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 September 30, ~~2021~~2022

☐ 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~~81-3028414
(State or other jurisdiction of of incorporation or organization)		(I.R.S. Employer Identification No.)

~~433~~2301 N. ~~Camden Drive~~, ~~Suite 600~~Sepulveda Blvd. ~~Beverly Hills~~Manhattan Beach, California		~~90210~~90266
(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,~~common stock, as of the latest practicable date.

~~35,758,149~~69,702,649 shares of ~~Common Stock,~~common stock, $0.000001 par value, as of November ~~12, 2021~~14, 2022.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION:

Item 1.	Financial Statements	1

	Condensed Consolidated Balance Sheets as of September 30, ~~2021~~2022 and December 31, ~~2020~~2021 (unaudited)	1

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

	Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, 2022 and 2021 (unaudited)	3

	Condensed Consolidated Statements of Stockholders’ Equity for the ~~Three and~~ Nine Months Ended September 30, 2022 and 2021 ~~and 2020~~ (unaudited)	4
	3
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021 (unaudited)	5

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

	Notes to Condensed Consolidated Financial Statements (unaudited)	56

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1719

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2326

Item 4.	Controls and Procedures	2326

PART II OTHER INFORMATION:

Item 1.	Legal Proceedings	2427

Item 1A.	Risk Factors	2427

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2427

Item 3.	Defaults Upon Senior Securities	2427

Item 4.	Mine Safety Disclosures	2427

Item 5.	Other Information	2427

Item 6.	Exhibits	2427

	Signatures	2528

~~PART I – FINANCIAL INFORMATION~~

Item 1. Financial Statements.

~~Item 1.~~EVmo, Inc.

Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Contents

	Page
Financial Statements:

Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	2

Consolidated Statements of Operations for the Nine Months ended September 30, 2022 and 2021	3

Consolidated Statement of Stockholders’ Equity for the Nine Months ended September 30, 2022 and 2021	4

Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2022 and 2021	5

Notes to Consolidated Financial Statements	6

EVmo, Inc.

Condensed Consolidated Balance Sheets

As of September 30, ~~2021~~2022 and December 31, ~~2020~~2021

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

	September 30,			December 31,
	2022			2021
	(unaudited)
ASSETS
Current Assets:
Cash	$	4,332,459		$	1,853,928
Accounts receivable		785,487			751,450
Prepaid expenses		-			609,701
Deferred offering costs		-			862,855
Total current assets		5,117,946			4,077,934

Property and equipment, net		42,991			45,601
Rental vehicles, net		22,250,585			8,887,319
Right of use asset		30,340			149,759
Other assets		1,477,471			100,000
TOTAL ASSETS	$	28,919,333		$	13,260,613

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable (including $504,403 and $670,047 to related party)	$	1,391,469		$	3,784,315
Credit Cards		130,702			-
Accrued expenses		352,697			1,156,265
Notes payables, current (net of discount of $0 and $0)		437,500			156,225
Customer deposit - related party		-			-
Finance lease obligations, current		4,839,040			1,810,374
Operating lease obligations, current		38,532			143,894
Total current liabilities		7,189,940			7,051,073

Advance from related parties, non-current		600,000
Note payable, net of current portion (net of discount of $1,024,595 and $1,246,566)		5,975,405			6,097,209
Finance lease obligations, net of current portion		9,819,373			2,178,836
Operating lease obligations, net of current portion		-			12,988
TOTAL LIABILITIES		23,584,718			15,340,106

Commitments and contingencies		-			-

Series B Preferred stock, $0.000001 par value; 230,550 shares authorized; nil and 230,375 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;69,827,149 and 35,758,149 shares issued and outstanding		70			36
Additional paid-in capital		53,212,179			39,275,591
Accumulated deficit		(47,877,634	)		(43,658,870	)
Total stockholders’ equity		5,334,615			(4,383,243	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	28,919,333		$	13,260,613

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

EVmo, Inc.

Condensed Consolidated Statements of Operations

For the ~~Three and~~ Nine Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (unaudited)

													2022			2021			2022			2021
	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020			2022			2021			2022			2021
													(unaudited)						(unaudited)
Revenue	$	2,724,180		$	2,070,821		$	7,670,795		$	5,399,018		$	3,551,699		$	2,724,180		$	8,888,034		$	7,670,795

Cost of revenue		2,285,878			1,194,957			5,982,075			3,891,307

Cost of revenue*														2,579,086			2,285,878			6,636,641			5,982,075
*Includes vehicle depreciation
Gross profit		438,302			875,864			1,688,720			1,507,711			972,613			438,302			2,251,393			1,688,720

Operating expenses:
Selling and marketing expenses		26,565			113,904			257,129			324,546			99,843			26,565			244,226			257,129
Product development		46,500			-			106,766			-			85,667			46,500			160,167			106,766
General and administrative expenses		3,218,912			1,088,152			6,151,507			3,845,768			1,580,058			3,218,912			4,616,652			6,151,507
Total operating expenses		3,291,977			1,202,056			6,515,402			4,170,314			1,765,568			3,291,977			5,021,045			6,515,402

Loss from operations		(2,853,675	)		(326,192	)		(4,826,682	)		(2,662,603	)		(792,955	)		(2,853,675	)		(2,769,652	)		(4,826,682	)

Other income (expense):
Interest and financing costs		(2,007,194	)		(65,292	)		(6,296,524	)		(212,943	)		(712,952	)		(2,007,194	)		(1,449,120	)		(6,296,524	)
Other income		83,541			-			83,541			-			-			83,541						83,541
Gain on forgiveness of debt		-			-			8,000			-			-			-			-			8,000
Total other income (expense)		(1,923,653	)		(65,292	)		(6,204,983	)		(212,943	)		(712,952	)		(1,923,653	)		(1,449,120	)		(6,204,983	)

Net loss	$	(4,777,328	)	$	(391,484	)	$	(11,031,665)		$	(2,875,546	)	$	(1,505,907	)	$	(4,777,328	)	$	(4,218,772	)	$	(11,031,665	)

Weighted average shares outstanding :
Weighted average shares outstanding:
Basic		35,715,024			31,981,374			34,819,334			30,828,676			69,887,149			35,715,024			69,887,149			34,819,334
Diluted		35,715,024			31,981,374			34,819,334			30,828,676			69,887,149			35,715,024			69,887,149			34,819,334

Loss per share
Basic	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)	$	(0.02	)	$	(0.13	)	$	(0.06	)	$	(0.32	)
Diluted	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)	$	(0.02	)	$	(0.13	)	$	(0.06	)	$	(0.32	)

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

EVmo, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

For the ~~Three and~~ Nine Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (unaudited)

	Shares		Amount		Capital			Deficit			Equity(Deficit)
	Common Stock				Additional Paid-in			Accumulated			Total Stockholders’
	Shares		Amount		Capital			Deficit			Equity(Deficit)
Balance, Dec 31, 2021		35,769,524	$	36	$	39,275,591		$	(43,658,870	)	$	(4,383,243	)
												-
Issuance of common stock for cash		27,400,000		28		13,700,000						13,700,028
Issuance of common stock for exercise of stock options		91,500		1		69,996			-			69,997
Issuance of common stock for conversion of convertible debt		5,699,408		1		64,063						64,064
Issuance of common stock for financing cost		535,967		1		-			-			1
Stock option expense						26,116						26,116
Net loss		-		-					(1,510,052	)		(1,510,052	)

Balance, March 31, 2022		69,496,399		67		53,135,766			(45,168,922	)		7,966,911

Issuance of common stock for cash		-		-		-			-			-
Issuance of common stock for exercise of stock options		196,875				42,328			-			42,328
Stock option expense						22,868						22,868
Net Loss		-		-					(1,202,805	)		(1,202,805	)

Balance, June 30, 2022		69,693,274		67		53,200,962			(46,371,727	)		6,829,302

Issuance of common stock for cash		9,375		3		2,013			-			2,016
Stock option expense		-		-		9,204			-			9,204
Net Loss		-		-					(1,505,907	)		(1,505,907	)

Balance, September 30, 2022		69,702,649		70		53,212,179			(47,877,634	)		5,334,615

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
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
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	)

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.

EVmo, Inc.

