Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Dec. 20, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | YayYo, Inc. | |
Entity Central Index Key | 0001691077 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,427,803 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 81,340 | $ 277,444 |
Accounts receivable | 78,643 | |
Prepaid expenses | 107,506 | 108,900 |
Total current assets | 267,489 | 386,344 |
Equipment, net | 4,881 | 5,092 |
Leased assets, net | 4,125,845 | 5,115,117 |
Deferred offering costs | 93,000 | 66,500 |
TOTAL ASSETS | 4,491,215 | 5,573,053 |
Current Liabilities: | ||
Accounts payable | 325,928 | 719,386 |
Accrued expenses | 770,084 | 494,066 |
Notes payables, current (net of discount of $42,351 and $72,211) | 3,631,478 | 2,617,970 |
Finance lease obligations, current | 1,358,002 | 1,562,651 |
Total current liabilities | 6,085,492 | 5,394,073 |
Finance lease obligations, net of current portion | 1,147,409 | 2,227,496 |
TOTAL LIABILITIES | 7,232,901 | 7,621,569 |
Commitments and contingencies | ||
STOCKHOLDERS' DEFICIT | ||
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding | ||
Common stock, $0.000001 par value; 90,000,000 shares authorized; 26,802,803 and 26,718,676 shares issued and outstanding | 27 | 27 |
Additional paid-in capital | 19,867,551 | 19,193,151 |
Accumulated deficit | (22,609,264) | (21,241,694) |
Total stockholders' deficit | (2,741,686) | (2,048,516) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 4,491,215 | $ 5,573,053 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Net of debt discount, current | $ 42,351 | $ 72,211 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 26,802,803 | 26,718,676 |
Common stock, shares outstanding | 26,802,803 | 26,718,676 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,718,439 | $ 881,061 | $ 5,193,957 | $ 1,918,476 |
Cost of revenue | 1,067,373 | 632,681 | 3,111,614 | 1,360,305 |
Gross profit | 651,066 | 248,380 | 2,082,343 | 558,171 |
Operating expenses: | ||||
Selling and marketing expenses | 80,039 | 34,500 | 182,645 | 125,995 |
Product development | 9,699 | |||
General and administrative expenses | 761,151 | 1,687,231 | 2,221,962 | 5,660,146 |
Impairment of leased assets | 732,000 | 732,000 | ||
Loss on the settlement of debt | 252,900 | |||
Total operating expenses | 841,190 | 2,453,731 | 2,657,507 | 6,527,840 |
Loss from operations | (190,124) | (2,205,351) | (575,164) | (5,969,669) |
Other income (expense): | ||||
Interest and financing costs | (180,531) | (4,109,767) | (792,406) | (4,490,639) |
Total other income (expense) | (180,531) | (4,109,767) | (792,406) | (4,490,639) |
Net loss | $ (370,655) | $ (6,315,118) | $ (1,367,570) | $ (10,460,308) |
Weighted average shares outstanding : | ||||
Basic | 26,802,803 | 26,501,331 | 26,774,636 | 26,226,596 |
Diluted | 26,802,803 | 26,501,331 | 26,774,636 | 26,226,596 |
Loss per share | ||||
Basic | $ (0.01) | $ (0.24) | $ (0.05) | $ (0.4) |
Diluted | $ (0.01) | $ (0.24) | $ (0.05) | $ (0.4) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 26 | $ 7,879,189 | $ (8,052,572) | $ (173,357) |
Balance, shares at Dec. 31, 2017 | 25,770,551 | |||
Issuance of common stock for cash | 307,924 | 307,924 | ||
Issuance of common stock for cash, shares | 46,330 | |||
Value of common stock issued with notes payable | 407,791 | 407,791 | ||
Value of common stock issued with notes payable, shares | 155,850 | |||
Value of warrants issued with notes payable | 3,726,506 | 3,726,506 | ||
Value of common stock issued with capital lease obligation | 732,000 | 732,000 | ||
Value of common stock issued with capital lease obligation, shares | 91,500 | |||
Issuance of common stock for services | $ 1 | 3,459,999 | 3,460,000 | |
Issuance of common stock for services, shares | 432,500 | |||
Issuance of common stock for accounts payable | 119,274 | 119,274 | ||
Issuance of common stock for accounts payable, shares | 14,945 | |||
Stock option expense | 678,351 | 678,351 | ||
Net loss | (10,460,308) | (10,460,308) | ||
Balance at Sep. 30, 2018 | $ 27 | 17,311,034 | (18,512,880) | (1,201,819) |
Balance, shares at Sep. 30, 2018 | 26,511,676 | |||
Balance at Dec. 31, 2018 | $ 27 | 19,193,151 | (21,241,694) | (2,048,516) |
Balance, shares at Dec. 31, 2018 | 26,718,676 | |||
Correction to outstanding shares | ||||
Correction to outstanding shares, shares | (173) | |||
Issuance of common stock for settlement of debt | 674,400 | 674,400 | ||
Issuance of common stock for settlement of debt, shares | 84,300 | |||
Net loss | (1,367,570) | (1,367,570) | ||
Balance at Sep. 30, 2019 | $ 27 | $ 19,867,551 | $ (22,609,264) | $ (2,741,686) |
Balance, shares at Sep. 30, 2019 | 26,802,803 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,367,570) | $ (10,460,308) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 730,610 | 313,051 |
Stock option expense | 678,351 | |
Common stock issued for services | 3,460,000 | |
Amortization of debt discounts | 29,860 | 4,366,180 |
Gain on disposal of assets | (17,360) | |
Impairment of leased assets | 732,000 | |
Loss on the settlement of debt | 252,900 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (78,643) | (17,051) |
Prepaid expenses | 1,394 | (1,972) |
Accounts payable | (419,958) | 76,916 |
Accrued expenses | 697,518 | 171,432 |
