Driveitaway Holdings Inc
For the period ended Jun 30, 2024. Filed Aug 26, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 26, 2024
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-21.
0001731122-24-000850
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-26.
0001731122-24-001317
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 71 current paragraphs.
50 unchanged; 20 reworded; 1 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
During the nine months ended June 30, 2024, the Company used $94,837 cash from investing activities to purchase vehicles for its rental fleet.
Removed paragraphs (1)
Previous report
During the six months ended March 31, 2024, the Company did not use or generate any cash from investing activities.
Reworded paragraphs (20)
Previous wording
Revenues for the six months ended March 31, 2024, increased $70,727 from $115,083 for the period ending March 31, 2023, to $185,810 for the period ending March 31, 2024. This was due to a $97,985 increase in rental revenue and $24,486 increase in insurance revenue, offset by an increase of $51,743 in insurance lender payback costs.
Current wording
Revenues for the three months ended June 30, 2024, increased $32,394 from $78,005 for the period ending June 30, 2023, to $110,399 for the period ending June 30, 2024. This was due to a $32,394 increase in rental revenue and insurance revenue.
Previous wording
Cost of revenue for the six months ended March 31, 2024, increased $76,205, from $86,550 for the period ending March 31, 2023, to $162,755 for the period ending March 31, 2024. This was primarily due to DIA fleet payments which increased alongside an increase in revenue.
Current wording
Cost of revenue for the three months ended June 30, 2024, increased $1,356, from $64,114 for the period ending June 30, 2023, to $65,470 for the period ending June 30, 2024.
Previous wording
Operating expenses for the three months ended March 31, 2024, decreased $89,285 as compared to the three months ended March 31, 2023. The decrease was primarily attributable to decreases in salaries and payroll taxes of $7,875, professional fees of $61,007, software development of $1,276 and advertising and marketing expenses of $28,007, offset by an increase in general and administrative of $8,880.
Current wording
Operating expenses for the three months ended June 30, 2024, increased $34,583 as compared to the three months ended June 30, 2023. The increase was primarily attributable to increases in salaries and payroll taxes of $16,270, professional fees of $12,498, general and administrative of $7,253, and advertising and marketing expenses of $1,832, offset by an decrease in software development of $3,270.
Previous wording
Loss from operations was $313,680 for the six months ended March 31, 2024, as compared to $415,121 for the six months ended March 31, 2023. The decrease of $101,441 was largely attributable to the decrease in professional fees of $54,422.
Current wording
Loss from operations was $125,857 for the three months ended June 30, 2024, as compared to $122,312 for the three months ended June 30, 2023. The increase of $3,545 was negligible.
Previous wording
Other expenses for the three months ended March 31, 2024, were $357,721, as compared to net other income of $380,309 for the three months ended March 31, 2023. The decrease of $738,030 is primarily attributable to increases in interest expense of $14,341, a change in fair value of derivative liabilities of $625,600, and in amortization of debt discount of $98,089.
Current wording
Other expense for the three months ended June 30, 2024, was $403,792, as compared to net other expense of $34,783 for the three months ended June 30, 2023. The increase of $369,009 is primarily attributable to increases in interest expense of $455,640, related party interest expense of $253, in amortization of debt discount of $103,770, and offset by a change in fair value of derivative liabilities of $190,654.
Previous wording
For the six months ended March 31, 2024, compared to the six months ended March 31, 2023
Current wording
For the nine months ended June 30, 2024, compared to the nine months ended June 30, 2023
Previous wording
Our operating results for the six months ended March 31, 2024 and 2023 are summarized as follows:
Current wording
Our operating results for the nine months ended June 30, 2024 and 2023 are summarized as follows:
Previous wording
Revenues for the three months ended March 31, 2024, increased $22,307 from $67,000 for the period ending March 31, 2023, to $89,307 for the period ending March 31, 2024. This was due to a $28,155 increase in rental revenue and $15,272 increase in insurance revenue, offset by an increase of $21,120 in insurance lender payback costs.
Current wording
Revenues for the nine months ended June 30, 2024, increased $103,121 from $193,088 for the period ending June 30, 2023, to $296,209 for the period ending June 30, 2024. This was due to a $118,186 increase in rental revenue and $28,237 increase in insurance revenue, offset by an increase of $43,302 in insurance lender payback costs.
Previous wording
Cost of revenue for the three months ended March 31, 2024, increased $30,398, from $46,678 for the period ending March 31, 2023, to $77,076 for the period ending March 31, 2024. This was primarily due to DIA fleet payments which increased alongside an increase in revenue.
Current wording
Cost of revenue for the nine months ended June 30, 2024, increased $77,561, from $150,664 for the period ending June 30, 2023, to $228,225 for the period ending June 30, 2024. This was primarily due to DIA fleet payments which increased alongside an increase in revenue.
Previous wording
Operating expenses for the six months ended March 31, 2024, decreased $106,919 as compared to the six months ended March 31, 2023. The decrease was primarily attributable to a decrease in salaries and payroll taxes of $23,125, professional fees of $54,422, software development costs of $2,754 and advertising and marketing expenses of $36,382, offset by an increase in general and administrative expenses of $9,764.
Current wording
Operating expenses for the nine months ended June 30, 2024, decreased $70,708 as compared to the nine months ended June 30, 2023. The decrease was primarily attributable to a decrease in salaries and payroll taxes of $6,855, professional fees of $41,923, software development costs of $6,024 and advertising and marketing expenses of $34,550, offset by an increase in general and administrative expenses of $18,644.
