Driveitaway Holdings, Inc. 10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30 , 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-52883 DRIVEITAWAY HOLDINGS, INC. Delaware 20-4456503 (State or other jurisdiction of Identification Number) (I.R.S. Employer incorporation or organization) 3201 Market Street , Suite 200/201 Philadelphia , PA 10104 (856) 577-2763 (Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act : Common Stock, par value $0.0001 per share Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ . Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒ . Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ . Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ . Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ . The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant as of March 31, 2023 was $ 706,337 based on the closing price of $0.038 of the Company’s common stock as quoted on the OTCQB Marketplace on that date. As of March 8, 2024, there are 106,551,722 shares of common stock of the registrant outstanding. Documents Incorporated by Reference: None ☐ TABLE OF CONTENTS PART I Item 1. Business 2 Item 1A. Risk Factors 9 Item 1B. Unresolved Staff Comments 9 Item 2. Properties 9 Item 3. Legal Proceedings 9 Item 4. Mine Safety Disclosures 10 PART II Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 10 Item 6. Selected Financial Data 10 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 15 Item 8. Financial Statements and Supplementary Data 15 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 16 Item 9A. Controls and Procedures 16 Item 9B. Other Information 17 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevents Inspection 17 PART III Item 10. Directors, Executive Officers and Corporate Governance 18 Item 11. Executive Compensation 20 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 21 Item 13. Certain Relationships and Related Transactions, and Director Independence 22 Item 14. Principal Accounting Fees and Services 23 PART IV Item 15. Exhibits and Financial Statement Schedules 24 Item 16. Form 10-K Summary 25 i CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (the “Report”) includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. You should read statements that contain these words carefully because they: ● discuss future expectations; ● contain projections of future results of operations or financial condition; or ● state other “forward-looking” information. We believe it is important to communicate our expectations to our stockholders. However, there may be events in the future that we are not able to accurately predict or over which we have no control. The cautionary language discussed in this Form 10-K provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described by us in our forward-looking statements, including among other things: ● the operating and financial results of the Company; ● our failure to successfully implement our growth strategy; ● changing economic conditions; ● our need for additional financing; ● litigation and regulatory issues; ● our failure to comply with current or future laws or regulations; and You should not place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-K. Forward looking statements involve known and unknown risks and uncertainties that may cause our actual future results to differ materially from those projected or contemplated in the forward-looking statements. All forward-looking statements included herein attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except to the extent required by applicable laws and regulations, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this Form 10K or to reflect the occurrence of unanticipated events. 1 PART I Item 1. Business General As used in this Annual Report, references to the “Company,” “DriveItAway,” “we,” “our,” and “us” refer to DriveItAway Holdings, Inc. and its consolidated subsidiary, unless otherwise indicated. In addition, references to our “financial statements” are to our consolidated financial statements included elsewhere in this Annual Report except as the context otherwise requires. We prepare our consolidated financial statements in United States dollars and in accordance with generally accepted accounting principles as applied in the United States, (“U.S. GAAP”). In this Annual Report, references to “$” and “dollars” are to United States dollars. Overview DriveItAway Holdings, Inc. was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. The Company is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. We provide a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The Company has expanded its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles. Agreement and Plan of Share Exchange On December 7, 2021, the Company (f/k/a Creative Learning Corporation), DriveItAway, Inc., a Delaware corporation (“ DIA ”), and the existing shareholders of DIA executed an Agreement and Plan of Share Exchange, under which the Company would acquire all of the issued and outstanding common stock of DIA by issuing one share of Series A Convertible Preferred Stock (the “ Series A Preferred ”) of the Company for each outstanding share of DIA common stock (the “ Share Exchan g e ”). As a result of the Share Exchange, DIA will become a wholly-owned subsidiary of the Company. Each share of Series A Preferred will be convertible into that number of shares of common stock of the Company which would entitle the Series A Preferred holders to 85% of the Company’s common stock, determined on a fully-diluted basis. The exact conversion rate of the Series A Preferred will be determined at closing of the Share Exchange. In addition, each share of Series A Preferred will be entitled to dividends and voting rights on an “as converted” basis with the common stockholders. Closing on Share Exchange On February 24, 2022, closing of the Share Exchange occurred. Each share of Series A Preferred is convertible into 33.94971 shares of common stock of the Company, which entitles the holders thereof to 85% of the Company’s common stock upon a conversion of all shares of Series A Preferred, determined on a fully-diluted basis. In addition, each share of Series A Preferred is entitled to dividends and voting rights on an “as converted” basis with the common stockholders. Upon closing of the Share Exchange, all of the existing members of the board of directors (the “ Board ”) of the Company resigned, except that Rod Whiton’s resignation will not be effective until ten days after an information statement pursuant to Rule 14f-1 is mailed to shareholders. John Possumato, and Adam Potash were appointed to the Company’s Board, provided that the appointments of Messrs. Potash and Patrizio will not be effective until ten days after an information statement pursuant to Rule 14f-1 is mailed to shareholders. Upon closing of the Share Exchange, Christopher Rego and Rod Whiton resigned as officers, and John Possumato was appointed chief executive officer and Adam Potash was appointed chief operating officer. Mike Elkin agreed to remain as chief financial officer of the Company. 2 Sale Agreement with StroomX, LLC On December 7, 2021, the Company entered into a Sale Agreement with StroomX, LLC (the “ Purchaser ”), under which the Company agreed to sell all of the Company’s subsidiaries (the “ Learnin g Subsidiaries ”) involved in its learning business (the “ Learnin g Business ”), as well as any assets of the Learning Business that are not owned by the Learning Subsidiaries, to the Purchaser. In connection with the sale, the Purchaser agreed to assume all liabilities of the Learning Business, and to indemnify and hold the Company harmless from any such liabilities. The Purchaser is controlled by Christopher Rego, the Company’s current chief executive officer. Closing of the sale will occur after the closing of the Share Exchange. The sale of the Learning Business closed on March 18, 2022. As consideration for the purchase of the Learning Business, the parties agreed to offset $50,000 in severance due to Christopher Rego as part payment of the purchase price. The remainder of the purchase price was paid by a joint note executed by the Purchaser and Mr. Rego in the principal amount of $100,000, which is payable in full on April 20, 2022 without interest. Alternatively, the parties agreed that the promissory note may be satisfied in full by the delivery to the Company by the maturity date of the note of all shares of common stock owned by Mr. Rego and his spouse in the Company, provided that the number of shares is not less than 500,000. In the event the note is not paid in full by its maturity date, either in cash or shares, the note shall bear interest at 15% per annum until it is paid in full. 500,000 shares were returned to the transfer agent and cancelled as of May 12, 2022. Series A Preferred Stock February 24, 2022, the Company’s Board approved an amendment to its certificate of incorporation to designate a new series of preferred stock, which is known as the Series A Convertible Preferred Stock. Each share of Series A Preferred is convertible into 33.94971 shares of common stock of the Company, which entitles the holders thereof to 85% of the Company’s common stock upon a conversion of all shares of Series A Preferred, determined on a fully-diluted basis, but prior to any shares issued or issuable as a result of the Financing (as defined below). In addition, each share of Series A Preferred is entitled to dividends and voting rights on an “as converted” basis with the common stockholders. On April 20, 2022, holders of 2,464,784 shares of Series A Preferred agreed to convert their Series A Preferred into common stock, which resulted in the issuance of 83,678,702 shares of common stock. On the same date, the board of directors approved a resolution to exercise the Company’s right to mandatorily convert the remaining 129,809 shares of Series A Preferred into common stock, which resulted in the issuance of an additional 4,406,979 shares of common stock. Names Change and Capital Structure On April 18, 2022, the Company filed an amendment to its certificate of incorporation with the Delaware Secretary of State to change its name from Creative Learning Corporation to DriveItAway Holdings, Inc. and to increase the number of authorized shares of common stock from 50,000,000 to 1,000,000,000. Our Business We have developed a consumer-facing app and Web-based platform that allows any automotive retailer the ability to provide a subscription to ownership “micro-lease” model for any consumer, regardless of credit history – easy, transparent, and risk-free for both the consumer and the retailer. Under our “Drive Now, Decide Later” mantra, any consumer, regardless of credit, can go on our app, select a vehicle, sign for and pick up a vehicle, and have the subscription deal consummated in a matter of minutes. Unlike a vehicle sale or lease, a candidate that passes our detailed screening can be driving without making any long-term financial commitment, for as long as he/she wants, in the vehicle of choice. While there is really no such thing as “digital retailing” for the sale or lease of a vehicle in the U.S. today, as all states require actual “wet ink” signatures for documents either sent to the buyer or signed at a dealership, documents for a rental or subscription can all be legally signed digitally, so this process is quick, easy and can all be consummated in our app – with the vehicle delivered to the candidate. We are true digital retailing for the automotive industry. Unlike rental car companies, or even subscription companies available to US and Canadian consumers today, a DriveItAway vehicle subscription program is differentiated with one vital element, all of our drivers have the ability to buy the vehicle they are subscribing to, with the portion of the money they are paying in as rental fees accruing towards the purchase price, should they choose to buy. All drivers have the right, but not the obligation, to buy at any time, and get the benefit of his or her specific vehicle’s reduced purchase price created by the payments they have made for vehicle usage. 3 Just as Divvy Homes has revolutionized the rent-to-own market for houses during these cash-strained times, DriveItAway seeks to revolutionize how both new and used vehicles are sold, where a purchase transaction starts in a commitment-free rental or subscription. While we think this easy, transparent, and turnkey type of “Drive Now, Decide Later” subscription appeals to all potential vehicle buyers and will grow dramatically as the entire car market makes the transition to EV vehicles and we gain more visibility as an alternative in the marketplace, right now the “low hanging fruit” is indeed the subprime and deep subprime consumer, whose alternatives are limited to the bad choices outlined above. 