Driveitaway Holdings, Inc.

Previous 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.

Current wording

Revenues for the three months ended December 31, 2024, increased $145,443 from $96,503 for the period ending December 31, 2023, to $241,946 for the period ending December 31, 2024. This was due to a $143,543 increase in rental revenue and insurance revenue as a result of more vehicles available to rent.

Previous 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.

Current wording

Cost of revenue for the three months ended December 31, 2024, increased $57,576, from $85,679 for the period ending December 31, 2023, to $144,227 for the period ending December 31, 2024.

Previous 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.

Current wording

Operating expenses for the three months ended December 31, 2024, increased $18,293 as compared to the three months ended December 31, 2023. The increase was primarily attributable to increases in salaries and payroll taxes of $29,125, , general and administrative of $66,367, software development of $9,735, and, offset by an decrease in advertising and marketing expenses of $176 and professional fees of $86,758.

Previous 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.

Current wording

Loss from operations was $125,612 for the three months ended December 31, 2024, as compared to $195,186 for the three months ended December 31, 2023. The decrease of $69,574 was due to higher gross profit and lower operating expenses.

Previous 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.

Current wording

Other income for the three months ended December 31, 2024, was $582,075, as compared to net other expense of $520,243 for the three months ended December 31, 2023. The change of $1,102,318 is primarily attributable to the change in fair value of derivative liabilities of $1,248,839.

Previous 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.

Current wording

As of December 31, 2024, our working capital deficiency decreased $8,551 as compared to September 30, 2024. This was primarily attributable to a $35,770 increase in current assets offset by the increase in current liabilities of $29,058.

Previous 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.

Current wording

During the three months ended December 31, 2024, we did not generate positive cash flows from operating activities. For the three months ended December 31, 2024, net cash flows used in operating activities was $55,686, consisting of a net income of $456,463, a gain on change in fair value of derivative liability of $913,562, and increased by amortization debt discount of $59,378, amortization of deferred financing costs of $137,580, depreciation and amortization of $37,554, and a change in operating assets and liabilities of $166,901.

Previous 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.

Current wording

During the three months ended December 31, 2023, we did not generate positive cash flows from operating activities. For the three months ended December 31, 2023, net cash flows used in operating activities was $104,496, consisting of a net loss of $715,429, reduced by a loss on change in fair value of derivative liability of $335,277, amortization debt discount of $35,407, depreciation and amortization of $9,471, a financing fee of $98,202, and a change in operating assets and liabilities of 132,576.

Previous wording

During the nine months ended June 30, 2024, the Company used $94,837 cash from investing activities to purchase vehicles for its rental fleet.

Current wording

During the three months ended December 31, 2024, the Company used $137,289 cash from investing activities to purchase vehicles for its rental fleet.

Previous 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.

Current wording

During the three months ended December 31, 2024, the Company generated $228,745 from financing activities including proceeds of $450 from related party advances, $180,117 from the issuance of promissory notes, $57,458 from the issuance of convertible promissory notes, proceeds from the sale of warrants of $50,000, and proceeds from the sale of common stock of $5,000 which was partially offset by $64,280 for repayment of promissory notes.

Previous 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.

Current wording

During the three months ended December 31, 2023, the Company generated $22,222 from the issuance of convertible notes, and $195,000 from the issuance of promissory notes, this was partially offset by $28,278 for repayment of promissory notes payable and payment for debt issuance costs of $46,472.

Previous 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.

Current wording

As of December 31, 2024, the Company had a net income of $456,463, accumulated deficit of $5,102,676 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

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require management to make estimates, judgments and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes. We believe our most critical accounting policies and estimates relate to the following:

Current wording

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), which require management to make estimates, judgments and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. We believe our most critical accounting policies and estimates relate to the following:

Previous wording

While our estimates and assumptions are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. For a discussion of the Company’s significant accounting policies, refer to Note 2 of Notes to the Consolidated Financial Statements.

Current wording

While our estimates and assumptions are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. For a discussion of the Company’s significant accounting policies, refer to Note 2 of Notes to the Condensed Consolidated Financial Statements.