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (unaudited)

							2022			2021
	2021			2020			2022			2021

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(11,031,665	)	$	(2,875,546	)	$	(4,218,772	)	$	(11,031,665	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,525,332			1,047,075			1,927,404			1,525,332
Stock option expense		356,227			697,486			58,188			356,227
Amortization of debt discounts		1,643,408			27,719			219,982			1,643,408
Common stock issued for financing costs		1,440			-			34			1,440
Preferred stock issued for financing costs		53,750			-			-			53,750
Common stock issued for settlement agreement		3,240,600			-			-			3,240,600
Common stock issued for litigation settlement		42,018			-			-			42,018
Gain on forgiveness of debt		(8,000	)		-
Gain on Forgiveness of Debt								-			(8,000	)
Fair value of warrants issued for financing costs		961,107			-			-			961,107
Operating lease expense		77,361			-			119,419			77,361
Changes in operating assets and liabilities:
Accounts receivable		(516,497	)		5,993			(34,037	)		(516,497	)
Vehicle Deposits								(794,952	)		-
Prepaid expenses and other assets		(68,631	)		350,927			253,998			(68,631	)
Accounts payable		1,656,997			908,051			(2,392,846	)		1,656,997
Accrued expenses		830,954			26,838			(763,608	)		830,954
Credit Cards								130,702			-
Customer deposit - related party		(150,000	)		-			-			(150,000	)
Operating lease liability		(68,595	)		-			(118,350	)		(68,595	)
Net cash used in operating activities		(1,454,194	)		188,543			(5,612,838	)		(1,454,194	)

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			13,700,000			50,000
Proceeds from exercise of stock options		92,878			-			44,344			92,878
Proceeds from advance from related parties		503,766			200,000			600,000			503,766
Repayment of advance from related parties		(603,766	)		(150,000	)		-			(603,766	)
Proceeds from convertible note payable		2,500,000			-			-			2,500,000
Proceeds from notes payable, net		6,900,000			342,675			-			6,900,000
Repayment of notes payable		(809,519	)		(10,000	)		(62,500	)		(809,519	)
Repayment of finance lease obligations		(3,629,792	)		(2,017,915	)
Redemption of Preferred Stock								(2,303,750	)		-
Repayment and down payment of lease vehicle purchase								(4,502,934	)		(3,629,792	)
Vehicle Loan Fees								(246,646	)		-
Payment of deferred offering costs		(35,000	)		-			862,855			(35,000	)
Net cash provided by (used in) financing activities		4,968,567			(1,360,240	)		8,091,369			4,968,567

NET INCREASE (DECREASE) IN CASH		3,467,322			(1,171,697	)		2,478,531			3,467,322

CASH, BEGINNING OF PERIOD		72,890			1,256,429			1,853,928			72,890

CASH, END OF PERIOD	$	3,540,212		$	84,732		$	4,332,459		$	3,540,212

CASH PAID FOR:
Interest	$	157,809		$	185,224		$	1,449,120		$	157,809
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	$	5,692,784		$	3,400,922		$	14,658,413		$	5,692,784

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

EVmo, Inc.

Notes to ~~Condensed~~ Consolidated Financial Statements

For the Nine ~~months~~Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (unaudited)

Note 1 - Organization and Basis of Presentation

Organization and Line of Business

EVmo, Inc. ~~(the~~(“EVmo” or the “Company”) was incorporated on June 21, 2016 under the laws of the state of Delaware originally as a limited liability company and subsequently converted to a Delaware C corporation. The Company was originally incorporated under the name of YayYo, Inc. and changed its name to Rideshare Rental, Inc. on September 11, 2020. On March 1, 2021, the Company changed its name from Rideshare Rental, Inc. to EVmo.

EVmo ~~Inc. The accompanying financial statements~~is a holding company operating principally through two wholly-owned subsidiaries: (i) RideShare Car Rentals LLC, a Delaware limited liability company (“RideShare”), and (ii) Distinct Cars, LLC, a Delaware limited liability company (“Distinct Cars”). RideShare offers an online bookings platform (the “Rideshare Platform”) while Distinct Cars maintains a fleet of passenger vehicles and transit vans for use in the last-mile logistical space for rent to our customers who are ~~retroactively restated~~drivers in the ridesharing and delivery gig industries, while also providing them with insurance coverage and issuing them insurance cards in their own names. This enables such drivers to ~~present~~meet the ~~Company~~vehicle suitability and other requirements of rideshare and delivery gig companies, also known as transportation network companies (“TNCs”),such as Uber, Lyft, DoorDash and Grubhub. Through RideShare and Distinct Cars, we seek to become a ~~C corporation from June 21, 2016. The Company primarily rents~~leading provider of rental vehicles to drivers ~~for ridesharing Transportation Network Companies (“TNCs”) such as Uber and Lyft, as well as drivers~~ in the ridesharing and delivery ~~gig-economy.~~gig spaces, and an industry leader in supplying transit vans for last-mile logistics. “Gig” generally refers to a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

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”). The Accounting Standards Codification (“ASC”), maintained by the Financial Accounting Standards Board (the “FASB”), is the current single official source of GAAP.

~~Risk and Uncertainties~~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, ~~the World Health Organization~~it 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 ~~its~~our cash flows, but itwe then saw a positive upward movement in revenue during the second half of 2020, which continued ~~into~~through fiscal 2021. This was consistent with the ~~first half of 2021. In early 2021, several vaccinations for COVID-19 received emergency-use authorization from the Food and Drug Administration, and many~~experience of the ~~lockdown restrictions imposed by state~~TNCs whose drivers we service. According to Bloomberg Second Measure, Uber and ~~local governments, including those~~Lyft sales were up 104% and 84% year-over-year, respectively, in February 2022 from one year earlier, even in spite of the ~~markets~~Delta and Omicron variants that resulted in ~~which~~spikes of infections through periods of 2021.

Given the ~~Company operates, appear to be abating. The pandemic has not yet ended, however, and there have been multiple waves where~~current prevalence of FDA-approved eligible vaccines across nearly all age groups, the marked overall decrease in the number of COVID-19 infections, hospitalizations and deaths ~~have sharply increased. The Company therefore cannot predict~~in the ~~ultimate impact~~first nine months of 2022, and the lifting of most pandemic restrictions in our active markets, we are optimistic that COVID-19 ~~may~~will not have a material impact on ~~its business this year,~~our operations in the current fiscal year. However, certain factors- including, for example, a new, more aggressive and ~~possibly beyond.~~deadly variant that is resistant to the vaccines- could reverse the positive trends of recent months and alter our prediction.

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~~results and regulations. The results of operations for the ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 are not necessarily indicative of the results expected for the fiscal year ending December 31, ~~2021.~~2022.

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.~~and two other subsidiaries, EV Vehicles, LLC, a Delaware limited liability company, and Premier Mobility Insurance, Inc,, an Oklahoma limited liability company (“Premier Mobility”), that are not yet operational. All significant intercompany transactions and balances have been eliminated.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Use of Estimates

The preparation of financial statements in conformity with 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.

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

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

Schedule of Estimated Lives of Equipment

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

Long-Lived Assets

The Company applies the provisions of 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 ~~September~~June 30, ~~2021,~~2022 the Company determined that no 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. The Company recognizes revenue in accordance with ~~FASB~~ ASC Topic 606, Revenue From Contracts with Customers.

Income Taxes

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes(“ASC 740”). 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.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

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.~~recorded. The adoption had no effect on the Company’s consolidated financial statements.

Stock-Based Compensation

The Company records stock-based compensation in accordance with ~~FASB~~ ASC Topic 718, Compensation – Stock Compensation(“ASC 718”). ~~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. There were 8,847,842 warrants and 455,750 options outstanding as of September 30, 2022 and 2,737,500 warrants and 758,125 options outstanding as of September 30, ~~2021 and~~ ~~1,631,250~~ ~~warrants and~~ ~~3,221,000~~ ~~options outstanding as of September 30, 2020.~~

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

~~For the Nine months Ended September 30, 2021 and 2020 (unaudited)~~2021.

Basic and Diluted Earnings Per Share

Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic 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 “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 ~~3,495,625~~9,303,592 and ~~4,852,250~~3,495,625 potentially dilutive options and warrants outstanding at September 30, 2022 and 2021, ~~and 2020, respectively, and~~ ~~750,000~~ ~~shares potentially issuable upon the conversion of outstanding shares of Series B Preferred Stock at September 30, 2021.~~respectively.

Advertising Costs

The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 were $~~257,129~~244,226 and $~~324,546~~257,129, respectively.

Fair Value Measurements

The Company applies the provisions of ASC Topic 820-10, “Fair Value Measurements and ~~Disclosures.”~~Disclosures (“ASC 820-10”). 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.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

At September 30, ~~2021~~2022 and ~~December 31, 2020,~~2021, 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 ~~ASU~~Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxeswhich amends ASC ~~740~~ ~~Income Taxes~~ ~~(ASC 740).~~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~~Through the first half of fiscal 2022, the Company ~~is currently evaluating the effect~~has made no material changes to its financial reporting as a result of this ~~ASU on the Company’s consolidated financial statements and related disclosures.~~

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

~~For the Nine months Ended September 30, 2021 and 2020 (unaudited)~~ASU.

