additional warrants associated with the $2.250 million convertible note.

Net Loss

The net loss for the three months ended ~~June~~September 30, 2021 was ~~$1,836,674,~~$4,777,328, representing an increase of ~~$1,113,832~~$4,385,844 or ~~154.1%~~1,120.3% compared to the three months ended ~~June~~September 30, 2020 of ~~$722,842.~~$391,484. The increase is due to the ~~higher total operating expenses~~reasons described above.

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

Total Revenues.

Revenue for the ~~six~~nine months ended ~~June~~September 30, 2021 was ~~$4,946,615,~~$7,670,795, an increase of ~~$1,618,418~~$2,271,777 or ~~48.6%~~42.1% compared to revenue for the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$3,328,197.~~$5,399,018. The increase is principally due to an increase in ~~rentals of~~ our ~~vehicle~~rental fleet. During the ~~six~~nine months ended ~~June~~September 30, 2021, the average weekly rental income per vehicle placed in service was ~~$409~~$411 compared to ~~$309~~$298 for the same period in 2020.
Our revenues declined in ~~March-~~March and April of 2020 due to ~~the impact of COVID-19~~COVID -19 and began to recover in ~~May-June~~May and June 2020. Our revenue since June 2020 ~~has now exceeded~~is back to pre-COVID-19 levels, but there is no assurance that this trend will continue.

Cost of Revenues.

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

Cost of revenues for the ~~six~~nine months ended ~~June~~September 30, 2021 ~~was $3,696,197,~~were $5,982,075, an increase of ~~$999,847~~$2,098,768 or ~~37.1%~~53.7% compared to cost of revenues for the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$2,696,350.~~$3,891,307. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet ~~size.~~size and higher maintenance costs. For the ~~six~~nine months ended ~~June~~September 30, 2021 and 2020 our cost of ~~revenues~~revenue was ~~74.7%~~78.0% and ~~81.0%~~72.1% of our revenue, respectively. The ~~decrease~~increase in the cost of revenue as a percentage of revenue is due to higher ~~weekly rental rates.~~maintenance and insurance costs.
Selling and Marketing Expenses.

Selling and marketing expenses for the ~~six~~nine months ended ~~June~~September 30, 2021 were ~~$230,564,~~$257,129, representing ~~an increase~~a decrease of ~~$19,922~~$67,417 or ~~9.5%~~20.8% over the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$210,642.~~$324,546. The ~~increase~~decrease is due to ~~an increase~~a decrease in advertising ~~our rentals~~ to gig-economy ~~drivers.~~drivers as we have maintained a high utilization rate for our vehicles.

General and Administrative Expenses.

General and administrative expenses for the ~~six~~nine months ended ~~June~~September 30, 2021 were ~~$2,932,595,~~$6,151,507, representing an increase of ~~$174,979~~$2,305,739 or ~~6.3%~~60.0% over the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$2,757,616.~~$3,845,768. The increase is principally due to higher professional fees, salaries, and ~~salaries offset by a decrease in stock option expense~~litigation settlement during the ~~six~~nine months ended ~~June~~September 30, 2021.

Total Operating Expenses

Total operating expenses for the ~~six~~nine months ended ~~June~~September 30, 2021 were ~~$3,223,425,~~$6,515,402, representing an increase of ~~$255,167~~$2,345,088 or ~~8.6%~~56.2% compared to the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$2,968,258.~~$4,170,314. The increase is due to the reasons described ~~immediately~~ above.
19

Interest expense and financing cost

Interest and financing expenses for the ~~six~~nine months ended ~~June~~September 30, 2021 were ~~$4,289,330~~$6,296,524 compared to ~~$147,651~~$212,943 for the ~~six~~nine months ended ~~June~~September 30, 2020. The increase in interest and financing cost for the ~~six~~nine months ended ~~June~~September 30, 2021 was due to the issuance of 825,000 shares of Common Stock to Acuitas Group Holdings, LLC, (“Acuitas”), which is now the Company’s largest shareholder, in connection with a settlement agreement between itAcuitas and X, LLC, a ~~limited liability~~ company ~~controlled~~owned by the Company’s former ~~CEO.~~chief executive officer. The Board of Directors deemed it was in the best interest of the Company to issue the shares to Acuitas. 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.~~grant date. The $3,240,600 was expensed as financing costs as the dispute underlying the settlement agreement related to ~~the~~an anti-dilution of a prior investment in the Company by Acuitas. Also, the increase isin interest and financing expenses for the nine months ended September 30, 2021 was due to full amortization of debt discounts due to the $2.25 million convertible note being converted to shares of Series B Preferred Stock and issuance of additional warrants associated with the ~~$2.250~~$2.25 million convertible note.
20

