Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 13, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-39132 | |
Entity Registrant Name | EVMO,INC. | |
Entity Central Index Key | 0001691077 | |
Entity Tax Identification Number | 95-3261426 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 433 N. Camden Drive | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Beverly Hills | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90210 | |
City Area Code | (310) | |
Local Phone Number | 926-2643 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,505,554 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 162,727 | $ 72,890 |
Accounts receivable | 428,623 | 119,239 |
Prepaid expenses | 171,405 | 23,861 |
Deferred offering costs | 251,918 | |
Total current assets | 1,014,673 | 215,990 |
Property and equipment, net | 46,471 | 1,908 |
Rental vehicles, net | 8,010,050 | 6,196,433 |
Right of use asset | 210,763 | |
Other assets | 200,000 | 200,000 |
TOTAL ASSETS | 9,481,957 | 6,614,331 |
Current Liabilities: | ||
Accounts payable (including $546,746 and $590,176 to related party) | 2,274,029 | 1,157,299 |
Accrued expenses | 103,067 | 961,704 |
Convertible note payable, (net of discount of $1,103,849 and $0) | 1,146,151 | |
Notes payables, current (net of discount of $0 and $1,973) | 611,880 | 666,132 |
Customer deposit - related party | 150,000 | |
Advance from related parties | 100,000 | |
Finance lease obligations, current | 1,532,320 | 1,426,425 |
Operating lease obligations, current | 133,559 | |
Total current liabilities | 5,801,006 | 4,461,560 |
Note payable, net of current portion | 148,863 | 149,414 |
Finance lease obligations, net of current portion | 1,554,858 | 926,453 |
Operating lease obligations, net of current portion | 87,615 | |
TOTAL LIABILITIES | 7,592,342 | 5,537,427 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding | ||
Common stock, $0.000001 par value; 90,000,000 shares authorized; 35,387,524 and 31,981,374 shares issued and outstanding | 35 | 32 |
Additional paid-in capital | 36,817,909 | 29,750,864 |
Accumulated deficit | (34,928,329) | (28,673,992) |
Total stockholders’ equity | 1,889,615 | 1,076,904 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 9,481,957 | $ 6,614,331 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts payable related party | $ 546,746 | $ 590,176 |
Convertible notes payable discount, current | 1,103,849 | 0 |
Notes payable discount, current | $ 0 | $ 1,973 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 35,387,524 | 31,981,374 |
Common stock, shares outstanding | 35,387,524 | 31,981,374 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,652,083 | $ 1,580,555 | $ 4,946,615 | $ 3,328,197 |
Cost of revenue | 1,915,294 | 1,295,059 | 3,696,197 | 2,696,350 |
Gross profit | 736,789 | 285,496 | 1,250,418 | 631,847 |
Operating expenses: | ||||
Selling and marketing expenses | 64,816 | 79,133 | 230,564 | 210,642 |
Product development | 50,766 | 60,266 | ||
General and administrative expenses | 1,493,494 | 861,410 | 2,932,595 | 2,757,616 |
Total operating expenses | 1,609,076 | 940,543 | 3,223,425 | 2,968,258 |
Loss from operations | (872,287) | (655,047) | (1,973,007) | (2,336,411) |
Other income (expense): | ||||
Interest and financing costs | (964,387) | (67,795) | (4,289,330) | (147,651) |
Gain on forgiveness of debt | 8,000 | |||
Total other income (expense) | (964,387) | (67,795) | (4,281,330) | (147,651) |
Net loss | $ (1,836,674) | $ (722,842) | $ (6,254,337) | $ (2,484,062) |
Weighted average shares outstanding : | ||||
Basic | 35,333,924 | 31,064,184 | 34,364,066 | 30,245,994 |
Diluted | 35,333,924 | 31,064,184 | 34,364,066 | 30,245,994 |
Loss per share | ||||
Basic | $ (0.05) | $ (0.02) | $ (0.18) | $ (0.08) |
Diluted | $ (0.05) | $ (0.02) | $ (0.18) | $ (0.08) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 29 | $ 28,735,894 | $ (25,171,915) | $ 3,564,008 |
Beginning Balance, shares at Dec. 31, 2019 | 29,427,803 | |||
Stock option expense | 457,242 | 457,242 | ||
Net loss | (1,761,220) | (1,761,220) | ||
Ending balance, value at Mar. 31, 2020 | $ 29 | 29,193,136 | (26,933,135) | 2,260,030 |
Ending Balance, shares at Mar. 31, 2020 | 29,427,803 | |||
Beginning balance, value at Dec. 31, 2019 | $ 29 | 28,735,894 | (25,171,915) | 3,564,008 |
Beginning Balance, shares at Dec. 31, 2019 | 29,427,803 | |||
Net loss | (2,484,062) | |||
Ending balance, value at Jun. 30, 2020 | $ 32 | 29,468,133 | (27,655,977) | 1,812,188 |
Ending Balance, shares at Jun. 30, 2020 | 31,981,374 | |||
Beginning balance, value at Mar. 31, 2020 | $ 29 | 29,193,136 | (26,933,135) | 2,260,030 |
Beginning Balance, shares at Mar. 31, 2020 | 29,427,803 | |||
Issuance of common stock for cash | $ 3 | 274,997 | 275,000 | |
Issuance of common stock for cash, shares | 2,553,571 | |||
Net loss | (722,842) | (722,842) | ||
Ending balance, value at Jun. 30, 2020 | $ 32 | 29,468,133 | (27,655,977) | 1,812,188 |
Ending Balance, shares at Jun. 30, 2020 | 31,981,374 | |||
Beginning balance, value at Dec. 31, 2020 | $ 32 | 29,750,864 | (28,673,992) | 1,076,904 |
Beginning Balance, shares at Dec. 31, 2020 | 31,981,374 | |||
Issuance of common stock for cash | 50,000 | 50,000 | ||
Issuance of common stock for cash, shares | 100,000 | |||
Issuance of common stock for exercise of stock options | 15,400 | 15,400 | ||
Issuance of common stock for exercise of stock options, shares | 35,000 | |||
Issuance of common stock for cashless exercise of stock options | $ 1 | (1) | ||
Issuance of common stock for cashless exercise of stock options, shares | 960,550 | |||
Issuance of common stock for settlement of litigation | 1,103,750 | 1,103,750 | ||
Issuance of common stock for settlement of litigation, shares | 225,000 | |||
Issuance of common stock for conversion of convertible debt | $ 1 | 499,999 | 500,000 | |
Issuance of common stock for conversion of convertible debt, shares | 1,000,000 | |||
Issuance of common stock for settlement agreement | $ 1 | 3,240,599 | 3,240,600 | |
Issuance of common stock for settlement agreement, shares | 825,000 | |||
Issuance of common stock for financing cost | 1,440 | 1,440 | ||
Issuance of common stock for financing cost, shares | 600 | |||
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) | ||
Ending balance, value at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Ending Balance, shares at Mar. 31, 2021 | 35,127,524 | |||
Beginning balance, value at Dec. 31, 2020 | $ 32 | 29,750,864 | (28,673,992) | 1,076,904 |
Beginning Balance, shares at Dec. 31, 2020 | 31,981,374 | |||
Issuance of common stock for exercise of stock options, shares | 295,000 | |||
Net loss | (6,254,337) | |||
Ending balance, value at Jun. 30, 2021 | $ 35 | 36,817,909 | (34,928,329) | 1,889,615 |
Ending Balance, shares at Jun. 30, 2021 | 35,387,524 | |||
Beginning balance, value at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Beginning Balance, shares at Mar. 31, 2021 | 35,127,524 | |||
Issuance of common stock for exercise of stock options | 71,700 | 71,700 | ||
Issuance of common stock for exercise of stock options, shares | 260,000 | |||
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) | ||
Ending balance, value at Jun. 30, 2021 | $ 35 | $ 36,817,909 | $ (34,928,329) | $ 1,889,615 |
Ending Balance, shares at Jun. 30, 2021 | 35,387,524 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (6,254,337) | $ (2,484,062) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 995,123 | 669,367 |
Stock option expense | 297,974 | 457,242 |
Amortization of debt discounts | 476,891 | 19,906 |
Common stock issued for financing costs | 1,440 | |
Common stock issued for settlement agreement | 3,240,600 | |
Gain on forgiveness of debt | (8,000) | |
Fair value of warrants issued for financing costs | 457,417 | |
Operating lease expense | 47,458 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (309,384) | 15,769 |
Prepaid expenses | (147,544) | 233,496 |
Accounts payable | 1,308,562 | 789,267 |
Accrued expenses | (163,637) | (40,184) |
Customer deposit - related party | (150,000) | |
Operating lease liability | (37,047) | |
Net cash used in operating activities | (244,484) | (339,199) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (47,051) | |