Net cash used in operating activities | (153,889) | (698,761) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of equipment | (2,840) | |
Net cash used in investing activities | (2,840) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 307,924 | |
Proceeds from notes payable | 1,951,300 | 7,346,378 |
Repayment of note payable | (967,652) | (6,024,041) |
Payment for debt issuance costs | (178,228) | |
Repayment of finance lease obligations | (1,025,863) | (599,670) |
Net cash provided by (used in) financing activities | (42,215) | 852,363 |
NET INCREASE (DECREASE) IN CASH | (196,104) | 150,762 |
CASH, BEGINNING OF PERIOD | 277,444 | 308,738 |
CASH, END OF PERIOD | 81,340 | 459,500 |
CASH PAID FOR: | ||
Interest | 715,250 | 75,455 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 421,500 | 119,274 |
Value of equity recorded as debt discounts | 4,134,297 | |
Finance lease obligations | $ 510,136 | $ 1,228,067 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 - Organization and Basis of Presentation Organization and Line of Business YayYo, Inc. (“YayYo” 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 changed to a C corporation. The accompanying financial statements are retroactively restated to present the Company as a C corporation from June 21, 2016. The Company rents cars to Uber and Lyft drivers. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). Interim financial statements The unaudited interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosure are adequate to make the information presented not misleading. These statements reflect all adjustment, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2018 and notes thereto. The Company follows the same accounting policies in the preparation of interim report. Results of operations for the interim period are not indicative of annual results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 subsidiaries, Distinct Cars, LLC, RideShare Car Rentals, LLC, RideYayYo, LLC and Savy, LLC. All significant intercompany transactions and balances have been eliminated. 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. 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. Equipment Equipment is 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 is provided using the straight-line method for substantially all assets with estimated lives as follows: Computer equipment 5 years Vehicles 5 years Long-Lived Assets The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment Revenue Recognition The Company recognizes revenue from renting its fleet of cars to Uber and Lyft drivers. Revenue is recognized based on the rental agreements which are generally on a weekly basis. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes 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. Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2019 and 2018 were $182,645 and $125,995, respectively. Research and Development Costs The Company expenses its research and development costs as incurred. Research and developments costs for the nine months ended September 30, 2019 and 2018 were $0 and $9,699, respectively. Deferred Offering Costs Deferred offering costs are amounts incurred that are directly related to the offering of the Company’s common stock. These costs will be offset against the proceeds from the Company’s equity offering. Fair Value Measurements The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted 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, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. At September 30, 2019 and December 31, 2018, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 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. |
Equipment
Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Equipment | Note 3 – Equipment At September 30, 2019 and December 31, 2018 equipment consisted of the following: September 30, December 31, 2019 2018 Computer equipment $ 6,046 $ 6,046 6,046 6,046 Less accumulated depreciation (1,165 ) (954 ) Equipment, net $ 4,881 $ 5,092 Depreciation expense for equipment for the nine months ended September 30, 2019 and 2018 was $211 and $477, respectively. |
Leased Assets
Leased Assets | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leased Assets | Note 4 – Leased Assets At September 30, 2019 and December 31, 2018 all of the Company’s leased assets were finance leased right-of-use assets and consisted of the following: September 30, December 31, 2019 2018 Vehicles $ 5,409,877 $ 5,661,749 5,409,877 5,661,749 Less accumulated depreciation (1,284,032 ) (546,632 ) Leased assets, net $ 4,125,845 $ 5,115,117 The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five years. Depreciation expense for leased assets for the nine months ended September 30, 2019 and 2018 was $730,399 and $312,574, respectively. The lease terms are generally for 30 to 36 months and the Company has the right to purchase the leased assets for $1 each at the end of the lease terms. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Note payable to investor; accrue interest at 5% per annum; due December 31, 2019; unsecured $ 880,000 $ 790,000 Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured (A) 319,667 319,667 Note payable to investor; accrue interest at 6% per annum; due November 30, 2018; unsecured (B) 222,222 222,222 Note payable to investor; original issue discount of $117,828; due he earlier of November 30, 2019 or closing of a public offering; secured by assets of the Company (C) 1,296,018 1,296,018 Note payable to merchant bank; accrues interest at 15% per annum; daily payments of $813 - 37,308 Line of credit; $65,000 limit; accrues interest at 15% per annum; weekly payments of $3,038 - 24,966 Note payable to merchant bank; accrues interest at 79% per annum; 26 weekly payments of $1,401 31,177 - Note payable to merchant bank; accrues interest at 128% per annum; 130 daily payments of $1,558 3,181 - Note payable to merchant bank; accrues interest at 138% per annum; 125 daily payments of $1,644 62,388 - Note payable to merchant bank; accrues interest at 155% per annum; 120 daily payments of $1,738 135,962 - Note payable to merchant bank; accrues interest at 159% per annum; 115 daily payments of $2,978 223,214 - Note payable to investor; accrue interest at 5% per annum; due December 31, 2019; unsecured 500,000 - Total notes payable 3,673,829 2,690,181 Unamortized debt discount (42,351 ) (72,211 ) Notes payable, net discount 3,631,478 2,617,970 Less current portion (3,631,478 ) (2,617,970 ) Long-term portion $ - $ - (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $29,860 and $27,886, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $42,351 at September 30, 2019. (B) This note payable was issued with an original issuance discount of $22,222 which is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $0 and $21,506, respectively, was charged to interest expense as amortization of the discount, with an unamortized balance of $0 at September 30, 2019. (C) On March 8, 2018, the Company issued a note payable for $6,000,000. The note accrues interest at LIBOR plus 100 basis points and is due five years from the date of issuance. The note payable is secured by the restricted cash balance. In addition, the Company issued to the note holder 150,000 shares of the Company’s common stock and 1,500,000 warrants to purchase shares of the Company’s common stock for $4.00 per shares. The warrants expire five years from the date of issuance. The Company also paid $178,228 of issuance costs associated with this note. The relative fair value of the 150,000 shares of common stock was $378,916 and the relative fair value of the 1,500,000 warrants was $3,726,506 and both were recorded as a discount on the note payable and as additional paid in capital. In addition, the issuance costs of $178,228 have also been recorded as a debt discount. The debt discount of $4,283,650 is being amortized over the term of the note payable. On September 12, 2018, the Company entered into a new note payable agreement with this investor whereby, the Company repaid $4,821,810 of the original $6,000,000 note payable and with the balance of $1,178,190 plus an original issue discount of $117,828 being rolled into the September 12, 2018 note payable for $1,296,018. The original issue discount of $117,828 is being amortized to interest expense over the term of the new note payable. As a result of the $6,000,000 note payable being repaid in September 2018, the Company amortized to interest expense the remaining debt discount associated with the note payable of $4,018,560. During the nine months ended September 30, 2019 and 2018, $0 and $4,316,808, respectively, was charged to interest expense as amortization of the debt discounts associated with the notes payable to this investor, with an unamortized balance of $0 at September 30, 2019. A rollforward of notes payable from December 31, 2018 to September 30, 2019 is below: Notes payable, December 31, 2018 $ 2,617,970 Issued for cash 1,951,300 Repayments (967,652 ) Amortization of debt discounts 29,860 Notes payable, September 30, 2019 $ 3,631,478 |
Lease Obligations
Lease Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Obligations | Note 6 – Lease Obligations Lease obligations at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Lease obligations $ 2,505,411 $ 3,790,147 Less current portion (1,358,002 ) (1,562,651 ) Long-term portion $ 1,147,409 $ 2,227,496 A rollforward of lease obligations from December 31, 2018 to September 30, 2019 is below: Lease obligations, December 31, 2018 $ 3,790,147 New lease obligations 510,136 Disposal of leased vehicles (769,009 ) Payments on lease obligations (1,025,863 ) Lease obligations, September 30, 2019 $ 2,505,411 The weighted-average remaining lease term at September 30, 2019 is 1.46 years and the weighted average discount rate is 5%. The finance lease costs for the nine months ended September 30, 2019 and 2018 consisted of depreciation expense of $730,399 and $312,574, respectively and interest expense of $157,192 and $70,306, respectively. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7 – Stockholders’ Equity The Company authorized 100,000,000 shares of capital stock with 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. Common Stock During the nine months ended September 30, 2019, the Company issued 84,300 shares of common stock to vendors in satisfaction of $421,500 of accounts payable and accrued expenses. The 84,300 shares were valued at $674,000; therefore the Company took a charge to earnings of $252,900 related to the settlement of debt during the nine months ended September 30, 2019. Stock Options The following is a summary of stock option activity: Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 300,000 $ 8.00 2.00 $ - Granted - $ Forfeited - Exercised - Outstanding, September 30, 2019 300,000 $ 8.00 1.25 $ - Exercisable, September 30, 2019 300,000 $ 8.00 1.25 $ - The exercise price for options outstanding and exercisable at September 30, 2019: Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 300,000 $ 8.00 $ 300,000 8.00 300,000 300,000 The following is a summary of warrant activity: Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 1,500,000 $ 4.00 4.44 $ 6,000,000 Granted - Forfeited - Exercised - Outstanding, September 30, 2019 1,500,000 $ 4.00 3.69 $ - Exercisable, September 30, 2019 1,500,000 $ 4.00 3.69 $ - The exercise price for warrants outstanding at September 30, 2019: Outstanding and Exercisable Number of Exercise Warrants Price 1,500,000 $ 4.00 1,500,000 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 – Related Party Transactions During the nine months ended September 30, 2018, the Company paid management fees of $180,000, to a company that is owned by the Company’s former Chief Executive Officer and director. Beginning on February 1, 2019, the Company entered into a consulting agreement with this individual and paid $167,000 under the consulting agreement. The consulting agreement was terminated effective September 1, 2019. During the nine months ended September 30, 2019 and 2018, the Company expensed $138,747 and $54,880, respectively, in advertising expense from a company whose CEO is also a director of the Company. At September 30, 2019 and December 31, 2018, $160,334 and $334,471, respectively, was owed to this company and is included in accounts payable in the accompanying consolidated balance sheets. At September 30, 2019 and December 31, 2018, the Company had a note payable to a stockholder for $880,000 and $790,000, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events On November 15, 2019, the Company closed its initial public offering of 2,625,000 common shares at $4.00 per share. Total gross proceeds from the offering were $10,500,000, before deducting underwriting discounts and commissions and other offering expenses. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Distinct Cars, LLC, RideShare Car Rentals, LLC, RideYayYo, LLC and Savy, LLC. All significant intercompany transactions and balances have been eliminated. |
Use of Estimates | 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. |
Cash Equivalents | 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. |
Equipment | Equipment Equipment is 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 is provided using the straight-line method for substantially all assets with estimated lives as follows: Computer equipment 5 years Vehicles 5 years |
Long-Lived Assets | Long-Lived Assets The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from renting its fleet of cars to Uber and Lyft drivers. Revenue is recognized based on the rental agreements which are generally on a weekly basis. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes 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. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2019 and 2018 were $182,645 and $125,995, respectively. |
Research and Development Costs | Research and Development Costs The Company expenses its research and development costs as incurred. Research and developments costs for the nine months ended September 30, 2019 and 2018 were $0 and $9,699, respectively. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs are amounts incurred that are directly related to the offering of the Company’s common stock. These costs will be offset against the proceeds from the Company’s equity offering. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted 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, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. At September 30, 2019 and December 31, 2018, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15 , Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Lives of Equipment | Depreciation of equipment is provided using the straight-line method for substantially all assets with estimated lives as follows: Computer equipment 5 years Vehicles 5 years |
Equipment (Tables)
Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment | At September 30, 2019 and December 31, 2018 equipment consisted of the following: September 30, December 31, 2019 2018 Computer equipment $ 6,046 $ 6,046 6,046 6,046 Less accumulated depreciation (1,165 ) (954 ) Equipment, net $ 4,881 $ 5,092 |
Leased Assets (Tables)
Leased Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Finance Leased Right-of-Use Assets | At September 30, 2019 and December 31, 2018 all of the Company’s leased assets were finance leased right-of-use assets and consisted of the following: September 30, December 31, 2019 2018 Vehicles $ 5,409,877 $ 5,661,749 5,409,877 5,661,749 Less accumulated depreciation (1,284,032 ) (546,632 ) Leased assets, net $ 4,125,845 $ 5,115,117 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Note payable to investor; accrue interest at 5% per annum; due December 31, 2019; unsecured $ 880,000 $ 790,000 Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured (A) 319,667 319,667 Note payable to investor; accrue interest at 6% per annum; due November 30, 2018; unsecured (B) 222,222 222,222 Note payable to