Gain on Forgiveness of Debt

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

Net Loss

The net loss for the ~~six~~nine months ended ~~June~~September 30, 2021 was ~~$6,254,337,~~$11,031,665, representing an increase of ~~$3,770,275~~$8,156,119 or ~~151.8%~~283.6% compared to the ~~six~~nine months ended ~~June~~September 30, 2020 of ~~$2,484,062.~~$2,875,546. The increase is due to the ~~higher total operating expenses~~reasons described above.

Liquidity, Capital Resources and Plan of Operations

On November 15, 2019, we closed our ~~IPO of 2,625,000 shares~~initial public offering of Common Stock registered on an S-1 Registration Statement under the Securities Act, which was ~~effected. Our public offering~~declared effective on November 13, 2019. We sold a total of 2,625,000 common shares at a price ~~was~~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~~is convertible into shares of Common Stock at $0.50 per ~~share and~~share. The note 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~~has an original principal amount of $2,250,000, with an original issue discount of $250,000. It ~~bore~~bears interest at a fixed rate of 10%, ~~was~~and is convertible into shares of common stock at a price of $3.00 per share (subject to adjustment as set forth in the note)~~, and~~. The note was set to mature on January 12, ~~2022.~~2022; however, in July 2021, the Company and the noteholder agreed to convert the note into 230,250 shares of Series B Preferred Stock.

On July 9, 2021 (the “Closing Date”), we entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with 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.~~facility (the “Delayed Draw Term Loan Facility”). The ~~initial term loan has been~~Closing Date Term Loan was fully drawn on the Closing Date, while the ~~remainder~~Delayed Draw Term Loan Facility is available upon the satisfaction of certain conditions precedent specified in the ~~agreement.~~Term Loan Agreement. The Term Loan Agreement matures on July 9, 2026. Borrowings under the Term Loan Agreement bear interest at the ~~LIBOR,~~London Interbank Offered Rate (“LIBOR”), plus a margin of 10.0%.

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

Current Assets, Liabilities and Working Capital.

At ~~June~~September 30, 2021, the Company’s current assets totaled ~~$1,014,673,~~$4,847,770, current liabilities totaled ~~$5,801,006,~~$6,162,643, and working capital was a deficit of ~~$4,786,333.~~$1,314,873. At December 31, 2020, the Company’s current assets totaled $215,990, current liabilities totaled $4,461,560, and working capital was a deficit of $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 ~~$2,377,096~~$3,947,534 and $2,119,003 as of ~~June~~September 30, 2021 and December 31, 2020, respectively, ~~a decrease~~an increase of ~~$258,093~~$1,828,531 or ~~12.2%~~86.3%, due to ~~Common Stock issued~~accrual for legal ~~settlements that were previously included~~settlement of $1,000,000 and increase in ~~accrued expenses.~~amounts due for professional services.

20
Since inception, our principal sources of operating funds have been proceeds from debt and equity financings, including the sale of our Common Stock to investors known to management and principal shareholders of the 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
We do not 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 months. ~~In addition to the July 2021 term loan,~~If the Company is ~~currently~~unable to raise sufficient 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 September 30, 2021, the Company had $3,540,212 in cash. The Company used $1,454,194 of cash for operating activities for the nine months ended September 30, 2021. The Company is seeking to raise additional capital. If the Company is not successful in raising additional capital it ~~may~~will be forced to significantly scale back ~~perhaps significantly,~~ its business operations and it growth plans. We were able to obtain two loans totaling $342,675 related to new legislation passed as a result of COVID-19, of which $192,775 was forgiven in 2020 and 2021.
21

Capital Expenditures

During the ~~six~~nine months ended ~~June~~September 30, 2021, the Company had capital expenditures of ~~$3,049,261~~$5,692,784 in leased vehicles. At ~~June~~September 30, 2021, most of the Company’s vehicles were financed with leases. At ~~June~~September 30, 2021 the Company had ~~$11,874,137~~$14,760,669 of rental vehicles, net of accumulated depreciation in the amount of ~~$3,864,087,~~$4,394,296, totaling ~~$8,010,050~~$10,366,373 in net rental vehicles. At December 31, 2020 the Company had $9,067,885 of rental vehicles, net of accumulated depreciation in the amount of $2,871,452, totaling $6,196,433 in net rental vehicles. The Company’s rental vehicles are depreciated over their estimated useful life of five years. The ~~term~~lease terms for those rental vehicles ~~that we lease is~~are generally for three years, and the Company has the right to purchase the ~~vehicles~~leased assets for $1 each at the end of the lease ~~term.~~terms.

