LOS ANGELES--HyreCar Inc. , the carsharing marketplace for ridesharing and food/package delivery services, today updated its reported financial results and provided a corporate update for the fourth quarter and year ended December 31, 2019 and announced receipt of $2.0 Million in funds from the SBA Paycheck Protection Program.
“We are pleased that our rental days have begun to increase in the second quarter post COVID-19 effects as our efforts to increase delivery services are beginning to show signs of traction. Helping our drivers transition into the fast-growing delivery businesses is having immediate effects during these changing times.” said Joe Furnari, Chief Executive Officer of HyreCar. “This is an affirmation of our great organization and the resiliency of our business model which has allowed us to rapidly leverage new opportunities while responding to the crisis.”
The Paycheck Protection Program Loan is from the 2020 Cares Act through the Small Business Administration (“SBA”) and our financial services partner, JPMorgan Chase. Much of this loan is expected to ultimately be forgiven, since the proceeds will primarily be used to support fixed costs such as payroll and rent through the second quarter. This coupled with reductions to large portions of HyreCar’s expenditures like insurance and marketing which are variable in nature during the past month, are prudent financial steps to respond to the current COVID-19 situation.
“JPMorgan Chase has been a great financial partner for us, guiding us through the intricacies of the Paycheck Protection Program and working with the SBA to expedite our application as an existing client. We went from application to funding of $2 Million in just four days, including a weekend.” said Scott Brogi, Chief Financial Officer of HyreCar. “This support, along with our flexible business model and measured cost reduction steps, will allow us to maintain our team as we look ahead to the second half of 2020 and we hopefully begin to rebound as a country.”
Full Year 2019 Financial Updates
- Revenue was $15.9 million, compared to $9.8 million in 2018, an increase of 62%.
- Cost of Sales was $9.8 million, compared to $4.7 million in 2018. The increase was primarily attributed to an increase in net rental days revenues and classification of insurance claim costs from the operation of vehicles on the Company’s platform as costs of revenues. Insurance reserve improved from the preliminary figure of $1.6 million to $1.3 million.
- Net Loss of ($12.5) million and earnings per share of ($0.90), compared to ($11.2) million and ($1.31) in 2018.
- Adjusted Loss of ($10.4) million and adjusted earnings per share of ($0.74), also referred to as adjusted net income per share, compared to ($0.83) in 2018.
2020 Highlights
- More than 60% of all HyreCar drivers are active drivers for both rideshare and delivery service companies.
- Our insurance product gives drivers the flexibility to use the same car for rideshare and food and package delivery, attracting drivers to our unique service not offered by our competition.
- HyreCar expects driver demand for services like HyreCar to continue into 2021, with the growth in food, package and grocery delivery services such as Uber Eats, Postmates, Grubhub and Instacart.
Weekly Rental Days Update
Beginning Date |
|
Ending Date |
|
Weekly Rental Days |
12/30/19 |
|
01/05/20 |
|
16,912 |
01/06/20 |
|
01/12/20 |
|
16,995 |
01/13/20 |
|
01/19/20 |
|
17,156 |
01/20/20 |
|
01/26/20 |
|
17,271 |
01/27/20 |
|
02/02/20 |
|
17,447 |
02/03/20 |
|
02/09/20 |
|
17,804 |
02/10/20 |
|
02/16/20 |
|
17,923 |
02/17/20 |
|
02/23/20 |
|
18,352 |
02/24/20 |
|
03/01/20 |
|
19,942 |
03/02/20 |
|
03/08/20 |
|
20,071 |
03/09/20 |
|
03/15/20 |
|
19,580 |
03/16/20 |
|
03/22/20 |
|
16,280 |
03/23/20 |
|
03/29/20 |
|
14,319 |
03/30/20 |
|
04/05/20 |
|
14,057 |
04/06/20 |
04/12/20 |
14,602 |
About HyreCar
HyreCar Inc. is a nationwide leader operating a carsharing marketplace for ridesharing in all 50 states and the District of Columbia via its proprietary technology platform. The Company has established a leading presence in Transportation as a Service (TaaS) through individual vehicle owners, dealers and OEM’s, who have been disrupted by automotive asset sharing. By providing a unique opportunity through our safe, secure, and reliable marketplace, HyreCar is transforming the industry by empowering all to profit from TaaS. For more information please visit hyrecar.com.
