2023 Q1 Form 10-K Financial Statement

#000149315223013262 Filed on April 21, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.280M $1.703M $1.703M
YoY Change -88.31% -8.14% -8.14%
Cash & Equivalents $1.280M $1.703M
Short-Term Investments
Other Short-Term Assets $11.73K $3.700K $3.700K
YoY Change -96.23% -99.75% -99.75%
Inventory
Prepaid Expenses $11.73K $3.704K
Receivables $844.6K $919.2K $919.3K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $2.137M $2.626M $2.626M
YoY Change -82.23% -35.61% -35.61%
LONG-TERM ASSETS
Property, Plant & Equipment $158.3K $165.8K $20.87M
YoY Change -98.13% 263.55% 129.75%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.000M $2.439M $2.439M
YoY Change 2339.1% 2339.1%
Total Long-Term Assets $22.20M $23.31M $23.31M
YoY Change 161.78% 153.81% 153.81%
TOTAL ASSETS
Total Short-Term Assets $2.137M $2.626M $2.626M
Total Long-Term Assets $22.20M $23.31M $23.31M
Total Assets $24.34M $25.93M $25.93M
YoY Change 18.68% 95.56% 95.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.408M $1.835M $1.835M
YoY Change 44.0% -51.52% -51.52%
Accrued Expenses $219.8K $217.1K $217.1K
YoY Change -76.97% -81.22% -83.3%
Deferred Revenue
YoY Change
Short-Term Debt $152.7K $171.2K $171.2K
YoY Change
Long-Term Debt Due $5.534M $5.361M $5.361M
YoY Change 186.87% 172.58% 172.58%
Total Short-Term Liabilities $8.614M $7.584M $7.584M
YoY Change 89.09% 7.55% 7.55%
LONG-TERM LIABILITIES
Long-Term Debt $14.95M $15.91M $15.91M
YoY Change 87.32% 92.18% 92.18%
Other Long-Term Liabilities $0.00 $0.00
YoY Change -100.0% -100.0%
Total Long-Term Liabilities $0.00 $15.91M $15.91M
YoY Change -100.0% 91.88% 91.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.614M $7.584M $7.584M
Total Long-Term Liabilities $0.00 $15.91M $15.91M
Total Liabilities $24.86M $23.49M $23.49M
YoY Change 98.29% 53.12% 53.12%
SHAREHOLDERS EQUITY
Retained Earnings -$53.94M -$50.80M
YoY Change 16.36%
Common Stock $70.00 $70.00
YoY Change 94.44%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$526.8K $2.443M $2.443M
YoY Change
Total Liabilities & Shareholders Equity $24.34M $25.93M $25.93M
YoY Change 18.68% 95.56% 95.56%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022

Facts In Submission

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StockIssuedDuringPeriodValueIssuanceOfCommonStockForSettlementOfLitigation
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CY2021Q3 YAYO Adjustments To Additional Paid In Capital Value Of Warrants Issued With Note Payable
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CY2021Q3 us-gaap Adjustments To Additional Paid In Capital Warrant Issued
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CY2021Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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CY2021Q3 us-gaap Net Income Loss
NetIncomeLoss
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CY2021Q3 us-gaap Stockholders Equity
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CY2022 us-gaap Net Income Loss
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CY2021 us-gaap Net Income Loss
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CY2022 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
3324366 usd
CY2021 us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
2124728 usd
CY2022 us-gaap Share Based Compensation
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CY2021 us-gaap Share Based Compensation
ShareBasedCompensation
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CY2022 us-gaap Amortization Of Debt Discount Premium
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293310 usd
CY2021 us-gaap Amortization Of Debt Discount Premium
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1712871 usd
CY2022 YAYO Common Stock Issued For Financing Costs
CommonStockIssuedForFinancingCosts
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CY2021 YAYO Common Stock Issued For Financing Costs
CommonStockIssuedForFinancingCosts
1440 usd
CY2021 YAYO Preferred Stock Issued For Financing Costs
PreferredStockIssuedForFinancingCosts
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CY2021 YAYO Common Stock Issued For Settlement Agreement
CommonStockIssuedForSettlementAgreement
3240600 usd
CY2021 YAYO Common Stock Issued For Litigation Settlement
CommonStockIssuedForLitigationSettlement
42018 usd
CY2021 YAYO Gain On Forgiveness Of Debt
GainOnForgivenessOfDebt
8000 usd
CY2022 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
40916 usd
CY2021 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
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CY2021 us-gaap Other Noncash Expense
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CY2022 us-gaap Increase Decrease In Accounts Receivable
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CY2021 us-gaap Increase Decrease In Accounts Receivable
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CY2022 YAYO Increase Decrease In Vehicle Deposits
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CY2022 us-gaap Increase Decrease In Prepaid Expense
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414263 usd
CY2021 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
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CY2021 us-gaap Increase Decrease In Accounts Payable
