Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Mar. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 | |
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 | 81-3028414 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 3201 N. Sepulveda Blvd | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
City Area Code | 310 | |
Local Phone Number | 926-2643 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 Public Float | $ 7,058,962 | |
Entity Common Stock, Shares Outstanding | 71,302,649 | |
ICFR Auditor Attestation Flag | false | |
Auditor Firm ID | 6778 | |
Auditor Name | Gries & Associates, LLC | |
Auditor Location | Denver, Colorado |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 1,702,942 | $ 1,853,928 |
Accounts receivable | 919,245 | 751,450 |
Prepaid expenses | 3,704 | 609,701 |
Deferred offering costs | 862,855 | |
Total current assets | 2,625,891 | 4,077,934 |
Property and equipment, net | 165,781 | 45,601 |
Rental vehicles, net | 20,701,427 | 8,887,319 |
Right of use asset | 149,759 | |
Other assets | 2,439,099 | 100,000 |
TOTAL ASSETS | 25,932,197 | 13,260,613 |
Current Liabilities: | ||
Accounts payable (including $446,963 and $670,047 to related party) | 1,834,808 | 3,784,315 |
Credit Cards | 171,154 | |
Accrued expenses | 217,118 | 1,156,265 |
Notes payables, current (net of discount of $0 and $0) | 531,250 | 156,225 |
Customer deposit - related party | ||
Finance lease obligations, current | 4,829,349 | 1,810,374 |
Operating lease obligations, current | 143,894 | |
Total current liabilities | 7,583,679 | 7,051,073 |
Advance from related parties, non-current | 600,000 | |
Note payable, net of current portion (net of discount of $953,256 and $1,246,566) | 6,459,244 | 6,097,209 |
Finance lease obligations, net of current portion | 8,845,919 | 2,178,836 |
Operating lease obligations, net of current portion | 12,988 | |
TOTAL LIABILITIES | 23,488,842 | 15,340,106 |
Commitments and contingencies | ||
Series B Preferred stock, $0.000001 par value; 230,550 shares authorized; nil and 230,375 shares issued and outstanding | 2,303,750 | |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding | ||
Common stock, $0.000001 par value; 90,000,000 shares authorized; 69,802,649 and 35,758,149 shares issued and outstanding | 70 | 36 |
Additional paid-in capital | 53,244,383 | 39,275,591 |
Accumulated deficit | (50,801,098) | (43,658,870) |
Total stockholders’ equity | 2,443,355 | (4,383,243) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 25,932,197 | $ 13,260,613 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts payable related party | $ 446,963 | $ 670,047 |
Notes payable discount, current | 0 | 0 |
Notes payable discount, non current | $ 953,256 | $ 1,246,566 |
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 | 69,802,649 | 35,758,149 |
Common stock, shares outstanding | 69,802,649 | 35,758,149 |
Series B Preferred Stock [Member] | ||
Temporary stock, par value | $ 0.000001 | $ 0.000001 |
Temporary stock, shares authorized | 230,550 | 230,550 |
Temporary stock, shares issued | 230,375 | |
Temporary stock, shares outstanding | 230,375 | |
Preferred stock, shares outstanding | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 12,558,427 | $ 10,235,630 |
Cost of revenue* | 10,068,469 | 8,551,454 |
Gross profit | 2,489,959 | 1,684,176 |
Operating expenses: | ||
Selling and marketing expenses | 348,277 | 283,181 |
Product development | 242,990 | 199,753 |
General and administrative expenses | 6,451,021 | 8,397,149 |
Total operating expenses | 7,042,287 | 8,880,083 |
Loss from operations | (4,552,329) | (7,195,907) |
Other income (expense): | ||
Interest and financing costs | (2,589,898) | (7,880,513) |
Other income | 83,541 | |
Gain on forgiveness of debt | 8,000 | |
Total other income (expense) | (2,589,898) | (7,788,971) |
Net loss | $ (7,142,227) | $ (14,984,878) |
Weighted average shares outstanding : | ||
Basic | 69,802,649 | 35,058,508 |
Diluted | 69,802,649 | 35,058,508 |
Loss per share | ||
Basic | $ (0.10) | $ (0.43) |
Diluted | $ (0.10) | $ (0.43) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
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 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 financing cost | 1,440 | 1,440 | ||
Issuance of common stock for financing cost, shares | 600 | |||
Stock option expense | 193,587 | 193,587 | ||
Net loss | (4,417,663) | (4,417,663) | ||
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 settlement agreement | $ 1 | 3,240,599 | 3,240,600 | |
Issuance of common stock for settlement agreement, shares | 825,000 | |||
Beneficial conversion feature associated with convertible debt | 30,000 | 30,000 | ||
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 | |||
Net loss | (14,984,878) | |||
Ending balance, value at Dec. 31, 2021 | $ 36 | 39,275,591 | (43,658,870) | (4,383,243) |
Ending Balance, shares at Dec. 31, 2021 | 35,769,524 | |||
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 | |||
Stock option expense | 104,387 | 104,387 | ||
Net loss | (1,836,674) | (1,836,674) | ||
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 | ||
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 | |||
Issuance of common stock for exercise of stock options | 5,778 | 5,778 | ||
Issuance of common stock for exercise of stock options, shares | 26,875 | |||
Stock option expense | 58,253 | 58,253 | ||
Net loss | (4,777,328) | (4,777,328) | ||
Issuance of common stock for cashless exercise of stock options | $ 1 | (1) | ||
Issuance of common stock for cashless exercise of stock options, shares | 312,500 | |||
Issuance of common stock for settlement of litigation | 42,018 | 42,018 | ||
Issuance of common stock for settlement of litigation, shares | 31,250 | |||
Fair value of warrants issued for financing costs | 503,690 | 503,690 | ||
Value of warrants issued with note payable | 778,697 | 778,697 | ||
Ending balance, value at Sep. 30, 2021 | $ 36 | 38,206,344 | (39,705,657) | (1,499,277) |
Ending Balance, shares at Sep. 30, 2021 | 35,758,149 | |||
Beginning balance, value at Dec. 31, 2021 | $ 36 | 39,275,591 | (43,658,870) | (4,383,243) |
Beginning Balance, shares at Dec. 31, 2021 | 35,769,524 | |||
Issuance of common stock for cash | $ 28 | 13,700,000 | 13,700,028 | |
Issuance of common stock for cash, shares | 27,400,000 | |||
Issuance of common stock for exercise of stock options | $ 1 | 69,996 | 69,997 | |
Issuance of common stock for exercise of stock options, shares | 91,500 | |||
Issuance of common stock for conversion of convertible debt | $ 2 | 64,063 | 64,065 | |
Issuance of common stock for conversion of convertible debt, shares | 6,235,675 | |||
Issuance of common stock for financing cost | ||||
Issuance of common stock for financing cost, shares | ||||
Stock option expense | 26,116 | 26,116 | ||
Net loss | (1,510,052) | (1,510,052) | ||
Ending balance, value at Mar. 31, 2022 | $ 67 | 53,135,766 | (45,168,922) | 7,966,911 |
Ending Balance, shares at Mar. 31, 2022 | 69,496,399 | |||
Beginning balance, value at Dec. 31, 2021 | $ 36 | 39,275,591 | (43,658,870) | (4,383,243) |
Beginning Balance, shares at Dec. 31, 2021 | 35,769,524 | |||
Net loss | (7,142,227) | |||
Ending balance, value at Dec. 31, 2022 | $ 70 | 53,244,383 | (50,801,098) | 2,443,355 |
Ending Balance, shares at Dec. 31, 2022 | 69,802,649 | |||
Beginning balance, value at Mar. 31, 2022 | $ 67 | 53,135,766 | (45,168,922) | 7,966,911 |
Beginning Balance, shares at Mar. 31, 2022 | 69,496,399 | |||
Issuance of common stock for cash | ||||
Issuance of common stock for exercise of stock options | 42,328 | 42,328 | ||
Issuance of common stock for exercise of stock options, shares | 196,875 | |||
Stock option expense | 22,868 | 22,868 | ||
Net loss | (1,201,757) | (1,201,757) | ||