The accompanying tables provide more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures. HYRE has not reconciled adjusted EPS guidance to GAAP net income or GAAP net income per diluted share, respectively, because HYRE does not provide guidance for the reconciling items between these measures and GAAP net income or GAAP net income per diluted share, respectively. As certain of the items that impact GAAP net income and/or GAAP net income per diluted share cannot be reasonably predicted at this time, HYRE is unable to provide such guidance. Accordingly, a reconciliation to GAAP net income or GAAP net income per diluted share is not available without unreasonable effort.
HYRECAR INC. Consolidated Balance Sheets |
||||
December 31, 2019 |
December 31, 2018 |
|||
Assets | ||||
Current assets: | ||||
Cash and cash equivalent |
$ 10,657,140 |
|
$ 6,764,870 |
|
Accounts receivable |
84,680 |
|
161,177 |
|
Deferred expenses |
- |
|
20,927 |
|
Other current assets |
379,425 |
|
128,337 |
|
Total current assets |
11,121,245 |
|
7,075,311 |
|
Property and equipment, net |
9,138 |
|
10,613 |
|
Intangible assets, net |
153,905 |
|
221,623 |
|
Other assets |
95,000 |
|
90,000 |
|
Total assets |
$ 11,379,288 |
|
$ 7,397,547 |
|
Liabilities and Stockholders' Deficit | ||||
Current liabilities: | ||||
Accounts payable |
$ 2,232,629 |
|
$ 856,925 |
|
Accrued liabilities |
903,912 |
|
775,857 |
|
Insurance reserve |
1,332,892 |
|
348,442 |
|
Deferred revenue |
64,808 |
|
53,764 |
|
Related party advances |
9,629 |
|
9,629 |
|
Total current liabilities |
4,543,870 |
|
2,044,617 |
|
Total liabilities |
4,543,870 |
|
2,044,617 |
|
Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively |
-
|
|
-
|
|
Common stock, 50,000,000 shares authorized, par value $0.00001, 16,393,171 and 11,708,041 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively |
164 |
|
117 |
|
Additional paid-in capital |
35,857,835 |
|
21,857,017 |
|
Subscription receivable - related party |
(7,447 |
) |
(7,447 |
) |
Accumulated deficit |
(29,015,134 |
) |
(16,496,757 |
) |
Total stockholders' deficit |
6,835,418 |
|
5,352,930 |
|
Total liabilities and stockholders' deficit |
$ 11,379,288 |
|
$ 7,397,547 |
|
HYRECAR INC. |
||||||
Consolidated Statements of Operations |
||||||
Year ended December 31, 2019 |
Year ended December 31, 2018 |
|||||
Revenues |
$ 15,854,924 |
|
$ 9,777,079 |
|
||
Cost of revenues |
9,842,543 |
|
5,132,079 |
|
||
Gross profit |
6,012,381 |
|
4,645,000 |
|
||
Operating Expenses: | ||||||
General and administrative |
8,561,755 |
|
7,600,735 |
|
||
Sales and marketing |
7,644,019 |
|
4,788,201 |
|
||
Research and development |
2,496,165 |
|
1,414,727 |
|
||
Total operating expenses |
18,701,939 |
|
13,803,663 |
|
||
Operating loss |
(12,689,558 |
) |
(9,158,663 |
) |
||
Other (income) expense | ||||||
Interest expense |
2,500 |
|
2,040,311 |
|
||
Other (income) expense |
(174,481 |
) |
44,129 |
|
||
Total other (income) expense |
(171,981 |
) |
2,084,440 |
|
||
Loss before provision for income taxes |
(12,517,577 |
) |
(11,243,103 |
) |
||
Provision for income taxes |
800 |
|
800 |
|
||
Net loss |
$ (12,518,377 |
) |
$ (11,243,903 |
) |
||
Weighted average shares outstanding - basic and diluted |
13,956,793 |
|
8,557,796 |
|
||
Weighted average net loss per share - basic and diluted |
$ (0.90 |
) |
$ (1.31 |
) |