investor; original issue discount of $117,828; due he earlier of November 30, 2019 or closing of a public offering; secured by assets of the Company (C) 1,296,018 1,296,018 Note payable to merchant bank; accrues interest at 15% per annum; daily payments of $813 - 37,308 Line of credit; $65,000 limit; accrues interest at 15% per annum; weekly payments of $3,038 - 24,966 Note payable to merchant bank; accrues interest at 79% per annum; 26 weekly payments of $1,401 31,177 - Note payable to merchant bank; accrues interest at 128% per annum; 130 daily payments of $1,558 3,181 - Note payable to merchant bank; accrues interest at 138% per annum; 125 daily payments of $1,644 62,388 - Note payable to merchant bank; accrues interest at 155% per annum; 120 daily payments of $1,738 135,962 - Note payable to merchant bank; accrues interest at 159% per annum; 115 daily payments of $2,978 223,214 - Note payable to investor; accrue interest at 5% per annum; due December 31, 2019; unsecured 500,000 - Total notes payable 3,673,829 2,690,181 Unamortized debt discount (42,351 ) (72,211 ) Notes payable, net discount 3,631,478 2,617,970 Less current portion (3,631,478 ) (2,617,970 ) Long-term portion $ - $ - (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $29,860 and $27,886, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $42,351 at September 30, 2019. (B) This note payable was issued with an original issuance discount of $22,222 which is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $0 and $21,506, respectively, was charged to interest expense as amortization of the discount, with an unamortized balance of $0 at September 30, 2019. (C) On March 8, 2018, the Company issued a note payable for $6,000,000. The note accrues interest at LIBOR plus 100 basis points and is due five years from the date of issuance. The note payable is secured by the restricted cash balance. In addition, the Company issued to the note holder 150,000 shares of the Company’s common stock and 1,500,000 warrants to purchase shares of the Company’s common stock for $4.00 per shares. The warrants expire five years from the date of issuance. The Company also paid $178,228 of issuance costs associated with this note. The relative fair value of the 150,000 shares of common stock was $378,916 and the relative fair value of the 1,500,000 warrants was $3,726,506 and both were recorded as a discount on the note payable and as additional paid in capital. In addition, the issuance costs of $178,228 have also been recorded as a debt discount. The debt discount of $4,283,650 is being amortized over the term of the note payable. On September 12, 2018, the Company entered into a new note payable agreement with this investor whereby, the Company repaid $4,821,810 of the original $6,000,000 note payable and with the balance of $1,178,190 plus an original issue discount of $117,828 being rolled into the September 12, 2018 note payable for $1,296,018. The original issue discount of $117,828 is being amortized to interest expense over the term of the new note payable. As a result of the $6,000,000 note payable being repaid in September 2018, the Company amortized to interest expense the remaining debt discount associated with the note payable of $4,018,560. During the nine months ended September 30, 2019 and 2018, $0 and $4,316,808, respectively, was charged to interest expense as amortization of the debt discounts associated with the notes payable to this investor, with an unamortized balance of $0 at September 30, 2019. |
Schedule of Outstanding Notes Payable | A rollforward of notes payable from December 31, 2018 to September 30, 2019 is below: Notes payable, December 31, 2018 $ 2,617,970 Issued for cash 1,951,300 Repayments (967,652 ) Amortization of debt discounts 29,860 Notes payable, September 30, 2019 $ 3,631,478 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Lease Obligations | Lease obligations at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Lease obligations $ 2,505,411 $ 3,790,147 Less current portion (1,358,002 ) (1,562,651 ) Long-term portion $ 1,147,409 $ 2,227,496 |
Schedule of Outstanding Lease Obligations | A rollforward of lease obligations from December 31, 2018 to September 30, 2019 is below: Lease obligations, December 31, 2018 $ 3,790,147 New lease obligations 510,136 Disposal of leased vehicles (769,009 ) Payments on lease obligations (1,025,863 ) Lease obligations, September 30, 2019 $ 2,505,411 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 300,000 $ 8.00 2.00 $ - Granted - $ Forfeited - Exercised - Outstanding, September 30, 2019 300,000 $ 8.00 1.25 $ - Exercisable, September 30, 2019 300,000 $ 8.00 1.25 $ - |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at September 30, 2019: Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 300,000 $ 8.00 $ 300,000 8.00 300,000 300,000 |
Summary of Warrant Activity | The following is a summary of warrant activity: Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 1,500,000 $ 4.00 4.44 $ 6,000,000 Granted - Forfeited - Exercised - Outstanding, September 30, 2019 1,500,000 $ 4.00 3.69 $ - Exercisable, September 30, 2019 1,500,000 $ 4.00 3.69 $ - |
Schedule of Warrants Outstanding by Exercise Price Range | The exercise price for warrants outstanding at September 30, 2019: Outstanding and Exercisable Number of Exercise Warrants Price 1,500,000 $ 4.00 1,500,000 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of incorporation | Jun. 21, 2016 |