Net cash used in investing activities | (47,051) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 50,000 | 275,000 |
Proceeds from exercise of stock options | 87,100 | |
Proceeds from advance from related parties | 503,766 | 150,000 |
Repayment of advance from related parties | (603,766) | (150,000) |
Proceeds from convertible note payable | 2,500,000 | |
Proceeds from notes payable | 342,675 | |
Repayment of notes payable | (48,776) | |
Repayment of finance lease obligations | (2,071,952) | (1,431,665) |
Payment of deferred offering costs | (35,000) | |
Net cash provided by (used in) financing activities | 381,372 | (813,990) |
NET INCREASE (DECREASE) IN CASH | 89,837 | (1,153,189) |
CASH, BEGINNING OF PERIOD | 72,890 | 1,256,429 |
CASH, END OF PERIOD | 162,727 | 103,240 |
CASH PAID FOR: | ||
Interest | 102,446 | 127,745 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 1,103,750 | |
Finance lease obligations | $ 3,705,417 | $ 2,246,285 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
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 EVmo, Inc. (the “Company”) was organized on June 21, 2016 under the laws of the state of Delaware as a limited liability company. It subsequently converted to a C corporation, also incorporated in Delaware, named YayYo, Inc. On September 11, 2020, the Company changed its name to Rideshare Rental, Inc. and on March 1, 2021, the Company again changed its name, this time to EVmo, Inc. The Company’s principal business is to rent vehicles to drivers who work for ridesharing Transportation Network Companies (“TNCs”) such as Uber and Lyft, as well as to drivers in the delivery gig-economy that work for companies such as DoorDash and GrubHub. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”). Risk and Uncertainties On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, 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 our cash flows, but we then saw a positive upward movement in revenue during the second half of 2020, which has continued into the first half of 2021. As of the date of this quarterly report, several vaccinations for COVID-19 have received emergency-use authorization from the Food and Drug Administration and many of the lockdown restrictions imposed by state and local governments have abated. Still, the pandemic has not yet ended, and there have been multiple waves where infections, hospitalizations, and deaths have sharply increased. Most recently, variants of the original virus have been identified, and many Americans have resisted obtaining one of the vaccinations, both of which have resulted in increases in the aggregate number of infections. We therefore cannot predict the ultimate impact that COVID-19 may have on our business over the entirety of this year, and possibly beyond. Interim financial statements The unaudited condensed consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The information furnished herein reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are necessary to fairly state the Company’s financial position, the results of its operations, and cash flows for the periods presented. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to such rules and regulations. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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 operating subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, LLC. All significant intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP 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 Six Months Ended June 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 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 Long-Lived Assets The Company applies the provisions of the Financial Standards Accounting Board (“FASB”)’s Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment 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 based on the rental agreements, which are generally entered into on a weekly basis. The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue From Contracts with Customers 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. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 2,006,250 warrants and 1,515,000 options outstanding as of June 30, 2021 and 1,631,250 warrants and 716,000 options outstanding as of June 30, 2020. Basic and Diluted Earnings Per Share Earnings per share (“EPS”) is calculated in accordance with ASC Topic 260, Earnings Per Share 0.000001 (the “Common Stock”) at the average market price during the period. Due to the net loss incurred, potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented. There were 3,521,250 and 2,347,250 potentially dilutive options and warrants outstanding at June 30, 2021 and 2020, respectively, and 750,000 shares potentially issuable upon the conversion of an outstanding convertible note at June 30, 2021. Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the six months ended June 30, 2021 and 2020 were $ 230,564 210,642 Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted, unadjusted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, as well as other than quoted prices for identical assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. At June 30, 2021 and December 31, 2020, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Recent Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes, Income Taxes EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity Management does not believe that any recently issued, but not yet effective, accounting updates could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment At June 30, 2021 and December 31, 2020, property and equipment consisted of the following: Schedule of Property and Equipment June 30, December 31, 2021 2020 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 - Leasehold improvement 29,650 - 53,097 6,046 Less accumulated depreciation (6,626 ) (4,138 ) Equipment, net $ 46,471 $ 1,908 Depreciation expense for equipment for the six months ended June 30, 2021 and 2020 was $ 2,488 744 |
Rental Vehicles
Rental Vehicles | 6 Months Ended |
Jun. 30, 2021 | |
Rental Vehicles | |
Rental Vehicles | Note 4 – Rental Vehicles At June 30, 2021 and December 31, 2020, all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles June 30, December 31, 2021 2020 Rental vehicles $ 11,874,137 $ 9,067,885 11,874,137 9,067,885 Less accumulated depreciation (3,864,087 ) (2,871,452 ) Rental vehicles, net $ 8,010,050 $ 6,196,433 The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five 992,635 668,623 30 36 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at June 30, 2021 and December 31, 2020 consisted of the following: Schedule of Notes Payable June 30, December 31, 2021 2020 Notes payable to individual investors; accrue interest at 8% principal payments equal to 1/12 of original balance plus interest due quarterly August 9, 2020 March 26, 2021 $ 304,667 $ 304,667 Note payable to the Small Business Administration. The note bears interest at 3.75% requires monthly payments of $731 after 24 months from funding due 30 years from the date of issuance. 148,863 149,414 Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months 1% $184,775 - 8,000 Notes payable to a finance company, default interest at 14% 10,000 40,000 December 15, 2021 307,213 355,438 Total notes payable 760,743 817,519 Unamortized debt discount - (1,973 ) Notes payable, net discount 760,743 815,546 Less current portion (611,880 ) (666,132 ) Long-term portion $ 148,863 $ 149,414 (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 119,875 119,875 1,973 19,906 0 A roll-forward of notes payable from December 31, 2020 to June 30, 2021 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2020 $ 815,546 Forgiveness of note payable (8,000 ) Repayments (48,776 ) Amortization of debt discounts 1,973 Notes payable, June 30, 2021 $ 760,743 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
Convertible Notes
Convertible Notes | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Notes | |