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.~~Equity (“ASU 2020-06”). 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 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 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.

Management does not believe that any recently issued, but not yet effective, accounting 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 September 30, ~~2021~~2022 and December 31, ~~2020, property and~~2021 equipment consisted of the following:

Schedule of Property and Equipment

	September 30,			December 31,			September 30,			December 31,
	2021			2020			2022			2021

Computer equipment	$	6,046		$	6,046		$	6,046		$	6,046
Office furniture		17,401			-			17,401			17,401
Leasehold improvement		29,650			-			29,650			29,650
		53,097			6,046
Property and equipment								53,097			53,097
Less accumulated depreciation		(6,626	)		(4,138	)		(10,106	)		(7,496	)
Equipment, net	$	46,471		$	1,908		$	42,991		$	45,601

Depreciation expense for equipment for the nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 was $~~2,488~~2,610 and $~~1,115~~2,488, respectively.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Note 4 – Rental Vehicles

At September 30, ~~2021~~2022 and December 31, ~~2020,~~2021 all of the Company’s rental vehicles consisted of the following:

Schedule of Rental Vehicles

September 30, December 31,
2021 2020

Rental vehicles $ 14,760,669 $ 9,067,885
14,760,669 9,067,885
Less accumulated depreciation (4,394,296 ) (2,871,452 )
Rental vehicles, net $ 10,366,373 $ 6,196,433

	September 30,			December 31,
	2022			2021

Rental vehicles	$	28,229,346		$	13,514,619
Rental vehicles, gross		28,229,346			13,514,619
Less accumulated depreciation		(5,978,761	)		(4,627,300	)
Rental vehicles, net	$	22,250,585		$	8,887,319

The Company’s ~~leased assets, consisting of~~rental vehicles are depreciated over their estimated useful life of five years. Depreciation expense for leased assets for the nine months ended September 30, ~~2021~~2022 and ~~2020~~2021 was $~~1,522,844~~1,881,134 and $~~1,045,960~~1,522,844, respectively. ~~The lease~~A majority of the rental vehicles are leased with terms are generally for 3036 to 3660 months and the Company has the right to purchase the ~~leased assets~~vehicles at the end of the lease ~~terms for generally a nominal amount.~~

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

~~For the Nine months Ended September 30, 2021 and 2020 (unaudited)~~terms.

Note 5 – Notes Payable

Notes payable at September 30, ~~2021~~2022 and December 31, ~~2020~~2021 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

	September 30,			December 31,
	2022			2021

Advance from related parties, non-current (B)		600,000			-
Notes payable to a finance company, interest at the London Interbank Offered Rate (“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)		7,437,500			7,500,000
Total notes payable		8,037,500			7,500,000
Unamortized debt discount		(1,024,595	)		(1,246,566	)
Notes payable, net discount		7,012,905			6,253,434
Less current portion		(437,500	)		(156,225	)
Long-term portion	$	6,575,405		$	6,097,209

(A)	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”),~~LIBOR, plus a margin of ~~10.0~~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~~Common Stock purchase warrant, dated as of the Closing Date (the “Warrant”), which grants the Lender the right to purchase up to1.5 million shares of ~~the common stock of the Company, par value $0.000001~~ ~~(the “Common Stock”),~~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 addition, in October 2021, the Company was required to issue to Lender an additional warrant for 900,000 shares of common stock (the “Additional Warrant”) as a penalty since the Company was unable to raise equity capital within 90 days of the date of this agreement. Upon completion of the equity capital raise completed on January 6, 2022, anti-dilution adjustments were made to the issued warrants. The Warrant for 450,000 common shares at an exercise price of $2.10 was adjusted to one for 711,656 shares at an exercise price of $1.33 and the Additional Warrant for 900,000 common shares at an exercise price was adjusted to one for 1,174,311 shares at an exercise price of $0.71.

(B)	On September 30, 2022 (the “Issuance Date”), Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $600,000, to be allocated as collateral for the Company’s newly-formed, wholly-owned subsidiary, Premier Mobility, a captive insurer that will provide insurance directly to the Company. As consideration for Mr. Peizer’s action, on the Issuance Date the Company issued to Mr. Peizer a subordinated promissory note (the “Peizer Note”) due September 30, 2023 (the “Maturity Date”) in the Principal Amount. The Peizer Note does not bear interest. On the Maturity Date, the Company shall pay the Principal Amount to Mr. Peizer and shall also issue to him a common stock purchase warrant, which will enable Mr. Peizer to purchase up to 3,640,000 shares of Common Stock at an exercise price of $0.33 (the “Peizer Warrant”). The Peizer Warrant shall be exercisable at any time between the Maturity Date through September 30, 2028.

910

EVmo, Inc.

Notes to ~~Condensed~~ Consolidated Financial Statements

For the Nine ~~months~~Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (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~~12.5%% OID convertible promissory notes ~~(See Note 6)~~ due January 12, 2022 issued on April 12, 2021 (the “Prior Notes”).

~~In connection with~~ This Exchange Agreement resulted in the issuance of ~~this note payable,~~preferred stock that was later either converted to Common Stock or redeemed after completion of the ~~Company also issued~~equity capital raise in January 2022. On January 22, 2022, ~~450,000~~110,325 ~~warrants to purchase~~ shares of ~~its~~the Company’s Series B convertible preferred stock, par value $0.000001 per share (the “Series B Preferred Stock”) was converted to 3,152,143 shares of Common Stock ~~with~~at $0.35 per share. On March 22, 2022, 110,525 shares of Series B Preferred Stock were converted to 3,157,857 shares of Common Stock at $0.35 per share. The remaining outstanding Series B Preferred Stock, or 9,525 shares, was redeemed and a final warrant was issued to the Holder for 128,125 common shares at an exercise price of $~~2.10~~0.50 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.~~share.

A ~~roll forward~~rollforward of ~~notes~~the EIP note payable from December 31, ~~2020~~2021 to September 30, ~~2021~~2022 is below:

Schedule of Outstanding Notes Payable


Notes payable, December 31, 2020	$	815,546
Notes payable, December 31, 2021				$	7,500,000
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	)
Lease obligation converted to note payable					-
Forgiveness of note payable		(8,000	)		-
Repayments		(809,519	)		62,500
Amortization of debt discounts		64,641			-
Notes payable, September 30, 2021	$	6,183,971
Notes payable, September 30, 2022					7,437,500

Future payments under EIP note payable obligations are as follows:

Schedule of Future Payments Under Note Payable Obligations

Years ending December 31,
2022	$	93,750
2023		374,940
2024		374,940
2025		374,940
2026		6,218,930
Thereafter
Notes payable	$	7,437,500

Note 6 – Convertible Notes

~~On January 8, 2021, the Company, issued a stand-alone $500,000~~ convertible promissory note to Mr. John Gray, principal of one of the Company’s largest stockholders, the Gray Mars Venus Trust, Arizona 2015, an Arizona asset management limited partnership. The convertible note accrues interest at a fixed rate of 6~~% and will mature on~~ ~~January 6, 2022. Any unpaid principal balance on the convertible note may be converted at any time, at the option of Mr. Gray, into shares of the Company’s Common Stock at a price of $0.50~~ ~~per share. The Company recorded a beneficial conversion feature associated with this convertible note of $30,000~~ ~~which was recorded as a debt discount. On February 12, 2021, Mr. Gray converted the full amount of the convertible promissory note into~~ ~~1,000,000~~ ~~shares of 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 has an original principal amount of $2,250,000, with an original issue discount of $250,000. It bears interest at a fixed rate of 1010%%, 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 ~~matures~~matured on January 12, 2022. The warrant grants the right to purchase 187,500 shares of common stock at an exercise price of $3.00, subject to adjustment as set forth therein, and is exercisable at any time within five years of the date of issuance. The agreement provides that additional warrants, each for 93,750 shares of common stock with an exercise price of $3.00 per share, will be issued by the Company to the investor on the 12^th day of each month that the note 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, or their equivalent, should that conversion or exercise price be lower than that of the note or the warrant. To account for the note and warrant, the Company first determined the value of the note and the fair value of the detachable warrants issued in connection with this convertible note. The estimated value of the warrants of $623,373 was determined using the Black-Scholes option pricing model and the following assumptions: term of five years, a risk free interest rate of ~~.089~~.089%%, a dividend yield of 00%% and volatility of ~~190~~190%%. The face amount of the convertible note of ~~$2,250,000~~$2,250,000 was proportionately allocated to the convertible note and the warrant in the amount of $1,761,866 and $488,134, respectively. Since the Company’s stock price exceeded the conversion price on the transaction date, there is an embedded beneficial conversion feature present in the convertible note of $810,633. The combined discount of $1,298,767 plus the original issue discount are recorded as a debt discount to the convertible note and are being amortized over the year life of the note. In July 2021, the Company and noteholder agreed to convert the convertible note into ~~230,250~~230,375 shares of the Company’s Series B Preferred Stock.