4 We use a technology partner to extensively screen our applicants through a digital process for background and identity, driving history and insurance risk, income verification, etc., but we do not require any threshold credit score. As long as an applicant has a clean driving record and adequate income, etc., he/she can qualify for one of our vehicles. In the current environment, the average new vehicle is selling for approximately $47,000 dollars while the average used vehicle is selling for approximately $28,000 with an average six-year payment of over $716. Our average vehicle usage/rental fees are priced a little higher (between $150-225 a week, not counting insurance) on a subscription, but our driver is building equity in the vehicle they are driving, and most all are working towards a buyout – when the amount written down is low enough that he/she can successfully finance the purchase. As our mission is defined, we get our credit-challenged customers off of the “gerbil wheel” of never-ending payments, and out of vehicles that break down before the payments are finished. In general, as banks and finance organizations are tightening up credit policies, particularly for subprime and deep subprime buyers, and auto loan delinquencies are now at a seventeen year high, while vehicles have become higher in price relative to income, we see vehicle subscriptions at the same trajectory of growth today as consumer vehicle leasing was 25-30 years ago: a small percentage of “sales” now, but high growth in the years to come. We see our unique subscription to ownership model as the best subscription program for all consumers, as it offers the best of both the “walk away” ability of a turnkey monthly rental, but with the advantage of benefiting from the monthly usage payment reduction, should the driver choose to buy. DriveItAway works with franchise and larger independent dealers (not with Buy Here/Pay Here stores), and is primarily a turnkey subscription dealer platform, although we do act as principal in many cases owning vehicles, particularly EV vehicles, always serviced and delivered by our car dealership partners. We also acquired inventory in the past year from a large under a fleet lease agreement with a large national fleet owner. This allows the company to scale rapidly in many locations, without the burden of fixed overhead or personnel expenses. How We Work Without the technology available in recent years, it would not be possible for DriveItAway to exist. Many years ago, when the Buy Here/Pay Here market first developed it was necessary for those dealers to maintain 30/40% net profit margins, as typically a third of their vehicles ended up being repossessed, and, by the time the dealer actually received the vehicle back, it was in such bad repair it was worth next to nothing. Today, with embedded app based technology, we can greatly reduce most of the risks, identify those problems that do occur quickly, and mitigate losses, so that we can maintain a high per-unit profit margin and still price very competitively as compared to other choices our retail customers might have, allowing for a good profit margin for ourselves and dealers that use us as a subscription/micro-lease platform. Note: most franchise dealers would like the extra profit and business deep subprime candidates represent (they have been, typically the most loyal and highest profit margin sector of vehicle buyers), particularly now when many “near prime” buyers are rapidly being reclassified as subprime, but do not want to deal with the typical problems a “Buy Here/Pay Here” operation represents, nor do they want to operate that type of “victimizing” enterprise. First, our all in-app subscription process is not only quicker and much more transparent to our end user drivers, but it is also much easier to administer and maintain from an operational perspective. DriveItAway uses a third-party screening service to review an applicant’s identity and background, his/her driving history and insurance risk, income verification and employment, and credit tier. While we do not require any particular credit score, we do require a ratio of income to payment coverage for all renters, a clean driving history, and other criteria to mitigate risk. This automated screening process runs in the app with an API and is completed within minutes. Once a candidate qualifies for the vehicle selected, we collect a security deposit commensurate with the payment and value of the vehicle, and all drivers pay in advance by credit card or ACH inside the app. We are also gearing up to collect through voluntary payroll deduction for our subscribers as well. Before such technologies existed, in the old days of “Buy Here/Pay Here” the payment process was (and still is in many of these small stores), literally done in person on a weekly basis – obviously, there is a lot of collection friction in a manual process. One major key to what we do is the placement of advanced telematics on every vehicle we offer for subscription. All drivers in our subscription contract are informed and agree to have a live-time telematics device in each vehicle along with an ignition starter cut-off switch, which is tied back into our payment platform. With this, DriveItAway can monitor vehicle location, and driving pattern (speed versus speed limit, hard braking, etc.) and can set up a “red flag” monitor to identify unsafe driving. Unsafe driving is not tolerated and will result in a warning and possible vehicle return. In addition, the ignition starter cut-off switch automatically kills the start-up of the vehicle, if an advance payment is overdue (note: it does not in any way stop the vehicle while driving, but once the vehicle is shut off, it simply cannot be restarted, unless we “turn it back on”). This is not seen so much as a penalty, but a very explicit reminder that our driver must pay for the vehicle. Through our AI chat and automated system, a person can simply say when and what amount of payment they are prepared to make, and the vehicle will turn on, even if the payment commitment is in the future (we do not want to strand anyone or cause undue hardship). However, repeated late payments can result in a vehicle requiring a return. 5 One note, our entire program is focused on keeping our subscribers who want to buy “on the rails” and that is made clear at inception. We work with our subscribers to help each achieve their goal of vehicle ownership, which includes free credit counseling/credit remediation if desired by the applicate. Finally, we counsel all of our subscribers that, indeed, one of the benefits of being in a weekly/monthly subscription is the fact that no long-term commitment is made, so if his/her financial situation changes and the vehicle is no longer affordable, simply turn it in (each is paying in advance), and preserve the ability to come back for a new vehicle in the future. Finally, we are writing down the vehicle each month, below depreciated “book” value, so if a vehicle is returned, we are never “upside down” on market value versus book value. When a vehicle is returned, either our own vehicle or a dealer vehicle for dealers using us as a platform, we simply put it back out to another candidate, until one of our drivers purchases the vehicle. Very clearly, without technology and integrations available in the last few years, a subscription to an ownership platform such as DriveItAway could not exist. The fact that it does now, and we are introducing it into the market, enables us to achieve our mission to rationalize the one area of the automotive industry that has yet to become efficient and is filled with high-margin friction, the subprime and deep subprime Buy Here/Pay Here marketplace. EV Program During the last year, DriveItAway, acting as principal, did market pilots, and added a variety of EV and Hybrid Plug-In vehicles into its fleet, integrating different telematics, marketing models and user surveys to engineer and gain experience in scaling as a mainstream EV subscription to ownership platform. The DriveItAway program is uniquely designed to help alleviate the two biggest impediments to a mainstream or subprime EV sale, the higher cost (spread out over as long a period of time as required for our subscriber), and the “suitability” or anxiety of plunging into an EV sale. Add to this the recognition and focus on the need for more “mainstream” EV buyers to achieve EV growth goals in the US, by both private and public entities, and the problem now becoming more apparent in the slower growth in EV sales as new EV inventory builds on dealer lots (now at a 120 days supply and increasing), we clearly are on the right side of a long-term trend. Indeed, all our EV subscribers have to do is run a new or used EV for the required period of time in a subscription so that it is two model years old when the selling price is written down to $25k or less, and he/she will receive a $4,000 or 30% of the sale price tax credit (in 2024 which can be signed over as cash to the selling dealer, no waiting for a tax credit to come) on his or her purchase, courtesy of Inflation Reduction Act (note: the buyer must make less than $75k a year, or $150k for couples). This used EV incentive, of 30% of the purchase price or $4,000 (whichever is less), can easily be seen as perfect synergistic fit with the DriveItAway program, particularly working in coordination with franchise car dealers. With our program, a dealer can, by putting vehicles in a subscription service with our platform, manufacture their own used car, qualifying for the substantial federal used car consumer tax incentive. Also, as retailers have slimmer sales profit margins on mainstream EVs, and will have up to 40-50% less service work on EVs (great for the consumer, not so good for dealers), selling a mainstream EV vehicle twice – once in their subscription service using the DriveItAway platform and then as a used car, with incentives, to the driver or another consumer – helps solve franchise dealer “margin compression” issues as well. During the past year used EV values plunged over 30% and continue to drop at a record pace, setting the stage for the DriveItAway platform to provide a turnkey profitable “safety valve” for a dealer’s used EV inventory creating income and sales. It is expected that in the coming quarters DriveItAway will also be able to leverage this dramatic drop in EV resale value by acting as principal in financing its own fleet of used EV vehicles and offering them at very affordable rates to its end user customers. Getting EVs in mainstream consumer hands in a beneficial, profitable way for all constituencies, “EVs for Everyone,” is another problem that we solve. Key Industry Tailwinds We believe the convergence of key trends, including the increased supply of new and used vehicles, the pendulum swinging back to normal on new and used vehicle depreciation curves (a radical shift from the last 24 months), rising interest rates, and a challenging economy (we are a counter cycle company), the major private and public push for EV sales goals, and the entry-level worker shortage, all will contribute to the robust demand for DriveItAway’s dealer administered consumer-focused subscription to ownership platform. 6 ● New and Used Vehicle Supply is Increasing and Vehicles are Decreasing in Value. All of the primary forecasters and OEMs have stated, clearly that the chip and parts supply shortage has ended, and it is a fact that for the first time in two years new vehicle inventories are climbing, currently at a 20 month high and building rapidly. . Commensurately, used vehicle wholesale prices have plunged over the last few quarters, and now retail used car values are continuing to fall. Many dealers now have used inventory that is “underwater” (not worth the cost value in the wholesale market), and so our platform now adds value to win both incremental new market share and sell used vehicles without a wholesale loss. ● Vehicle Affordability is at an All Time Low, Interest Rates are Up, auto loan delinquency rates are at a 17 year high and Repossessions are Up for all Financial Credit Ratings, but Most Dramatically for Prime Vehicle Loans . The average new car now sells for over $47,000 with the average car payment above $700 a month with an average six-year term loan.. In addition to increasing retail prices and interest rates pushing more folks out of the market, banks for the first time in a long time are tightening up credit policies to reject higher credit scores for vehicle financing. Subprime loan delinquency rates are now the highest seen since 2006, and repossessions are on the rise, particularly in the prime lending segment As our business is counter cycle, in that it both helps those consumers who need to spread out the cost of a new or used vehicle, and particularly helps those who are cash or credit-challenged to drive and then buy a vehicle, all of these macroeconomic indicators are now swinging back to portend a greater need for our solution. ● The Focus for both Vehicle Manufacturers and Government is to Promote Widespread Mainstream EV Adoption . It is clear that federal EV adoption objectives are impossible to achieve without the high volume, rapid adoption of EVs among mainstream, non-affluent vehicle buyers. Also, vehicle manufacturers cannot hope to have an adequate return on the billions of dollars invested in the development and manufacture of EV vehicles, without mainstream EV sales, in addition to the current market 98% composed of luxury and premium luxury buyers. Both public and private institutions recognize this, which is why the recent focus has been on creating stimulus programs to subsidize the price of EVs and appeal to all buyers. The DriveItAway program fits perfectly to facilitate this much larger trend, the first company of its kind to do so in this way. ● Dealers are Coming Under Financial Pressure to Move EV Units and EVs Have Lower Profit Margins and Dramatically Fewer Service Requirements . As manufacturers introduce and hinge sales growth on EV vehicles, and consumer demand for e-commerce continues to accelerate, new car dealers are in a particularly difficult position, as profit margins will decrease rapidly, in both sales and fixed operations. Most all vehicle manufacturers, both in the US and abroad, with the advent of new EV models, are putting a new