Ending balance, value at Jun. 30, 2022 | $ 67 | 53,200,962 | (46,370,679) | 6,830,350 |
Ending Balance, shares at Jun. 30, 2022 | 69,693,274 | |||
Issuance of common stock for cash | $ 3 | 2,013 | 2,013 | |
Issuance of common stock for cash, shares | 9,375 | |||
Stock option expense | 9,204 | 9,204 | ||
Net loss | (2,924,512) | (2,924,512) | ||
Ending balance, value at Sep. 30, 2022 | $ 3 | 53,212,179 | (49,295,191) | 3,917,055 |
Ending Balance, shares at Sep. 30, 2022 | 69,702,649 | |||
Issuance of common stock for exercise of stock options | 23,000 | 23,000 | ||
Issuance of common stock for exercise of stock options, shares | 100,000 | |||
Stock option expense | 9,204 | 9,204 | ||
Net loss | (1,505,907) | (1,505,907) | ||
Ending balance, value at Dec. 31, 2022 | $ 70 | $ 53,244,383 | $ (50,801,098) | $ 2,443,355 |
Ending Balance, shares at Dec. 31, 2022 | 69,802,649 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,142,227) | $ (14,984,878) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,324,366 | 2,124,728 |
Stock option expense | 131,798 | 391,661 |
Amortization of debt discounts | 293,310 | 1,712,871 |
Common stock issued for financing costs | 34 | 1,440 |
Preferred stock issued for financing costs | 53,750 | |
Common stock issued for settlement agreement | 3,240,600 | |
Common stock issued for litigation settlement | 42,018 | |
Gain on Forgiveness of Debt | (8,000) | |
Fair value of warrants issued for financing costs | 40,916 | 1,992,474 |
Operating lease expense | 149,759 | 108,462 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (167,795) | (632,211) |
Vehicle Deposits | (794,952) | |
Prepaid expenses and other assets | (414,263) | (485,840) |
Accounts payable | (1,949,506) | 3,303,094 |
Accrued expenses | (939,147) | 889,561 |
Credit Cards | 171,154 | |
Customer deposit - related party | (150,000) | |
Operating lease liability | (156,882) | (101,339) |
Net cash used in operating activities | (7,453,435) | (2,501,609) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (132,000) | (47,051) |
Net cash used in investing activities | (132,000) | (47,051) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 13,700,000 | 50,000 |
Proceeds from exercise of stock options | 44,344 | 95,324 |
Proceeds from advance from related parties | 600,000 | 503,766 |
Repayment of advance from related parties | (603,766) | |
Proceeds from convertible note payable | 2,500,000 | |
Proceeds from notes payable, net | 6,900,000 | |
Repayment of notes payable | (156,250) | (809,519) |
Redemption of Preferred Stock | (2,303,750) | |
Repayment of finance lease obligations | (5,312,750) | (4,271,107) |
Payment of deferred offering costs | 862,855 | (35,000) |
Net cash provided by (used in) financing activities | 7,434,449 | 4,329,698 |
NET INCREASE (DECREASE) IN CASH | (150,986) | 1,781,038 |
CASH, BEGINNING OF PERIOD | 1,853,928 | 72,890 |
CASH, END OF PERIOD | 1,702,942 | 1,853,928 |
CASH PAID FOR: | ||
Interest | 2,589,898 | 157,809 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 1,103,750 | |
Finance lease obligations | $ 13,675,268 | $ 5,692,784 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
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 incorporated on June 21, 2016 Delaware Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP) with one exception. The lease balances are remaining principal balances of each leasing as of December 31, 2022. The disclosure above identifies the future interest payments to represent the full lease payment obligations. The current treatment is a material deviation from GAAP and ASC 842 but consistent with prior year treatment. An ASC 842 study is planned for 2023 and the Company expects to modify and adjust to comply with ASC 842 by fiscal year end 2023. 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 continued through fiscal 2021. Currently, through fiscal 2022, the demand for Rideshare remains high with little impact remaining from the COVID-19 pandemic. Given the current prevalence of FDA-approved eligible vaccines across most age groups, the marked decrease in the number of COVID-19 infections, hospitalizations and deaths in 2022, and the resulting easement of pandemic restrictions in our active markets, we are optimistic that COVID-19 will not have a material impact on our operations in the current fiscal year. However, certain factors- including, for example, a new, more aggressive and deadly variant that is resistant to the vaccines could alter our prediction. In the ordinary course of our business, we are impacted by increasing interest rates. Future financing of leased vehicles cost is accelerated due the rising interest rates along with some of our vehicle leases adjust as the prime rates change. Additionally, our current note payable with Energy Impact Partners monthly interest costs accelerate as prime rates are increases. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 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. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 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 ASC Topic 360, Property, Plant, and Equipment Revenue Recognition The Company recognizes all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized generally on a weekly basis based on the rental agreements. The Company recognizes revenue in accordance with FASB ASC 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 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 8,847,842 673,750 3,918,750 766,750 Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share 0.000001 9,521,592 4,685,500 Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the years ended December 31, 2022 and 2021 were $ 348,277 283,181 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, 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 December 31, 2022 and 2021, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes 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 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment At December 31, 2022 and 2021 equipment consisted of the following: Schedule of Property and Equipment 2022 2021 Computer equipment $ 138,046 $ 6,046 Office furniture 17,401 17,401 Leasehold improvement 29,650 29,650 Property and Equipment 185,097 53,097 Less accumulated depreciation (19,316 ) (7,496 ) Equipment, net $ 165,781 $ 45,601 Depreciation expense for equipment for the years ended December 31, 2022 and 2021 was $ 11,820 3,358 |
Rental Vehicles
Rental Vehicles | 12 Months Ended |
Dec. 31, 2022 | |
Rental Vehicles | |
Rental Vehicles | Note 4 – Rental Vehicles At December 31, 2022 and 2021 all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles 2022 2021 Rental vehicles $ 27,702,758 $ 13,514,619 Rental vehicles, gross 27,702,758 13,514,619 Less accumulated depreciation (7,001,331 ) (4,627,300 ) Rental vehicles, net $ 20,701,427 $ 8,887,319 The Company’s rental vehicles are depreciated over their estimated useful life of five years 2,975,572 2,121,370 12 36 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at December 31, 2022 and 2021 consisted of the following: Schedule of Notes Payable 2022 2021 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 $ - $ - Note Payable – Terren Peizer. 