Statement of Cash Flows

Cash Flows from Operating Activities

Net cash used in operating activities for the ~~six~~nine months ended ~~June~~September 30, 2021 totaled ~~$244,484,~~$1,454,194, which was ~~a decrease~~an increase of ~~$94,715 or 27.9%~~$1,642,737 from the net cash ~~used in~~provided by operating activities of ~~$339,199~~$188,543 for the same period in 2020. The ~~decrease~~change is principally due to the change in operating assets and liabilities, and non-cash expense items.

Cash Flows from Investing Activities

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

Cash Flows from Financing Activities

Net cash provided by financing activities for the ~~six~~nine months ended ~~June~~September 30, 2021 totaled ~~$381,372,~~$4,968,567, which was ~~a change~~an increase of ~~$1,195,362~~$6,328,807 from the net cash used in financing activities of ~~$813,990~~$1,360,240 for the same period in 2020. The change is principally due to cash received from the sale of Common Stock, ~~the~~ exercise ~~of both~~was stock options, ~~and a~~ convertible note and note payable in 2021 offset by an increase in payments on financing lease obligations.

Current Plan of Operations

Our plan of operations is currently focused on the growth and ongoing development of our operating businesses: (i) the Rideshare Platform, offered through Rideshare, ~~Rentals,~~ and (ii) ~~our vehicle fleet, which is~~Fleet Management, made commercially available through Distinct Cars. We expect to incur substantial expenditures in the foreseeable future for the enhanced operations of our 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.~~within a relatively short period of time. At this time, we cannot reliably estimate the nature, timing or aggregate amount of all of the costs associated with ~~these efforts.~~these.

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

We continually ~~reevaluate~~evaluate our plan of operations 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~~we will successfully obtain the required capital ~~resources~~or revenues, or, if obtained, that the amounts 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 it on favorable terms, or at all.~~operations. The ~~inadequacy of our existing capital or the~~ inability to secure additional capital ~~could~~would 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 ~~may~~will not have sufficient funds to pay any amounts to our stockholders.

22 21

IfEven if we raise additional capital in the near future, if our operating 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~~thereafter to fund our operations would likely be seriously impaired. If in the future we are not able to demonstrate favorable financial results or projections from our operating businesses, we ~~may~~will likely not be able to raise the capital we need to continue ~~operations.~~our then current business operations and business activities, and we will likely not have sufficient liquidity or cash resources to continue operating.

~~Similarly, because~~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 we 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.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Quantitative and Qualitative Disclosures about Market Risk

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.

Critical Accounting Policies and Estimates

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

Property and ~~equipment~~Equipment and ~~rental vehicles~~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:

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

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,~~$740,000, 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.~~$450,000.
22

Income Taxes

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. The Company has not changed it methodology for estimating the valuation allowance. A change in valuation allowance affect earnings in the period the adjustments are made and could be significant due to the large valuation allowance currently established.

23
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.

Revenue Recognition

The Company recognizes revenue primarily from renting its fleet of cars to drivers for TNC ~~companies.~~companies, such as Uber and Lyft, based on their rental agreements, which are generally administered on a weekly basis. 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.

Stock-Based Compensation

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.

Contingencies

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.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not required under Regulation S-K for “smaller reporting companies.”

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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 ~~CEO~~Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), to assess the effectiveness of our disclosure controls and procedures as of ~~June~~September 30, 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.

23
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.

24
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.

Changes in Internal Controls over Financial Reporting

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.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings.
For a description of the pending legal proceedings that could be material to the Company, please see Note 11- Contingencies.
25

Item 1A. Risk Factors.

Not required under Regulation S-K for “smaller reporting companies.”

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits.

Exhibit Description
31.1 C~~Certification~~ertification 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

26 24

SIGNATURES

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.

