| Summary of Significant Accounting Policies | Basis of Presentation The accompanying Condensed Consolidated Financial
Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for
interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated
by the Securities and Exchange Commission (the “SEC”) and therefore do not contain all of the information and footnotes
required by GAAP and the SEC for annual financial statements. The Company’s Condensed Consolidated Financial Statements reflect
all adjustments (consisting only of normal recurring adjustments) management believes are necessary for the fair presentation of
the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain
prior period amounts have been reclassified to conform to the current year’s presentation. Amounts and percentages
may not total due to rounding. Year-end In October 2016, the Company changed its fiscal
year-end from November 30 to December 31. Use of Estimates The preparation of financial statements in conformity
with GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses,
and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. Estimates are
used for, but not limited to, inventory valuation, depreciable lives, carrying value of intangible assets, sales returns, receivables
valuation, restructuring-related liabilities, taxes, and contingencies. Actual results could differ materially from those estimates. Earnings (Loss) Per Share The Company follows the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings per share Revenue Recognition Revenue is derived from two primary
sources: ; The Company recognizes revenue when all of the
following conditions are satisfied: (i) there is persuasive evidence of an arrangement; (ii) the product or service has
been provided to the customer; (iii) the amount to be paid by the customer is fixed or determinable; and (iv) the collection
of the Company’s payment is probable. Used Vehicle Sales The Company sells used vehicles to consumers,
dealers and at auctions. The source of these vehicles is primarily from the Company’s Sell Us Your Vehicle Revenue
from used vehicle sales is recognized when the vehicle is delivered to a consumer, dealer or auction, a sales contract is signed, Online Listing and Sales Fees The Company charges a non-refundable fee for
sellers to list their vehicle on the RumbleOn website. During the listing period, the Company manages all sales leads, handles
all the documentation necessary to complete a sale, accepts a buyer’s trade and provides financing through third-party providers
to the potential buyer, if necessary. Upon a successful sale, the seller pays a fee
which is based on the difference between the actual retail sales price of the vehicle sold and the net proceeds agreed to be paid
by RumbleOn to the seller when the listing agreement was signed. Revenue from non-refundable online listing fees is recognized
once the listing agreement is signed, the vehicle is listed for sale and the listing fee has been received. Revenue for selling
fees is recognized upon delivery of the vehicle to the customer, when the sales contract is signed, Retail Merchandise Sales The Company recognizes sales revenue, net of
sales taxes at the time it sells the merchandise or in the case of online sales when the merchandise is delivered to the customer
and payment has been received. Vehicle Financing Consumers
can pay for their vehicle using cash or the Company offers a range of finance options through unrelated third-parties such as banks
or credit unions. These third-party providers generally pay the Company a Revenue
for these finance fees are recognized Vehicle Service Contracts At the time of vehicle sale, the Company provides
customers, on behalf of unrelated third parties who are the primary obligors, a range of other related products and services, including
extended protection plan (“EPP”) products and vehicle appearance protection. EPP products include extended service
plans (“ESPs”) that are designed to cover unexpected expenses associated with mechanical breakdowns and guaranteed
asset protection (“GAP”), which is intended to cover the unpaid balance on a vehicle loan in the event of a total
loss of the vehicle or unrecovered theft. Vehicle appearance protection includes products aimed at maintaining vehicle appearance.
The Company has no contractual liability to customers for claims under these products. Commission revenue is recognized at the time
of sale, net of a reserve for estimated contract cancellations. The reserve for cancellations
is estimated based upon historical industry experience and recent trends and is reflected as a reduction of other sales revenue
in the accompanying Consolidated Statements of Operations and a component of accounts payable and accrued liabilities in the accompanying
Consolidated Balance Sheets. Our risk related to contract cancellations is limited to the revenue that we receive. Subscription Fees Subscription fees are generated from dealer partners,
under a license arrangement that provides access to our software solution and ongoing support. Select and Appraisal Dealers pay
a monthly subscription fee for access to and ongoing support for portions of the RumbleOn software solution which includes: (i) a
vehicle appraisal process; (ii) inventory management system; (iii) customer relationship and lead management program;
and (iv) equity mining. Dealers may also be charged an initial software installation and training fee. Dealers do not have
the contractual right to take possession of the software and may cancel the license for these products and services by providing
a 30-day notice. Installation and training do not have value to the user without the license and ongoing support and maintenance.