Previous wording
Loss from operations was $118,494 for the three months ended March 31, 2024, as compared to $199,688 for the three months ended March 31, 2023. The decrease of $81,194 was largely attributable to the change in operating expenses of $89,285 and an decrease in gross profit of $8,091.
Current wording
Loss from operations was $439,537 for the nine months ended June 30, 2024, as compared to $535,805 for the nine months ended June 30, 2023. The decrease of $96,268 was largely attributable to the decrease in operating expenses of $70,708 and an increase in gross profit of $25,560.
Previous wording
Other expenses for the six months ended March 31, 2024, were $877,964, as compared to $125,266 for the six months ended March 31, 2023. The increase of $752,698 is primarily attributable to increases in loss on change in fair value of derivative liabilities of $506,222, interest expense of $126,400, and in amortization of debt discount of $120,076.
Current wording
Other expenses for the nine months ended June 30, 2024, were $1,281,756, as compared to $161,677 for the nine months ended June 30, 2023. The increase of $1,120,079 is primarily attributable to increases in loss on change in fair value of derivative liabilities of $315,568, in interest expense of $576,560, related party interest expense of $4,105, and in amortization of debt discount of $223,846.
Previous wording
As of March 31, 2024, our working capital deficiency increased $1,335,504 as compared to September 30, 2023. This was primarily attributable to a $785,370 increase in derivative liabilities, a $426,655 increase in convertible notes payable, and a $155,585 increase in accounts payable and accrued liabilities.
Current wording
As of June 30, 2024, our working capital deficiency increased $2,245,184 as compared to September 30, 2023. This was primarily attributable to a $2,246,640 increase in current liabilities.
Previous wording
During the six months ended March 31, 2024, we did not generate positive cash flows from operating activities. For the six months ended March 31, 2024, net cash flows used in operating activities was $248,617, consisting of a net loss of $1,191,644, reduced by a loss on change in fair value of derivative liability of $509,418, amortization debt discount of $162,051, depreciation and amortization of $18,779, a financing fee of $98,202, and a change in operating assets and liabilities of $154,577.
Current wording
During the nine months ended June 30, 2024, we did not generate positive cash flows from operating activities. For the nine months ended June 30, 2024, net cash flows used in operating activities was $362,766, consisting of a net loss of $1,721,293, a loss on change in fair value of derivative liability of $271,039, and decreased by amortization debt discount of $296,397, depreciation and amortization of $28,486, financing fee of $484,197 and a change in operating assets and liabilities of $278,408.
Previous wording
During the six months ended March 31, 2023, we did not generate positive cash flows from operating activities. For the six months ended March 31, 2023, net cash flows used in operating activities was $334,678, consisting of a net loss of $540,387, reduced by a loss on change in derivative liability of $3,196, stock-based compensation expenses of $15,000, amortization debt discount of $41,975, depreciation and amortization of $17,836, a change in operating assets and liabilities of $127,703.
Current wording
During the nine months ended June 30, 2023, we did not generate positive cash flows from operating activities. For the nine months ended June 30, 2023, net cash flows used in operating activities was $366,356, consisting of a net loss of $697,482, increased by a gain on change in derivative liability of $44,529, and reduced by stock-based compensation expenses of $15,000, amortization debt discount of $72,551, depreciation and amortization of $27,313, a change in operating assets and liabilities of $260,791.
Previous wording
During the six months ended March 31, 2023, the Company used cash for the purchased two vehicles for $67,039 and website development costs of $5,833.
Current wording
During the nine months ended June 30, 2023, the Company used cash for the purchased two vehicles for $67,039 and website development costs of $5,833.
Previous wording
During the six months ended March 31, 2024, the Company generated $357,222 from the issuance of convertible notes and $57,474 from the issuance of promissory notes which was partially offset by $59,988 for repayment of promissory notes and payment for debt issuance costs of $90,445.
Current wording
During the nine months ended June 30, 2024, the Company generated $437,834 from financing activities including proceeds of $182,740 from the issuance of promissory notes, $477,064 from the issuance of convertible promissory notes and proceeds from the sale of common stock of $15,000 which was partially offset by $87,121 for repayment of promissory notes and payment for debt issuance costs of $149,849.
Previous wording
During the six months ended March 31, 2023, the Company generated $285,000 from the issuance of convertible notes, $50,000 from the issuance of promissory notes - related parties, $12,500 from issuance of promissory notes which was partially offset by $1,648 for repayment of promissory notes and payment of debt issuance coasts of $23,500.
Current wording
During the nine months ended June 30, 2023, the Company generated $261,500 from the issuance of convertible notes, $50,000 from the issuance of promissory notes - related parties, $12,500 from issuance of promissory notes, $35,982 from the issuance of notes payable, repaid $14,443 on the notes payable and payment for debt issuance costs of $2,637.
Previous wording
As of March 31, 2024, the Company had a net loss of $1,191,644, accumulated deficit of $4,502,540 and did not have sufficient cash on hand to cover expenses for the next twelve (12) months. The Company intends to convert its convertible debt into common stock and to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the ensuing twelve months.
Current wording
As of June 30, 2024, the Company had a net loss of $1,721,293, accumulated deficit of $5,032,189 and did not have sufficient cash on hand to cover expenses for the next twelve (12) months. The Company intends to convert its convertible debt into common stock and to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the ensuing twelve months.
Previous wording
Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of March 31, 2024 and September 30, 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $4,967 and $7,233, respectively.
Current wording
Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of June 30, 2024 and September 30, 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $759 and $7,233, respectively.