Place of incorporation | DE |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Number of stock options shares outstanding | 300,000 | 300,000 | 300,000 | ||
Potentially dilutive securities outstanding | 1,800,000 | ||||
Advertising costs | $ 182,645 | $ 125,995 | |||
Research and developments costs | $ 9,699 | ||||
Derivative liability | |||||
Warrant [Member] | |||||
Number of stock options shares outstanding | 1,500,000 | 1,500,000 | |||
Options [Member] | |||||
Number of stock options shares outstanding | 300,000 | 300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Lives of Equipment (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Computer Equipment [Member] | |
Estimated lives | 5 years |
Vehicles [Member] | |
Estimated lives | 5 years |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Depreciation expense | $ 730,399 | $ 312,574 |
Equipment [Member] | ||
Depreciation expense | $ 211 | $ 477 |
Equipment - Schedule of Equipme
Equipment - Schedule of Equipment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Equipment, gross | $ 6,046 | $ 6,046 |
Less accumulated depreciation | (1,165) | (954) |
Equipment, net | 4,881 | 5,092 |
Computer Equipment [Member] | ||
Equipment, gross | $ 6,046 | $ 6,046 |
Leased Assets (Details Narrativ
Leased Assets (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Depreciation expense for leased assets | $ 730,399 | $ 312,574 |
Payments to acquire leased assets in future | $ 1 | |
Minimum [Member] | ||
Finance lease term | 30 months | |
Maximum [Member] | ||
Finance lease term | 36 months | |
Vehicles [Member] | ||
Estimated useful life | 5 years |
Leased Assets - Schedule of Fin
Leased Assets - Schedule of Finance Leased Right-of-Use Assets (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Leased assets, gross | $ 5,409,877 | $ 5,661,749 |
Less accumulated depreciation | (1,284,032) | (546,632) |
Leased assets, net | 4,125,845 | 5,115,117 |
Vehicles [Member] | ||
Leased assets, gross | $ 5,409,877 | $ 5,661,749 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Notes Payable (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 12, 2018 | |
Total notes payable | $ 3,673,829 | $ 2,690,181 | ||
Unamortized debt discount | (42,351) | (72,211) | ||
Notes payable, net discount | 3,631,478 | 2,617,970 | ||
Less current portion | (3,631,478) | (2,617,970) | ||
Long-term portion | ||||
Unsecured Notes One [Member] | ||||
Total notes payable | 880,000 | 790,000 | ||
Unsecured Notes Two [Member] | ||||
Total notes payable | [1] | 319,667 | 319,667 | |
Unsecured Notes Three [Member] | ||||
Total notes payable | [2] | 222,222 | 222,222 | |
Secured Notes [Member] | ||||
Total notes payable | [3] | 1,296,018 | 1,296,018 | |
Notes payable, net discount | $ 1,296,018 | |||
Notes Payable to Merchant Bank [Member] | ||||
Total notes payable | 37,308 | |||
Line of Credit [Member] | ||||
Total notes payable | 24,966 | |||
Notes Payable to Merchant Bank One [Member] | ||||
Total notes payable | 31,177 | |||
Notes Payable to Merchant Bank Two [Member] | ||||
Total notes payable | 3,181 | |||
Notes Payable to Merchant Bank Three [Member] | ||||
Total notes payable | 62,388 | |||
Notes Payable to Merchant Bank Four [Member] | ||||
Total notes payable | 135,962 | |||
Notes Payable to Merchant Bank Five [Member] | ||||
Total notes payable | 223,214 | |||
Notes Payable to Merchant Bank Six [Member] | ||||
Total notes payable | $ 500,000 | |||
[1] | In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $29,860 and $27,886, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $42,351 at September 30, 2019. | |||
[2] | This note payable was issued with an original issuance discount of $22,222 which is being amortized over the term of the notes payable. During the nine months ended September 30, 2019 and 2018, $0 and $21,506, respectively, was charged to interest expense as amortization of the discount, with an unamortized balance of $0 at September 30, 2019. | |||
[3] | On March 8, 2018, the Company issued a note payable for $6,000,000. The note accrues interest at LIBOR plus 100 basis points and is due five years from the date of issuance. The note payable is secured by the restricted cash balance. In addition, the Company issued to the note holder 150,000 shares of the Company's common stock and 1,500,000 warrants to purchase shares of the Company's common stock for $4.00 per shares. The warrants expire five years from the date of issuance. The Company also paid $178,228 of issuance costs associated with this note. The relative fair value of the 150,000 shares of common stock was $378,916 and the relative fair value of the 1,500,000 warrants was $3,726,506 and both were recorded as a discount on the note payable and as additional paid in capital. In addition, the issuance costs of $178,228 have also been recorded as a debt discount. The debt discount of $4,283,650 is being amortized over the term of the note payable. On September 12, 2018, the Company entered into a new note payable agreement with this investor whereby, the Company repaid $4,821,810 of the original $6,000,000 note payable and with the balance of $1,178,190 plus an original issue discount of $117,828 being rolled into the September 12, 