0 600,000 - Notes payable to a finance company, interest at LIBOR plus 10 0.4166 (A) 7,343,750 7,500,000 Total notes payable 7,943,750 7,500,000 Unamortized debt discount (953,256 ) (1,246,566 ) Notes payable, net discount 6,990,494 6,253,434 Less current portion (531,250 ) (156,225 ) Long-term portion $ 6,459,244 $ 6,097,209 (A) On July 9, 2021 (the “Closing Date”), the Company entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with EICF Agent LLC (“EICF”), as agent for the lenders, and Energy Impact Credit Fund I, LP, as lender (the “Lender”), providing for a secured term loan facility in an aggregate principal amount of up to $ 15.0 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 900,000 0.93 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 In connection with the issuance of this note payable, the Company also issued a warrant to purchase 450,000 2.10 778,697 600,000 1,378,697 450,000 900,000 450,000 711,656 1.33 900,000 1,174,311 0.71 A roll forward of notes payable including debt discount from December 31, 2019 to December 31, 2022 is below: Schedule of Notes Payable Including Debt Discount Notes payable, December 31, 2019 $ 287,378 Issued for cash 342,675 Lease obligation converted to note payable 355,438 Forgiveness of note payable (184,775 ) Repayments (15,486 ) Amortization of debt discounts 30,316 Notes payable, December 31, 2020 815,546 Issued for cash 7,500,000 Payment of cost associated with issuance of note payable (600,000 ) Debt discount related to notes payable (778,697 ) Forgiveness of note payable (8,000 ) Repayments (809,519 ) Amortization of debt discounts 134,104 Notes payable, December 31, 2021 6,253,434 Issued for cash 600,000 Repayments (156,250 ) Amortization of debt discounts 293,310 Notes payable, December 31, 2022 $ 6,990,494 Future payments under note payable obligations are as follows: Schedule of Future Payments Under Note Payable Obligations Years ending December 31, 2023 $ 531,250 2024 750,000 2025 750,000 2026 5,312,500 2027 600,000 Thereafter - Notes payable $ 7,943,750 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Notes | |
Convertible Notes | Note 6 – Convertible Notes There are no |
Financing Lease Obligations
Financing Lease Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Financing Lease Obligations | |
Financing Lease Obligations | Note 7 – Financing Lease Obligations Lease obligations at December 31, 2022 and 2021 consisted of the following: Schedule of Lease Obligations 2022 2021 Lease obligations $ 13,675,268 $ 3,989,210 Less current portion (4,829,349 ) (1,810,374 ) Long-term portion $ 8,845,919 $ 2,178,836 A roll forward of lease obligations from December 31, 2019 to December 31, 2022 is below: Schedule of Outstanding Lease Obligations Lease obligations, December 31, 2019 $ 2,400,565 New lease obligations 3,705,417 Disposal of leased vehicles (975,215 ) Lease obligation converted to note payable (355,438 ) Payments on lease obligations (2,422,451 ) Lease obligations, December 31, 2020 2,352,878 New lease obligations 5,907,439 Payments on lease obligations (4,271,107 ) Lease obligations, December 31, 2021 3,989,210 New lease obligations 14,220,738 Payments on lease obligations (4,534,680 ) Lease obligations, December 31, 2022 $ 13,675,268 Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Years Ending December 31, 2023 $ 6,772,207 2024 7,294,234 2025 2,945,382 2026 636,269 Total payments 17,648,092 Amount representing interest (3,972,824 ) Lease obligation, net $ 13,675,268 The lease balances are remaining principal balances of each leasing as of December 31, 2022. The disclosure above identifies the future interest payments to represent the full lease payment obligations. The current treatment is a material deviation from GAAP and ASC 842 but consistent with prior year treatment. An ASC 842 study is planned for 2023 and the Company expects to modify and adjust to comply with ASC 842 by fiscal year end 2023. |
Operating Lease Obligations
Operating Lease Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Operating Lease Obligations | |
Operating Lease Obligations | Note 8 – Operating Lease Obligations The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate. The Company leases its corporate office space under an operating lease that expires in 2023. The Company accounts for this lease under the provisions of ASC 842 Leases. As of December 31, 2022, EVMO has closed out the lease for the facility located at 195 S. Robertson Blvd, Beverly Hills, CA 90211 and relocated to 2301 N. Sepulveda Blvd, Manhattan Beach, CA 90266. The current lease of the facility expires within 12 months and is not subject to ASC 842 due to the short-term nature of the lease. As of December 31, 2022, there are not right of use facility lease assets or obligations under ASC 842 rules. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of December 31, 2022: Schedule of Operating Lease Obligations December 31, Classification on Balance Sheet 2022 Assets Operating lease assets Operating lease right of use assets $ 0 Total lease assets $ 0 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 0 Noncurrent liabilities Operating lease liability Long-term operating lease liability 0 Total lease liability $ 0 Lease obligations at December 31, 2022 consisted of the following: Schedule of Lease Obligation Maturity Years Ending December 31, 2023 $ 0 2024 0 Total payments 0 Less: imputed interest (0 ) Total obligation 0 Less: current portion (0 ) Non-current capital leases obligations $ 0 The lease expense for the years ended December 31, 2022 was $ 159,225 192,000 |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 9 – Stockholders’ Equity The Company has authorized 100,000,000 90,000,000 0.000001 10,000,000 0.000001 Series B Preferred Stock There is no In January 2022, EVMO issued 6,310,000 220,850 9,525 Common Stock During the year ended December 31, 2022, the Company: ● Issued 27,400,000 13,700,000 ● Issued 6,310,000 220,850 9,525 Issued 100,000 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 Stock Options The following is a summary of stock option activity: Summary of Stock Option Activity Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, December 31, 2021 766,750 $ 0.53 3.76 $ 98,937 Granted 218,000 0.28 4.27 0 Forfeited (104,750 ) Exercised (206,250 ) 0.215 Outstanding, December 31, 2022 104,750 $ 0.45 3.19 $ 161,575 Exercisable, December 31, 2022 673,750 $ 0.45 3.19 $ 161,575 The exercise price for options outstanding and exercisable at December 31, 2022: Schedule of Options Outstanding by Exercise Price Range Options Price Options Price Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.21 20,000 $ 0.21 268,750 0.215 268,750 0.215 15,000 0.12 15,000 0.12 230,000 0.53 230,000 0.53 20,000 0.94 20,000 0.94 20,000 2.12 20,000 2.12 20,000 3.80 20,000 3.8 20,000 0.39 20,000 0.39 20,000 0.55 20,000 0.55 20,000 0.30 20,000 0.30 20,000 0.36 20,000 0.36 673,750 673,750 For options granted during the year ended December 31, 2022 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $ 0.28 0.28 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expenses of $ 131,798 391,661 8,800 The assumptions used during the year ended December 31, 2022 and 2021 in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows: Schedule of Fair Value of Options Granted Assumptions 2022 2021 Risk-free interest rate 0.25 0.79 % 0.33 0.99 % Expected life of the options 5.0 5.0 Expected volatility 160 %- 185 % 180 %- 195 % Expected dividend yield 0 % 0 % Warrants 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, 2021 4,454,717 $ 2.53 3.17 $ - Granted 4,393,125 0.34 4.80 Forfeited - Exercised - Outstanding September 30, 2022 8,847,842 $ 1.44 4.21 Exercisable, September 30, 2022 8,847,842 $ 1.44 4.21 The exercise price for warrants outstanding at December 31, 2022: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Warrants Exercise Price 1,500,000 $ 4.00 65,625 5.00 65,625 5.00 187,500 3.00 93,750 3.00 93,750 3.00 711,656 1.33 93,750 3.00 93,750 3.00 93,750 3.00 1,174,311 0.71 93,750 3.00 93,750 3.00 93,750 3.00 128,125 0.50 625,000 0.40 3,640,000 0.33 8,847,842 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions During the fiscal year 2022, the Company is engaged with RG Alliance Group LLC (“RGA”) to perform internal accounts payable, bookkeeping, internal financial reporting and audit