sales model in place for franchise dealers, the “agency model,” where the vehicle price and sales transaction is dictated by the manufacturer online, and the dealer receives a fixed fee for customer delivery. This eliminates the dealer’s ability to set retail prices or negotiate a purchase. Combine this with the McKinsey & Co. estimate that repair service income will drop 40-50% with EVs, as compared to ICE units (EVs have approximately 200 moving parts, as compared to 2,000 for a gas unit), and profit marge compression for dealers is imminent and a growing concern. Our program allows dealers who use our platform “two bites” at the sales apple, once when a vehicle is put into a dealer’s rental/subscription company (the first sale), and the second when that vehicle is sold used, either to the driver or another party, all the while guaranteeing service work on the vehicle for an extended period of time. By the nature of the subscription to ownership program, our dealer partners increase market share and profit margins on EVs. ● Large Companies in the US are in the Process of Major EV Usage and Sustainability Adoption . Larger companies in the US are under increased pressure to document sustainability objectives, particularly in the replacement of ICE units to EVs, in both their fleet and employee car park. Bank of America, for instance, is giving all employees who make less than $100k a year the incentive of an extra $4,000 for buying an EV. In addition, many are subject to broader ESG audits which have a very real impact on institutional investment, etc. and are increasingly emphasizing sustainability in their purchasing decisions to positively impact their communities and the environment. As the DriveItAway program gains more visibility in transparently and efficiently accomplishing these larger companywide aligned goals, we see a much larger scalable growth in working with large corporate constituencies. ● The Adoption of EVs Portends an Increased Focus on Vehicle Subscriptions. Consumers are shifting their lifestyles to include more subscription-based services, especially where battery-driven technology obsolescence could be a major factor. For example, most cell phones today are under a subscription, rather than a purchase or lease contract, and cable television is quickly being replaced in consumer households by subscription streaming. Some major forecasters are predicting the same for EVs as they grow in consumer adoption, that subscriptions will represent even as much as one-third of all EV “sales.” Our subscription with optional ownership technology and platform gives the consumer the best of both a subscription and the ability to convert ownership when and if desired. 7 Long-Term Growth Strategy We have made decisions and investments with long-term objectives to scale rapidly. We believe maintaining a long-term growth orientation is key to maximizing DriveItAway’s impact and generating value for all stakeholders, looking towards larger market value potential with the massive changes afoot in the automotive retail industry. We plan to achieve this by continuing to lay down a firm foundation in technology, platform and partners, and continue growth with positive unit economics. Key levers of our growth strategy include: ● Renew and Continue to Redevelop our Platform as a SaaS For Larger Car Dealers and Large Fleet Providers. We plan to continue to refine and improve our platform to best accommodate dealers for use with their own new and used vehicles, and as an entry-level point to grow market share both for subprime customers and potential mainstream EV buyers. ● Develop Continued EV-Focused Pilots Acting as Principal to Service Customers Directly with Dealer Partners . We think that as the current market for all vehicles becomes more challenging, selling entry-level EVs in the volumes projected by the manufacturers will become particularly difficult, and that programs like DriveItAway will become vital to stimulate mainstream EV adoption. We plan to continue to gain experience and reputation in accommodating mainstream EV adopters directly with our own inventory, anticipating likely support from manufacturers and manufacturer-owned captive finance companies, as we make our presence known as a unique fleet buyer. ● Continue Partnerships with Vehicle Fleet Providers for Consignment Vehicles as we Build Dealer Clients . DriveItAway currently has relationships with two subscription/rental organizations, for the consignment of lease vehicles to go into the DriveItAway program. Given the specialization and uniqueness of the DriveItAway technology and platform, there is a synergy in these fleet suppliers leasing vehicles to us for our target market, and gain from our wholesale lease payments, then their alternative to go to the significant expense of capturing our market directly. In turn, this supplies us with wholesale inventory to expand our direct market share, facilitating our growth and market presence. ● Pilot and Expand Partnerships with Large Contract Labor Organizations and Corporates to Fulfill Both Their ESG and Employee Retention and Recruitment Goals . As we roll out our second successful pilot with a contract labor organization, we, together, intend to scale our solution with many other large corporates in strategically located regions throughout 2024. Again, with larger reach and visibility, this application and target market is large and vast, and alone presents scale to many thousands of vehicles. ● Continue to Expand Synergistic Partnerships with Industry Providers in Insurance, Lead Generation and Telematics Infrastructure . Over the last 24 months, we have dramatically increased our partnerships with major insurance providers (with refined risk screening and launched a “bring your own insurance” model in the second quarter of 2023), potential lead generation partners (such as EV subscription services that only focus on subprime, absorbing rejected leads into our sales funnel) and telematics providers (integration with innovative new technologies for vehicle monitoring and control). These relationships will allow us to continue to refine, grow and scale our business, and provide our own innovations while improving customer experience, with a minimum of infrastructure investment. We will continue to grow these partnerships and add additional partners, to leverage and refine our model. ● Expand Into More Regions of the US and Gain More Consumer Visibility . One of the biggest impediments to our growth, indeed, is the lack of DriveItAway as a visible alternative to our target audiences - those subprime consumers whose alternatives for transportation ownership our far worse, and, in addition to the new group of mainstream consumers who are interested in EVs but do not want to take the risk of getting into a long-term financial commitment before extensive use. As we increase our inventory and presence in more contiguous regions throughout the US, our visibility will increase. In addition, we continue to present at auto industry trade shows to gain more visibility among potential dealer and technology partners, and our CEO regularly has articles published in trade industry journals. 8 ● Unlock New Business Models . Our capabilities as a scalable direct-to-customer digital mobility subscription to ownership platform, with proprietary integrated technology, position us to drive the adoption of future business models. This includes our expertise in managing what we believe will become the largest centrally managed fleet of EV mainstream/credit challenged consumer vehicles, with our subscription to ownership model, which in the future will allow us to unlock future service offerings, including retail insurance, credit and funding products to our consumer customer base. Employees As of September 30, 2023, we have 0 employees and 7 independent contractors. Some of our executive officers and directors are engaged in outside business activities that we do not believe conflict with our business. Over time, we may be required to hire additional employees or engage independent contractors to execute various projects that are necessary to grow and develop our business. These decisions will be made by our officers and directors, if and when appropriate. Corporate Information Our principal executive office is located at 3201 Market Street, Suite 200/201, Philadelphia, PA 19104. Our telephone number is (856) 577-2763. Our website is www.driveitaway.com. Our website’s information is not, and will not be deemed, a part of this Annual Report or incorporated into any other filings we make with the SEC. Available Information Copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents that we will file with or furnish to the SEC will be available free of charge by sending a written request to our corporate headquarters. Additionally, the documents we file with the SEC are or will be available free of charge at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Other information on the operation of the Public Reference Room may be obtained by calling the SEC at (800) SEC-0330. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The SEC’s website is www.sec.gov. We maintain a corporate website at www.driveitaway.com. You will be able to access our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports, proxy statements and other information to be filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge at our website as soon as reasonably practicable after such material will be electronically filed with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not part of this Annual Report. Item 1A. Risk Factors We are not required to provide this information as we are a smaller reporting company. Item 1B. Unresolved Staff Comments Not applicable. Item 2. Properties On April 1, 2022, the Company leased virtual office space at 3201 Market Street, Suite 200/201, Philadelphia, PA 19104 for its corporate office. The lease has a term of one year. The Company is not obligated to pay rent. Item 3. Legal Proceedings We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, or proceeding by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or our subsidiary, threatened against or affecting our Company, our common stock, our subsidiary or of our companies or our subsidiary’s officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect. 9 Item 4. Mine Safety Disclosures Not applicable. Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Price for Equity Securities Our common stock is quoted on the OTC Pink under the symbol “DWAY”. The following table sets forth the quarterly high and low daily close for our common stock for the two years ended September 30, 2023 and 2022. There is a very limited market for the Company’s common stock Price Range High Low Year ended September 30, 2023 First Quarter $ 0.13 $ 0.03 Second Quarter $ 0.13 $ 0.02 Third Quarter $ 0.04 $ 0.02 Fourth Quarter $ 0.04 $ 0.00 Year ended September 30, 2022 First Quarter $ 0.20 $ 0.15 Second Quarter $ 0.17 $ 0.08 Third Quarter $ 0.13 $ 0.08 Fourth Quarter $ 0.09 $ 0.01 Holders At March 8, 2024, the Company had 106,551,722 outstanding shares of common stock and 144 shareholders of record. Dividends Holders of common stock are entitled to receive dividends as may be declared by the Company’s Board. The Company’s Board is not restricted from paying any dividends but is not obligated to declare a dividend. No dividends have ever been declared, and it is not anticipated that dividends will be paid in the foreseeable future. Any indebtedness the Company incurs in the future may also limit its ability to pay dividends. Investors should not purchase the Company’s common stock with the expectation of receiving cash dividends. Recent Sales of Unregistered Securities There were no sales of unregistered securities during the fourth quarter of the fiscal year ended September 30, 2023. Purchase of Equity Securities by the Issuer and Affiliated Purchasers We did not repurchase any securities during the fourth quarter of the fiscal year ended September 30, 2023. Item 6. Selected Financial Data As a smaller reporting company, we are not required to provide the information required by this Item. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. All information presented herein is based on the Company’s fiscal year, which ends September 30. Unless otherwise stated, references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years. 10 Overview The Company was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. The Company is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. DIA provides a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The company is planning to soon expand its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles. RESULTS OF OPERATIONS For the year ended September 30, 2023, compared to year ended September 30, 2022 Our operating results for the years ended September 30, 2023 and 2022 are summarized as follows: Years Ended September 30, 2023 2022 Change $ Change % Revenues $ 307,284 $ 55,509 $ 251,775 454 % Cost of revenue 238,763 38,898 199,865 513 % Gross Profit 68,521 16,611 51,910 313 % Operating expense 830,976 1,201,767 (370,791 ) (31 % ) Operating loss (762,455 ) (1,185,156 ) 422,701 (36 % ) Other Income (expense) (167,682 ) (290,209 ) 122,527 (42 % ) Net loss $ (930,137 ) $ (1,475,365 ) $ 545,228 (37 %) Revenues for the year ended September 30, 2023 was $307,284, as compared to $55,509 for the year ended September 30, 2022, an increase of $251,775 primarily due to a $151,464 increase in rental revenue. Operating expenses for the year ended September 30, 2023 were $830,976 as compared to $1,201,767 for the year ended September 30, 2022. The decrease of $370,791 was primarily attributable to a $299,088 decrease in professional fees and a $90,475 reduction in salaries and payroll taxes. Operating loss was $762,455 for the year ended September 30, 2023, as compared to $1,185,156 for the year ended September 30, 2022. The decrease of $422,701 was largely attributable to a decrease in professional fees, salaries, and payroll taxes and a large increase in rental revenue. 