Because the dealer partner has the right to cancel the license with 30 days’ notice, revenue for installation and training
is recognized when complete, acceptance has occurred, and collectability of a determinable amount is probable. Revenue recognition
of monthly subscription fees commences upon completion of installation, acceptance has occurred, and collectability of a determinable
amount is probable. Purchase Accounting for Business Combinations The Company accounts for acquisitions by allocating
the fair value of the consideration transferred to the fair value of the assets acquired and liabilities assumed on the date of
the acquisition and any remaining difference is recorded as goodwill. Adjustments may be made to the preliminary purchase price
allocation when facts and circumstances that existed on the date of the acquisition surface during the allocation period subsequent
to the preliminary purchase price allocation, not to exceed one year from the date of acquisition. Contingent consideration is
recorded at fair value based on the facts and circumstances on the date of the acquisition and any subsequent changes in the fair
value are recorded through earnings each reporting period. Goodwill Goodwill is not amortized but rather tested for
impairment at least annually. The Company tests goodwill for impairment annually during the fourth quarter of each year. Goodwill
will also be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than
not reduce the fair value of the reporting unit below its carrying amount. Impairment testing for goodwill is done at the reporting
unit level. A reporting unit is an operating segment or one level below an operating segment (also known as a component). A component
of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is
available, and management regularly reviews the operating results of that component. The Company has concluded that currently it
has one reporting unit. Determining fair value includes the use of significant
estimates and assumptions. Management utilizes an income approach, specifically the discounted cash flow analysis as a means for
estimating fair value. This discounted cash flow analysis requires various assumptions including those about future cash flows,
transactional and customer growth rates and discount rates. Expected cash flows are based on historical customer growth and the
growth in transactions, including attrition, future strategic initiatives and continued long-term growth of the business. The discount
rates used for the analysis reflect a weighted average cost of capital based on industry and capital structure adjusted for equity
risk and size risk premiums. These estimates can be affected by factors such as customer and transaction growth, pricing, and economic
conditions that can be difficult to predict. Intangible Assets Included in “Intangible Assets” on
the Company’s Condensed Consolidated Balance Sheets are identifiable intangible assets including customer relationships,
non-compete agreements, trademarks, trade names and internet domain names. The estimated fair value of these intangible assets
at the time of acquisition are based upon various valuation techniques including replacement cost and discounted future cash flow
projections. Trademarks, trade names and internet domain names are not amortized. Customer relationships are amortized on
a straight-line basis over the expected average life of the acquired accounts, which are based upon several factors, including
historical longevity of customers and contracts acquired and historical retention rates. Non-compete agreements are amortized on
a straight-line basis over the term of the agreement, which will generally not exceed three years. The Company reviews the recoverability
of these assets if events or circumstances indicate that the assets may be impaired and periodically reevaluates the estimated
remaining lives of these assets. Trademarks, trade names and internet domain names
are considered to be indefinite lived intangible assets unless specific evidence exists that a shorter life is more appropriate.
Indefinite lived intangible assets are tested for impairment, at a minimum, on an annual basis using an income approach or sooner
whenever events or changes in circumstances indicate that an asset may be impaired. Long-Lived Assets Property and equipment are reviewed for impairment
when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability
of assets to be held and used are measured by a comparison of the carrying amount of an asset to the future net cash flows expected
to be generated by the asset. If such assets or asset groups are considered to be impaired, the impairment to be recognized will
be measured by the amount by which the carrying amount of the assets or asset groups exceeds the related fair values. The Company
also performs a periodic assessment of the useful lives assigned to the long-lived assets. Technology Development Costs Technology development costs are accounted for
pursuant to ASC 350, Intangibles — Goodwill and Other. Vehicle Inventory Vehicle inventory is accounted for pursuant to
ASC 330, Inventory Valuation Allowance for Accounts Receivable The Company estimates the allowance for doubtful
accounts for accounts receivable by considering a number of factors, including overall credit quality, age of outstanding balances,
historical write-off experience and specific account analysis that projects the ultimate collectability of the outstanding balances.
Ultimately, actual results could differ from these assumptions. Cash and Cash Equivalents The Company considers all cash accounts and all
highly liquid short-term investments purchased with an original maturity of three months or less to be cash or cash equivalents.
As of September 30, 2017 and 2016, the Company did not have any investments with maturities greater than three months. Property and Equipment, Net Property and equipment is stated at cost less
accumulated depreciation and amortization and consists of capitalized technology development costs, furniture and equipment. Depreciation
and amortization is recorded on a straight-line basis over the estimated useful life of the assets. Costs of significant additions,
renewals and betterments, are capitalized and depreciated. Maintenance and repairs are charged to expense when incurred. Fair Value of Financial Instruments Fair value estimates discussed herein are based
upon certain market assumptions and pertinent information available to management as of September 30, 2017. The respective carrying
value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash,
prepaid expenses and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they
are short term in nature and their carrying amounts approximate fair values or they are payable on demand. ASC Topic 820, Fair Value Measurement, Level 1: The preferred inputs to valuation efforts are “quoted
prices in active markets for identical assets or liabilities,” with the caveat that the reporting entity must have access
to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities,
not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade
in active markets. Level 2: FASB acknowledged that active markets for identical assets
and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. Inputs
other than quoted market prices included in Level 1, that are observable for the asset or liability, either directly or indirectly,
are Level 2 inputs. Level 3: If inputs from Levels 1 and 2 are not available, FASB acknowledges
that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as “unobservable,”
and limits their use by saying they “shall be used to measure fair value to the extent that observable inputs are not available.”