support. RGA is 51 160,544 On September 30, 2022, the Company agreed to a Note Payable with its then-Executive Chairman, Terren Peizer, of $ 600,000 In fiscal year 2022, the Company rented Transit Vans to PDQ Pickup LLC (“PDQ”). PDQ is owned by Terren Peizer and its CEO is Steve Sanchez, also the Company’s CEO. The total revenue generated from the van rentals in 2022 was $ 135,565 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 – Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A full valuation allowance is established against all net deferred tax assets as of December 31, 2022 and 2021 based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to its ability to generate sufficient profits from its business model. Because of the impacts of the valuation allowance, there was no income tax expense or benefit for the years ended December 31, 2022 and 2021. A reconciliation of the differences between the effective and statutory income tax rates for the years ended December 31, 2022 and 2021: Schedule of Reconciliation Between Effective and Statutory Income Tax Rates 2022 2021 Amount Percent Amount Percent Federal statutory rates $ (1,499,868 ) 21.0 % $ (3,146,825 ) 21.0 % State income taxes (499,956 ) 7.0 % (1,048,941 ) 7.0 % Permanent differences 339,243 -2.3 % 1,842,891 -12.3 % Valuation allowance against net deferred tax assets 1,904,836 -12.7 % 2,352,875 -15.7 % Effective rate $ 0 0.0 % $ - 0.0 % At December 31, 2022 and 2021, the significant components of the deferred tax assets are summarized below: Schedule of Significant Components of deferred Tax Assets 2022 2021 Deferred income tax asset Net operation loss carryforwards 7,410,145 5,262,153 Accrued expenses 71,649 314,805 Total deferred income tax asset 7,481,794 5,576,958 Less: valuation allowance (7,481,794 ) (5,576,958 ) Total deferred income tax asset $ - $ - The valuation allowance increased by $ 1,904,836 2,352,875 The Company has recorded as of December 31, 2022 and 2021 a valuation allowance of $ 7,481,794 5,576,958 The Company conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of December 31, 2022 and 2021. The Company has net operating loss carry-forwards of approximately $ 25,900,000 2031 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 12 – 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 a specific degree of 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. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 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 litigation or asserted potential litigation against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash flows, other than those described below. Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi: No 20STCV09143 Robert Vanech v. YayYo, Inc., and Ramy El-Batrawi, No. 21STCV45724 These two cases Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi: No 20STCV09143 (Davis) and Robert Vanech v. YayYo, Inc., and Ramy El-Batrawi, No. 21STCV45724 (Vanech) raise similar claims against the Company by two former executives who worked briefly for the Company in 2016-17. The Company’s position as to both lawsuits is that Davis’ and Vanech’s claims entirely lack merit, and the Company intends to defend against the lawsuits vigorously. Zada v. EVMO, Inc and Rami El-Batrawi, Los Angeles Superior Court No. 21STCV43510 On November 29, 2021, a complaint was filed by Norman Zada, a Company shareholder, against EVmo and El-Batrawi alleging breach of contract and fraud in connection with the plaintiff’s purchase of 20,000 20,000 1.90 94,420 Bellridge Capital, LP, v. EVmo, Inc., 1:21-cv-07091-PGG (Filed in Southern District of New York) In the first half of 2021, a warrant holder, Bellridge Capital, LP (“Bellridge”), sought to exercise a warrant for 1,500,000 4.00 |
Settlements
Settlements | 12 Months Ended |
Dec. 31, 2022 | |
Settlements | |
Settlements | Note 13 – Settlements Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 and Michael Vanbecelaere v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV28066 (Vanbecelaere)(hereafter the “State Cases”) On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior Court. The complaints underlying the State Cases differ from the consolidated federal securities cases discussed below ( In re YayYo Securities Litigation In re YayYo Securities Litigation Jason Hamlin v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8235 (SVW) and William Koch v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8591 (SVW)(now consolidated as “In re YayYo Securities Litigation”) These two actions were filed on September 9, 2020 and September 18, 2020, respectively, in the United States District Court for the Central District of California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the Common Stock as part of the IPO and, like the plaintiffs in the State Cases, purport to bring a securities class action pursuant to Sections 11 and 15 of the Securities Act, as well as and Section 17(a) and 10(b)(5) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on behalf of all purchasers of the Common Stock in the IPO. The first amended complaint, like the State Cases, alleges false statements and material omissions of material fact in connection with the SEC filings distributed in connection with the IPO. The defendants include directors of the Company and the underwriters of the IPO, WestPark Capital, Inc. and Aegis Capital Corp. The federal court consolidated the two matters for all practical purposes. As with the State Cases, the Company denied liability and asserted that it accurately and completely disclosed all material facts and circumstances in its SEC filings, and that the complaint’s alleged violations of securities laws are baseless. The parties to the federal court litigation announced on October 21, 2021 that they had reached a settlement, which received preliminary approval by the district court on January 13, 2022, allowing the notice of the proposed settlement to be distributed to all class members, who unless they object or drop out, will be bound by the multi-million dollar settlement. The Company’s portion of the settlement was $ 1 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 On July 12, 2022, the district court presiding over In re YayYo Securities Litigation 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 complaint was subsequently transferred to the U.S. District Court for the Central District of California and assigned as a related case to the judge in In re YayYo Securities Litigation In re YayYo Securities Litigation |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14 – Subsequent Events Subsequent to December 31, 2022, the following reportable events have taken place: ● Mr. Sidhu resigned from the Board of Directors on January 3, 2023; ● Mr. Peizer resigned from the Board of Directors and as Executive Chairman of the Company on February 10, 2023; ● On February 10, 2023, Mr. Peizer, agreed to provide short-term liquidity financing to the Company in the amount of $ 1,000,000 1,600,000 600,000 0.1156 13,840,830 0.1156 ● On February 16, 2023, the Company received correspondence from EICF constituting a notice of events of default and reservation of rights (the “Notice of Default”) under the Term Loan Agreement. The Notice of Default purports that certain events of default under the Term Loan Agreement have occurred and are continuing, including a failure by the Company to: (i) timely deliver a required financial report, (ii) timely deliver a required liquidity certificate, (iii) maintain the maximum net leverage ratio required under a financial covenant, and (iv) maintain the minimum liquidity required under a financial covenant. EICF has informed the Company in the Notice of Default that EICF and the lenders are now entitled to exercise any and all default-related rights and remedies, that any delay in doing so should not be construed as a consent to or waiver of any of the purported events of default, and that any outstanding amounts under the Term Loan Agreement, including the principal of $ 7.5 ● On March 16, 2023, the Company and Bellridge entered into a settlement agreement relating to the litigation between them described in Note 12- “Contingencies” above (the “Settlement Agreement”). The Settlement Agreement provides for the immediate issuance by the Company to Bellridge of 1,500,000 1,620,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 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. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