11 Other income (expenses) for year ended September 30, 2023 were ($167,682), as compared to ($290,209) for the year ended September 30, 2022. The increase of $122,527 was attributable to an increase in amortization debt discount of $555,282, partially offset by decreases in gain (loss) on change in fair value of derivative liability, gain on PPP loan forgiveness, and interest expense of $265,465, $24,148, and $103,549, respectively. Liquidity and Capital Resources: The following table provides selected financial data about our Company as of September 30, 2023 and 2022. Working Capital September 30, September 30, 2023 2022 Change $ Cash $ 4,632 $ 127,109 $ (122,477 ) Current assets, net of restricted cash $ 16,216 $ 143,689 $ (127,473 ) Current liabilities 1,878,080 1,094,299 783,781 Working capital (deficiency) $ (1,861,864 ) $ (950,610 ) $ (911,254 ) As of September 30, 2023, and September 30, 2022, our total current assets net of restricted cash were $16,216 and $143,689 which were comprised of $4,632 and $127,109 in cash, $11,584 and $6,082 in accounts receivable and $0 and $10,498 in prepaid expenses, respectively. As of September 30, 2023, our current liabilities were $1,861,080 which were comprised of $664,707 in accounts payable and accrued liabilities, $4,918 in accrued interest – related party, $7,233 in deferred revenue, $2,234 in customer deposits, $25,080 in due to related party, $27,437 in promissory notes payable, $12,500 in promissory notes payable in default, $50,000 in promissory notes payable – related parties, $1,082,654 in convertible notes payable, and $1,317 in derivative liability. As of September 30, 2022, our current liabilities were $1,094,299 which were comprised of $227,109 in accounts payable and accrued liabilities, $2,101 in deferred revenue, $750,000 in convertible notes payable, $115,009 in derivative liability and $80 in due to related party. As of September 30, 2023, and September 30, 2022, our working capital deficiency was $1,861,864 and $950,610, respectively. Cash Flow Data: Years ended September 30, 2023 2022 Change $ Cash used in operating activities $ (445,105 ) $ (827,611 ) $ 382,506 Cash provided by (used in) investing activities $ (72,872 ) $ (87,504 ) $ 14,632 Cash provided by financing activities $ 414,059 $ 1,032,450 $ (618,391 ) Net Change in Cash and Restricted Cash $ (103,918 ) $ 117,335 $ (221,253 ) Cash Flows from Operating Activities During the year ended September 30, 2023, the company did not generate positive cash flows from operating activities. For the year ended September 30, 2023, net cash flows used in operating activities was $445,105 consisting of a net loss of $930,137, reduced by stock-based compensation expenses of $15,000, amortization debt discount of $122,279, depreciation of $36,783, a loss on debt extinguishment of $36,313, a change in operating assets and liabilities of $444,380, and gain on change in fair value of derivative liability of $169,723. During the year ended September 30, 2022, we did not generate positive cash flows from operating activities. For the year ended September 30, 2022, net cash flows used in operating activities was $827,611, consisting of a net loss of $1,475,365, reduced by stock-based compensation expenses of $288,461, amortization debt discount of $677,561, depreciation of $8,436, a change in operating assets and liabilities of $132,632 and increased by a gain on PPP loan forgiveness of $24,148 and a gain on change in fair value of derivative liability of $435,188. 12 Cash Flows from Investing Activities During the year ended September 30, 2023, purchased two vehicles for $67,039 and developed a website for a total of $5,833. During the year ended September 30, 2022, the Company generated cash of $70,360 from the acquisition of a subsidiary and purchased three vehicles for $157,864. Cash Flows from Financing Activities During the year ended September 30, 2023, the Company generated $310,000 from the issuance of convertible notes, $104,458 from the promissory notes, $50,000 from related party notes payable, and $26,460 from related party advances. These proceeds were partially offset by repayments on related party advances, promissory notes payable, and payments for debt issuance costs of $1,460, $42,011, and $33,388, respectively. During the year ended September 30, 2022, the Company generated $1,125,000 from the issuance of convertible notes and $36,200 from an SBA loan, offset by $128,750 of debt issuance costs. Going Concern As of September 30, 2023, the Company had a net loss of $930,137 accumulated deficit of $3,310,896 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 year ending September 30, 2024. The ability of our Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of our business plan. In response to these requirements, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. Critical Accounting Policies and Estimates 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: ● Revenue Recognition ● Stock-Based Compensation ● Income Taxes ● Financial Instruments ● Derivative Financial Instruments 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. Revenue Recognition The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price. 13 During the years ended September 30, 2023, and 2022, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”). Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period. Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share. The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized. The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term. 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 September 30, 2023 and 2022 refundable deposits were $2,234 and $0 and deferred revenue was $7,233 and $2,101, respectively. In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors. Stock-Based Compensation The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the Black Scholes pricing model is affected by our stock value as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility and the risk-free interest rate. 14 Fair Value Measurements The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying amounts shown of the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities are approximate fair value due to their short-term nature. Derivative Financial Instruments The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time, of our common stock, equal to the weighted average life of the options. Off-Balance Sheet Arrangements We have no off-balance sheet arrangements. Item 7A. Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, we are not required to provide the information required by this Item. Item 8. Financial Statements and Supplementary Data The following audited consolidated financial statements are included in this Annual Report: 15 DRIVEITAWAY HOLDINGS, INC. INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2023 and 2022 Page Report of Independent Registered Public Accounting Firm (PCAOB ID NO: 6258 ) F-1 Consolidated Balance Sheets F-3 Consolidated Statements of Operations F-4 Consolidated Statements of Changes in Stockholders’ Deficit F-5 Consolidated Statements of Cash Flows F-6 Notes to Consolidated Financial Statements F-7 Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders DriveItAway Holdings, Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of DriveItAway Holdings, Inc. as of September 30, 2023 and 2022, and the related consolidated statements of operations, changes in stockholder’s deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of DriveItAway Holdings, Inc. as of September 30, 2023 and 2022, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Going Concern The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 1 to the financial statements, the entity has suffered recurring losses from operations, has a net capital deficiency, and has not established sufficient revenue to cover its operating costs, therefore will require additional capital to continue operations. These factors raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Basis for Opinion These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to DriveItAway Holdings, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. DriveItAway Holdings, Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. F- 1 Complex Debt Transaction During the year under audit the Company entered into multiple amendments to their convertible note with AJB Capital Investments, LLC (see Note 8) that changed the terms of the original agreement, including changes to the note principal, the commitment fee shares, and the warrants that were issued in conjunction with the borrowing. Due to the number of modifications to the financing arrangement the accounting for the transaction was challenging and required complex auditor judgment, including a detailed analysis and interpretation of accounting literature, and took a significant amount of audit effort. In order to audit the accounting for the debt agreement, we reviewed managements analysis of the transaction and had to perform a significant amount of research and analysis to gain comfort in the accounting of the transaction. The detailed analysis performed resulted in material audit adjustments to the recorded debt discount, amortization of debt discount, loss on extinguishment of debt, and change in derivative liability, as one of the modifications required extinguishment accounting. /s/ Mac Accounting Group & CPAs, LLP We have served as DriveItAway Holdings Inc.'s auditor since 2019. Midvale, Utah March 8, 2024 F- 2 DriveItAway Holdings, Inc. Consolidated Balance Sheets September 30, September 30, 2023 2022 Assets Current assets Cash $ 4,632 $ 127,109 Restricted cash 18,559 — Accounts receivable, net 11,584 6,082 Prepaid expenses — 10,498 Total current assets 34,775 143,689 Fixed assets, net 184,228 149,428 Intangible assets, net 11,787 — Total Assets $ 230,790 $ 293,117 Liabilities and Stockholders’ Deficit Current Liabilities Accounts payable and accrued liabilities $ 664,707 $ 227,109 Accrued interest-related parties 4,918 — Deferred revenue 7,233 2,101 Customer deposits 2,234 — Due to related parties 25,080 80 Promissory notes payable, net of debt discount 27,437 — Promissory notes payable, in default 12,500 — Promissory notes payable- related parties, in default 50,000 — Convertible notes payable, net of debt discount 1,082,654 750,000 Derivative liability 1,317 115,009 Total Current Liabilities 1,878,080 1,094,299 SBA Loan - noncurrent 114,700 114,700 Convertible notes payable - noncurrent, net of debt discount 175,720 183,340 Promissory notes payable - noncurrent 16,649 — Total Liabilities 2,185,149 1,392,339 Commitments and Contingencies — — Stockholders’ Deficit Preferred stock, $ .0001 par value; 10,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.0001 par value; 1,000,000,000 shares authorized; 106,551,722 shares issued and 106,536,622 outstanding at September 30, 2023 and 105,301,722 shares issued and 105,286,622 outstanding as of September 30, 2022, respectively 10,656 10,531 Additional paid in capital 1,364,007 1,289,132 Treasury stock, at cost - 15,100 shares at September 30, 2023 and September 30, 2022 ( 18,126 ) ( 18,126 ) Accumulated deficit ( 3,310,896 ) ( 2,380,759 ) Total Stockholders’ Deficit ( 1,954,359 ) ( 1,099,222 ) Total Liabilities and Stockholders’ Deficit $ 230,790 $ 293,117 The accompanying notes are an integral part of these consolidated financial statements. F- 3 DriveItAway Holdings, Inc. Consolidated Statements of Operations Year Ended September 30, 2023 2022 Revenues $ 307,284 $ 55,509 Cost of Goods Sold 238,763 38,898 Gross Profit 68,521 16,611 Operating Expenses Salaries and payroll taxes 297,625 388,100 Professional fees 345,101 644,189 General and administrative 92,749 74,053 Software development 56,529 61,542 Advertising and marketing 38,972 33,883 Total Operating Expenses 830,976 1,201,767 Operating Loss ( 762,455 ) ( 1,185,156 ) Other Income (Expenses) Gain (loss) on change in fair value of derivative liability 169,723 435,188 Gain on PPP loan forgiveness — 24,148 Loss on extinguishment of debt ( 36,313 ) — Amortization debt discount ( 122,279 ) ( 677,561 ) Interest expense ( 173,895 ) ( 70,346 ) Interest expense - related parties ( 4,918 ) ( 2,296 ) Interest income — 12 Other income (expenses) — 646 Total Other Income (Expense) ( 167,682 ) ( 290,209 ) Loss Before Income Tax ( 930,137 ) ( 1,475,365 ) Provision for income taxes — — Net Income (Loss) $ ( 930,137 ) $ ( 1,475,365 ) Net Loss Per Common Share Basic and diluted net loss per common share $ ( 0.01 ) $ ( 0.03 ) Basic and diluted weighted average number of common shares outstanding 106,458,571 50,013,328 F- 4 DriveItAway Holdings, Inc. Consolidated Statement of Changes in Stockholders’ Deficit Years Ended September 30, 2023, and 2022 Series A Additional Total Stockholders’ Preferred Stock Common Stock Paid in Treasury Stock Accumulated Equity Shares Amount Shares Amount Capital Shares Amount Deficit (Deficit) Balance - September 30, 2021 2,300,000 $ 230 — $ — $ 419,793 — $ — $ ( 905,394 ) $ ( 485,371 ) Stock based compensation — — — — 288,461 — — — 