As described in Note 5- “Notes Payable,” in connection with the Company’s entry into the Term Loan Agreement, the Company also entered into the Exchange Agreement. This Exchange Agreement resulted in the issuance of preferred stock that was later either converted to Common Stock or redeemed after completion of the equity capital raise in January 2022. On January 22, 2022, 110,325 shares of Series B Preferred Stock was converted to 3,152,143 of common stock at $0.35 per share. On March 22, 2022, 110,525 shares of Series B Preferred Stock was converted to 3,157,857 of common stock at $0.35 per share. The remaining outstanding Series B Preferred Stock, 9,525 shares, was redeemed and a final warrant was issued to the Holder for 128,125 common shares at an exercise price of $0.50 per share.

1011

EVmo, Inc.

Notes to ~~Condensed~~ Consolidated Financial Statements

For the Nine ~~months~~Months Ended September 30, ~~2021~~2022 and ~~2020~~2021 (unaudited)

~~A roll forward of convertible notes from December 31, 2020 to 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~~	)
~~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~~Leased vehicle obligations at September 30, ~~2021~~2022 and December 31, ~~2020~~2021 consisted of the following:

Schedule of ~~Lease~~Leased Vehicle Obligations

	September 30,			December 31,			September 30,			December 31,
	2021			2020			2022			2021

Lease obligations	$	4,415,870		$	2,352,878
Leased vehicle obligations							$	14,658,413		$	3,989,210
Less current portion		(1,920,254	)		(1,426,425	)		(4,839,040	)		(1,810,374	)
Long-term portion	$	2,495,616		$	926,453		$	9,819,373		$	2,178,836

A rollforward of vehicle lease obligations from December 31, ~~2020~~2021 to September 30, ~~2021~~2022 is below:

Schedule of ~~Outstanding~~Vehicle Lease Obligations

Lease obligations, December 31, 2020 $ 2,352,878
New lease obligations 5,692,784
Payments on lease obligations (3,629,792 )
Lease obligations, September 30, 2021 $ 4,415,870

Lease vehicle obligations, December 31, 2021	$	3,989,210
New lease vehicle obligations		7,966,487
Disposal of leased vehicles		(1,526,515	)
Lease obligation converted to note payable		-
Payments on lease obligations		(1,897,711	)
Lease obligations, June 30, 2022	$	8,531,471

New lease vehicle obligations		8,953,442
Disposal of leased vehicles		(-	)
Lease obligation converted to note payable		-
Payments on lease obligations		(2,826,500	)
Lease obligations, September 30, 2022	$	14,658,413

Future payments under lease obligations are as follows:

Schedule of Future Lease Obligations

Twelve Months Ending September 30,
Years Ending December 31,
2022	$	2,033,761		$	2,705,192
2023		1,500,065			6,347,491
2024		1,058,833			6,979,478
2025					2,747,076
2026					548,652
Total payments		4,592,659			19,327,889
Amount representing interest		(176,789	)		(4,669,476	)
Lease obligation, net	$	4,415,870		$	14,658,413

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Note 87 –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 ~~842 Leases.~~

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

~~For the Nine months Ended September 30, 2021 and 2020 (unaudited)~~Topic 842- Leases.

The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, ~~2021:~~2022:

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

	Classification on Balance Sheet	September 30, 2022
Assets
Operating lease assets	Operating lease right of use assets	$	30,340
Total lease assets		$	30,340

Liabilities
Current liabilities
Operating lease liability	Current operating lease liability	$	38,532
Noncurrent liabilities
Operating lease liability	Long-term operating lease liability		-
Total lease liability		$	38,532

Lease obligations at September 30, ~~2021~~2022 consisted of the following:

Schedule of Lease Obligation Maturity

Twelve Months Ending September 30,	Leases
Years Ending December 31,
2022	$	157,800		$	25,382
2023		52,600			13,150
Total payments		210,400			38,532
Less: imputed interest		(20,774	)
Total obligation		189,626
Less: current portion		(138,630	)		(38,532	)
Non-current capital leases obligations	$	50,996		$	-

~~The lease expense for~~

EVmo, Inc.

Notes to Consolidated Financial Statements

For the ~~nine months ended~~Nine Months Ended September 30, 2022 and 2021 ~~was $100,817. The cash paid under operating leases for the nine months ended September 30, 2021 was $92,050. At September 30, 2021, the weighted average remaining lease terms were~~ ~~1.25~~ ~~years and the weighted average discount rate was~~ 15%.(unaudited)

Note 8 – Stockholders’ Equity

The Company has authorized 100,000,000 shares of capital stock, 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)5- “Notes Payable”), 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”),~~Stock, and a warrant (the “Exchange Warrant”). The Exchange Warrant ~~grants~~granted 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~~were issued by the Company to the Holder monthly until ~~such time as~~all of the outstanding Series B Preferred Stock iswas either converted or redeemed in full, upon which a final warrant ~~will be~~was issued.

~~Shares~~Pursuant to its Certificate of Designation and the Exchange Agreement, as applicable, the Series B Preferred Stock ~~is convertible at any time at~~had 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.~~following features:

~~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.

●

The Series B Preferred Stock was 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 was 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 completed an equity financing resulting in total proceeds of at least $10 million. At any time after January 12, 2022, provided that the Company had 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 were entitled to require the Company to redeem the Series B Preferred Stock at the then applicable redemption price, and any such redemption of Series B Preferred Stock would be prior and superior to the redemption of any and all other equity securities of the Company duly tendered for redemption; and●If, at any time while the Series B Preferred Stock is outstanding, the Company completed any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the Holder could, in its 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 would equal seventy percent (70%

~~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.

On January 22, 2022, 110,325 of Series B Preferred Stock was converted to 3,152,143 of Common Stock at $0.35 per share. On March 22, 2022, 110,525 of Series B Preferred Stock was converted to 3,157,857 of Common Stock at $0.35 per share. The remaining outstanding Series B Preferred Stock, 9,525 shares, was redeemed and a final warrant was issued to the Holder for 128,125 common shares at an exercise price of $0.50 per share.

Common Stock

During the nine months ended ~~September~~June 30, ~~2021,~~2022, the Company:

	●	issued ~~100,0000~~27,400,000 shares of Common Stock ~~to a member of the Company’s Board of Directors, in a negotiated transaction for~~through an equity capital raise at $0.50 per ~~share, or aggregate cash consideration of $50,000~~;share;
	●	issued ~~295,000~~3,152,143 shares of Common Stock ~~for the exercise~~at $0.35 per share to redeem 110,325 shares of ~~321,875~~ ~~stock options for cash consideration of $92,878~~;Series B preferred stock;
	●	issued ~~1,273,050~~3,157,857 shares of Common Stock ~~for the cashless exercise~~at $0.35 per share to redeem 110,525 shares of ~~1,348,525~~ ~~stock options;~~
	●	Series B preferred stock; and issued ~~600~~196,875 of shares of Common Stock from exercises of stock options granted 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~~ ~~256,250~~ ~~shares of Common Stock in connection with legal settlements. The shares were valued at $1,145,768~~ ~~which was based on the market price of the Common Stock on the grant date; and~~
	●	~~issued~~ ~~825,000~~ shares to Acuitas Group Holdings, LLC, (“Acuitas”) which is now the Company’s largest shareholder, in connection with a settlement agreement between Acuitas and X, LLC, a company 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 $~~3,240,600~~ ~~which is based on the market price of the Company’s Common Stock at the grant date. The $3,240,600~~ ~~was expensed as financing costs as the dispute underlying the settlement agreement related to an anti-dilution of a prior investment in the Company by Acuitas.~~employees.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Stock Options

The following is a summary of stock option activity:

Summary of Stock Option Activity

						Weighted				Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
				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
Outstanding, December 31, 2021											766,750		$	0.53		3.76	$	98,937
Granted		290,000			0.84						60,000			0.43		4.52		5,400
Forfeited		(401,475	)		0.22						(104,750	)
Exercised		(1,670,400	)		0.230						(206,250	)		0.215
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, September 30, 2022											515,750		$	0.46		4.10	$	97,822
Exercisable, September 30, 2022											494,500		$	0.46		3.86	$	97,822

The exercise price for options outstanding and exercisable at September 30, ~~2021:~~2022:

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

Options		Price		Options		Price
Outstanding				Exercisable
Number of		Exercise		Number of		Exercise
Options		Price		Options		Price
	20,000	$	0.21		20,000	$	0.21
	205,750		0.215		205,750		0.215
	15,000		0.22		15,000		0.22
	155,000		0.53		133,750		0.53
	20,000		0.94		20,000		0.94
	20,000		2.12		20,000		2.12
	20,000		3.80		20,000		3.8
	20,000		0.39		20,000		0.39
	20,000		0.55		20,000		0.55
	20,000		0.36		20,000		0.36
	515,750				494,500

For options granted during the nine months ended September 30, 2022 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.43 and the weighted-average exercise price of outstanding options was $0.46. No options were granted during the nine months ended September 30, 2022 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.