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CY2021 us-gaap Increase Decrease In Accrued Liabilities
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CY2021 us-gaap Increase Decrease In Contract With Customer Liability
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NetCashProvidedByUsedInInvestingActivities
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NetCashProvidedByUsedInInvestingActivities
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13700000 usd
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ProceedsFromIssuanceOfCommonStock
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CY2021 us-gaap Proceeds From Stock Options Exercised
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2500000 usd
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ProceedsFromRepaymentsOfNotesPayable
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ProceedsFromPaymentOfDeferredOfferingCosts
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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1781038 usd
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2022 dei Entity Incorporation Date Of Incorporation
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2016-06-21
CY2022 dei Entity Incorporation State Country Code
EntityIncorporationStateCountryCode
DE
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CY2021Q4 YAYO Accumulated Depreciation Leased Assets
AccumulatedDepreciationLeasedAssets
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CY2022 us-gaap Use Of Estimates
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<p id="xdx_843_eus-gaap--UseOfEstimates_zJcFqfRlVKI" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span style="text-decoration: underline"><span id="xdx_86C_zfPSfcKnc7sl">Use of Estimates</span></span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For Year Ended December 31, 2022 and 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2022 us-gaap Income Tax Examination Description
IncomeTaxExaminationDescription
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
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CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4685500 shares
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AdvertisingExpense
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CY2021Q4 us-gaap Property Plant And Equipment Gross
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53097 usd
CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
7496 usd
CY2022Q4 us-gaap Property Plant And Equipment Net
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165781 usd
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
45601 usd
CY2022Q4 YAYO Rental Vehicles Assets Gross
RentalVehiclesAssetsGross
27702758 usd
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RentalVehiclesNet
20701427 usd
CY2021Q4 YAYO Rental Vehicles Net
RentalVehiclesNet
8887319 usd
CY2022 us-gaap Property Plant And Equipment Useful Life
PropertyPlantAndEquipmentUsefulLife
P5Y
CY2022Q4 YAYO Notes Payable Gross
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7943750 usd
CY2021Q4 YAYO Notes Payable Gross
NotesPayableGross
7500000 usd
CY2022Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
953256 usd
CY2021Q4 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
1246566 usd
CY2022Q4 us-gaap Notes Payable
NotesPayable
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CY2021Q4 us-gaap Notes Payable
NotesPayable
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CY2022Q4 us-gaap Notes Payable Current
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CY2022Q4 us-gaap Long Term Notes Payable
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CY2021Q4 us-gaap Long Term Notes Payable
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NotePayableGross
287378 usd
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CY2020 YAYO Lease Obligation Converted To Note Payable
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CY2020 us-gaap Debt Instrument Decrease Forgiveness
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30316 usd
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7500000 usd
CY2021 us-gaap Payments Of Debt Issuance Costs
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600000 usd
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DebtInstrumentDecreaseForgiveness
8000 usd
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RepaymentsOfNotesPayable
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134104 usd
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600000 usd
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156250 usd
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293310 usd
CY2022Q4 YAYO Note Payable Gross
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6990494 usd
CY2022Q4 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
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531250 usd
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750000 usd
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750000 usd
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5312500 usd
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600000 usd
CY2022Q4 us-gaap Long Term Debt
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7943750 usd