Convertible Notes | 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 accrued interest at a fixed rate of 6% and had a maturity date of January 6, 2022 . Any unpaid principal balance on the convertible note could be converted at any time, at the option of Mr. Gray, into shares of Common Stock at a price of $ 0.50 per share. The Company recorded a beneficial conversion feature associated with this convertible note of $ 30,000, which was recorded as a debt discount. On February 12, 2021, Mr. Gray converted the full amount of the convertible promissory note into 1,000,000 shares of Common Stock. On April 12, 2021, the Company entered into a securities purchase agreement with a certain investor in connection with the issuance, as of that same date, of a 12.5% original issue discount convertible promissory note and a Common Stock purchase warrant. The note had an original principal amount of $ 2,250,000 , with an original issue discount of $ 250,000 . It bore interest at a fixed rate of 10% , was convertible into shares of Common Stock at a price of $ 3.00 per share (subject to adjustment as set forth in the note), and was to mature on January 12, 2022 . The warrant grants the right to purchase 187,500 shares of Common Stock at an exercise price of $ 3.00 , subject to adjustment as set forth therein, and is exercisable at any time within five years of the date of issuance. The agreement provides that additional warrants, each for 93,750 shares of Common Stock with an exercise price of $3.00 per share, will be issued by the Company to the investor on the 12th day of each month that the note remained outstanding. Both the note and the warrant include anti-dilution provisions in which the conversion price of the note and the exercise price of the warrant will be reduced to equal the conversion or exercise price, as applicable, of any subsequently-issued derivative security to acquire shares of Common Stock, or their equivalent, should that conversion or exercise price be lower than that of the note or the warrant. To account for the note and warrant, the Company first determined the value of the note and the fair value of the detachable warrants issued in connection with this convertible note. The estimated value of the warrants of $ 623,373 was determined using the Black-Scholes option pricing model and the following assumptions: a term of five years, a risk-free interest rate of .089% , a dividend yield of 0% and volatility of 190% . The face amount of the convertible note of $2,250,000 was proportionately allocated to the convertible note and the warrant in the amount of $ 1,761,866 and $ 488,134 , respectively. Since the Company’s stock price exceeded the conversion price on the transaction date, there is an embedded beneficial conversion feature present in the convertible note of $ 810,633 . The combined discount of $ 1,298,767 plus the original issue discount are recorded as a debt discount to the convertible note and are being amortized over the year life of the note. Please see Note 13- Subsequent Events for a description of how the note described immediately above has since been cancelled, and Series B convertible preferred stock has been issued to the investor. A roll-forward of convertible notes from December 31, 2020 to June 30, 2021 is below: Schedule of Convertible Notes Convertible notes, December 31, 2020 $ - Issued for cash 2,500,000 Issued for original issue discount 250,000 Debt discount related to convertible notes (1,578,767 ) Conversion to Common Stock (500,000 ) Amortization of debt discounts 474,918 Convertible notes, June 30, 2021 $ 1,146,151 |
Financing Lease Obligations
Financing Lease Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Financing Lease Obligations | |
Financing Lease Obligations | Note 7 – Financing Lease Obligations Lease obligations at June 30, 2021 and December 31, 2020 consisted of the following: Schedule of Lease Obligations June 30, December 31, 2021 2020 Lease obligations $ 3,087,178 $ 2,352,878 Less current portion (1,532,320 ) (1,426,425 ) Long-term portion $ 1,554,858 $ 926,453 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) A roll-forward of lease obligations from December 31, 2020 to June 30, 2021 is below: Schedule of Outstanding Lease Obligations Lease obligations, December 31, 2020 $ 2,352,878 New lease obligations 3,049,261 Disposal of leased vehicles (243,009 ) Payments on lease obligations (2,071,952 ) Lease obligations, June 30, 2021 $ 3,087,178 Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Twelve Months Ending June 30, 2022 $ 1,663,320 2023 1,099,666 2024 540,146 Total payments 3,303,132 Amount representing interest (215,954 ) Lease obligation, net $ 3,087,178 |
Operating Lease Obligations
Operating Lease Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Operating Lease Obligations | |
Operating Lease Obligations | Note 8 – Operating Lease Obligations The Company determines whether a contract is or contains a lease at inception and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company leases its corporate office space under an operating lease that expires in 2023. The Company accounts for this lease under the provisions of ASC Topic 842, Leases. The table below presents the lease-related assets and liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2021: Schedule of Operating Lease Obligations June 30, Classification on Balance Sheet 2021 Assets Operating lease assets Operating lease right of use assets $ 210,763 Total lease assets $ 210,763 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 133,559 Noncurrent liabilities Operating lease liability Long-term operating lease liability 87,615 Total lease liability $ 221,174 Lease obligations at June 30, 2021 consisted of the following: Schedule of Lease Obligation Maturity Twelve Months Ending June 30, 2022 $ 157,800 2023 92,050 Total payments 249,850 Less: imputed interest (28,676 ) Total obligation 221,174 Less: current portion (133,559 ) Non-current capital leases obligations $ 87,615 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) The lease expense for the six months ended June 30, 2021 was $ 63,010 . The cash paid under operating leases for the six months ended June 30, 2021 was $ 52,600 . At June 30, 2021, the weighted-average remaining lease term was 1.51 years and the weighted-average discount rate was 15% . |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 9 – Stockholders’ Equity The Company authorized 100,000,000 90,000,000 0.000001 10,000,000 0.000001 Common Stock During the six months ended June 30, 2021, the Company: ● issued 100,0000 0.50 50,000 ● issued 295,000 295,000 87,100 ● issued 960,550 1,000,000 ● issued 600 ● issued 1,000,000 500,000 ● issued an aggregate of 225,000 1,103,750 ● issued 825,000 shares to Acuitas Group Holdings, LLC, (“Acuitas”) which is now the Company’s largest shareholder, in connection with a settlement agreement between Acuitas and X, LLC, a limited liability company controlled by the Company’s former chief executive officer. The value of the shares was $ 3,240,600, which was based on the market price of the Common Stock at the date of the settlement agreement. The $ 3,240,600 was expensed as financing costs, as the dispute underlying the settlement agreement related to the anti-dilution of a prior investment in the Company by Acuitas. Stock Options and Warrants The following is a summary of stock option activity: Summary of Stock Option Activity Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Granted 270,000 0.51 Forfeited - 0.00 Exercised (1,295,000 ) 0.230 Outstanding, June 30, 2021 1,515,000 $ 0.29 4.09 $ 2,769,275 Exercisable, June 30, 2021 772,500 $ 0.34 4.11 $ 1,390,384 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) The exercise price for options outstanding and exercisable at June 30, 2021: Schedule of Options Outstanding by Exercise Price Range Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.210 15,000 $ 0.210 1,305,000 0.215 648,125 0.215 15,000 0.220 0 0.220 155,000 0.530 89,375 0.530 20,000 3.800 20,000 3.800 1,515,000 772,500 The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Granted 375,000 3.00 Forfeited - Exercised - Outstanding, June 30, 2021 2,006,250 $ 3.88 2.44 $ - Exercisable, June 30, 2021 2,006,250 $ 3.88 2.44 $ - The exercise price for warrants outstanding at June 30, 2021: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Exercise Warrants Price 375,000 $ 3.00 1,500,000 4.00 131,250 5.00 2,006,250 In connection with a convertible note discussed in Note 6, the Company has issued an aggregate of 187,500 451,415 Schedule of Assumptions Used Risk-free interest rate 0.76 0.87 Expected life of the options 5 Expected volatility 190 % Expected dividend yield 0 % EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions During the six months ended June 30, 2021 and 2020, the Company expensed $ 1,618,441 and $ 1,103,460 , respectively, in insurance expense related to insuring the Company fleet of vehicles from an insurance brokerage firm whose owner is also a principal stockholder of the Company. At June 30, 2021 and December 31, 2020, $ 546,746 and $ 265,257 , respectively, was owed to this insurance brokerage from and is included in accounts payable in the accompanying consolidated balance sheets. The Company’s Executive Chairman, Terren S. Peizer, and its former chief executive officer (“CEO”), Ramy El-Batrawi, each made financial advances to the Company that were outstanding during the first six months of fiscal 2021. At December 31, 2020, the Company owed its former CEO $ 100,000 503,767 and was repaid $ 503,767 and Mr. El-Batrawi was repaid the $ 100,000 outstanding from fiscal 2020 . At June 30, 2021, the Company owed its Executive Chairman and its former CEO $ 0 and $ 0 , respectively. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 11 – Contingencies Legal Proceedings From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. The Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash flows, other than those described below. Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi A complaint was filed on March 5, 2020, in the Los Angeles Superior Court by plaintiff Anthony Davis, who was hired by the Company as its CEO and as a director on or about December 2016. Mr. Davis’s employment with the Company ended after several months. As part of his compensation, Mr. Davis alleges that he expected to receive stock options in the Company. In his pleadings, Mr. Davis admits that he resigned from his executive officer and director positions, but asserts that he did not receive certain compensation in the form of stock options (he has also included a claim for wage and hour violations). The Company denies liability and has asserted that it has paid Mr. Davis all amounts due to him under his employment agreement, while also asserting that Mr. Davis failed to exercise his stock options before they expired on December 31, 2018. The Company has filed a demurrer to the first amended complaint, which is expected to be heard on September 8, 2021 in Superior Court. The Company’s position is that the lawsuit entirely lacks merit, and intends to defend it vigorously. Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 and Michael Vanbecelaere v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV28066 (Vanbecelaere)(hereafter the “State Cases”) On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior Court. The complaints underlying the State Cases differ only by a few words and some random punctuation marks, and are therefore virtually identical. Plaintiffs Ivan Rung and Michael Vanbecelaere each claimed to have purchased the Common Stock as part of the Company’s initial public offering (the “IPO”); they purport to bring a securities class action on behalf of all purchasers of the Common Stock pursuant to the registration statement and prospectus filed with the SEC and distributed in connection with the Company’s IPO, which was launched on November 14, 2019. The State Case complaints allege misrepresentations and material omissions in the SEC filings in violation of Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”). The Company has and continues to vigorously deny any and all liability and asserts that the State Cases are baseless. It is the Company’s firm position that it accurately and completely disclosed all material facts and circumstances in its SEC filings relating to the IPO, and subsequently in its periodic SEC reports, including those that were potentially adverse to the Company’s operations and business prospects. The State Cases litigation is presently stayed pending the outcome of the federal securities case discussed below ( Hamlin v. YayYo, Inc EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) Jason Hamlin v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8235 (SVW) and William Koch v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8591 (SVW)(now consolidated as “In re YayYo Securities Litigation”) These two actions were filed on September 9, 2020 and September 18, 2020, respectively, in the United States District Court for the Central District of California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the Common Stock as part of the IPO and, like the plaintiffs in the State Cases, purport to bring a securities class action pursuant to Sections 11 and 15 of the Securities Act, as well as and Section 17(a) and 10(b)(5) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on behalf of all purchasers of the Common Stock in the IPO. The first amended complaint, like the State Cases, alleges false statements and material omissions of material fact in connection with the SEC filings distributed in connection with the IPO. The defendants include directors of the Company and the underwriters of the IPO, WestPark Capital, Inc. (“WestPark”) and Aegis Capital Corp. The federal court has consolidated the two matters for all practical purposes. As with the State Cases, the Company denies liability and asserts that it accurately and completely disclosed all material facts and circumstances in its SEC filings, and that the complaint’s alleged violations of securities laws are baseless. The Company’s motion for judgment on the pleadings was recently denied, and the plaintiff’s motion for class action certification is presently pending. The Company intends to vigorously defend the lawsuit in federal court. The Court has set a trial date of October 5, 2021. Konop v. El-Batrawi, et al., 1:20-cv-1379- MN (Filed in Del. District Court) On October 12, 2020 a complaint was filed in Delaware District Court, which has since been transferred to the U.S. District Court for the Central District of California, and assigned as a related case to the judge in the pending federal securities action described immediately above. This case is a purported shareholder derivative action, which alleges that the Company’s executive officers and directors at the time of its IPO made false and misleading statements relating the Company’s business, operations, and future prospects and that the directors breached their fiduciary duties in doing so. The Company believes that the allegations of the complaint are spurious and will vigorously defend the case at trial. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
Settlements
Settlements | 6 Months Ended |
Jun. 30, 2021 | |
Settlements | |
Settlements | 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. This litigation was commenced by FirstFire in April 2020 and subsequently amended in December 2020. FirstFire was a subscriber to the Company’s IPO. It alleged in the litigation that the Company and the other named defendants had, in connection with the IPO and the registration statement on Form S-1 filed thereto, committed violations of Sections 11, 12(a) and 15 of the Securities Act, Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated under the Exchange Act. Each of the Company, WestPark, Mr. Rappaport and Mr. El-Batrawi vigorously denied and disputed these allegations. In consideration of the releases, covenants, terms and conditions set forth in the Settlement Agreement, FirstFire agreed to dismiss the litigation with prejudice, to not file any further litigation relating to the IPO, and to waive and relinquish any and all claims on shares of Common Stock other than as specified in the Settlement Agreement. The Company agreed to sell to FirstFire one hundred fifty thousand ( 150,000 0.066667 10,000 Social Reality Settlement On February 19, 2021, the Company entered into a confidential settlement agreement and mutual release with SRAX, Inc., a Delaware corporation formerly known as Social Reality, Inc. (“SRAX”), relating to an action brought by SRAX against the Company in Los Angeles Superior Court on or around February 11, 2020. A description of this litigation has been included by the Company in its prior filings. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) The Company and SRAX mutually agreed to keep the material terms of this settlement confidential, subject to disclosure as required by applicable law or regulation. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events The Company has evaluated subsequent events through August 13, 2021. The Company has determined there were no subsequent events that require recognition or disclosure in the financial statements, except as discussed below. During the two months subsequent to June 30, 2021, the Company has issued an aggregate of 187,500 warrants pursuant to the terms of the convertible note agreement discussed in Note 6. 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 7.5 7.5 10.0% 1.5 0.000001 2.10 450,000 In connection with the Company’s entry into the Term Loan Agreement, the Company entered into an exchange agreement, dated as of July 8, 2021 (the “Exchange Agreement”), with the holder (the “Holder”) of the Company’s 12.5% OID convertible promissory notes (see Note 6) due January 12, 2022 issued on April 12, 2021 (the “Prior Notes”). Pursuant to the Exchange Agreement, the Holder agreed to exchange the Prior Notes for 230,375 0.000001 93,750 3.00 5 The Preferred Stock is convertible at any time at the option of the holder thereof into if not previously converted into shares of Common Stock at an initial conversion price of $ 3.00 The Preferred Stock is subject to mandatory redemption in full at a redemption price initially equal to $ 10.00 10 If at any time while the Preferred Stock is outstanding, the Company completes any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the holders of the Preferred Stock may, in their sole discretion, elect to apply all, or any portion, of the then outstanding Preferred Stock and any accrued but unpaid dividends, as purchase consideration for such Future Transaction. The conversion price applicable to such conversion shall equal seventy percent (70%) of the cash purchase price paid per share, unit or other security denomination for the securities of the Company issued to other investors in the Future Transaction. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned operating subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, LLC. All significant intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
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. |
Property and Equipment and Rental Vehicles | 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 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 |
Long-Lived Assets | Long-Lived Assets The Company applies the provisions of the Financial Standards Accounting Board (“FASB”)’s Accounting Standards Codification (“ASC”) Topic 360, Property, Plant, and Equipment no impairment charge was necessary. |
Revenue Recognition | Revenue Recognition The Company recognizes all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized based on the rental agreements, which are generally entered into on a weekly basis. The Company recognizes revenue in accordance with FASB ASC Topic 606, Revenue From Contracts with Customers |
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. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 2,006,250 warrants and 1,515,000 options outstanding as of June 30, 2021 and 1,631,250 warrants and 716,000 options outstanding as of June 30, 2020. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Earnings per share (“EPS”) is calculated in accordance with ASC Topic 260, Earnings Per Share 0.000001 (the “Common Stock”) at the average market price during the period. Due to the net loss incurred, potentially dilutive instruments would be anti-dilutive. Accordingly, diluted loss per share is the same as basic loss for all periods presented. There were 3,521,250 and 2,347,250 potentially dilutive options and warrants outstanding at June 30, 2021 and 2020, respectively, and 750,000 shares potentially issuable upon the conversion of an outstanding convertible note at June 30, 2021. |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the six months ended June 30, 2021 and 2020 were $ 230,564 210,642 |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC Subtopic 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted, unadjusted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, as well as other than quoted prices for identical assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest. At June 30, 2021 and December 31, 2020, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes, Income Taxes EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Six Months Ended June 30, 2021 and 2020 (unaudited) In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity Management does not believe that any recently issued, but not yet effective, accounting updates could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Lives of Equipment | Schedule of Estimated Lives of Equipment Computer equipment 5 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At June 30, 2021 and December 31, 2020, property and equipment consisted of the following: Schedule of Property and Equipment June 30, December 31, 2021 2020 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 - Leasehold improvement 29,650 - 53,097 6,046 Less accumulated depreciation (6,626 ) (4,138 ) Equipment, net $ 46,471 $ 1,908 |
Rental Vehicles (Tables)
Rental Vehicles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Rental Vehicles | |
Schedule of Rental Vehicles | At June 30, 2021 and December 31, 2020, all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles June 30, December 31, 2021 2020 Rental vehicles $ 11,874,137 $ 9,067,885 11,874,137 9,067,885 Less accumulated depreciation (3,864,087 ) (2,871,452 ) Rental vehicles, net $ 8,010,050 $ 6,196,433 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at June 30, 2021 and December 31, 2020 consisted of the following: Schedule of Notes Payable June 30, December 31, 2021 2020 Notes payable to individual investors; accrue interest at 8% principal payments equal to 1/12 of original balance plus interest due quarterly August 9, 2020 March 26, 2021 $ 304,667 $ 304,667 Note payable to the Small Business Administration. The note bears interest at 3.75% requires monthly payments of $731 after 24 months from funding due 30 years from the date of issuance. 148,863 149,414 Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months 1% $184,775 - 8,000 Notes payable to a finance company, default interest at 14% 10,000 40,000 December 15, 2021 307,213 355,438 Total notes payable 760,743 817,519 Unamortized debt discount - (1,973 ) Notes payable, net discount 760,743 815,546 Less current portion (611,880 ) (666,132 ) Long-term portion $ 148,863 $ 149,414 (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 119,875 119,875 1,973 19,906 0 |
Schedule of Outstanding Notes Payable | A roll-forward of notes payable from December 31, 2020 to June 30, 2021 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2020 $ 815,546 Forgiveness of note payable (8,000 ) Repayments (48,776 ) Amortization of debt discounts 1,973 Notes payable, June 30, 2021 $ 760,743 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Convertible Notes | |
Schedule of Convertible Notes | A roll-forward of convertible notes from December 31, 2020 to June 30, 2021 is below: Schedule of Convertible Notes Convertible notes, December 31, 2020 $ - Issued for cash 2,500,000 Issued for original issue discount 250,000 Debt discount related to convertible notes (1,578,767 ) Conversion to Common Stock (500,000 ) Amortization of debt discounts 474,918 Convertible notes, June 30, 2021 $ 1,146,151 |
Financing Lease Obligations (Ta
Financing Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financing Lease Obligations | |
Schedule of Lease Obligations | Lease obligations at June 30, 2021 and December 31, 2020 consisted of the following: Schedule of Lease Obligations June 30, December 31, 2021 2020 Lease obligations $ 3,087,178 $ 2,352,878 Less current portion (1,532,320 ) (1,426,425 ) Long-term portion $ 1,554,858 $ 926,453 |
