Driveitaway Holdings, Inc.
For the period ended Mar 31, 2025. Filed May 20, 2025.
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.
Mar 31, 2025 · Filed May 20, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-03-28.
0001731122-25-000476
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-20.
0001731122-25-000788
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 63 previous paragraphs and 71 current paragraphs.
50 unchanged; 13 reworded; 4 added; 0 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 6 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 (4)
Current report
Other income for the three months ended March 31, 2025, was $209,294, as compared to net other expense of $357,721 for the three months ended March 31, 2024. The change of $148,427 is primarily attributable to the reduced amortization of debt discount as the maturity dates of notes payable is reached.
Current report
For the six months ended March 31, 2025, compared to the six months ended March 31, 2024
Current report
Cost of revenue for the six months ended March 31, 2025, increased $161,589, from $162,755 for the period ending March 31, 2024, to $324,344 for the period ending March 31, 2025.
Current report
Loss from operations was $364,276 for the six months ended March 31, 2025, as compared to $336,735 for the six months ended March 31, 2024. The increase of $50,596 was due to higher operating expenses.
Reworded paragraphs (13)
Previous 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.
Current wording
Revenues for the three months ended March 31, 2025, increased $121,358 from $89,307 for the period ending March 31, 2024, to $210,665 for the period ending March 31, 2025. This was due to a $121,358 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 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.
Current wording
Cost of revenue for the three months ended March 31, 2025, increased $104,013, from $77,076 for the period ending March 31, 2024, to $181,089 for the period ending March 31, 2025.
Previous 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.
Current wording
Operating expenses for the three months ended March 31, 2025, increased $137,515 as compared to the three months ended March 31, 2024. The increase was primarily attributable to increases in general and administrative of $86,800, professional fees of $79,683, and offset by decreases in advertising and marketing expenses of $1,893, salaries and payroll taxes of $23,625, and software development of $3,450.
Previous 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.
Current wording
Loss from operations was $238,664 for the three months ended March 31, 2025, as compared to $118,494 for the three months ended March 31, 2024. The increase of $120,170 was due to higher operating expenses.
Previous 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.
Current wording
Other income for the six months ended March 31, 2025, was $372,781, as compared to net other expense of $877,964 for the six months ended March 31, 2024. The change of $1,250,745 is primarily attributable to the change in fair value of derivative liabilities of $1,421,400 offset by increase in amortization of deferred financing costs of $171,468.
Previous 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.
Current wording
As of March 31, 2025, our working capital deficiency increased $379,416 as compared to September 30, 2024. This was primarily attributable to a $30,373 increase in current assets offset by the increase in current liabilities of $409,789.
Previous 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.
Current wording
During the six months ended March 31, 2025, we did not generate positive cash flows from operating activities. For the six months ended March 31, 2025, net cash flows used in operating activities was $(161,862), consisting of a net income of $8,505, a gain on change in fair value of derivative liability of $911,982, and increased by amortization debt discount of $78,480, amortization of deferred financing costs of $171,468, depreciation and amortization of $74,292, and a change in operating assets and liabilities of $417,375.
Previous 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.
Current 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.
Previous 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.
Current wording
During the six months ended March 31, 2025, the Company used $137,289 cash from investing activities to purchase vehicles for its rental fleet.
Previous wording
During the three months ended December 31, 2023, the Company did not use or generate any cash from investing activities.
Current wording
During the six months ended March 31, 2024, the Company did not use or generate any cash from investing activities.
Previous 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.
Current wording
During the six months ended March 31, 2025, the Company generated $316,733 from financing activities including proceeds of $1,300 from related party advances, $268,812 from the issuance of promissory notes, $103,708 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 $112,087 for repayment of promissory notes.
Previous 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.
Current 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.
Previous 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.
Current wording
As of March 31, 2025, the Company had a net income of $8,505, accumulated deficit of $5,550,634 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.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Our operating results for the six months ended March 31, 2025 and 2024 are summarized as follows:
Current report — wording carried from elsewhere
Revenues for the six months ended March 31, 2025, increased $266,801 from $185,810 for the period ending March 31, 2024, to $452,611 for the period ending March 31, 2025. This was due to a $266,801 increase in rental revenue and insurance revenue as a result of more vehicles available to rent.
Current report — wording carried from elsewhere
We anticipate that, in 2025 automotive supply and demand will see a continuing return to more historically normal levels which should translate into greater vehicle availability for vehicles on our platform, leading to a further increase in revenues.
Current report — wording carried from elsewhere
Operating expenses for the six months ended March 31, 2025, increased $155,808 as compared to the six months ended March 31, 2024. The increase was primarily attributable to increases in salaries and payroll taxes of $5,500, general and administrative of 153,167, and software development of $6,285, offset by decreases in advertising and marketing expenses of $2,069 and professional fees of $7,075.