EVMO, INC.
(Registrant)

By: /s/ Stephen Sanchez
Stephen Sanchez, Chief Executive Officer

/s/ Ryan Saathoff
Ryan Saathoff, Chief Financial Officer
Date: ~~August 16,~~November 15, 2021

27 25

	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

	September 30,			December 31,
	2021			2020
	(unaudited)
ASSETS
Current Assets:
Cash	$	3,540,212		$	72,890
Accounts receivable		635,736			119,239
Prepaid expenses		192,492			23,861
Deferred offering costs		479,330			-
Total current assets		4,847,770			215,990

Property and equipment, net		46,471			1,908
Rental vehicles, net		10,366,373			6,196,433
Right of use asset		180,860			-
Other assets		100,000			200,000
TOTAL ASSETS	$	15,541,474		$	6,614,331

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable (including $670,047 and $590,176 to related party)	$	2,849,876		$	1,157,299
Accrued expenses		1,097,658			961,704
Notes payables, current (net of discount of $0 and $1,973)		156,225			666,132
Customer deposit - related party		-			150,000
Advance from related parties		-			100,000
Finance lease obligations, current		1,920,254			1,426,425
Operating lease obligations, current		138,630			-
Total current liabilities		6,162,643			4,461,560

Note payable, net of current portion (net of discount of $1,316,029 and $0)		6,027,746			149,414
Finance lease obligations, net of current portion		2,495,616			926,453
Operating lease obligations, net of current portion		50,996			-
TOTAL LIABILITIES		14,737,001			5,537,427

Commitments and contingencies		-			-

Series B Preferred stock, $0.000001 par value; 230,550 shares authorized; 230,375 and nil shares issued and outstanding		2,303,750			-

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; 35,758,149 and 31,981,374 shares issued and outstanding		36			32
Additional paid-in capital		38,206,344			29,750,864
Accumulated deficit		(39,705,657	)		(28,673,992	)
Total stockholders’ equity		(1,499,277	)		1,076,904
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	15,541,474		$	6,614,331


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020			2021			2020			2021			2020

Revenue	$	2,652,083		$	1,580,555		$	4,946,615		$	3,328,197		$	2,724,180		$	2,070,821		$	7,670,795		$	5,399,018

Cost of revenue		1,915,294			1,295,059			3,696,197			2,696,350			2,285,878			1,194,957			5,982,075			3,891,307

Gross profit		736,789			285,496			1,250,418			631,847			438,302			875,864			1,688,720			1,507,711

Operating expenses:
Selling and marketing expenses		64,816			79,133			230,564			210,642			26,565			113,904			257,129			324,546
Product development		50,766			-			60,266			-			46,500			-			106,766			-
General and administrative expenses		1,493,494			861,410			2,932,595			2,757,616			3,218,912			1,088,152			6,151,507			3,845,768
Total operating expenses		1,609,076			940,543			3,223,425			2,968,258			3,291,977			1,202,056			6,515,402			4,170,314

Loss from operations		(872,287	)		(655,047	)		(1,973,007	)		(2,336,411	)		(2,853,675	)		(326,192	)		(4,826,682	)		(2,662,603	)

Other income (expense):
Interest and financing costs		(964,387	)		(67,795	)		(4,289,330	)		(147,651	)		(2,007,194	)		(65,292	)		(6,296,524	)		(212,943	)
Other income														83,541			-			83,541			-
Gain on forgiveness of debt		-			-			8,000			-			-			-			8,000			-
Total other income (expense)		(964,387	)		(67,795	)		(4,281,330	)		(147,651	)		(1,923,653	)		(65,292	)		(6,204,983	)		(212,943	)

Net loss	$	(1,836,674	)	$	(722,842	)	$	(6,254,337	)	$	(2,484,062	)	$	(4,777,328	)	$	(391,484	)	$	(11,031,665)		$	(2,875,546	)

Weighted average shares outstanding :
Basic		35,333,924			31,064,184			34,364,066			30,245,994			35,715,024			31,981,374			34,819,334			30,828,676
Diluted		35,333,924			31,064,184			34,364,066			30,245,994			35,715,024			31,981,374			34,819,334			30,828,676

Loss per share
Basic	$	(0.05	)	$	(0.02	)	$	(0.18	)	$	(0.08	)	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)
Diluted	$	(0.05	)	$	(0.02	)	$	(0.18	)	$	(0.08	)	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)


					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

Balance, December 31, 2019		29,427,803	$	29	$	28,735,894		$	(25,171,915	)	$	3,564,008

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

Balance, March 31, 2020		29,427,803		29		29,193,136			(26,933,135	)		2,260,030

Issuance of common stock for cash		2,553,571		3		274,997						275,000
Net loss		-		-		-			(722,842	)		(722,842	)