288,461 Preferred stock issued for conversion of debt- related party 52,284 5 104,560 104,565 Preferred stock issued for conversion of debt 129,809 13 288,446 288,459 Preferred stock issued for exercise of stock option - related party 112,500 11 84,363 84,374 Recapitalization — — 13,716,041 1,372 147,135 ( 15,100 ) ( 18,126 ) 130,381 Common stock and warrant issued in connection with promissory note — — 4,000,000 400 64,874 — — — 65,274 Conversion of preferred stock to common stock ( 2,594,593 ) ( 259 ) 88,085,681 8,809 ( 8,550 ) — — — — Cancellation of common shares against note receivable — — ( 500,000 ) ( 50 ) ( 99,950 ) — — — ( 100,000 ) Net loss — — — — — — — ( 1,475,365 ) ( 1,475,365 ) Balance - September 30, 2022 — $ — 105,301,722 $ 10,531 $ 1,289,132 ( 15,100 ) $ ( 18,126 ) $ ( 2,380,759 ) $ ( 1,099,222 ) Series A Additional Total Stockholders’ Preferred Stock Common Stock Paid in Treasury Stock Accumulated Equity Shares Amount Shares Amount Capital Shares Amount Deficit (Deficit) Balance - September 30, 2022 — $ — 105,301,722 $ 10,531 $ 1,289,132 ( 15,100 ) $ ( 18,126 ) $ ( 2,380,759 ) $ ( 1,099,222 ) Common stock issued in connection with promissory note — — 1,000,000 100 59,900 — — — 60,000 Stock based compensation — — 250,000 25 14,975 — — — 15,000 Net Income (Loss) — — — — — — — ( 930,137 ) ( 930,137 ) Balance - September 30, 2023 — $ — 106,551,722 $ 10,656 $ 1,364,007 ( 15,100 ) $ ( 18,126 ) $ ( 3,310,896 ) $ ( 1,954,359 ) The accompanying notes are an integral part of these consolidated financial statements. F- 5 DriveItAway Holdings, Inc. Consolidated Statements of Cash Flows Years Ended Sept 30, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ ( 930,137 ) $ ( 1,475,365 ) Adjustments to reconcile net loss to net cash used in operating activities: Gain on PPP Loan Forgiveness — ( 24,148 ) Loss on debt extinguishment 36,313 — Stock-based compensation 15,000 288,461 Loss on change in fair value of derivative liability ( 169,723 ) ( 435,188 ) Amortization and depreciation 36,783 8,436 Amortization of debt discount 122,279 677,561 Changes in operating assets and liabilities: Prepaid website development — ( 10,498 ) Accounts receivable ( 5,502 ) 15,373 Deferred revenue 5,132 2,101 Customer deposits 2,234 — Accounts payable and accrued liabilities 437,598 123,279 Accrued liabilities- related party 4,918 2,377 Net Cash used in Operating Activities ( 445,105 ) ( 827,611 ) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of subsidiary — 70,360 Purchase of intangible assets ( 5,833 ) — Purchase of fixed assets ( 67,039 ) ( 157,864 ) Net Cash used in Investing Activities ( 72,872 ) ( 87,504 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from related party advances 26,460 — Repayments of related party advances ( 1,460 ) — Proceeds from convertible notes payable 310,000 1,125,000 Proceeds from promissory notes payable - related parties 50,000 — Proceeds from promissory notes payable 104,458 36,200 Repayment of promissory notes payable ( 42,011 ) — Debt issuance costs ( 33,388 ) ( 128,750 ) Net Cash provided by Financing Activities 414,059 1,032,450 Net change in cash and restricted cash ( 103,918 ) 117,335 Cash and restricted cash, beginning of period 127,109 9,774 Cash and restricted cash, end of period $ 23,191 $ 127,109 Supplemental cash flow information Cash paid for interest $ 49,863 $ 45,203 Cash paid for taxes $ — $ — Non-cash Investing and Financing transactions: Preferred stock issued for conversion of debt -related party $ — $ 104,564 Preferred stock issued for conversion of debt $ — $ 288,458 Common stock and warrant issued in connection with promissory note $ — $ 65,274 Common stock in connection with promissory note $ 60,000 $ — Preferred stock issued for exercise of stock option - related party $ — $ 84,375 Conversion of preferred stock to common stock $ — $ 8,809 Cancellation of common shares against note receivable $ — $ 100,000 Recognition of derivative liability as debt discount $ 26,959 $ 550,197 Prepaid expenses reclassified to intangible assets $ 10,498 $ — Note receivable exchanged for settlement of accrued wages $ — $ 50,000 F- 6 DriveItAway Holdings, Inc. Notes to Consolidated Financial Statements September 30, 2023 and 2022 Note 1 – Organization, Description of Business and Going Concern Nature of Organization DriveItAway Holdings, Inc. (“DIA Holdings”, “the Company”, “we” or “us”) was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. DIA Holdings is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. DIA provides a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The company is planning to soon expand its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles. For further information, please see www.driveitaway.com. Share Exchange and Reorganization On February 24, 2022 (the “Effective Date”), the Company, DriveItAway, Inc., and the existing shareholders of DriveItAway, Inc. (“DIA”) executed an Agreement and Plan of Share Exchange, under which the Company acquired all of the issued and outstanding common stock of DIA by issuing one share of Series A Convertible Preferred Stock (the “Series A Preferred”) of the Company for each outstanding share of DIA common stock (the “Share Exchange”). At the closing, the Company agreed to issue one share of Series A Preferred for each share of DIA common stock that was subsequently issued in conversion of certain outstanding convertible notes of DIA, provided that the holders converted their notes prior to December 31, 2022. All of the holders of the convertible notes of DIA agreed to convert their notes in March 2022 and were issued one share of Series A Preferred in exchange for the DIA common stock they acquired as a result of the conversion. A total of 2,594,593 shares of Series A Preferred were issued in exchange for all of the outstanding shares of DIA, including DIA shares issued at closing or shortly thereafter as a result of the exercise or conversion of all outstanding options or convertible notes issued by DIA. Recapitalization For financial accounting purposes, this transaction was treated as a reverse acquisition by DIA and resulted in a recapitalization with DIA being the accounting acquirer and DIA, Inc. as the acquired company. The consummation of this reverse acquisition resulted in a change of control. Accordingly, the historical financial statements prior to the acquisition are those of the accounting acquirer, DIA and have been prepared to give retroactive effect to the reverse acquisition completed on February 24, 2022, and represent the operations of DIA. The consolidated financial statements after the acquisition date, February 24, 2022, include the balance sheets of both companies at fair value, the historical results of DIA and the results of the Company from the acquisition date. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization. Going Concern The Company’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the year ended September 30, 2023, the Company had a net loss of $ 930,137 and cash used in operating activities of $ 445,105 . As of September 30, 2023, the Company had an accumulated deficit of $ 3,310,896 . The Company has not established sufficient revenue to cover its operating costs and will require additional capital to continue its operating plan. The ability of the Company to continue as a going concern depends on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern. F- 7 To continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders to sufficiently meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan. There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. Basis of Consolidation The consolidated financial statements include the accounts of DriveItAway Holdings Inc. and its wholly owned subsidiary DriveItAway, Inc., collectively referred to as the “Company”. All inter-company balances and transactions are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates and assumptions made by management include allowance for doubtful accounts, allowance for deferred tax assets, and fair value of equity instruments. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Foreign Currency Translation Foreign currency translation is recognized in accordance with ASC 830. The Company’s functional currency is USD, therefore all amounts of revenues received from foreign accounts are translated to the Company’s functional currency (USD) upon receipt and thereby, translation gains and losses are recognized upon receipt. Cash and Cash Equivalents The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. As of September 30, 2023, and 2022, the Company had cash of $ 4,632 and $ 127,109 , which included restricted cash of $ 18,559 and $ 0 , respectively and did not have cash equivalents. Restricted Cash As of September 30, 2023 and September 30, 2022, the Company had $ 18,559 and $ 0 in restricted cash that is held by AJB Capital LLC, for funds advanced by them, but are to be used for future payment for professional fees. F- 8 Accounts Receivable The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and considers the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Accounts and receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowances for doubtful accounts as of September 30, 2023, and 2022, are adequate, but actual write-offs could exceed the recorded allowance. As of September 30, 2023, and 2022, the balances in the allowance for doubtful accounts was $ 0 . Fixed Assets Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives, currently seven (7) years. Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated assets from the cost and accumulated depreciation amounts disclosed. Intangible Assets Our intangible assets include website and software development costs. The costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in operating expenses in our consolidated statements of operations. Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at three ( 3 ) years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed. Construction-in-progress primarily consists of website development costs that are capitalizable, but for which the associated applications have not been placed in service. Leases The Company’s operating lease portfolio for the years ended September 30, 2023 and 2022, includes the vehicle leases from third parties and the Company’s owned vehicles that are leased to the customers under operating leases. The contracts for these operating leases are short-term in nature with terms less than twelve (12) months. The Company has elected as an accounting policy not to apply the recognition requirements in ASC 2016-02, Leases (“ASC 842”) to short-term leases. The Company recognizes the lease payments for short-term leases on a straight-line basis over the lease term. As of September 30, 2023, the Company did not have leases that qualified as ROU assets. Fair Value Measurements The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: F- 9 Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The carrying amounts shown on the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities approximate fair value due to their short-term nature. All financial assets and liabilities are approximate to their fair value. Derivative liabilities are valued at Level 3. Schedule of fair value of financial assets and liabilities Fair Value Measurements at September 30, 2023 using: September 30, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities $ — — — $ — Derivative Liabilities $ 1,317 — — $ 1,317 Fair Value Measurements at September 30, 2022 using: September 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities $ — — — $ — Derivative Liabilities $ 115,009 — — $ 115,009 The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2023, and 2022: F- 10 Derivative Financial Instruments The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates. Revenue Recognition The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price. During the years ended September 30, 2023, and 2022, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”). Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period. Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share. The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized. The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term. F- 11 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 September 30, 2023 and 2022 refundable deposits were $ 2,234 and $ 0 and deferred revenue was $ 7,233 and $ 2,101 , respectively. In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors. Stock-Based Compensation The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the BlackScholes pricing model is affected by our stock value as well as assumptions regarding several complex and subjective variables, including expected stock price volatility and the risk-free interest rate. Advertising and marketing Costs Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs for the years ended September 30, 2023 and 2022 of $ 38,972 and $ 33,883 , respectively. Income Taxes The provision for income taxes and deferred income taxes are determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized. Net Loss per Share of Common Stock The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares issuable upon the conversion of outstanding convertible debt, preferred stock, warrants and stock option. For the years ended September 30, 2023, and 2022, the common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive. Schedule of computation of diluted net loss per share September 30, September 30, 2023 2022 Convertible notes 1,750,000 59,389,535 Warrants 2,350,000 1,125,000 4,100,000 60,514,535 Reclassification Certain accounts from prior periods have been reclassified to conform to the current period presentation. F- 12 Recent Accounting Pronouncements In the period from October 2023 through March 2024 the FASB has not issued any additional accounting standards updates that have a significant impact on the Company. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures. Note 3 – Related Party Transactions Related Party Notes Payable On September 13, 2019, the Company issued a Convertible Promissory Note to Driveitaway, LLC, a company controlled by John Possumato, the Company’s CEO, for $ 30,000 , with a maturity date of September 13, 2022. On October 13 and October 14, 2020, the Company issued Convertible Promissory Notes to Driveitaway, LLC and Adam Potash, the Company’s COO, for $ 25,000 each, which mature on October 13 and 14, 2022, respectively. On December 24, 2020, the Company issued a Convertible Promissory Note to Adam Potash, for $ 15,000 , which matures on December 24, 2022 . Each of the notes bear interest at a rate of 6 % per annum. The notes automatically convert into preferred stock of DIA in the event DIA raises at least $ 1,000,000 by the issuance of preferred stock prior to the maturity dates of the notes (a “Qualified Financing”). In the event DIA enters into a financing that is not a Qualified Financing prior to the maturity dates of the notes, the holders have the right to convert their notes into the class and series of equity securities offered in the non-Qualified Financing at the offer price thereof. In the event DIA effects a change of control, the holders have the option of converting their notes into common stock in order to participate in the change of control or accelerating the maturity date and receiving cash at the time of the change of control. At the closing of the Share Exchange on February 24, 2022, the holders of the related party Convertible Promissory Notes agreed to convert all of the principal of $ 95,000 and interest of $ 9,565 due under the notes into 52,284 shares of DIA common stock, which was automatically converted into 52,284 shares of Series A Preferred (see Note 6). On March 1, 2023, the Company entered into three promissory note agreements with three related parties for a total of $ 50,000 with interest bearing at 15 % per annum, maturity date of 120 days from issuance (June 30, 2023) and issuance of 100,000 warrants with exercise price of $0.05 that expire on March 1, 2028 ( 5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 3,068 which was recorded as a derivative liability and debt discount (see Note 6). During the years ended September 30, 2023 and 2022, the Company recorded related party interest expense of $ 4,918 and $ 2,296 respectively, and amortization of debt discount of $ 3,068 and $ 0 respectively. As of September 30, 2023 and 2022, the debt discount recorded on all related party notes was $ 0 , the promissory note payable – related party balance was $ 50,000 , and the convertible note payable – related party balance was $ 0 . As of September 30, 2023, the Company had defaulted on the promissory notes payable with aggregate outstanding principal of $ 50,000 and owed unpaid interest of $ 4,918 . Advances and Repayments In the normal course of business, the Company’s management team or their affiliates will make payments on behalf of the Company or will provide short-term advances to the Company to cover operating expenses. During the year ended September 30, 2023 and 2022, related parties made payments on the Company’s behalf or provided short-term advances to the Company totaling $ 26,460 and $ 3,435 , respectively, and the Company made repayments to related parties of $ 1,460 and $ 3,355 , respectively. As of September 30, 2023 and 2022, the Company owed related parties $ 25,080 and $ 80 , respectively, for this activity. Note 4 – Note Receivable A note receivable of $ 150,000 was issued to DriveItAway Holdings, Inc. in consideration for the sale of certain subsidiaries as a part of its recapitalization (see Note 6). The note receivable was unsecured, due on April 20, 2022 , and was to incur interest at 15 % per annum, provided that the payor has the right to satisfy the note in full by the return of 500,000 shares of the Company’s common stock for cancellation. In May 2022, the payor under the note receivable satisfied $100,000 due under the note in full by returning 500,000 shares of the Company’s common stock for cancellation (see Note 6). During the year ended September 30, 2022 the Company offset the remaining $ 50,000 due under the note against accrued wages, therefore as of September 30, 2023 and September 30, 2022 the Note Receivable balance was $ 0 . F- 13 Note 5 – Fixed and Intangible Assets The following table summarizes the components of our fixed assets as of the dates presented: Schedule of fixed assets September 30, September 30, 2023 2022 Vehicle costs $ 224,903 $ 157,864 Accumulated depreciation ( 40,675 ) ( 8,436 ) Vehicles, net $ 184,228 $ 149,428 During the years ended September 30, 2023 and 2022, the Company purchased passenger vehicles for $ 67,039 and $ 157,864 , respectively, and recorded depreciation of $ 32,239 and $ 8,436 , respectively. The following table summarizes the components of our intangible assets as of the dates presented: Schedule of intangible assets September 30, September 30, 2023 2022 Website development costs $ 16,331 $ — Accumulated depreciation ( 4,544 ) — Website, net $ 11,787 $ — During the year ended September 30, 2022, the Company incurred website development costs of $ 10,498 , which was recorded as a prepaid asset. During the year ended September 30, 2023 the Company incurred website development costs of $ 5,833 and reclassed the $ 10,498 incurred in the prior year to the intangible asset account. During the years ended September 30, 2023 and 2022 the Company recorded amortization of $ 4,544 and $ 0 , respectively. Note 6 – Equity Authorized The Company has authorized one billion ( 1,000,000,000 ) shares of common stock having a par value of $ 0.0001 per share, and ten million ( 10,000,000 ) shares of preferred stock having a par value of $0 .0001 per share. All or any part of the capital stock may be issued by the Corporation from time to time and for such consideration and on such terms as may be determined and fixed by the Board of Directors, without action of the stockholders, as provided by law, unless the Board of Directors deems it advisable to obtain the advice of the stockholders. Series A Preferred Stock The Company has authorized one series of preferred stock, which is known as the Series A Convertible Preferred Stock (the “ Series A Preferred ”). The Board has authorized the issuance of 5,000,000 shares of Series A Preferred. The Series A Preferred Stock has the following rights and preferences: Dividends : The Series A Preferred Stock is entitled to receive non-cumulative dividends equal to the amount of dividends that the holder of such share would have received if such share of Series A Preferred Stock were converted into shares of Common Stock immediately prior to the record date of the dividend declared on the Common Stock. Li q uidation Preference : The Series A Preferred Stock is entitled to receive, prior to any distribution to any junior class of securities, an amount equal to $0.01 per share as a liquidation preference before any distribution may be made to the holders of any junior security, including the Common Stock . Votin g Ri g hts : Each holder of Series A Preferred Stock shall vote with holders of the Common Stock upon any matter submitted to a vote of shareholders, in which event it shall have the number of votes equal to the number of shares of Common Stock into which such share of Series A Preferred Stock would be convertible on the record date for the vote or consent of shareholders. Each holder of Series A Preferred Stock shall also be entitled to one vote per share on each submitted to a class vote of the holders of Series A Preferred Stock. F- 14 Voluntar y Conversion Ri g hts : Each share of Series A Preferred Stock is convertible into 33.94971 shares of Common Stock at the option of the holder thereof. Mandator y Conversion Ri g ht : The Company has the right to convert each share of Series A Preferred Stock into 33.94971 shares of Common Stock at any time that there are less than 200,000 shares of Series A Preferred Stock outstanding. During the year ended September 30, 2021, the Company issued 300,000 shares of DIA common stock which was automatically converted into 300,000 shares of Series A Preferred at the closing of the Share Exchange on February 24, 2022. The shares were issued to a consulting firm pursuant to one year consulting agreement and valued at $ 692,308 . Stock-based compensation expense related to this issuance for the years ended September 30, 2023 and 2022 was $ 0 and $ 288,461 , respectively, and was included in general and administrative expense. During the year ended September 30, 2022, the Company issued 294,593 shares of DIA common stock which were automatically converted into 294,593 shares of Series A Preferred at the closing of the Share Exchange on February 24, 2022. The preferred stock is reflected retroactively for all periods presented and included the following: ● 52,284 shares issued for conversion of debt – related party and accrued interest of $ 104,565 . ● 129,809 shares issued for conversion of debt and accrued interest of $ 288,458 . ● 112,500 shares issued for exercise of stock option - related party as stock-based compensation to related parties of $ 84,375 . On April 20, 2022, holders of 2,464,784 shares of Series A Preferred agreed to convert their Series A Preferred into common stock, which resulted in the issuance of 83,678,702 shares of common stock. On the same date, the board of directors approved a resolution to exercise the Company’s right to mandatorily convert the remaining 129,809 shares of Series A Preferred into common stock, which resulted in the issuance of an additional 4,406,979 shares of common stock. During the year ended September 30, 2023 there were no 0 issuances of the Series A Preferred shares. As of September 30, 2023 and 2022, the Company had no shares of Series A Preferred stock outstanding, respectively. Common Stock Reor g anization On February 24, 2022, the Company recognized the equity of Driveitaway Holdings, Inc. as part of the reorganization which resulted in the Company recognizing the issuance of 13,716,041 shares of common stock and 15,100 shares of treasury stock, at a value of $130,381. The following table summarizes the assets acquired, and liabilities assumed at the acquisition date of February 24, 2022: Schedule of assets acquired and liabilities assumed Cash $ 70,360 Notes receivable (Note 4) 150,000 Accounts payable and accrued liabilities ( 89,979 ) Net assets acquired and liabilities assumed $ 130,381 On February 24, 2022, the Company issued 4,000,000 shares of common stock valued at $ 65,274 for commitment fees in conjunction with the issuance of a promissory note of $ 750,000 (see Note 8). On April 20, 2022, the Company issued 88,085,681 shares of common stock as a result of the conversion of 2,594,593 shares of Series A Preferred Stock, as discussed in more detail above. In May 2022, 500,000 shares were returned for cancellation to satisfy a note receivable in the amount of $ 100,000 (see Note 4). F- 15 On October 17, 2022, 250,000 shares of common stock, valued at $ 15,000 based on the fair market value of the shares on the grant date, were issued for consulting services. On October 31, 2022, the Company issued 1,000,000 shares of common stock valued at $ 60,000 for commitment fees in conjunction with the amendment of a promissory note of $ 750,000 (see Note 8). As of September 30, 2023, and 2022, the Company had 106,551,722 and 105,301,722 common shares issued, respectively. Treasury Stock The Company records treasury stock at cost. Treasury stock is comprised of shares of common stock purchased by the Company in the secondary market. As of September 30, 2023, and 2022, the Company had 15,100 shares of treasury stock valued at $ 18,126 . Stock Options On June 12, 2020, DIA’s Board of Directors and its shareholders approved its 2020 Equity Compensation Plan (“Equity Plan”). The Equity Plan permits DIA to issue awards or options to the employees, directors, consultants and advisors who provide services to the Company or a subsidiary. Pursuant to the Equity Plan, 400,000 shares of DIA’s common stock were reserved for issuance. The Equity Plan allows DIA’s board or a committee of the board to issue grants of incentive stock options, nonqualified stock options, stock awards, stock units, stock appreciation rights and other equity-based awards. As of September 30, 2021, DIA had 300,000 stock options outstanding under the Equity Plan to Messrs. Possumato, CEO, and Potash, COO in equal amounts, of which 93,750 had vested. At the closing of the Share Exchange on February 24, 2022, 112,500 of the stock options had vested and Messrs. Possumato and Potash each agreed to each exercise their 56,250 vested stock options issued to them. The options were converted into 112,500 shares of DIA common stock, which was automatically converted into 112,500 shares of Series A Preferred. The balance of the stock options issued to Messrs. Possumato and Potash were cancelled. The stock options had an exercise price of $ 0.75 per share. In lieu of paying the exercise price in cash, the exercise price was offset against accrued wages of $ 42,188 owed to each of Messrs. Possumato and Potash. Also, at the closing of the Share Exchange, DIA’s board cancelled the Equity Plan and all outstanding options were cancelled. As of September 30, 2021, DIAH had 2,177,571 options outstanding, of which 1,882,793 expired during the year ended September 30, 2022 and 294,778 were exercised in a cashless exchange for 155,103 common shares. Accordingly, as of September 30, 2023 and September 30, 2022 the Company had no options outstanding. Warrants On February 24, 2022, in conjunction with the issuance of a promissory note of $ 750,000 , the Company issued 1,000,000 warrants for $ 0.30 per share. The transaction led to no explicit limit to the number of shares to be delivered upon future settlement of the conversion options (see Note 8), therefore the equity environment became tainted and the warrants qualified for derivative accounting and were assigned a value of $ 107,283 which was recorded as a derivative liability and debt discount. The warrants expire on February 24, 2027 . In June 2022, in conjunction with a private offering and the issuance of secured promissory notes of $ 250,000 (see Note 8), the Company issued 125,000 warrants for $ 0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 8,136 which was recorded as a derivative liability and debt discount. The warrants expire in June 2027. In November 2022, in conjunction with a private offering and the issuance of secured promissory notes of $ 200,000 , the Company issued 100,000 warrants for $ 0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 4,074 which was recorded as a derivative liability and debt discount. The warrants expire in November 2027. F- 16 In February 2023, in conjunction with a promissory note amendment which was recognized as debt extinguishment, 2,000,000 warrants with exercise price of $ 0.05 were issued that expire on February 24, 2027 ( 4 year), which replaced the original 1,000,000 warrants issued with an exercise price of $ 0.30 previously issued with the original promissory note. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 21,469 which was recorded as a derivative liability and debt discount. In March 2023, 125,000 warrants with exercise price of $ 0.05 were issued that expire on March 1, 2028 ( 5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 3,837 which was recorded as a derivative liability and debt discount. All derivative liabilities recognized for the warrants issued were valued using the Black-Scholes pricing model. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement (see Note 9). A summary of warrant activity during the years ended September 30, 2023 and 2022 is as follows: Schedule of common stock warrants activity Warrants Weighted-Average Weighted-Average Outstanding Exercise Price Life (years) Balance as of September 30, 2021 — $ — — Issuance 1,125,000 $ 0.30 — Exercised — $ — — Expired/Cancelled — $ — — Balance as of September 30, 2022 1,125,000 $ 0.30 4.44 Issuance 2,225,000 $ 0.06 Exercised — $ — Expired/Cancelled ( 1,000,000 ) $ 0.30 Balance as of September 30, 2023 2,350,000 $ 0.07 3.51 The intrinsic value of the warrants as of September 30, 2023 and 2022 is $ 0 . All of the outstanding warrants are exercisable as of September 30, 2022. Note 7 – Notes Payable PPP Loan On April 28, 2020, the Company was granted a loan (the “Loan”) from First Bank of the Lake in aggregate amount of $ 23,750 , pursuant to the Paycheck Protection Program (the “PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The Loan, which was in the form of a Note dated May 9, 2020 was to mature on May 8, 2022 and bear interest at a rate of 1 % per annum, payable monthly commencing seven months from the date of the note, unless forgiven in whole or part in accordance with the CARES Act. The Note may have been prepaid by the Borrower at any time prior to maturity with no prepayment penalties. In order to qualify for forgiveness under the CARES Act, funds from the Loan could only be used for payroll costs, cost used to continue group health care benefits, mortgage payments, rent, utilities and interest on other debt obligations incurred before February 15, 2020 (“qualifying expenses”). The Company used the entire Loan amount for qualifying expenses, therefore, in December 2021, the PPP Loan of $ 23,750 and accrued interest of $ 398 were forgiven and recognized as other income. During the year ended September 30, 2023 and 2022, the Company recorded interest expense of $ 0 and $ 59 , respectively. F- 17 SBA Loan On June 3, 2020, the Company entered into a SBA Loan for $ 78,500 at a rate of 3.75 %. On August 12, 2021 the loan increased to $ 114,700 and the Company obtained $ 36,200 on October 8, 2021. The SBA Loan requires payments starting 30 months from the initial funding date and matures on June 7, 2050 . During the years ended September 30, 2023 and 2022, the Company recorded interest expense of $ 4,243 and $ 4,272 , respectively, on the SBA Loan and as of September 30, 2023 and 2022, the accrued interest on the SBA Loan was $ 6,722 and $ 8,175 , respectively. As of September, 2023 and 2022, the outstanding principal of SBA Loan was $ 114,700 . The following represents the future aggregate maturities of the Company’s SBA Loan as of September 30, 2023 for each of the five (5) succeeding years and thereafter as follows: Schedule of future aggregate maturities Fiscal year ending September 30, Amount 2024 $ — 2025 — 2026 571 2027 2,431 2028 2,431 Thereafter 109,267 Total $ 114,700 Promissory Notes Payable, in Default On March 1, 2023, the Company entered into a promissory note agreement with an investor for amount of $ 12,500 with interest bearing at 15 % per annum, maturity date of 120 days from issuance and issuance of 25,000 warrants with exercise price of $ 0.05 that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 767 which was recorded as a derivative liability and debt discount (see Note 6). During the year ended September 30,2023, the Company recorded interest expense of $ 1,109 and amortization of debt discount of $ 767 . As of September 30, 2023, the debt discount recorded on the note was $ 0 , resulting in a note payable balance of $ 12,500 and accrued interest of $ 1,109 . As of September 30, 2023, the Company had defaulted on the promissory note payable. Promissory Notes Payable On May 1, 2023 the Company executed a note payable with a face amount of $ 35,982 . Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $ 35,982 (including fixed fees of $ 3,682 or approximately 10% of the note amount). The Company received net proceeds of $ 32,300 and the $ 3,685 of fixed fees were recorded as debt discount. As of September 30, 2023, the Company had amortized the full $ 3,682 of debt discount, had made repayments of $ 27,752 , and rolled $ 8,230 of the notes principal still due into a second note (see below), therefore the loan was considered paid in full. On August 15, 2023 the Company executed a second note payable with the same lender from the May 1, 2023 note, with a face amount of $ 64,206 . Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $ 64,206 (including fixed fees of $ 6,206 or approximately 10% of the note amount). The Company received net proceeds of $ 49,770 after paying off the May 1, 2023 note and rolling $ 8,230 of its balance into the August 15, 2023 note and recording the $ 6,206 of fixed fees as a debt discount. As of September 30, 2023, the Company had amortized $ 345 of the debt discount and made repayments of $ 42,011 , resulting in a debt discount balance of $ 5,861 and a principal balance of $ 49,947 , for a net notes payable balance of $ 44,086 . F- 18 The following represents the future aggregate maturities as of September 30, 2023 of the Company’s Promissory Notes Payable: Schedule of future aggregate maturities Fiscal year ending September 30, Amount 2024 $ 33,297 2025 16,650 Total $ 49,947 Note 8 – Convertible Notes Payable Knightsgate Ventures II, LP Note On April 1, 2021, DIA borrowed $ 150,000 in Convertible Notes from Knightsgate Ventures II, LP, a third-party lender at a rate of 8 %. The loan matures on December 31, 2022 . The Convertible Note automatically converts into preferred stock of DIA in the event DIA raised at least $ 2,000,000 by the issuance of preferred stock prior to the maturity date of the Convertible Note (a “Qualified Financing”), in which case the conversion price is equal to the lesser of (i) 90% of the price paid by investors in the Qualified Financing or (ii) the price obtained by dividing $6,000,000 by the Company’s fully diluted shares outstanding immediately prior to conversion (the “Cap Price”). In the event DIA had not entered into a Qualified Financing prior to the maturity date, the Convertible Note is convertible at the option of the holder into DIA common stock on the Maturity Date at a price per share equal to the Cap Price. In the event DIA effects a change of control, the holder has the option of converting the Convertible Note into DIA’s common stock at a price per share equal to the Cap Price or accelerating the maturity date and receiving cash at the time of the change of control. Effective February 24, 2022, principal of $ 250,000 and accrued interest of $ 10,816 was converted into 72,368 shares of DIA’s common stock, which was automatically converted into 72,368 shares of the Company’s Series A Preferred stock in accordance with the Share Exchange Agreement (see Note 6), resulting in $ 0 owed to the lender as of September 30, 2022. During the years ended September 30, 2023 and 2022, the Company recorded interest expense for the note of $ 0 and $ 4,833 , respectively. Individual Investor Notes During the year ended September 30, 2022, DIA issued an aggregate of five convertible notes to five investors, each for $ 25,000 . The notes bear interest at a rate of 8 % per annum, mature on December 31, 2022 , and are convertible into DIA’s common stock on the same basis that is described for the Convertible Note issued to Knightsgate Ventures II, LP on April 1, 2021, as described above. During the year ended September 30, 2023 and 2022, the Company recorded interest expense of $ 0 and $ 2,641 on the notes, respectively In March 2022, the holders of all of the convertible notes issued to unrelated investors agreed to convert their notes of $ 125,000 and accrued interest of $ 2,641 into 57,441 shares of DIA’s common stock, each of which was automatically converted into one share of Series A Preferred stock in accordance with the Share Exchange Agreement (see Note 6), resulting in $ 0 owed to the investors as of September 30, 2022. AJB Capital Investments, LLC Note Effective February 24, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $ 750,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $ 675,000 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid $ 33,750 in certain fees and due diligence costs of AJB and brokerage fees to J.H. Darbie & Co., a registered broker dealer. After payment of the fees and costs, the net proceeds to the Company were $ 641,250 , which will be used for working capital and other general corporate purposes. F- 19 The maturity date of the AJB Note was extended to February 24, 2023 . The AJB Note bears interest at 10 % per annum for the original note’s period and 12% per annum for extension period which was started from August 24, 2022, and it is payable on the first of each month beginning April 1, 2022. The Company may prepay the AJB Note at any time without penalty. The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 10% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance. Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $ 800,000 , payable in the form of 4,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. If, after the sixth month anniversary of closing and before the thirty-sixth month anniversary of closing, AJB has been unable to sell the Commitment Fee Shares for $ 800,000 , then the Company may be required to issue additional shares or pay cash in the amount of the shortfall. However, if the Company pays the AJB Note off on or before its maturity date, then the Company may redeem 2,000,000 of the Commitment Fee Shares for one dollar and the amount of the commitment fee will be reduced to $ 400,000 . On issuance of the note, the Company determined that the guarantee on the commitment fee was a make-whole provision and an embedded derivative within the host instrument. The guarantee was bifurcated from the host instrument and recorded as a derivative liability valued at $ 384,287 using a Black-Scholes option pricing model (see Note 9). Pursuant to the SPA, the Company also issued to AJB common stock purchase warrants (the “warrants”) to purchase 1,000,000 shares of the Company’s common stock for $ 0.30 per share, which was assigned a value of $107,283 that was recorded as derivative liability (see Notes 6 and 9). The warrants expire on February 24, 2027 . The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. After recording the derivative liabilities associated with the SPA, the Company allocated the net proceeds to the 4,000,000 common shares issued and the note itself based on their relative fair market values, resulting in the common shares being assigned a value of $ 65,274 (see Note 6). The allocation of the financing costs of $ 108,750 , the derivative for the guarantee of $ 384,287 , the derivative for the warrant of $ 107,283 , and issuance of the 4,000,000 Commitment Fee shares of $ 65,274 , to the debt component resulted in a $ 665,594 debt discount that is being amortized to interest expense over the term of the AJB Note. On October 31, 2022, the Company amended the AJB Note to issue 1,000,000 additional