Schedule of Outstanding Lease Obligations | A roll-forward of lease obligations from December 31, 2020 to June 30, 2021 is below: Schedule of Outstanding Lease Obligations Lease obligations, December 31, 2020 $ 2,352,878 New lease obligations 3,049,261 Disposal of leased vehicles (243,009 ) Payments on lease obligations (2,071,952 ) Lease obligations, June 30, 2021 $ 3,087,178 |
Schedule of Future Lease Obligations | Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Twelve Months Ending June 30, 2022 $ 1,663,320 2023 1,099,666 2024 540,146 Total payments 3,303,132 Amount representing interest (215,954 ) Lease obligation, net $ 3,087,178 |
Operating Lease Obligations (Ta
Operating Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating Lease Obligations | |
Schedule of Operating Lease Obligations | The table below presents the lease-related assets and liabilities recorded on the Company’s consolidated balance sheet as of June 30, 2021: Schedule of Operating Lease Obligations June 30, Classification on Balance Sheet 2021 Assets Operating lease assets Operating lease right of use assets $ 210,763 Total lease assets $ 210,763 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 133,559 Noncurrent liabilities Operating lease liability Long-term operating lease liability 87,615 Total lease liability $ 221,174 |
Schedule of Lease Obligation Maturity | Lease obligations at June 30, 2021 consisted of the following: Schedule of Lease Obligation Maturity Twelve Months Ending June 30, 2022 $ 157,800 2023 92,050 Total payments 249,850 Less: imputed interest (28,676 ) Total obligation 221,174 Less: current portion (133,559 ) Non-current capital leases obligations $ 87,615 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Summary of Stock Option Activity Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Granted 270,000 0.51 Forfeited - 0.00 Exercised (1,295,000 ) 0.230 Outstanding, June 30, 2021 1,515,000 $ 0.29 4.09 $ 2,769,275 Exercisable, June 30, 2021 772,500 $ 0.34 4.11 $ 1,390,384 |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at June 30, 2021: Schedule of Options Outstanding by Exercise Price Range Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.210 15,000 $ 0.210 1,305,000 0.215 648,125 0.215 15,000 0.220 0 0.220 155,000 0.530 89,375 0.530 20,000 3.800 20,000 3.800 1,515,000 772,500 |
Summary of Warrant Activity | The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Granted 375,000 3.00 Forfeited - Exercised - Outstanding, June 30, 2021 2,006,250 $ 3.88 2.44 $ - Exercisable, June 30, 2021 2,006,250 $ 3.88 2.44 $ - |
Schedule of Warrants Outstanding by Exercise Price Range | The exercise price for warrants outstanding at June 30, 2021: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Exercise Warrants Price 375,000 $ 3.00 1,500,000 4.00 131,250 5.00 2,006,250 |
Schedule of Assumptions Used | Schedule of Assumptions Used Risk-free interest rate 0.76 0.87 Expected life of the options 5 Expected volatility 190 % Expected dividend yield 0 % |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Incorporation, Date of Incorporation | Jun. 21, 2016 |
Entity Incorporation, State or Country Code | DE |
Schedule of Estimated Lives of
Schedule of Estimated Lives of Equipment (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
Officer Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated use of lives, description | 15 years or term of lease whichever is less |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | ||
Tax Examination, Description | 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. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,006,250 | 1,631,250 | |
Common Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,521,250 | 2,347,250 | |
Advertising costs | $ 230,564 | $ 210,642 | |
Convertible Notes Payable [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Debt Conversion, Converted Instrument, Shares Issued | 750,000 | ||
Warrants [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,006,250 | 1,631,250 | |
Options [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,515,000 | 716,000 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 53,097 | $ 6,046 |
Less accumulated depreciation | (6,626) | (4,138) |
Equipment, net | 46,471 | 1,908 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 6,046 | 6,046 |
Officer Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 17,401 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 29,650 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,488 | $ 744 |
Schedule of Rental Vehicles (De
Schedule of Rental Vehicles (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Lessor, Lease, Description [Line Items] | ||
Rental Vehicles, gross | $ 11,874,137 | $ 9,067,885 |
Less accumulated depreciation | (3,864,087) | (2,871,452) |
Rental Vehicles, net | 8,010,050 | 6,196,433 |
Vehicles [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Rental Vehicles, gross | $ 11,874,137 | $ 9,067,885 |
Rental Vehicles (Details Narrat
Rental Vehicles (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Depreciation expense for leased assets | $ 2,488 | $ 744 |
Minimum [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Finance lease term | 30 months | |
Maximum [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Finance lease term | 36 months | |
Vehicles [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Estimated useful life | 5 years | |
Depreciation expense for leased assets | $ 992,635 | $ 668,623 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) (Parenthetical) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||||
Debt forgiven amount | $ 8,000 | |||
Amortization of debt discount | $ 476,891 | $ 19,906 | ||
Unsecured Note Payable To Individual Investors [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument interest rate | 8.00% | |||
Debt instrument payment terms | principal payments equal to 1/12 of original balance plus interest due quarterly | |||
Shares issued during period as incentive for loans | 24,050 | 24,050 | ||
Shares issued during period as incentive for loans, value recorded as discount | $ 119,875 | $ 119,875 | ||
Amortization of debt discount | $ 119,875 | $ 119,875 | ||
Interest expense | $ 1,973 | $ 19,906 | ||
Unamortized debt discount | $ 0 | |||
Unsecured Note Payable To Individual Investors [Member] | Minimum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument maturity date | Aug. 9, 2020 | |||
Unsecured Note Payable To Individual Investors [Member] | Maximum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument maturity date | Mar. 26, 2021 | |||
Note payable to the Small Business Administration [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument interest rate | 3.75% | |||
Note Payable to Small Business Administration [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument payment terms | requires monthly payments of $731 after 24 months from funding | |||
Debt instrument maturity date, description | due 30 years from the date of issuance. | |||
Paycheck Protection Program [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument interest rate | 1.00% | |||
Debt instrument payment terms | The loan has terms of 24 months | |||
Debt forgiven amount | $ 184,775 | |||
Notes Payable to Finance Company [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt instrument interest rate | 14.00% | |||
Debt instrument maturity date | Dec. 15, 2021 | |||
Notes Payable to Finance Company [Member] | Minimum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt monthly principal payments | $ 10,000 | |||
Notes Payable to Finance Company [Member] | Maximum [Member] | ||||
Short-term Debt [Line Items] | ||||
Debt monthly principal payments | $ 40,000 |
Schedule of Notes Payable (De_2
Schedule of Notes Payable (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||
Total notes payable | $ 760,743 | $ 817,519 | |
Unamortized debt discount | 0 | (1,973) | |
Notes payable, net discount | 760,743 | 815,546 | |
Less current portion | (611,880) | (666,132) | |
Long-term portion | 148,863 | 149,414 | |
Notes Payable One [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | [1] | 304,667 | 304,667 |
Notes Payable Two [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | 148,863 | 149,414 | |
Notes Payable Three [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | 8,000 | ||