This category allows “for situations in which there is little, if any, market activity for the asset or liability at the
measurement date.” Earlier in the standard, FASB explains that “observable inputs” are gathered from sources
other than the reporting company and that they are expected to reflect assumptions made by market participants. Beneficial Conversion Feature From time to time, the Company may issue convertible
notes that may have conversion prices that create an embedded beneficial conversion feature pursuant to the guidelines established
by the ASC Topic 470-20, Debt with Conversion and Other Options The BCF of a convertible note is measured by
allocating a portion of the note’s proceeds to the conversion feature, if applicable, and as a reduction of the carrying
amount of the convertible note equal to the intrinsic value of the conversion feature, both of which are credited to additional
paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.
The Company calculates the fair value of the conversion feature embedded in any convertible security using either a) the Black
Scholes valuation model or b) a discount cash flow analysis tested for sensitivity to key Level 3 inputs using Monte Carlo simulation. Cost of Revenue Cost of vehicle sales includes the cost to acquire
vehicles and the reconditioning and transportation costs associated with preparing the vehicles for resale. Vehicle acquisition
costs are driven by the mix of vehicles the Company acquires, the source of those vehicles, and supply and demand dynamics in the
vehicle market. Reconditioning costs are billed by third-party providers and include parts, labor, and other repair expenses directly
attributable to specific vehicles. Transportation costs consist of costs incurred to transport the vehicles from the point of acquisition
or delivery. Cost of sales also includes any necessary adjustments to reflect vehicle inventory at the lower of cost or net realizable
value. Cost of subscription and other fee revenue includes
the (i) various data feeds from third parties; (ii) hosting of the customer facing website; (iii) commissions for
new sales; and (iv) implementation and training of new and existing customers. These costs and expenses are charged to cost
of revenue as incurred. Selling, General and Administrative Expenses Selling, general and administrative (“SG&A”)
expenses primarily include compensation and benefits, advertising and marketing, professional fees, technology development expenses,
rent and other occupancy costs, insurance, travel and other administrative expenses. Advertising and Marketing Costs Advertising and marketing costs are expensed
as incurred and are included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statements
of Operations. Advertising and marketing expenses were $775,456 and $1,071,398, respectively for the three and nine-month periods
ended September 30, 2017. There were no Stock-Based Compensation On January 9, 2017, the Company’s Board
of Directors approved, subject to stockholder approval, the RumbleOn, Inc. 2017 Stock Incentive Plan (the “Plan”) under
which restricted stock units (“RSUs”) and other equity awards may be granted to employees and non-employee members
of the Board of Directors. On June 30, 2017, the Plan was approved by the Company's stockholders at the 2017 Annual Meeting of
Stockholders. The Company estimates the fair value of awards granted under the Plan on the date of grant. The fair value of an
RSU is based on the average of the high and low market prices of the Company’s Class B Common Stock on the date of grant
and is recognized as an expense on a straight-line basis over its vesting period; to date, the Company has only issued RSUs that
vest over a three-year period utilizing the following vesting schedule: (i) 20% on the first anniversary of the grant date;
(ii) 30% on the second anniversary of the grant date; and (iii) 50% on the third anniversary of the grant date. During
the nine-month period ended September 30, 2017, the Company granted 560,000 RSUs under the Plan to members of the Board of Directors,
officers and employees. Compensation expense associated with RSU grants for the three and nine-month periods ended September 30,
2017 was $157,763 Income Taxes The Company follows ASC Topic 740, Income
Taxes, The Company applies a more-likely-than-not recognition
threshold for all tax uncertainties. ASC Topic 740 only allows the recognition of those tax benefits that have a greater than fifty
percent likelihood of being sustained upon examination by the taxing authorities. As of September 30, 2017, the Company reviewed
its tax positions and determined there were no outstanding, or retroactive tax positions with less than a fifty percent likelihood
of being sustained upon examination by the taxing authorities, therefore this standard has not had a material effect on the Company. The Company classifies tax-related penalties
and net interest as income tax expense. As of September 30, 2017, no income tax expense has been incurred. Recent Pronouncements The Company has adopted Accounting Standards
Update 2015-11 Inventory (Topic 330), Simplifying the Measurement of Inventory, |