2018 note payable for $1,296,018. The original issue discount of $117,828 is being amortized to interest expense over the term of the new note payable. As a result of the $6,000,000 note payable being repaid in September 2018, the Company amortized to interest expense the remaining debt discount associated with the note payable of $4,018,560. During the nine months ended September 30, 2019 and 2018, $0 and $4,316,808, respectively, was charged to interest expense as amortization of the debt discounts associated with the notes payable to this investor, with an unamortized balance of $0 at September 30, 2019. |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) - USD ($) | Sep. 12, 2018 | Mar. 08, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Amortization of debt discounts | $ 29,860 | $ 4,366,180 | |||
Shares issued during period, value | 307,924 | ||||
Repayments of notes | 967,652 | 6,024,041 | |||
Notes payable | $ 3,631,478 | $ 2,617,970 | |||
Unsecured Notes One [Member] | |||||
Debt instrument interest rate | 5.00% | 5.00% | |||
Debt instrument maturity date | Dec. 31, 2019 | Dec. 31, 2019 | |||
Unsecured Notes Two [Member] | |||||
Debt instrument interest rate | 8.00% | 8.00% | |||
Debt instrument payment terms | Principal payments equal to 1/12 of original balance plus interest due quarterly | Principal payments equal to 1/12 of original balance plus interest due quarterly | |||
Debt instrument maturity date, description | Due from dates ranging from August 9, 2020 to March 26, 2021 | Due from dates ranging from August 9, 2020 to March 26, 2021 | |||
Shares issued during period as incentive for loans | 24,050 | ||||
Shares issued during period as incentive for loans, value recorded as discount | $ 119,875 | ||||
Amortization of debt discounts | 119,875 | ||||
Interest expense | 29,860 | 27,886 | |||
Unamortized debt discount | $ 42,351 | ||||
Unsecured Notes Three [Member] | |||||
Debt instrument interest rate | 6.00% | 6.00% | |||
Debt instrument maturity date | Nov. 30, 2018 | Nov. 30, 2018 | |||
Interest expense | $ 0 | 21,506 | |||
Unamortized debt discount | 0 | ||||
Original issue discount | $ 22,222 | ||||
Secured Notes [Member] | |||||
Debt instrument maturity date | Nov. 30, 2019 | Nov. 30, 2019 | |||
Amortization of debt discounts | $ 117,828 | $ 4,283,650 | |||
Interest expense | 4,018,560 | $ 0 | $ 4,316,808 | ||
Unamortized debt discount | 0 | ||||
Original issue discount | 117,828 | $ 117,828 | $ 117,828 | ||
Debt instrument face amount | 1,178,190 | $ 6,000,000 | |||
Debt instrument interest rate terms | The note accrues interest at LIBOR plus 100 basis points | ||||
Debt maturity term | 5 years | ||||
Shares issued during period | 150,000 | ||||
Warrants purchase to shares of common stock | 1,500,000 | ||||
Shares issued price per share | $ 4 | ||||
Warrants term | 5 years | ||||
Debt issuance costs | $ 178,228 | ||||
Shares issued during period, value | 378,916 | ||||
Fair value of warrants | $ 3,726,506 | ||||
Repayments of notes | 4,821,810 | ||||
Notes payable | $ 1,296,018 | ||||
Notes Payable to Merchant Bank [Member] | |||||
Debt instrument interest rate | 15.00% | ||||
Debt instrument frequency of periodic payment | daily | ||||
Debt instrument periodic payment | $ 813 | ||||
Line of Credit [Member] | |||||
Debt instrument interest rate | 15.00% | ||||
Debt instrument frequency of periodic payment | weekly | ||||
Debt instrument periodic payment | $ 3,038 | ||||
Line of credit, maximum borrowing capacity | $ 65,000 | ||||
Notes Payable to Merchant Bank One [Member] | |||||
Debt instrument interest rate | 79.00% | ||||
Debt instrument frequency of periodic payment | 26 weekly payments | ||||
Debt instrument periodic payment | $ 1,401 | ||||
Notes Payable to Merchant Bank Two [Member] | |||||
Debt instrument interest rate | 128.00% | ||||
Debt instrument frequency of periodic payment | 130 daily payments | ||||
Debt instrument periodic payment | $ 1,558 | ||||
Notes Payable to Merchant Bank Three [Member] | |||||
Debt instrument interest rate | 138.00% | ||||
Debt instrument frequency of periodic payment | 125 daily payments | ||||
Debt instrument periodic payment | $ 1,644 | ||||
Notes Payable to Merchant Bank Four [Member] | |||||
Debt instrument interest rate | 155.00% | ||||
Debt instrument frequency of periodic payment | 120 daily payments | ||||
Debt instrument periodic payment | $ 1,738 | ||||
Notes Payable to Merchant Bank Five [Member] | |||||
Debt instrument interest rate | 159.00% | ||||
Debt instrument frequency of periodic payment | 115 daily payments | ||||
Debt instrument periodic payment | $ 2,978 | ||||
Notes Payable to Merchant Bank Six [Member] | |||||
Debt instrument interest rate | 5.00% | ||||
Debt instrument maturity date | Dec. 31, 2019 |
Notes Payable - Schedule of Out
Notes Payable - Schedule of Outstanding Notes Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Disclosure [Abstract] | ||
Notes payable, beginning of the period | $ 2,617,970 | |
Issued for cash | 1,951,300 | $ 7,346,378 |
Repayments | (967,652) | (6,024,041) |
Amortization of debt discounts | 29,860 | $ 4,366,180 |
Notes payable, end of the period | $ 3,631,478 |
Lease Obligations (Details Narr
Lease Obligations (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Weighted-average remaining lease term | 1 year 5 months 16 days | |