1315

EVmo, Inc.

Notes to ~~Condensed~~ Consolidated Financial Statements

For the Nine ~~months~~Months Ended September 30, 2022 and 2021 (unaudited)

The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expense of $58,188, and ~~2020 (unaudited)~~$356,227 during the nine months ended September 30, 2022 and 2021, respectively. At September 30 2022, the unamortized stock option expense was $18,004.

Warrants

The following is a summary of warrant activity:

Summary of Warrant Activity

					Weighted						Weighted		Weighted
			Weighted		Average						Average		Average		Aggregate
			Average		Remaining		Aggregate		Warrants		Exercise		Remaining		Intrinsic
	Warrants		Exercise		Contractual		Intrinsic		Outstanding		Price		Contractual Life		Value
	Outstanding		Price		Life		Value
Outstanding, December 31, 2020		1,631,250	$	4.08		2.38	$	-
Outstanding, December 31, 2021										4,454,717	$	2.53		3.17	$	-
Granted		1,106,250		2.64						4,393,125		0.34		4.80
Forfeited		-								-
Exercised		-								-
Outstanding, September 30, 2021		2,737,500	$	3.50		2.89	$	-
Exercisable, September 30, 2021		2,737,500	$	3.50		2.89	$	-
Outstanding September 30, 2022										8,847,842	$	1.44		4.21
Exercisable, September 30, 2022										8,847,842	$	1.44		4.21

The exercise price for warrants outstanding at September 30, ~~2021:~~2022:

Schedule of Warrants Outstanding by ~~Exercise~~Excise Price Range

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

Outstanding and Exercisable
Number of Warrants	Exercise Price
1,500,000	$	4.00
65,625		5.00
65,625		5.00
187,500		3.00
93,750		3.00
93,750		3.00
711,656		1.33
93,750		3.00
93,750		3.00
93,750		3.00
1,174,311		0.71
93,750		3.00
93,750		3.00
93,750		3.00
128,125		0.50
625,000		0.40
3,640,000		0.33
8,847,842

~~In connection with a convertible note discussed in Note 6,~~EVmo, Inc.

Notes to Consolidated Financial Statements

For the ~~Company has issued an aggregate of~~ ~~468,750~~ ~~warrants. The fair value of the warrants was determined to be $961,106, using a Black-Scholes model, and has been recorded as financing costs in the accompanying statements of operations for the nine months ended~~Nine Months Ended September 30, ~~2021. The Company used the following assumptions in determining the fair value:~~2022 and 2021 (unaudited)

~~Schedule of Stock Options Value Assumptions~~

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

Note 109 – Related Party Transactions

During the nine months ended September 30, ~~2021~~2022 and ~~2020,~~2021, the Company expensed $~~2,356,924~~1,671,630 and $~~1,715,237~~2,386,623, respectively, ~~in insurance expense~~ related to insuring the Company fleet of vehicles ~~from~~via an insurance brokerage firm, whose owner is also a stockholder of the ~~Company. At September 30, 2021~~Company, and ~~December 31, 2020, $670,047~~ ~~and $265,257, respectively, was owed~~in professional fees related to ~~this insurance brokerage from and is included in accounts payable in the accompanying consolidated balance sheets.~~an administrative bookkeeping group partially owned by an officer.

~~The Company’s Executive Chairman and former CEO have made advances the Company. During the nine months ended~~As described in Note 5, herein, on September 30, ~~2021,~~2022, Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $600,000, to be allocated as collateral for the Company’s ~~Executive Chairman loaned~~Premier Mobility subsidiary. The Company issued a subordinated, non-interest bearing, promissory note due September 30, 2023 for that same amount to Mr. Peizer. Upon maturity, the Company shall repay the principal to Mr. Peizer and shall also issue to him a five-year common stock purchase warrant for 3,640,000 shares Common Stock at an exercise price of $~~503,767~~ ~~and was repaid $503,767~~0.33. ~~The Company’s former CEO loaned the Company $100,000~~ ~~in 2020, and, during the nine months ended September 30, 2021 was repaid $100,000. At September 30, 2021, the Company owed its Executive Chairman and former CEO $~~0 ~~and $~~0~~, respectively.~~

~~EVmo, Inc.~~

~~Notes to Condensed Consolidated Financial Statements~~

~~For the Nine months Ended September 30, 2021 and 2020 (unaudited)~~

Note 1110 – 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~~litigation or asserted potential ~~claims~~litigation 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 filed a demurrer to the first amended complaint, which the Superior Court granted in part and denied in part on September 8, 2021. The ~~Plaintiff~~plaintiff has 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. This lawsuit is currently in the discovery phase.

Bellridge Capital, LP, v. EVmo, Inc., 1:21-cv-07091-PGG (Filed in Southern District of New York)

In the first half of 2021, a warrant holder, Bellridge Capital, LP, sought to exercise a warrant for 1,500,000 shares, with a stated exercise price of $4.00 per share, for a nominal amount, claiming that an anti-dilution adjustment had been triggered in 2020, which had reduced the exercise price to such amount. The Company rejected the exercise, on the basis that the warrant had previously been amended to remove that anti-dilution adjustment. In September 2021, the warrant holder brought suit for damages in the Southern District of New York. It is the Company’s position that the lawsuit is without merit, and the Company is vigorously defending the lawsuit. This lawsuit is currently in the discovery phase.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Nine Months Ended September 30, 2022 and 2021 (unaudited)

Note 11 – Settlements

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 from the consolidated federal securities cases discussed below (In re YayYo Securities Litigation) 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~~was stayed pending the outcome of the federal securities ~~case discussed below (~~~~Hamlin v. YayYo, Inc~~~~.),~~cases, as to which, as noted below, the parties ~~have~~ announced a ~~“settlement~~settlement in ~~principle”, which is subject to court approval in~~principle last year. Please see the ~~district court. The Company anticipates filing motions to dismiss~~disclosure concerning In re YayYo Securities Litigation immediately below for further information regarding the ~~purported class actions in Superior Court on the basis~~final disposition of the ~~anticipated approval of the federal settlement.~~State Cases litigation.

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~~denied liability and ~~asserts~~asserted 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. ~~Please see Note 13- Subsequent Events~~The parties to the federal court litigation announced on October 21, 2021 that they had reached a settlement, which received preliminary approval by the district court on January 13, 2022, allowing the notice of the proposed settlement to be distributed to all class members, who unless they object or drop out, will be bound by the multi-million dollar settlement. The Company’s portion of the settlement was $1 million paid out in equal installments every three months over the course of 2022. These payments have been and will continue to be timely made. Executive Chairman Terren Peizer provided his personal guarantee for ~~a description~~the whole amount due to the plaintiffs.

On July 12, 2022, the district court presiding over In re YayYo Securities Litigation signed an order and final judgment with respect to the settlement described herein. The plaintiffs in the State Cases were bound by this settlement and therefore the State Cases were subject to dismissal by operation of ~~a provisional settlement~~law. On October 19, 2022, the court presiding over the State Cases signed the order of ~~this litigation.~~dismissal.

Konop v. El-Batrawi, et al., 1:20-cv-1379- MN (Filed in Del. District Court)

~~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~~complaint was subsequently 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.~~In re YayYo Securities Litigation. This case iswas a purported shareholder derivative action, in which the Company iswas 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~~Upon the ~~allegations~~settlement and dismissal of In re YayYo Securities Litigation, this case was also subject to dismissal, which the district court granted upon motion of the ~~complaint are spurious and will vigorously defend the case at trial.~~

~~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 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 initial public offering of Common Stock, in November 2019 (the “IPO”). It alleged in the lLitigation that the Company and the other named defendants had, in connection with the IPO and the registration statementplaintiffs 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~~September 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.2022.

~~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 1312 – Subsequent Events

~~The Company has evaluated~~There are no material subsequent events ~~through~~as of 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:~~14, 2022.