CY2022Q4 us-gaap Convertible Notes Payable
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0 usd
CY2022Q4 us-gaap Finance Lease Liability
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CY2021Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
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CY2022Q4 us-gaap Finance Lease Liability Current
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4829349 usd
CY2021Q4 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
1810374 usd
CY2022Q4 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
8845919 usd
CY2021Q4 us-gaap Finance Lease Liability Noncurrent
FinanceLeaseLiabilityNoncurrent
2178836 usd
CY2019Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
2400565 usd
CY2020 YAYO Additional Finance Lease Obligations
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3705417 usd
CY2020 YAYO Disposal Of Leased Vehicles
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355438 usd
CY2020 us-gaap Finance Lease Principal Payments
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2422451 usd
CY2020Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
2352878 usd
CY2021 YAYO Additional Finance Lease Obligations
AdditionalFinanceLeaseObligations
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CY2021 us-gaap Finance Lease Principal Payments
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4271107 usd
CY2021Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
3989210 usd
CY2022 YAYO Additional Finance Lease Obligations
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14220738 usd
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FinanceLeasePrincipalPayments
4534680 usd
CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
13675268 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
6772207 usd
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7294234 usd
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FinanceLeaseLiabilityPaymentsDueYearThree
2945382 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due Year Four
FinanceLeaseLiabilityPaymentsDueYearFour
636269 usd
CY2022Q4 us-gaap Finance Lease Liability Payments Due
FinanceLeaseLiabilityPaymentsDue
17648092 usd
CY2022Q4 us-gaap Finance Lease Liability Undiscounted Excess Amount
FinanceLeaseLiabilityUndiscountedExcessAmount
3972824 usd
CY2022Q4 us-gaap Finance Lease Liability
FinanceLeaseLiability
13675268 usd
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsOtherShareIncreaseDecreaseInPeriodWeightedAverageExercisePrice
0.28
CY2022 us-gaap Stock Option Plan Expense
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StockOptionPlanExpense
391661 usd
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8800 usd
CY2022 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-1499868 usd
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.210 pure
CY2021 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
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0 usd
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0 usd
CY2022Q4 us-gaap Lessor Operating Lease Payments To Be Received
LessorOperatingLeasePaymentsToBeReceived
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CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
0 usd
CY2022Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
0 usd
CY2022 us-gaap Operating Lease Expense
OperatingLeaseExpense
159225 usd
CY2022 us-gaap Operating Lease Cost
OperatingLeaseCost
192000 usd
CY2022Q4 us-gaap Capital Units Authorized
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100000000 shares
CY2022Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
90000000 shares
CY2022Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.000001
CY2022Q4 us-gaap Preferred Stock Shares Authorized
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10000000 shares
CY2022Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.000001
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673750 shares
CY2022Q4 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
673750 shares
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
0.28
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ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0025 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0079 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMinimum
0.0033 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRateMaximum
0.0099 pure
CY2022 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y
CY2021 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
1.60 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
1.85 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Minimum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMinimum
1.80 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate Maximum
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRateMaximum
1.95 pure
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure
CY2021Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
4454717 shares