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 ASC Topic 360, Property, Plant, and Equipment |
Revenue Recognition | Revenue Recognition The Company recognizes all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized generally on a weekly basis based on the rental agreements. The Company recognizes revenue in accordance with FASB ASC 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 Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 8,847,842 673,750 3,918,750 766,750 |
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 0.000001 9,521,592 4,685,500 |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the years ended December 31, 2022 and 2021 were $ 348,277 283,181 |
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, 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 December 31, 2022 and 2021, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Notes to Consolidated Financial Statements For Year Ended December 31, 2022 and 2021 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes 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 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) | 12 Months Ended |
Dec. 31, 2022 | |
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) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At December 31, 2022 and 2021 equipment consisted of the following: Schedule of Property and Equipment 2022 2021 Computer equipment $ 138,046 $ 6,046 Office furniture 17,401 17,401 Leasehold improvement 29,650 29,650 Property and Equipment 185,097 53,097 Less accumulated depreciation (19,316 ) (7,496 ) Equipment, net $ 165,781 $ 45,601 |
Rental Vehicles (Tables)
Rental Vehicles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Rental Vehicles | |
Schedule of Rental Vehicles | At December 31, 2022 and 2021 all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles 2022 2021 Rental vehicles $ 27,702,758 $ 13,514,619 Rental vehicles, gross 27,702,758 13,514,619 Less accumulated depreciation (7,001,331 ) (4,627,300 ) Rental vehicles, net $ 20,701,427 $ 8,887,319 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at December 31, 2022 and 2021 consisted of the following: Schedule of Notes Payable 2022 2021 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 $ - $ - Note Payable – Terren Peizer. 0 600,000 - Notes payable to a finance company, interest at LIBOR plus 10 0.4166 (A) 7,343,750 7,500,000 Total notes payable 7,943,750 7,500,000 Unamortized debt discount (953,256 ) (1,246,566 ) Notes payable, net discount 6,990,494 6,253,434 Less current portion (531,250 ) (156,225 ) Long-term portion $ 6,459,244 $ 6,097,209 (A) On July 9, 2021 (the “Closing Date”), the Company entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with EICF Agent LLC (“EICF”), as agent for the lenders, and Energy Impact Credit Fund I, LP, as lender (the “Lender”), providing for a secured term loan facility in an aggregate principal amount of up to $ 15.0 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 900,000 0.93 |
Schedule of Notes Payable Including Debt Discount | A roll forward of notes payable including debt discount from December 31, 2019 to December 31, 2022 is below: Schedule of Notes Payable Including Debt Discount Notes payable, December 31, 2019 $ 287,378 Issued for cash 342,675 Lease obligation converted to note payable 355,438 Forgiveness of note payable (184,775 ) Repayments (15,486 ) Amortization of debt discounts 30,316 Notes payable, December 31, 2020 815,546 Issued for cash 7,500,000 Payment of cost associated with issuance of note payable (600,000 ) Debt discount related to notes payable (778,697 ) Forgiveness of note payable (8,000 ) Repayments (809,519 ) Amortization of debt discounts 134,104 Notes payable, December 31, 2021 6,253,434 Issued for cash 600,000 Repayments (156,250 ) Amortization of debt discounts 293,310 Notes payable, December 31, 2022 $ 6,990,494 |
Schedule of Future Payments Under Note Payable Obligations | Future payments under note payable obligations are as follows: Schedule of Future Payments Under Note Payable Obligations Years ending December 31, 2023 $ 531,250 2024 750,000 2025 750,000 2026 5,312,500 2027 600,000 Thereafter - Notes payable $ 7,943,750 |
Financing Lease Obligations (Ta
Financing Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financing Lease Obligations | |
Schedule of Lease Obligations | Lease obligations at December 31, 2022 and 2021 consisted of the following: Schedule of Lease Obligations 2022 2021 Lease obligations $ 13,675,268 $ 3,989,210 Less current portion (4,829,349 ) (1,810,374 ) Long-term portion $ 8,845,919 $ 2,178,836 |
Schedule of Outstanding Lease Obligations | A roll forward of lease obligations from December 31, 2019 to December 31, 2022 is below: Schedule of Outstanding Lease Obligations Lease obligations, December 31, 2019 $ 2,400,565 New lease obligations 3,705,417 Disposal of leased vehicles (975,215 ) Lease obligation converted to note payable (355,438 ) Payments on lease obligations (2,422,451 ) Lease obligations, December 31, 2020 2,352,878 New lease obligations 5,907,439 Payments on lease obligations (4,271,107 ) Lease obligations, December 31, 2021 3,989,210 New lease obligations 14,220,738 Payments on lease obligations (4,534,680 ) Lease obligations, December 31, 2022 $ 13,675,268 |
Schedule of Future Lease Obligations | Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Years Ending December 31, 2023 $ 6,772,207 2024 7,294,234 2025 2,945,382 2026 636,269 Total payments 17,648,092 Amount representing interest (3,972,824 ) Lease obligation, net $ 13,675,268 |
Operating Lease Obligations (Ta
Operating Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 sheets as of December 31, 2022: Schedule of Operating Lease Obligations December 31, Classification on Balance Sheet 2022 Assets Operating lease assets Operating lease right of use assets $ 0 Total lease assets $ 0 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 0 Noncurrent liabilities Operating lease liability Long-term operating lease liability 0 Total lease liability $ 0 |
Schedule of Lease Obligation Maturity | Lease obligations at December 31, 2022 consisted of the following: Schedule of Lease Obligation Maturity Years Ending December 31, 2023 $ 0 2024 0 Total payments 0 Less: imputed interest (0 ) Total obligation 0 Less: current portion (0 ) Non-current capital leases obligations $ 0 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Summary of Stock Option Activity Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, December 31, 2021 766,750 $ 0.53 3.76 $ 98,937 Granted 218,000 0.28 4.27 0 Forfeited (104,750 ) Exercised (206,250 ) 0.215 Outstanding, December 31, 2022 104,750 $ 0.45 3.19 $ 161,575 Exercisable, December 31, 2022 673,750 $ 0.45 3.19 $ 161,575 |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at December 31, 2022: Schedule of Options Outstanding by Exercise Price Range Options Price Options Price Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.21 20,000 $ 0.21 268,750 0.215 268,750 0.215 15,000 0.12 15,000 0.12 230,000 0.53 230,000 0.53 20,000 0.94 20,000 0.94 20,000 2.12 20,000 2.12 20,000 3.80 20,000 3.8 20,000 0.39 20,000 0.39 20,000 0.55 20,000 0.55 20,000 0.30 20,000 0.30 20,000 0.36 20,000 0.36 673,750 673,750 |