●	~~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.~~

1618

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

Cautionary Note Regarding Forward-Looking Statements

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” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” and similar references to future periods. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of business, which 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 the forward-looking statements are reasonable, any of the assumptions could prove inaccurate, and, therefore, there can be no assurance 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 these forward-looking statements as a result of various factors, including those described ~~in Part II, Item 1A, “Risk Factors” and~~ elsewhere in this report and as also may be described from time to time in future reports we file with the SEC. You should read such information in conjunction with our consolidated financial statements and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report. 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~~EVmo, Inc. (“EVmo”, the “Company”, “we”, “our”, or “us”) was initially formed on June 21, 2016 as a Delaware limited liability company under the name “YayYo, ~~LLC,~~LLC.” ~~which~~The Company was subsequently converted into a Delaware corporation pursuant to Section 265 of the ~~unanimous written consent of our former manager and members in a transaction intended to be tax-free under the Internal Revenue Code (the “Conversion”).~~Delaware General Corporation Law. The Company now operates as a “C” corporation formed under the laws of the State of Delaware. ~~On September 11, 2020, YayYo, Inc. changed its name to Rideshare Rental, Inc. On March 1, 2021, the Company changed its name from Rideshare Rental, Inc. to EVmo, Inc.~~

~~The Company is~~We became a ~~holding~~reporting company ~~operating through its wholly-owned subsidiaries, Distinct Cars, LLC and Rideshare Car Rentals, LLC.~~

The Company’s operating business divisions include (i) an online rideshare vehicle booking platform to service the ridesharing economy through Rideshare Car Rentals, i.e., the Rideshare Platform, and (ii) the maintenance of a fleet of standard passenger vehicles to be made commercially available for rent through Distinct Cars. The Company seeks to become the leading provider of standard rental vehicles to drivers in the ridesharing economy.

Onwhen, on March ~~16, 2018, we completed~~17, 2017, an offering ~~under Regulation~~circular on Form 1-A relating to a best-efforts offering of our common stock, par value. $0.000001 per share (the “Common Stock”), pursuant to “Regulation A+” of the Securities Act ~~which~~of 1933, as amended (the “Securities Act”), was qualified by the ~~SEC~~“SEC”. Then, on March 15, 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 closed its~~we completed an 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 ~~the shares became~~our Common Stock was listed on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “YAYO.”

On February 10, 2020, after being advised by Nasdaq that it believed we no longer met the conditions for continued listing, we announced our intent to voluntarily delist our Common Stock. Since delisting from Nasdaq, our Common Stock has been quoted and traded on the Pink Open Market, which is operated by OTC Markets Group, under the same ticker symbol. The delisting was effective on March 1, 2020.

In September 2020, we changed our name from YayYo, Inc. to Rideshare Rental, Inc., in order for our corporate brand to better reflect our principal business, the rental of ridesharing and delivery gig vehicles. In February 2021, we again changed our name to EVmo, to underscore our commitment to making a full transition to electric vehicles by the end of 2024. In January 2022, we completed a follow-on public offering of 27,400,000 shares of Common Stock, at $0.50 per share, which will, among other uses, provide capital required to facilitate our electric vehicles transition strategy.

We are a holding company operating principally through two wholly-owned subsidiaries: RideShare Car Rentals, LLC (“RideShare”) and Distinct Cars, LLC (“Distinct Cars”). Our proprietary Rideshare Platform provides TNC drivers with an online booking platform, while Distinct Cars maintains a fleet of passenger vehicles and transit vans for use in the last-mile logistical space for rent to our TNC driver customers, enabling such drivers to meet the vehicle suitability and other requirements of rideshare and delivery gig companies such as Uber, Lyft, DoorDash and Grubhub. Through RideShare and Distinct Cars, we seek to become a leading provider of rental vehicles to drivers in the ridesharing and delivery gig spaces, and an industry leader in supplying transit vans for last-mile logistics.

1719

On February 10, 2020, the Company notified Nasdaq of its intent to voluntarily delist its Common Stock from Nasdaq. In connection therewith, the Company notified Nasdaq of the Company’s intention to file 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 of Directors that voluntarily delisting the Common Stock from Nasdaq was in the best interests of the Company and its stockholders. Following delisting from Nasdaq, the Common Stock now trades on the Pink Open Market, still under the trading symbol, “YAYO.”

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, ~~the World Health Organization~~it 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 ~~its~~our cash flows, but itwe then saw a positive upward movement in revenue during the second half of 2020, which ~~has~~ continued ~~into~~through fiscal 2021. This was consistent with the ~~first half~~experience of the TNCs whose drivers we service. According to Bloomberg Second Measure, Uber and Lyft sales were up 104% and 84% year-over-year, respectively, in February 2022 from one year earlier, even in spite of the Delta and Omicron variants that resulted in spikes of infections through periods of 2021. ~~In early 2021, several vaccinations for~~

Given the current prevalence of FDA-approved eligible vaccines across nearly all age groups, the marked overall decrease in the number of COVID-19 received emergency-use authorization from the Food and Drug Administration, and many of the lockdown restrictions imposed by state and local governments, 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. The Company therefore cannot predict~~through the ~~ultimate impact~~first nine months of 2022, and the resulting lifting of most pandemic restrictions in our active markets, we are optimistic that COVID-19 ~~may~~will not have a material impact on ~~its business this year,~~our operations in the current fiscal year. However, certain factors- including, for example, a new, more aggressive and ~~possibly beyond.~~deadly variant that is resistant to the vaccines- could reverse the positive trends of recent months and alter our prediction.

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.~~RideShare. All significant intercompany transactions and balances have been eliminated.

Consolidated Results of Operations—Three Months Ended September 30, ~~2021,~~2022, Compared to Three Months Ended September 30, ~~2020~~2021

Total Revenues.

Revenue for the three months ended September 30, ~~2021~~2022 was ~~$2,724,180,~~$3,551,699 an increase of ~~$653,359~~$827,519 or ~~31.6%~~23.3% compared to revenue for the three months ended September 30, ~~2020~~2021 of ~~$2,070,821.~~$2,724,180. The increase is principally due to an increase in the size of our rental ~~fleet. During the three months ended September 30, 2021, the average weekly~~vehicle fleet and an increase in our daily rental income per vehicle placed in service was $416 compared to $339 for the same period in 2020. Our revenues declined in March and April of 2020 due to COVID -19 and began to recover in May and June 2020. Our revenue since June 2020 is back to pre-COVID-19 levels, but there is no assurance that this trend will continue.rate.

Cost of Revenues.

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

Cost of revenues for the three months ended September 30, ~~2021 were $2,285,878,~~2022 was $2,579,086, an increase of ~~$1,090,921~~$293,208, or ~~91.3%~~11.4%, compared to the cost of revenues for the three months ended September 30, ~~2020~~2021 of ~~$1,194,957.~~$2,285,878. The increase is due to higher depreciation expense, ~~and~~ insurance expense and vehicle repairs due to an increase in fleet ~~size and higher maintenance costs.~~size. For the three months ended September 30, ~~2021~~2022 and ~~2020~~2021 our cost of revenue was ~~83.9%~~72.62% and ~~57.7%~~83.91% of our revenue, ~~respectively.~~respectively, including vehicle depreciation. Excluding vehicle depreciation, cost of revenue for the three months ended September 30, 2022 was 49.6%, the lowest cost of revenues by percentage of revenue in company history. The ~~increase~~decrease in the cost of revenue as a percentage of revenue is due to ~~higher maintenance~~improved daily rental rates, effective fleet management and ~~insurance costs.~~improved driver turnover rates

Selling and Marketing Expenses.

Selling and marketing expenses for the three months ended September 30, ~~2021~~2022 were ~~$26,565,~~$99,843, representing ~~a decrease~~an increase of ~~$87,339~~$73,278, or ~~76.7%~~275.8%, over the expenses incurred in the three months ended September 30, ~~2020~~2021 of ~~$113,904.~~$26,565. The ~~decrease~~increase is due to a ~~decrease in~~focused advertising campaign targeted at renting new vehicles added to ~~gig-economy drivers as we have maintained a high utilization rate for our vehicles.~~the platform.

General and Administrative Expenses.

General and administrative expenses for the three months ended September 30, ~~2021~~2022, were ~~$3,218,912,~~$1,580,058, representing an ~~increase~~decrease of ~~$2,130,760~~$1,638,854, or ~~195.8% over~~103.7%, under the expenses incurred in the three months ended September 30, ~~2020~~2021 of ~~$1,088,152.~~$3,218,912. The ~~increase~~decrease is ~~principally~~ due to ~~higher professional~~maintained payroll, no additional stock issued, reduced legal fees, ~~salaries,~~ and ~~litigation settlement during the three months ended September 30, 2021.~~

controlled administrative expenses.