Weighted average discount rate | 5.00% | |
Depreciation expense of finance lease costs | $ 730,399 | $ 312,574 |
Interest expense | $ 157,192 | $ 70,306 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Lease Obligations (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Lease obligations | $ 2,505,411 | $ 3,790,147 |
Less current portion | (1,358,002) | (1,562,651) |
Long-term portion | $ 1,147,409 | $ 2,227,496 |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Outstanding Lease Obligations (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Lease obligations, beginning balance | $ 3,790,147 |
New lease obligations | 510,136 |
Disposal of leased vehicles | (769,009) |
Payments on lease obligations | (1,025,863) |
Lease obligations, ending balance | $ 2,505,411 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Capital stock shares authorized | 100,000,000 | |
Common tock shares authorized | 90,000,000 | 90,000,000 |
Common stock par value | $ 0.000001 | $ 0.000001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock par value | $ 0.000001 | $ 0.000001 |
Charge to earnings for settlement of debt | $ 252,900 | |
Vendors [Member] | ||
Number of shares issued in satisfication of accounts payable and accrued expenses | 84,300 | |
Accounts payable and accrued expenses | $ 421,500 | |
Number of shares issued in satisfication of accounts payable and accrued expenses, value | $ 674,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Equity [Abstract] | |
Number of Shares Options Outstanding, Beginning Balance | shares | 300,000 |
Number of Options, Granted | shares | |
Number of Options, Forfeited | shares | |
Number of Options, Exercised | shares | |
Number of Shares Options Outstanding, Ending Balance | shares | 300,000 |
Number of Shares Options, Exercisable | shares | 300,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 8 |
Weighted Average Exercise Price, Granted | $ / shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | 8 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ / shares | $ 8 |
Weighted Average Remaining Contractual Life Outstanding, Beginning | 2 years |
Weighted Average Remaining Contractual Life Outstanding, Ending | 1 year 2 months 30 days |
Weighted Average Remaining Contractual Life, Exercisable | 1 year 2 months 30 days |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | |
Aggregate Intrinsic Value Outstanding, Exercisable Ending | $ |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Options Outstanding by Exercise Price Range (Details) | Sep. 30, 2019$ / sharesshares |
Number of Options Outstanding | 300,000 |
Number of Options Exercisable | 300,000 |
Exercise Price Range [Member] | |
Number of Options Outstanding | 300,000 |
Exercise Price Outstanding | $ / shares | $ 8 |
Number of Options Exercisable | 300,000 |
Exercise Price Exercisable | $ / shares | $ 8 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Warrant Activity (Details) | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Equity [Abstract] | |
Number of Shares, Warrants Outstanding Beginning | shares | 1,500,000 |
Number of Shares, Warrants Granted | shares | |
Number of Shares, Warrants Forfeited | shares | |
Number of Shares, Warrants Exercised | shares | |
Number of Shares, Warrants Outstanding Ending | shares | 1,500,000 |
Number of Shares, Warrants Exercisable Ending | shares | 1,500,000 |
Weighted Average Exercise Price, Warrants Outstanding Beginning | $ / shares | $ 4 |
Weighted Average Exercise Price, Warrants Granted | $ / shares | |
Weighted Average Exercise Price, Warrants Forfeited | $ / shares | |
Weighted Average Exercise Price, Warrants Exercised | $ / shares | |
Weighted Average Exercise Price, Warrants Outstanding Ending | $ / shares | 4 |
Weighted Average Exercise Price, Per Share Exercisable | $ / shares | $ 4 |
Weighted Average Remaining Contractual Life, Warrants Outstanding Beginning | 4 years 5 months 9 days |
Weighted Average Remaining Contractual Life, Warrants Outstanding Ending | 3 years 8 months 9 days |
Weighted Average Remaining Contractual Life, Warrants Exercisable | 3 years 8 months 9 days |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | $ | $ 6,000,000 |
Aggregate Intrinsic Value, Warrants Outstanding Ending | $ | |
Aggregate Intrinsic Value, Exercisable | $ |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Warrants Outstanding by Exercise Price Range (Details) | Sep. 30, 2019$ / sharesshares |
Number of Warrants Outstanding and Exercisable | 1,500,000 |
Exercise Price Range [Member] | |
Number of Warrants Outstanding and Exercisable | 1,500,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 4 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Advertising expense | $ 182,645 | $ 125,995 |
Accounts payable to releated party | 160,334 | 334,471 |
Notes payable | 880,000 | 790,000 |
Chief Executive Officer and Director [Member] | ||
Paid management fees | 180,000 | |
Paid for consulting agreement amount | 167,000 | |
Chief Executive Officer [Member] | ||
Advertising expense | $ 138,747 | $ 54,880 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - Initial Public Offering [Member] | Nov. 15, 2019USD ($)$ / sharesshares |
Issuance of common stock for cash, shares | shares | 2,625,000 |
Share issued price per share | $ / shares | $ 4 |
Total gross proceeds | $ | $ 10,500,000 |