Schedule of Fair Value of Options Granted Assumptions | The assumptions used during the year ended December 31, 2022 and 2021 in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows: Schedule of Fair Value of Options Granted Assumptions 2022 2021 Risk-free interest rate 0.25 0.79 % 0.33 0.99 % Expected life of the options 5.0 5.0 Expected volatility 160 %- 185 % 180 %- 195 % Expected dividend yield 0 % 0 % |
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, 2021 4,454,717 $ 2.53 3.17 $ - Granted 4,393,125 0.34 4.80 Forfeited - Exercised - Outstanding September 30, 2022 8,847,842 $ 1.44 4.21 Exercisable, September 30, 2022 8,847,842 $ 1.44 4.21 |
Schedule of Warrants Outstanding by Exercise Price Range | The exercise price for warrants outstanding at December 31, 2022: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Warrants Exercise Price 1,500,000 $ 4.00 65,625 5.00 65,625 5.00 187,500 3.00 93,750 3.00 93,750 3.00 711,656 1.33 93,750 3.00 93,750 3.00 93,750 3.00 1,174,311 0.71 93,750 3.00 93,750 3.00 93,750 3.00 128,125 0.50 625,000 0.40 3,640,000 0.33 8,847,842 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation Between Effective and Statutory Income Tax Rates | A reconciliation of the differences between the effective and statutory income tax rates for the years ended December 31, 2022 and 2021: Schedule of Reconciliation Between Effective and Statutory Income Tax Rates 2022 2021 Amount Percent Amount Percent Federal statutory rates $ (1,499,868 ) 21.0 % $ (3,146,825 ) 21.0 % State income taxes (499,956 ) 7.0 % (1,048,941 ) 7.0 % Permanent differences 339,243 -2.3 % 1,842,891 -12.3 % Valuation allowance against net deferred tax assets 1,904,836 -12.7 % 2,352,875 -15.7 % Effective rate $ 0 0.0 % $ - 0.0 % |
Schedule of Significant Components of deferred Tax Assets | At December 31, 2022 and 2021, the significant components of the deferred tax assets are summarized below: Schedule of Significant Components of deferred Tax Assets 2022 2021 Deferred income tax asset Net operation loss carryforwards 7,410,145 5,262,153 Accrued expenses 71,649 314,805 Total deferred income tax asset 7,481,794 5,576,958 Less: valuation allowance (7,481,794 ) (5,576,958 ) Total deferred income tax asset $ - $ - |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
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) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
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 ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tax examination, description | 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 | |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Potentially dilutive options and warrants outstanding | 9,521,592 | 4,685,500 |
Advertising costs | $ 348,277 | $ 283,181 |
Warrant [Member] | ||
Warrants outstanding | $ 8,847,842 | $ 3,918,750 |
Options [Member] | ||
Options outstanding | 673,750 | 766,750 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 185,097 | $ 53,097 |
Less accumulated depreciation | (19,316) | (7,496) |
Equipment, net | 165,781 | 45,601 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 138,046 | 6,046 |
Officer Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | 17,401 | 17,401 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment | $ 29,650 | $ 29,650 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 11,820 | $ 3,358 |
Schedule of Rental Vehicles (De
Schedule of Rental Vehicles (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Rental vehicles, gross | $ 27,702,758 | $ 13,514,619 |
Less accumulated depreciation | (7,001,331) | (4,627,300) |
Rental vehicles, net | 20,701,427 | 8,887,319 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental vehicles, gross | $ 27,702,758 | $ 13,514,619 |
Rental Vehicles (Details Narrat
Rental Vehicles (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 12 months | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 36 months | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Depreciation | $ 2,975,572 | $ 2,121,370 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | |||
Total notes payable | $ 7,943,750 | $ 7,500,000 | |
Unamortized debt discount | (953,256) | (1,246,566) | |
Notes payable, net discount | 6,990,494 | 6,253,434 | |
Less current portion | (531,250) | (156,225) | |
Long-term portion | 6,459,244 | 6,097,209 | |
Notes Payable One [Member] | |||
Short-Term Debt [Line Items] | |||
Total notes payable | |||
Notes Payable Two [Member] | |||
Short-Term Debt [Line Items] | |||
Total notes payable | 600,000 | ||
Notes payable Three [Member] | |||
Short-Term Debt [Line Items] | |||
Total notes payable | [1] | $ 7,343,750 | $ 7,500,000 |
[1]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 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 900,000 0.93 |
Schedule of Notes Payable (De_2
Schedule of Notes Payable (Details) (Parenthetical) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jul. 09, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 | ||
Warrant One [Member] | Series B Preferred Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant shares | 450,000 | |||
Warrant Two [Member] | Series B Preferred Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant shares | 900,000 | |||
Unsecured Note Payable To Individual Investors [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 8% | |||
Debt instrument payment terms | principal payments equal to 1/12 of original balance plus interest due quarterly | |||
Unsecured Note Payable To Individual Investors [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Aug. 09, 2020 | |||
Unsecured Note Payable To Individual Investors [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Mar. 26, 2021 | |||
Warrants issued [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 0% | |||
Notes Payable to Finance Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Period payment percentage | 0.4166% | |||
Notes Payable to Finance Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 10% | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Jul. 09, 2026 | |||
Debt instrument face amount | $ 15 | |||
Number of common shares available for purchase | 900,000 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.93 | |||
Warrant subject to vesting shares of common stock exercisable | 450,000 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Common Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.10 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Closing Date Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 7.5 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Delayed Draw Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 7.5 | |||
Term Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Energy Impact Credit Fund LLP [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 10% | |||
Term Loan Agreement [Member] | Maximum [Member] | Energy Impact Credit Fund LLP [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of common shares available for purchase | 1,500,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.000001 |
Schedule of Notes Payable Inclu
Schedule of Notes Payable Including Debt Discount (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Notes payable, beginning balance | $ 6,253,434 | $ 815,546 | $ 287,378 |
Issued for cash | 600,000 | 7,500,000 | 342,675 |
Lease obligation converted to note payable | 355,438 | ||
Forgiveness of note payable | (8,000) | (184,775) | |
Repayments | (156,250) | (809,519) | (15,486) |
Amortization of debt discounts | 293,310 | 134,104 | 30,316 |
Payment of cost associated with issuance of note payable | (600,000) | ||