1820

Total Operating Expenses

Total operating expenses for the three months ended September 30, ~~2021~~2022 were ~~$3,291,977,~~$1,765,568, representing ~~an increase~~a decrease of ~~$2,089,921~~$1,526,409, or ~~173.9%~~86.5%, compared to the expenses incurred in the three months ended September 30, ~~2020~~2021 of ~~$1,202,056.~~$3,291,977. The ~~increase~~decrease is due to ~~the reasons described above.~~maintained payroll, no additional stock issued, reduced legal fees, and controlled administrative expenses.

Interest expense and financing cost

Interest and financing expenses for the three months ended September 30, ~~2021~~2022 were ~~$2,007,194~~$712,952 compared to ~~$65,292~~$2,007,194 for the three months ended September 30, ~~2020.~~2021. The ~~increase in~~ interest expense was debt service on the EIP Note payable and vehicle lease financing cost for the three months ended 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 September 30, 2021 was $4,777,328, representing an increase of $4,385,844 or 1,120.3% compared to the three months ended September 30, 2020 of $391,484. The increase is due to the reasons described above.

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

~~Total Revenues~~.

Revenue for the nine months ended September 30, 2021 was $7,670,795, an increase of $2,271,777 or 42.1% compared to revenue for the nine months ended September 30, 2020 of $5,399,018. The increase is principally due to an increase in our rental fleet. During the nine months ended September 30, 2021, the average weekly rental income per vehicle placed in service was $411 compared to $298 for the same period in 2020. Our revenues declined in March and April of 2020 due to COVID -19 and began to recover in May and June 2020. Our revenue since June 2020 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 maintenance.~~

Cost of revenues for the nine months ended September 30, 2021 were $5,982,075, an increase of $2,098,768 or 53.7% compared to cost of revenues for the nine months ended September 30, 2020 of $3,891,307. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet size and higher maintenance costs. For the nine months ended September 30, 2021 and 2020 our cost of revenue was 78.0% and 72.1% of our revenue, respectively. The increase in the cost of revenue as a percentage of revenue is due to higher maintenance and insurance costs.

~~Selling and Marketing Expenses~~.

~~Selling and marketing expenses for the nine months ended September 30, 2021 were $257,129, representing a decrease of $67,417 or 20.8% over the nine months ended September 30, 2020 of $324,546.~~interest expense. 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 nine months ended September 30, 2021 were $6,151,507, representing an increase of $2,305,739 or 60.0% over the nine months ended September 30, 2020 of $3,845,768. The increase is principally due to higher professional fees, salaries, and litigation settlement during the nine months ended September 30, 2021.

~~Total Operating Expenses~~

Total operating expenses for the nine months ended September 30, 2021 were $6,515,402, representing an increase of $2,345,088 or 56.2% compared to the nine months ended September 30, 2020 of $4,170,314. The increase is due to the reasons described above.

~~Interest expense and financing cost~~

Interest and financing expenses for the nine months ended September 30, 2021 were $6,296,524 compared to $212,943 for the nine months ended September 30, 2020. The increase in interest and financing cost for the nine months endedfrom September 30, 2021 was due to the non-recurring issuance of 825,000 shares of ~~Common Stock~~common stock 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,~~XLLC, a company 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 $3,240,600 which ~~was~~is based on the market price of the Common Stock at the grant date. The $3,240,600 was expensed as financing costs as the dispute underlying the settlement agreement related to an anti-dilution of a prior investment in the Company by Acuitas. ~~Also,~~

Net Loss

The net loss for the three months ended September 30, 2022 was $(1,505,907), representing a decrease of $3,271,421 or 217.2% compared to net loss from the three months ended September 30, 2021 of $(4,777,328). The increase is due to the reasons described above. The company achieved positive EBITDA for the first time in the three months ended September 30, 2022 of $117,029.

Consolidated Results of Operations—Nine Months Ended September 30, 2022, Compared to Nine Months Ended September 30, 2021

Total Revenues

Revenue for the nine months ended September 30, 2022 was $8,888,034 an increase of $1,217,239 or 13.7% compared to revenue for the nine months ended September 30, 2021 of $7,670,795. The increase is principally due to an increase in ~~interest~~the size of our rental vehicle fleet and an increase in our daily rental rate.

Cost of Revenues

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

Cost of revenues for the nine months ended September 30, 2022 was $6,636,641, an increase of $654,566, or 9.86%, compared to the cost of revenues for the nine months ended September 30, 2021 of $5,982,075 The increase is due to higher depreciation expense, insurance expense and vehicle repairs due to an increase in fleet size. For the nine months ended September 30, 2022 and 2021 our cost of revenue was 74.67% and 77.99% of our revenue, respectively, including vehicle depreciation. Excluding vehicle depreciation, cost of revenue for the nine months ended September 30, 2022 was 53.5%. The decrease in the cost of revenue as a percentage of revenue is due to improved daily rental rates, effective fleet management and improved driver turnover rates.

Selling and Marketing Expenses

Selling and marketing expenses for the nine months ended September 30, 2022 were $244,226, representing a decrease of $12,903, or 5.28%, over the expenses incurred in the nine months ended September 30, 2021 of $257,129. The decrease is due to a change in the advertising plan now targeted at renting new vehicles added to the platform.

General and Administrative Expenses

General and administrative expenses for the nine months ended September 30, 2022, were $4,616,652, representing a decrease of $1,534,855, or 33.25%, over the expenses incurred in the nine months ended September 30, 2021 of $6,151,507. The decrease is due to maintained payroll, no additional stock issued, reduced legal fees, and controlled administrative expenses.

Total Operating Expenses

Total operating expenses for the nine months ended September 30, 2022 were $5,021,045, representing a decrease of $1,494,357, or 29.76%, compared to the expenses incurred in the nine months ended September 30, 2021 of $6,515,402. The decrease is due to maintained payroll, no additional stock issued, reduced legal fees, and controlled administrative expenses.

Interest expense and financing cost

Interest and financing expenses for the nine months ended September 30, ~~2021 was due~~2022 were $1,449,120 compared 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 $2.25 million convertible note.

~~Gain on Forgiveness of Debt~~

~~Gain on forgiveness of debt~~$6,296,524 for the nine months ended September 30, ~~2021~~2021. The interest expense was ~~$8,000 as compared to $0~~ for ~~the same period in 2020, as, during the nine months ended~~redemption and conversion of Series B Preferred Stock, note interest expense and vehicle lease financing interest expense. The decrease from September 30, 2021 was due to the ~~remaining amount we received under~~non-recurring issuance of 825,000 shares of Common Stock to Acuitas Group Holdings, LLC, (“Acuitas”) which is the ~~Paycheck Protection Program~~Company’s largest shareholder, in connection with a settlement agreement between Acuitas and X, LLC, a company owned by the Company’s former chief executive officer. The value of the ~~Coronavirus Aid, Relief and Economic Security Act~~shares was ~~forgiven.~~$3,240,600 which is based on the market price of the Common Stock at the grant date. The $3,240,600 was expensed as financing costs as the dispute underlying the settlement agreement related to an anti-dilution of a prior investment in the Company by Acuitas.

Net Loss

The net loss for the nine months ended September 30, ~~2021~~2022 was ~~$11,031,665,~~$(4,218,772), representing an ~~increase~~decrease of ~~$8,156,119~~$6,812,893 or ~~283.6%~~161.49% compared to net loss from the nine months ended September 30, ~~2020~~2021 of ~~$2,875,546.~~$(11,031,665). The increase is due to the reasons described above. The company is approaching positive EBITDA through the first nine months ended September 30, 2022, with negative EBITDA of $(644,096).

Liquidity, Capital Resources and Plan of Operations

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

~~During the year ended December 31, 2020,~~On January 6, 2022, we ~~sold an aggregate~~closed a follow-on offering of ~~2,553,571~~27,400,000 shares of Common Stock ~~to three investors~~ for ~~cash~~$0.50 per share, for gross 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.~~$13,700,000.

~~On January 8, 2021,~~Subsequently, we received $500,000 from a convertible note from one of our stockholders. The note is convertible into shares of Common Stock at $0.50 per 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 has an original principal amount of $2,250,000, with an original issue discount of $250,000. It bears interest at a fixed rate of 10%, and is convertible intoissued 6,310,000 shares of common stock ~~at a price~~for the conversion of $3.00 per share (subject to adjustment as set forth in the note). The note was set to mature on January 12, 2022; however, in July 2021, the Company and the noteholder agreed to convert the note into 230,250220,850 shares of Series B Preferred Stock. The remaining 9,525 outstanding shares of Series B Preferred Stock were redeemed by the Company

~~On July 9, 2021 (the “Closing Date”), we entered into a Term Loan, Guarantee~~In addition, after the recent public offering and ~~Security Agreement (the “Term Loan Agreement”) with EICF Agent LLC (“EICF”), as agent for~~conversion of most of the ~~lenders, and~~Series B Preferred Stock, the two warrants issued to Energy Impact Credit Fund I, LP ~~as lender (the “Lender”), providing~~in 2021 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”)450,000 shares 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%.