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<p id="xdx_805_eus-gaap--LossContingencyDisclosures_zPXFQyP04Rqj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Note 12 – <span id="xdx_82E_zeEJOp2biEmd">Contingencies</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Legal Proceedings</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"/></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Notes to Consolidated Financial Statements</b></span></p> <p style="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; margin: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For Year Ended December 31, 2022 and 2021</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i/></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Legal Proceedings</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi: No 20STCV09143</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Robert Vanech v. YayYo, Inc., and Ramy El-Batrawi, No. 21STCV45724</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These two cases <i>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. </i>The Davis complaint was filed on March 5, 2020, in the Los Angeles Superior Court by plaintiff Anthony Davis, who like Vanech was hired by the Company as its CEO (Davis) or CFO (Vanech) and as directors on or about December 2016. Both Vanech’ s and Davis’s employment with the Company ended after several months. As part of their compensation, Davis/Vanech allege that they expected to receive stock options in the Company. In their respective pleadings, both Davis and Vanech admit that each person resigned from their executive officer and director positions but assert that they did not receive certain compensation in the form of stock options. The Company denies liability and has asserted that it has paid Davis and/or Vanech all amounts due to them under their respective employment agreements/settlement agreements, while also asserting that both Davis and Vanech failed to exercise their respective stock options before they expired on December 31, 2018. The Company filed a demurrer to each plaintiff’s amended complaint, which the Superior Court granted in part and denied in part. Plaintiff Davis has since filed a second amended complaint on October 8, 2021, to which the Company has filed an answer. The Company’s position is that the lawsuits entirely lack merit, and the Company intends to defend each case vigorously. Plaintiffs have now filed a motion to consolidate the two actions-based similarity of the facts (and defenses) and that motion is pending. The cases, whether consolidated or not, are expected to go to trial later in 2023 and will be decided in two bench trials or pursuant to summary judgement.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Zada v. EVMO, Inc and Rami El-Batrawi, Los Angeles Superior Court No. 21STCV43510</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesPurchaseOfAssets_c20211104__20211129__srt--TitleOfIndividualAxis__custom--ElBatrawisMember_zoU3XfUbVCxh">20,000</span> shares of Common Stock in February 2018 that the plaintiff claims he did not receive for over three years. By the time the plaintiff was able to acquire the <span id="xdx_90C_ecustom--PlaintiffAcquireShares_c20211104__20211129__srt--TitleOfIndividualAxis__custom--ElBatrawisMember_z4BOSYx50Kv7" title="Plaintiff shares">20,000</span> shares, the value of the stock had dropped to $<span id="xdx_905_ecustom--PlaintiffStockDropped_c20211104__20211129__srt--TitleOfIndividualAxis__custom--ElBatrawisMember_zCJtiKNKTu2a" title="Plaintiff stock dropped">1.90</span> per share. By virtue of the allegedly late delivery of shares, the plaintiff alleges damages of approximately $<span id="xdx_908_eus-gaap--LossContingencyDamagesPaidValue_c20211104__20211129__srt--TitleOfIndividualAxis__custom--ElBatrawisMember_zMIRZ7eCzexe" title="Loss contingency damages paid value">94,420</span>. Other allegations of wrongdoing on Mr. El-Batrawi’s behalf are included in the complaint but add nothing of a material nature to the legal dispute. Both El-Batrawi and EVmo presently intend to file demurrers to the Complaint and if necessary vigorously defendant the lawsuit on the merits.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Bellridge Capital, LP, v. EVmo, Inc., 1:21-cv-07091-PGG (Filed in Southern District of New York)</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In the first half of 2021, a warrant holder, Bellridge Capital, LP (“Bellridge”), sought to exercise a warrant for <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_c20210101__20210630__srt--TitleOfIndividualAxis__custom--WarrantHolderMember_zdD9S2j7SYa6" title="Numer of warrants to be exercised">1,500,000</span> shares, with a stated exercise price of $<span id="xdx_904_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210630__srt--TitleOfIndividualAxis__custom--WarrantHolderMember_z00zkPO7U1B6" title="Warrant exercise price">4.00</span> per share, for a nominal amount, claiming that an anti-dilution adjustment had been triggered in 2020, which had reduced the exercise price to such amount. The Company rejected the exercise, on the basis that the warrant had previously been amended to remove that anti-dilution adjustment. In September 2021, the warrant holder brought suit for damages in the Southern District of New York. In March 2023, the parties to this litigation entered into a settlement agreement. Please see Note 14- “Subsequent Events” below.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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