Debt discount related to notes payable | (778,697) | ||
Notes payable, ending balance | $ 6,990,494 | $ 6,253,434 | $ 815,546 |
Schedule of Future Payments Und
Schedule of Future Payments Under Note Payable Obligations (Details) | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 531,250 |
2024 | 750,000 |
2025 | 750,000 |
2026 | 5,312,500 |
2027 | 600,000 |
Thereafter | |
Notes payable | $ 7,943,750 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Fair Value Adjustment of Warrants | $ 40,916 | $ 1,992,474 |
Amortized note payable discount | $ 293,310 | $ 1,712,871 |
Warrant One [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of common shares warrant issued | 900,000 | |
Warrant Exercise One [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of shares converted | 450,000 | |
Warrant Exercise Two [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of shares issued on conversion | 711,656 | |
Common Stock One [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Exercise price | $ 1.33 | |
Exercise Price [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of common shares warrant issued | 1,174,311 | |
Common Stock [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Number of shares issued on conversion | 220,850 | |
Debt instrument, conversion price | $ 0.71 | |
Term Loan Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Vesting of stock | 450,000 | |
Exercise price | $ 2.10 | |
Fair Value Adjustment of Warrants | $ 778,697 | |
Common Stocks, Including Additional Paid in Capital, Net of Discount | 600,000 | |
Amortized note payable discount | $ 1,378,697 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | Dec. 31, 2022 USD ($) |
Convertible Notes | |
Convertible Notes Payable | $ 0 |
Schedule of Lease Obligations (
Schedule of Lease Obligations (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Lease Obligations | ||||
Lease obligations | $ 13,675,268 | $ 3,989,210 | $ 2,352,878 | $ 2,400,565 |
Less current portion | (4,829,349) | (1,810,374) | ||
Long-term portion | $ 8,845,919 | $ 2,178,836 |
Schedule of Outstanding Lease O
Schedule of Outstanding Lease Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Lease Obligations | |||
Lease obligations, ending balance | $ 3,989,210 | $ 2,352,878 | $ 2,400,565 |
New lease obligations | 14,220,738 | 5,907,439 | 3,705,417 |
Disposal of leased vehicles | (975,215) | ||
Lease obligation converted to note payable | (355,438) | ||
Payments on lease obligations | (4,534,680) | (4,271,107) | (2,422,451) |
Lease obligations, ending balance | $ 13,675,268 | $ 3,989,210 | $ 2,352,878 |
Schedule of Future Lease Obliga
Schedule of Future Lease Obligations (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Lease Obligations | ||||
2023 | $ 6,772,207 | |||
2024 | 7,294,234 | |||
2025 | 2,945,382 | |||
2026 | 636,269 | |||
Total payments | 17,648,092 | |||
Amount representing interest | (3,972,824) | |||
Lease obligation, net | $ 13,675,268 | $ 3,989,210 | $ 2,352,878 | $ 2,400,565 |
Schedule of Operating Lease Obl
Schedule of Operating Lease Obligations (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease Obligations | ||
Operating lease assets | $ 149,759 | |
Total lease assets | ||
Total lease liability | 143,894 | |
Operating lease liability, noncurrent | $ 12,988 |
Schedule of Lease Obligation Ma
Schedule of Lease Obligation Maturity (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease Obligations | ||
2023 | $ 0 | |
2024 | 0 | |
Total payments | 0 | |
Imputed interest | 0 | |
Total obligation | 0 | |
Operating lease liability current | $ 143,894 | |
Non current capital leases obligations | $ 12,988 |
Operating Lease Obligations (De
Operating Lease Obligations (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Operating Lease Obligations | |
Operating Lease, Expense | $ 159,225 |
Operating Lease, Cost | $ 192,000 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - Equity Option [Member] | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Offsetting Assets [Line Items] | |
Number of shares options outstanding, Beginning Balance | 766,750 |
Weighted average exercise price outstanding, Beginning Balance | $ / shares | $ 0.53 |
Weighted average remaining contractual life outstanding | 3 years 9 months 3 days |
Aggregate intrinsic value outstanding, Beginning Balance | $ | $ 98,937 |
Number of options, granted | 218,000 |
Weighted average exercise price, granted | $ / shares | $ 0.28 |
Weighted average remaining contractual life granted | 4 years 3 months 7 days |
Aggregate intrinsic value, granted | $ | $ 0 |
Number of options, forfeited | (104,750) |
Number of options, exercised | (206,250) |
Weighted average exercise price, exercised | $ / shares | $ 0.215 |
Number of shares options outstanding, Ending Balance | 104,750 |
Weighted average exercise price outstanding, Ending Balance | $ / shares | $ 0.45 |
Weighted average remaining contractual life outstanding, Ending | 3 years 2 months 8 days |
Aggregate intrinsic value outstanding, Ending Balance | $ | $ 161,575 |
Number of shares options, exercisable | 673,750 |
Weighted average exercise price, exercisable | $ / shares | $ 0.45 |
Weighted average remaining contractual life, Exercisable | 3 years 2 months 8 days |
Aggregate intrinsic value outstanding, exercisable | $ | $ 161,575 |
Schedule of Options Outstanding
Schedule of Options Outstanding by Exercise Price Range (Details) | Dec. 31, 2022 $ / shares shares |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 673,750 |
Number of options, exercisable | 673,750 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.21 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.21 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 268,750 |
Number of options, outstanding, exercise price | $ / shares | $ 0.215 |
Number of options, exercisable | 268,750 |
Number of options, exercisable, exercise price | $ / shares | $ 0.215 |
Exercise Price Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 15,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.12 |
Number of options, exercisable | 15,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.12 |
Exercise Price Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 230,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.53 |
Number of options, exercisable | 230,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.53 |
Exercise Price Range Five [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.94 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.94 |
Exercise Price Range Six [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 2.12 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 2.12 |
Exercise Price Range Seven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 3.80 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 3.8 |
Exercise Price Range Eight [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.39 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.39 |
Exercise Price Range Nine [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.55 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.55 |
Exercise Price Range Ten [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.30 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.30 |
Exercise Price Range Eleven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.36 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.36 |
Schedule of Fair Value of Optio
Schedule of Fair Value of Options Granted Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Risk-free interest rate minimum | 0.25% | 0.33% |
Risk-free interest rate | 0.79% | 0.99% |
Expected life of the options | 5 years | 5 years |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 160% | 180% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 185% | 195% |