~~During the nine months ended September 30, 2021, we sold 100,000~~900,000 shares of Common Stock, respectively, were subject to ~~a member~~adjustment according to their terms. The warrant for 450,000 common shares has been adjusted to one for 711,656 common shares at an exercise price of ~~our Board~~$1.33 and the warrant for 900,000 common shares has been adjusted to one for 1,174,311 common shares at an exercise price of ~~Directors for cash consideration of $50,000.~~$0.71 per share.

Current Assets, Current Liabilities and Working ~~Capital.~~Capital

At September 30, 2022, the Company’s current assets totaled $5,117,946, current liabilities totaled $7,189,940, and a working capital deficit of $(2,071,994). At December 31, 2021, the Company’s current assets totaled ~~$4,847,770,~~$4,077,934, current liabilities totaled ~~$6,162,643,~~$7,051,073, and working capital was a deficit of ~~$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 $4,245,570.~~$(2,973,139).

Regarding current liabilities, the amounts categorized as accounts payable, credit cards and accrued expenses totaled ~~$3,947,534~~$1,874,868 and ~~$2,119,003~~$4,940,580 as of September 30, ~~2021~~2022 and December 31, ~~2020,~~2021, respectively, ~~an increase~~a decrease of ~~$1,828,531~~$3,065,712 or ~~86.3%~~163.52%, due primarily to ~~accrual for~~the reduction of accounts payable and the reduction of the legal settlement ~~of $1,000,000 and increase in amounts due for professional services.~~balance.

Since inception, our principal sources of operating funds have been proceeds from equity financing, including the sale of our Common Stock to initial investors known to management and principal shareholders of the Company. We do ~~not~~ expect that our current cash on hand ~~will~~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. If the Company is 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.balance of 2022. As of September 30, ~~2021,~~2022, the Company had ~~$3,540,212~~$4,332,459 in cash. The Company used ~~$1,454,194 of~~$(7,691,035) in cash ~~for~~from 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 will be forced to significantly scale back 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 2021.2022.

Capital Expenditures

During the nine months ended September 30, ~~2021,~~2022, the Company had capital expenditures of ~~$5,692,784~~$16,919,929 in leased vehicles. At September 30, ~~2021, most~~2022, approximately 80% of the Company’s vehicles were financed with leases. At September 30, ~~2021~~2022 the Company had ~~$14,760,669~~$28,229,346 of rental vehicles, net of accumulated depreciation in the amount of ~~$4,394,296,~~$5,978,761, totaling ~~$10,366,373~~$22,2050,585 in net rental vehicles. At December 31, ~~2020~~2021 the Company had ~~$9,067,885~~$13,514,619 of rental vehicles, net of accumulated depreciation in the amount of ~~$2,871,452,~~$4,627,299, totaling ~~$6,196,433~~$8,887,320 in net rental vehicles. The Company’s rental vehicles are depreciated over their estimated useful life of five years. The lease terms for those rental vehicles that are leased are generally for three years and the Company has the right to purchase the leased assets ~~for $1 each~~ at the end of the lease terms.

Statement of Cash Flows

Cash Flows from Operating Activities

Net cash ~~used in~~provided from operating activities for the nine months ended September 30, ~~2021~~2022 totaled ~~$1,454,194,~~$(7,691,035), which was ~~an increase~~a decrease of ~~$1,642,737~~$6,236,841 from the net cash provided by operating activities of ~~$188,543~~$(1,454,194) for the same period in ~~2020.~~2021. The ~~change~~decrease is principally due to the ~~change~~reduction in ~~operating assets~~accounts payable following the equity capital raise in January 2022, decrease in accrued expense, and ~~liabilities, and non-cash expense items.~~

~~Cash Flows from Investing Activities~~

Net cash used in investing activities for the nine months ended 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.~~new vehicles.

Cash Flows from Financing Activities

Net cash provided by financing activities for the nine months ended September 30, ~~2021~~2022 totaled ~~$4,968,567,~~$10,196,566, which was an increase of ~~$6,328,807~~$5,227,999 from ~~the net cash used in financing activities of $1,360,240~~$4,968,567 for the same period in ~~2020.~~2021. The change is principally due to ~~cash received from~~ the ~~sale~~equity capital raise completed on January 6, 2022 and financing of ~~Common Stock, exercise was stock options, convertible note and note payable in 2021 offset by an increase in payments on financing lease obligations.~~new vehicles.

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, and (ii) ~~Fleet Management, made~~our vehicle fleet, which is commercially available through Distinct Cars. We expect to incur substantial expenditures in the foreseeable future for the ~~enhanced~~continuing operations of our ~~businesses and related, ongoing, internal research and development.~~businesses. Moreover, we have embarked on ~~“EV strategy”~~our EV strategy, in which we intend to replace our entire fleet of vehicles with all electric vehicles ~~within a relatively short period of time.~~by 2024. At this time, we cannot reliably estimate the ~~nature,~~ timing or aggregate amount of all of the costs associated with ~~these.~~these efforts.

~~The continuation~~Although, as we state above, we believe we have sufficient working capital to finance our operations in fiscal 2022 and to execute the 2022 phase of our ~~current~~EV strategy, it is possible that our expansion 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, especially, Fleet Management businesses and our existing capital resources are sufficient for us to continue our current operations, but for us to fully execute our business plan we will likely require significant additional capital.

We continually ~~evaluate~~reevaluate our plan of operations to determine ~~the manner in which~~how 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, several of which are beyond our control. There iscan be no assurance that our current capital resources will be adequate to continue to fund our ongoing operations, nor can there be any assurance that, should we require additional capital, we will successfully obtain ~~the required~~it on favorable terms, or at all. The potential inadequacy of our existing capital or ~~revenues, or, if obtained, that~~ the ~~amounts will be sufficient to fund our ongoing operations. The~~ inability to secure additional capital ~~would~~could have a material adverse effect on us, including the possibility that we would have to sell or forego a portion or all of our assets or cease operations. If we discontinue our operations, we ~~will~~may not have sufficient funds to pay any amounts to our stockholders.

~~Even if we raise additional capital in the near future, if~~If our operating 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 ~~thereafter~~in the future 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 ~~will likely~~may not be able to raise the capital we need to continue operations.

Similarly, because our ~~then~~working capital requirements depend upon numerous factors there can be no assurance that our current ~~business operations and business activities, and we will likely not have sufficient liquidity or~~ cash resources will be sufficient to ~~continue operating.~~fund our operations.

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

	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 ~~$740,000,~~$600,000, and an increase in the estimated useful lives of equipment and rental vehicles of one year would result in an annual decrease to depreciation expense of approximately ~~$450,000.~~$400,000.

2224

Income Taxes

The Company accounts for income taxes in accordance with ASC ~~Topic 740,~~ ~~Income Taxes~~.740. 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.

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, 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~~.606.

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~~718. 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~~Risk.

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

Item 4. Controls and ~~Procedures~~Procedures.

Evaluation of Disclosure Controls and Procedures

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

In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), to assess the effectiveness of our disclosure controls and procedures as of September 30, ~~2021.~~2022. Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure due to a material weakness.

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

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

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

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)~~13a-15(d) 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.~~10- “Contingencies.”

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~~Proceeds.

None.

Item 3. Defaults Upon Senior ~~Securities~~Securities.

None.

Item 4. Mine Safety ~~Disclosures~~Disclosures.

Not applicable.

Item 5. Other ~~Information~~Information.

~~None.~~Effective as of August 9, 2022, Gregory Miller resigned as Chief Operating Officer of the Company, citing family obligations as his reason for doing so. No successor to Mr. Miller has been appointed as of the date of this quarterly report.

Item 6. Exhibits.

Exhibit		Description
31.1		C ~~ertification~~Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)
31.2		Certification of the Chief Financial Officer and Secretary pursuant to Rule 13a-14(a)
32.1		Certification of the Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of the Chief Financial Officer and Secretary furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		Inline XBRL Instance Document
101.SCH*		Inline XBRL Taxonomy Schema
101.CAL*		Inline XBRL Taxonomy Calculation Linkbase
101.DEF*		Inline XBRL Taxonomy Definition Linkbase
101.LAB*		Inline XBRL Taxonomy Label Linkbase
101.PRE*		Inline XBRL Taxonomy Presentation Linkbase
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

2427

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:	November ~~15, 2021~~18, 2022

2528


					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


Lease obligations, December 31, 2020	$	2,352,878
New lease obligations		5,692,784
Payments on lease obligations		(3,629,792	)
Lease obligations, September 30, 2021	$	4,415,870