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

	Computer equipment	5 years ~~years~~
	Officer furniture	7 years ~~years~~
	Leasehold improvements	15 years or term of lease whichever is less
	Vehicles	5 years ~~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, 2020	$	815,546
Issued for cash		7,500,000
Payment of cost associated with issuance of note payable		(600,000	)
Debt discount related to notes payable		(778,697	)
Forgiveness of note payable		(8,000	)
Repayments		(809,519	)
Amortization of debt discounts		64,641
Notes payable, September 30, 2021	$	6,183,971


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, 2020	$	2,352,878		$	2,352,878
New lease obligations		3,049,261			5,692,784
Disposal of leased vehicles		(243,009	)
Payments on lease obligations		(2,071,952	)		(3,629,792	)
Lease obligations, June 30, 2021	$	3,087,178
Lease obligations, September 30, 2021				$	4,415,870

Twelve Months Ending June 30,
Twelve Months Ending September 30,
2022	$	1,663,320		$	2,033,761
2023		1,099,666			1,500,065
2024		540,146			1,058,833
Total payments		3,303,132			4,592,659
Amount representing interest		(215,954	)		(176,789	)
Lease obligation, net	$	3,087,178		$	4,415,870

		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 September 30,	Leases
2022	$	157,800
2023		52,600
Total payments		210,400
Less: imputed interest		(20,774	)
Total obligation		189,626
Less: current portion		(138,630	)
Non-current capital leases obligations	$	50,996

	●	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~~321,875 stock options for cash consideration of $~~87,100~~92,878;
	●	issued ~~960,550~~1,273,050 shares of Common Stock for the cashless exercise of ~~1,000,000~~1,348,525 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~~256,250 shares of Common Stock in connection with legal settlements. The shares were valued at $~~1,103,750~~1,145,768 which was based on the market price of the Common Stock on the grant date; and
	●	issued 825,000shares 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~~owned by the Company’s former chief executive officer. The board of directors deemed it was in the best interest of the Company to issue the shares to Acuitas. The value of the shares was $3,240,600which ~~was~~is based on the market price of the Company’s Common Stock at the ~~date of the settlement agreement.~~grant date. The $3,240,600was expensed as financing costs as the dispute underlying the settlement agreement related to ~~the~~an 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		290,000			0.84
Forfeited		(401,475	)		0.22
Exercised		(1,670,400	)		0.230
Outstanding, September 30, 2021		758,125		$	0.42		3.93	$	514,928
Exercisable, September 30, 2021		413,875		$	0.56		3.99	$	262,473

Outstanding			Exercisable
Number of	Exercise		Number of	Exercise
Options	Price		Options	Price
20,000	$	0.210	20,000	$	0.210
528,125		0.215	252,625		0.215
15,000		0.220	2,500		0.220
155,000		0.530	98,750		0.530
20,000		2.120	20,000		2.120
20,000		3.800	20,000		3.800
758,125			413,875

Outstanding and Exercisable	Outstanding and Exercisable			Outstanding and Exercisable
Number of	Number of	Exercise			Exercise
Warrants	Warrants	Price			Price
375,000		$3.00
	1,500,000		4.00
	131,250		5.00
	2,006,250
450,000					$	2.10
656,250						3.00
1,500,000						4.00
131,250						5.00
2,737,500

Risk-free interest rate	0.76 – 0.87%	%
Expected life of the options	5 years
Expected volatility	180%-190	%
Expected dividend yield	0	%

●	The Company issued an aggregate of 187,500 warrants pursuant to the terms of the convertible note agreement discussed in Note 6.

●	The parties to the In re YayYo Securities Litigation described in Note 11 above have, after extensive negotiations, recently filed a “Notice of Pending Settlement” with the court, which is subject to approval by the district court and which, if approved, will resolve the pending class actions upon payment by the Company of approximately $1,000,000 to the class. The Company’s Executive Chairman has provided his personal guarantee for the whole amount due to the plaintiffs, and the Board of Directors has agreed to issue 2,000,000 shares of Common Stock as consideration for the guarantee. The motion for approval of the settlement is scheduled to be heard by the court on or around November 19, 2021.

Exhibit		Description
31.1		C~~Certification~~ertification 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

	EVMO, INC.
	(Registrant)

	By:	/s/ Stephen Sanchez
		Stephen Sanchez, Chief Executive Officer

		/s/ Ryan Saathoff
		Ryan Saathoff, Chief Financial Officer