Expected dividend yield | 0% | 0% |
Summary of Warrant Activity (De
Summary of Warrant Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Warrants Outstanding Beginning | 4,454,717 | |
Weighted Average Exercise Price, Outstanding Beginning | $ 2.53 | |
Weighted average remaining contractual life, warrants outstanding Beginning | 3 years 2 months 1 day | |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | ||
Warrants Outstanding Granted | 4,393,125 | |
Weighted Average Exercise Price, Outstanding, Granted | $ 0.34 | |
Weighted average remaining contractual life, warrants outstanding, Granted | 4 years 9 months 18 days | |
Warrants Outstanding Forfeited | ||
Warrants Outstanding Exercised | ||
Warrants Outstanding Ending | 8,847,842 | 4,454,717 |
Weighted Average Exercise Price, Outstanding Ending | $ 1.44 | $ 2.53 |
Weighted Average remaining contractual life, warrants outstanding | 4 years 2 months 15 days | |
Warrants Exercisable Ending | 8,847,842 | |
Weighted Average Exercise Price, Exercisable Ending | $ 1.44 | |
Weighted average remaining contractual life, warrants exercisable | 4 years 2 months 15 days |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding by Exercise Price Range (Details) | Dec. 31, 2022 $ / shares shares |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 8,847,842 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 1,500,000 |
Exercise price | $ / shares | $ 4 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 65,625 |
Exercise price | $ / shares | $ 5 |
Exercise Price Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 65,625 |
Exercise price | $ / shares | $ 5 |
Exercise Price Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 187,500 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Five [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Six [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Seven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 711,656 |
Exercise price | $ / shares | $ 1.33 |
Exercise Price Range Eight [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Nine [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Ten [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Eleven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 1,174,311 |
Exercise price | $ / shares | $ 0.71 |
Exercise Price Range Twelve [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Thirteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Fourteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Fifteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 128,125 |
Exercise price | $ / shares | $ 0.50 |
Exercise Price Range Sixteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 625,000 |
Exercise price | $ / shares | $ 0.40 |
Exercise Price Range Seventeen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 3,640,000 |
Exercise price | $ / shares | $ 0.33 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jan. 06, 2022 | Jan. 02, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||||
Capital stock, authorized | 100,000,000 | ||||||
Common stock, 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 | |||||
Preferred stock shares outstanding | |||||||
Proceeds from Issuance of Common Stock | $ 13,700,000 | $ 50,000 | |||||
Weighted average fair value of options | $ 0.28 | ||||||
Weighted average exercise price | $ 0.28 | ||||||
Stock or unit option plan expense | $ 131,798 | $ 391,661 | |||||
Unamortized Stock Option Expense | $ 8,800 | ||||||
Shawn Mesaros [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during period, services | 100,000 | ||||||
Board of Director [Member] | |||||||
Class of Stock [Line Items] | |||||||
Common stock shares issued | 27,400,000 | ||||||
Proceeds from Issuance of Common Stock | $ 13,700,000 | ||||||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued on conversion | 220,850 | ||||||
Common stock shares issued | 9,375 | 27,400,000 | 100,000 | ||||
Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock shares outstanding | 0 | ||||||
Number of shares converted | 6,310,000 | ||||||
Number of shares redeemed | 9,525 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||
Due to related parties, noncurrent | $ 600,000 | |
PDQ Pickup LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Total revenue | $ 135,565 | |
Board of Directors Chairman [Member] | ||
Related Party Transaction [Line Items] | ||
Due to related parties, noncurrent | $ 600,000 | |
RGA [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction rate | 51% | |
Professional fees | $ 160,544 |
Schedule of Reconciliation Betw
Schedule of Reconciliation Between Effective and Statutory Income Tax Rates (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rates, amount | $ (1,499,868) | $ (3,146,825) |
Federal statutory rates, percentage | 21% | 21% |
State income taxes, amount | $ (499,956) | $ (1,048,941) |
State income taxes, percentage | 7% | 7% |
Permanent differences, amount | $ 339,243 | $ 1,842,891 |
Permanent differences, percentage | (2.30%) | (12.30%) |
Valuation allowance against net deferred tax assets, amount | $ 1,904,836 | $ 2,352,875 |
Valuation allowance against net deferred tax assets, percentage | (12.70%) | (15.70%) |
Effective rate, amount | $ 0 | |
Effective rate, percentage | 0% | 0% |
Schedule of Significant Compone
Schedule of Significant Components of deferred Tax Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operation loss carryforwards | $ 7,410,145 | $ 5,262,153 |
Accrued expenses | 71,649 | 314,805 |
Total deferred income tax asset | 7,481,794 | 5,576,958 |
Less: valuation allowance | (7,481,794) | (5,576,958) |
Total deferred income tax asset |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 1,904,836 | $ 2,352,875 |
Deferred Tax Assets, Valuation Allowance | 7,481,794 | $ 5,576,958 |
Operating Loss Carryforwards | $ 25,900,000 | |
Operating Loss Carryforwards Expiration Year | 2031 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended |
Nov. 29, 2021 | Jun. 30, 2021 | Sep. 30, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Numer of warrants to be exercised | |||
ElBatrawis [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Stock Issued During Period, Shares, Purchase of Assets | 20,000 | ||
Plaintiff shares | 20,000 | ||
Plaintiff stock dropped | $ 1.90 | ||
Loss contingency damages paid value | $ 94,420 | ||
Warrant Holder [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Numer of warrants to be exercised | 1,500,000 | ||
Warrant exercise price | $ 4 |
Settlements (Details Narrative)
Settlements (Details Narrative) $ in Millions | Jan. 13, 2022 USD ($) |
Settlements | |
Litigation settlement | $ 1 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 3 Months Ended | ||||||||
Mar. 16, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 16, 2023 | Feb. 10, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||||||||
Notes payable | $ 6,990,494 | $ 6,253,434 | |||||||
Number of stock issued, value | $ 2,013 | $ 13,700,028 | $ 50,000 | ||||||
Term Loan Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 2.10 | ||||||||
Subsequent Event [Member] | Term Loan Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Loan payable | $ 7,500,000 | ||||||||
Subsequent Event [Member] | Settlement Agreement [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of stock issued, shares | 1,500,000 | ||||||||
Number of stock issued, value | $ 1,620,000 | ||||||||
Mr Peizer [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Principal amount | $ 600,000 | ||||||||
Mr Peizer [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Notes payable | $ 1,000,000 | ||||||||
Principal amount | $ 1,600,000 | ||||||||
Conversion price | $ 0.1156 | ||||||||
Common stock purchase warrant | 13,840,830 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.1156 |