Notes Payable Four [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | $ 307,213 | $ 355,438 | |
[1] | In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 119,875 119,875 1,973 19,906 0 |
Schedule of Outstanding Notes P
Schedule of Outstanding Notes Payable (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Notes payable, beginning of the period | $ 815,546 | |
Forgiveness of note payable | (8,000) | |
Repayments | (48,776) | |
Amortization of debt discounts | 1,973 | |
Notes payable, end of the period | $ 760,743 |
Schedule of Convertible Notes (
Schedule of Convertible Notes (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Convertible notes, beginning balance | ||
Amortization of debt discounts | 476,891 | $ 19,906 |
Convertible notes, ending balance | 1,146,151 | |
Convertible Note Payable [Member] | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||
Convertible notes, beginning balance | ||
Issued for cash | 2,500,000 | |
Issued for original issue discount | 250,000 | |
Debt discount related to convertible notes | (1,578,767) | |
Conversion to Common Stock | (500,000) | |
Amortization of debt discounts | 474,918 | |
Convertible notes, ending balance | $ 1,146,151 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | Apr. 12, 2021 | Feb. 12, 2021 | Jan. 08, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,006,250 | 1,631,250 | ||||
Fair Value Adjustment of Warrants | $ 457,417 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 190.00% | |||||
Convertible Note Payable [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | |||||
Mr. John Gray [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | $ 500,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Debt Instrument, Maturity Date | Jan. 6, 2022 | |||||
Debt Instrument, Convertible, Conversion Price | $ 0.50 | |||||
Debt Instrument, Unamortized Discount | $ 30,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | $ 2,250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||
Debt Instrument, Maturity Date | Jan. 12, 2022 | |||||
Debt Instrument, Convertible, Conversion Price | $ 3 | |||||
Debt Instrument, Unamortized Discount | $ 250,000 | |||||
[custom:OriginalIssueDiscountConvertiblePromissoryNotePercentage] | 12.50% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 187,500 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3 | |||||
[custom:AdditionalWarrantsIssued] | 93,750 | |||||
Fair Value Adjustment of Warrants | $ 623,373 | |||||
Warrants and Rights Outstanding, Term | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.089% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 190.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 810,633 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Convertible Note Payable [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | 1,761,866 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Warrant [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | 488,134 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Convertible note and Warrant [Member] | ||||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||||
Debt Instrument, Unamortized Discount | $ 1,298,767 |
Schedule of Lease Obligations (
Schedule of Lease Obligations (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Lease Obligations | ||
Lease obligations | $ 3,087,178 | $ 2,352,878 |
Less current portion | (1,532,320) | (1,426,425) |
Long-term portion | $ 1,554,858 | $ 926,453 |
Schedule of Outstanding Lease O
Schedule of Outstanding Lease Obligations (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Financing Lease Obligations | |
Lease obligations, beginning balance | $ 2,352,878 |
New lease obligations | 3,049,261 |
Disposal of leased vehicles | (243,009) |
Payments on lease obligations | (2,071,952) |
Lease obligations, ending balance | $ 3,087,178 |
Schedule of Future Lease Obliga
Schedule of Future Lease Obligations (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Lease Obligations | ||
2022 | $ 1,663,320 | |
2023 | 1,099,666 | |
2024 | 540,146 | |
Total payments | 3,303,132 | |
Amount representing interest | (215,954) | |
Lease obligation, net | $ 3,087,178 | $ 2,352,878 |
Schedule of Operating Lease Obl
Schedule of Operating Lease Obligations (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Lease Obligations | ||
Total lease assets | $ 210,763 | |
Operating lease liability, Current | 133,559 | |
Operating lease liability, Noncurrent | 87,615 | |
Total lease liability | $ 221,174 |
Schedule of Lease Obligation Ma
Schedule of Lease Obligation Maturity (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Lease Obligations | ||
2022 | $ 157,800 | |
2023 | 92,050 | |
Total payments | 249,850 | |
Less: imputed interest | (28,676) | |
Total obligation | 221,174 | |
Less: current portion | (133,559) | |
Non-current capital leases obligations | $ 87,615 |
Operating Lease Obligations (De
Operating Lease Obligations (Details Narrative) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Operating Lease Obligations | |
Operating Lease, Expense | $ 63,010 |
Operating Lease, Cost | $ 52,600 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 6 months 3 days |
Operating Lease, Weighted Average Discount Rate, Percent | 15.00% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - Equity Option [Member] | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Summary of Investment Holdings [Line Items] | |
Number of Shares Options Outstanding, Beginning Balance | shares | 2,540,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 0.22 |
Weighted Average Remaining Contractual Life Outstanding, Beginning | 4 years 6 months 7 days |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | $ 1,074,245 |
Number of Options, Granted | shares | 270,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 0.51 |
Number of Options, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | $ 0 |
Number of Options, Exercised | shares | (1,295,000) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.230 |
Number of Shares Options Outstanding, Ending Balance | shares | 1,515,000 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 0.29 |
Weighted Average Remaining Contractual Life Outstanding, Ending | 4 years 1 month 2 days |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | $ 2,769,275 |
Number of Shares Options, Exercisable | shares | 772,500 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ / shares | $ 0.34 |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 1 month 9 days |
Aggregate Intrinsic Value Outstanding, Exercisable Ending | $ | $ 1,390,384 |
Schedule of Options Outstanding
Schedule of Options Outstanding by Exercise Price Range (Details) | Jun. 30, 2021$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 1,515,000 |
Number of Options Exercisable | 772,500 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 20,000 |
Exercise Price Outstanding | $ / shares | $ 0.210 |
Number of Options Exercisable | 15,000 |
Exercise Price Exercisable | $ / shares | $ 0.210 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 1,305,000 |
Exercise Price Outstanding | $ / shares | $ 0.215 |
Number of Options Exercisable | 648,125 |
Exercise Price Exercisable | $ / shares | $ 0.215 |
Exercise Price Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 15,000 |
Exercise Price Outstanding | $ / shares | $ 0.220 |
Number of Options Exercisable | 0 |
Exercise Price Exercisable | $ / shares | $ 0.220 |
Exercise Price Range Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 155,000 |
Exercise Price Outstanding | $ / shares | $ 0.530 |
Number of Options Exercisable | 89,375 |
Exercise Price Exercisable | $ / shares | $ 0.530 |
Exercise Price Range Five [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 20,000 |
Exercise Price Outstanding | $ / shares | $ 3.800 |
Number of Options Exercisable | 20,000 |
Exercise Price Exercisable | $ / shares | $ 3.800 |
Summary of Warrant Activity (De
Summary of Warrant Activity (Details) | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Equity [Abstract] | |
Number of Shares, Warrants Outstanding Beginning | 1,631,250 |
Weighted Average Exercise Price, Warrants Outstanding Beginning | $ / shares | $ 4.08 |
Weighted Average Remaining Contractual Life, Warrants Outstanding Beginning | 2 years 4 months 17 days |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | $ | |
Number of Shares, Warrants Granted | 375,000 |
Weighted Average Exercise Price, Warrants Granted | $ / shares | $ 3 |
Number of Shares, Warrants Forfeited | |
Number of Shares, Warrants Exercised | |
Number of Shares, Warrants Outstanding Ending | 2,006,250 |
Weighted Average Exercise Price, Warrants Outstanding Ending | $ / shares | $ 3.88 |
Weighted Average Remaining Contractual Life, Warrants Outstanding Ending | 2 years 5 months 8 days |
Aggregate Intrinsic Value, Warrants Outstanding Ending | $ | |
Number of Shares, Warrants Exercisable Ending | 2,006,250 |
Weighted Average Exercise Price, Per Share Exercisable | $ / shares | $ 3.88 |
Weighted Average Remaining Contractual Life, Warrants Exercisable | 2 years 5 months 8 days |
Aggregate Intrinsic Value, Exercisable | $ |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding by Exercise Price Range (Details) | Jun. 30, 2021$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 2,006,250 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 375,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 3 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 1,500,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 4 |
Exercise Price Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 131,250 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 5 |
Schedule of Assumptions Used (D
Schedule of Assumptions Used (Details) | 6 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Expected life of the options | 5 years |
Expected volatility | 190.00% |
Expected dividend yield | 0.00% |
Minimum [Member] | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Risk-free interest rate | 0.76% |
Maximum [Member] | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |
Risk-free interest rate | 0.87% |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Capital stock shares authorized | 100,000,000 | 100,000,000 | ||||
Common stock shares authorized | 90,000,000 | 90,000,000 | 90,000,000 | |||
Common stock par value | $ 0.000001 | $ 0.000001 | $ 0.000001 | |||
Preferred stock shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||
Preferred stock par value | $ 0.000001 | $ 0.000001 | $ 0.000001 | |||
Number of shares issued during period, value | $ 50,000 | $ 275,000 | ||||
Number of shares issued for options exercised, value | $ 71,700 | 15,400 | ||||
Issuance of common stock for cashless exercise of stock options | ||||||
Warrant outstanding | 2,006,250 | 2,006,250 | 1,631,250 | |||
Fair value of warrants | $ 457,417 | |||||
Warrant [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Warrant outstanding | 187,500 | 187,500 | ||||
Fair value of warrants | $ 451,415 | |||||
Acuitas Group Holdings, LLC [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued during period | 825,000 | |||||
Number of shares issued during period, value | $ 3,240,600 | |||||
Payment of Financing and Stock Issuance Costs | $ 3,240,600 | |||||
Legal Settlements [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued during period | 225,000 | |||||
Number of shares issued during period, value | $ 1,103,750 | |||||
Convertible Note Payable [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Debt conversion, converted instrument, shares issued | 1,000,000 | |||||
Debt conversion shares issued, value | $ 500,000 | |||||
Stock Options [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued for options exercised | 295,000 | |||||
Number of shares issued for options exercised, value | $ 87,100 | |||||
Issuance of common stock for cashless exercise of stock options, shares | 960,550 | |||||
Issuance of common stock for cashless exercise of stock options | $ 1,000,000 | |||||
Common Stock [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued during period | 100,000 | 2,553,571 | ||||
Number of shares issued during period, value | $ 3 | |||||
Number of shares issued for options exercised | 260,000 | 35,000 | 295,000 | |||
Number of shares issued for options exercised, value | ||||||
Issuance of common stock for cashless exercise of stock options | $ 1 | |||||
Board of Director [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued during period | 100 | |||||
Shares issued price per share | $ 0.50 | $ 0.50 | ||||
Number of shares issued during period, value | $ 50,000 | |||||
Investors [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Number of shares issued during period | 600 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Proceeds from Related Party Debt | $ 503,766 | $ 150,000 | |
Repayments of Related Party Debt | 603,766 | 150,000 | |
Insurance Brokerage Firm [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 1,618,441 | $ 1,103,460 | |
Accounts Payable, Related Parties | 546,746 | $ 265,257 | |
Former CEO [Member] | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties | 0 | $ 100,000 | |
Repayments of Related Party Debt | 100,000 | ||
Executive Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Due to Related Parties | 0 | ||
Proceeds from Related Party Debt | 503,767 | ||
Repayments of Related Party Debt | $ 503,767 |
Settlements (Details Narrative)
Settlements (Details Narrative) - Settlement Agreement [Member] - FirstFire Global Opportunities Fund, LLC [Member] | Feb. 11, 2021USD ($)$ / sharesshares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares sold | shares | 150,000 |
Sale of stock price per share | $ / shares | $ 0.066667 |
Aggregate amount | $ | $ 10,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Millions | Jul. 09, 2021 | Jul. 08, 2021 | Jun. 30, 2021 | Aug. 12, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||||
Common stock par value | $ 0.000001 | $ 0.000001 | |||
Preferred stock par value | $ 0.000001 | $ 0.000001 | |||
Warrants granted | 375,000 | ||||
Subsequent Event [Member] | Convertible Note Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrants to purchase common stock | 187,500 | ||||
Subsequent Event [Member] | Term Loan Agreement [Member] | EICF [Member] | |||||
Subsequent Event [Line Items] | |||||
Warrants to purchase common stock | 1,500,000 | ||||
Interest rate | 10.00% | ||||
Common stock par value | $ 0.000001 | ||||
Warrants exercise price per share | $ 2.10 | ||||
Vesting of stock | 450,000 | ||||
Subsequent Event [Member] | Term Loan Agreement [Member] | EICF [Member] | Term Loans [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt face value | $ 15 | ||||
Subsequent Event [Member] | Term Loan Agreement [Member] | EICF [Member] | Closing Date Term Loan [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt face value | 7.5 | ||||
Subsequent Event [Member] | Term Loan Agreement [Member] | EICF [Member] | Delayed Draw Term Loan Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt face value | $ 7.5 | ||||
Subsequent Event [Member] | Exchange Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Interest rate | 12.50% | ||||
Warrants exercise price per share | $ 3 | ||||
Debt Instrument, Maturity Date | Jan. 12, 2022 | ||||
Warrants granted | 93,750 | ||||
Warrant term | 5 years | ||||
Common stock conversion price per share | $ 3 | ||||
Preferred stock, redemption price per share | $ 10 | ||||
Preferred stock, convertible terms | If at any time while the Preferred Stock is outstanding, the Company completes any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the holders of the Preferred Stock may, in their sole discretion, elect to apply all, or any portion, of the then outstanding Preferred Stock and any accrued but unpaid dividends, as purchase consideration for such Future Transaction. The conversion price applicable to such conversion shall equal seventy percent (70%) of the cash purchase price paid per share, unit or other security denomination for the securities of the Company issued to other investors in the Future Transaction. | ||||
Subsequent Event [Member] | Exchange Agreement [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from financing | $ 10 | ||||
Subsequent Event [Member] | Exchange Agreement [Member] | Series B Convertible Preferred Stock [Member] | |||||
Subsequent Event [Line Items] | |||||
Debt conversion, converted instrument, shares issued | 230,375 | ||||
Preferred stock par value | $ 0.000001 |