Commitment Fee Shares, recognizing the value of the shares and a debt discount of $ 60,000 (see Note 6). On February 10, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $85,000, which increased the restricted cash balance to be used for payments for professional services, replacing the original 1,000,000 warrants with an exercise price of $0.30 with 2,000,000 warrants with an exercise price of $0.05 (see Note 6), and extending the maturity date of the note to May 24, 2023. The Company determined the extension of cash and modification to other terms met the conditions of a debt extinguishment; therefore the Company recorded a loss on extinguishment of debt for the total amount of $36,313 included in other income (expenses) within the accompanying statement of operation. F- 20 On September 27, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $ 25,000 which increased the restricted cash balance to be used for payments for professional services. During the year ended September 30, 2022, the Company recorded interest expense of $ 46,958 , amortization of debt discount of $ 665,594 , a gain on change in fair value of derivative liability of $ 393,641 for the guarantee and warrants and repaid $ 45,203 of interest. As of September 30, 2022, the derivative liability was $ 97,927 and the debt discount recorded on the note was $ 0 , resulting in a note payable balance of $ 750,000 . As of September 30, 2022, the Company owes unpaid interest of $ 1,755 . During the year ended September 30, 2023, the Company recorded interest expense of $ 97,849 , increased debt discount by $ 63,500 (of which $ 65,259 was amortized and $ 7,241 was recorded as part of the loss on debt extinguishment), recorded a loss on change in fair value of derivative liability of $ 126,338 , recorded an additional $ 29,072 for a loss on debt extinguishment, and repaid $31,042 of interest. As of September 30, 2023, the derivative liability was $ 663 , the debt discount recorded on the note was $ 0 , the note payable principal was $ 860,000 , and the Company owed accrued interest of $ 68,562 . Effective February 14, 2023 the Company went into default on the AJB Note, however the lender waived all default provisions through January 24, 2024 therefore no default interest or penalties were incurred during the year ended September 30, 2023 and the AJB note was not convertible as of September 30, 2023. Secured Convertible Notes In June 2022, the Company’s board of directors approved an offering of up to 10 Units at $ 50,000 per Unit in a private offering. Each Unit consists of a Secured Convertible Note with an original principal balance of $ 50,000 and one warrant to purchase Common Stock for every $2 invested in the offering. The warrants have an exercise price of $ 0.30 per share and expire five ( 5 ) years from the date of issuance. Each Secured Convertible Note bears interest at 15 % per annum, matures two years after the date of issuance, and is convertible at the option of the holder into common stock at $ 0.20 per share. Pursuant to a security agreement between the Company and investors in the Unit offering, and the subscription agreements executed by the Company and the investors, the Secured Convertible Notes are secured by liens on four existing electric vehicles that were owned by the Company at the time of the commencement of the offering, and eight additional electric vehicles that will be purchased with the proceeds of the offering, assuming all 10 Units are sold in the offering. The Company also granted subscribers in the Unit offering piggyback registration rights with respect to any shares of common stock issuable upon conversion of the Secured Convertible Notes or upon exercise of the warrants issued in the Unit offering. During June 2022, the Company sold a total of $ 250,000 worth of Units to U.S. Escrow Services Corporation and Kevin Leach, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $ 250,000 for cash proceeds of $ 230,000 (net of an original issuance discount of $ 20,000 ), and the issuance of 125,000 warrants (see Note 6). The $ 20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $ 50,491 . As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 8,136 which was recorded as a derivative liability (see Note 9) and debt discount. The total debt discount of $ 78,627 is being amortized to interest expense over the term of the Note. During November 2022, the Company sold a total of $ 200,000 worth of Units to Cestone Family Foundation and Michele and Agnese Cestone Foundation, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $ 200,000 for cash proceeds of $ 180,000 (net of an original issuance discount of $ 20,000 ), and the issuance of 100,000 warrants (see Note 6). The $ 20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $ 19,330 . As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 7,254 which was recorded as a derivative liability (see Note 9) and debt discount). The total debt discount of $ 43,124 is being amortized to interest expense over the term of the Note. During the year ended September 30, 2022, the Company recorded interest expense of $ 11,583 and amortization of debt discount of $ 11,967 . As of September 30, 2022, the debt discount recorded on the note was $ 66,660 , resulting in a note payable balance of $ 183,340 . As of September 30, 2022, the Company owed accrued interest of $ 11,583 . F- 21 During the year ended September 30, 2023, the Company recorded interest expense of $ 64,605 , paid interest of $ 13,125 , and recorded amortization of debt discount of $ 58,158 . As of September 30, 2023, the debt discount recorded on the notes was $ 51,626 and the principal balance was $ 450,000 , resulting in a net note payable balance of $ 398,374 . As of September 30, 2023, the Company owed accrued interest of $ 63,063 . The following represents the future aggregate maturities of the Company’s Secured Convertible Notes as of September 30, 2023 for each of the five (5) succeeding years and thereafter as follows: Schedule of future aggregate maturities Fiscal year ending September 30, Amount 2024 $ 250,000 2025 200,000 Total $ 450,000 Note 9 – Derivative Liabilities As discussed in Note 8, certain features and instruments issued as part of the Company’s debt financing arrangements qualified for derivative accounting under ASC 815, Derivatives and Hedging, as the number of common shares that are to be issued under the arrangements are indeterminate, therefore the Company’s equity environment is tainted. ASC 815 requires we record the fair market value of the derivative liabilities at inception and at the end of each reporting period and recognize any change in the fair market value as other income or expense item. The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair values at inception and as of September 30, 2023. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The following assumptions were used in the Black-Scholes model during the year ended September 30, 2023: Schedule of defined benefit plan, assumptions Expected term 0.68 - 5.01 years Expected average volatility 111 % - 372 % Expected dividend yield Risk-free interest rate 3.93 % - 5.03 % At September 30, 2023, the estimated fair values of the liabilities measured on a recurring basis are as follows (level 3): Schedule of estimated fair value of liabilities Commitment fee guarantee issued February 24, 2022 $ 294 Warrants issued February 24, 2022 369 Embedded conversion feature in Note issued June 3, 2022 44 Warrants issued June 3, 2022 19 Embedded conversion feature in Note issued June 16, 2022 126 Warrants issued June 16, 2022 18 Embedded conversion feature in Note issued November 15, 2022 110 Warrants issued November 15, 2022 24 Warrants issued on February 10, 2023 274 Warrants issued on March 1, 2023 39 Derivative liability balance - September 30, 2023 $ 1,317 The following table summarizes the changes in the derivative liabilities during the year ended September 30, 2023: F- 22 Schedule of derivative liabilities Derivative balance - September 30, 2021 $ — Addition of new derivatives recognized as debt discounts 550,197 Gain on change in fair value of the derivative ( 435,188 ) Derivative liability balance - September 30, 2022 115,009 Addition of new derivatives recognized as debt discounts 26,959 Loss on debt extinguishment 29,072 Gain on change in fair value of the derivative ( 169,723 ) Derivative liability balance - September 30, 2023 $ 1,317 Note 10 – Income Taxes The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certai n deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate of 31 % to the income tax amount recorded as of September 30, 2023 and 2022 are as follows: Schedule of Components of Deferred Taxes Years Ended September 30, 2023 2022 Deferred tax assets: Net operating loss carryover $ 773,800 $ 570,300 Accruals 17,800 1,200 Development 14,700 — Depreciation & amortization ( 12,200 ) ( 7,200 ) Valuation allowance ( 794,100 ) ( 564,300 ) Net deferred tax asset $ — $ — The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended September 30, 2023 and 2022, due to the following: Schedule of effective income tax rate reconciliation Years Ended September 30, 2023 2022 Expected Federal Tax $ ( 195,300 ) 21.0 % $ ( 309,800 ) 21.0 % State income taxes (net of federal benefit) ( 73,500 ) 7.9 % ( 227,500 ) 15.4 % Permanent adjustments 800 ( 0.1 )% 106,700 ( 7.2 )% State tax rate change 38,200 ( 4.1 )% — 0.0 % Other — 0.0 % 14,900 ( 1.0 )% Change in valuation allowance 229,800 ( 24.7 )% 415,700 ( 28.2 )% Total income tax provision $ — $ — The net operating losses (“NOLs”) carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382. The Company experienced a change in control for tax purposes in February 24, 2022. Due to change of control, the Company estimates not being able to carryover approximately $ 1,700,000 of NOL generated before February 24, 2022 to offset future income. As of September 30, 2023, the Company had approximately $ 2,677,000 of net operating loss carryforwards that may be offset against future taxable income. No tax benefit has been reported in the September 30, 2023 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Tax returns for the years ended 2020 and forward are subject to review by the tax authorities. F- 23 Note 11 – Subsequent Events Management has evaluated subsequent events through the date these financial statements were available to be issued. Please note the following matters deemed to be subsequent events. On November 28, 2023, the Company entered into a third amendment with AJB Capital Investments, LLC by increasing the original principal of note with amount of $22,222 in which the Company received $20,000 in cash (after giving effect to a 10% original issue discount) for payment to vendors. Effective December 15, 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $ 195,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $ 165,750 (after giving effect to a 15% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $ 150,750 , which will be used for working capital and other general corporate purposes. The maturity date of the AJB Note is June 15, 2024 . The AJB Note bears interest at 10 % per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty. The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 15% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance. In December 2023, in conjunction with the issuance of a promissory note of $ 195,000 , the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $ 0.00001 per share. The warrant is exercised at any time on or after December 15, 2023 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on The holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $ 248,952 which was recorded as a derivative liability. The note was discounted to a principal balance of $ 0 and a debt discount of $ 195,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense. Effective February 23, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $ 140,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $ 112,000 (after giving effect to a 20% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $ 102,000 , which will be used for working capital and other general corporate purposes. The maturity date of the AJB Note is November 23, 2024 . The AJB Note bears interest at 12 % per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty. Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $ 50,000 , payable in the form of 5,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. F- 24 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures Our Principal Executive Officer and Principal Financial Officer conducted an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that in light of the material weaknesses described below, our disclosure controls and procedures were not effective as of September 30, 2023. See material weaknesses discussed below in Management’s Annual Report on Internal Control over Financial Reporting. (b) Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our internal control over financial reporting is a process designed under the supervision of our Principal Executive Officer and Principal Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditure are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. As of September 30, 2023, we conducted an evaluation of the effectiveness of our internal control over financial reporting. Our management concluded that our internal controls over financial reporting were not effective as of September 30, 2023 due to the following identified material weaknesses: ● Our control environment is inadequate. We have no risk assessment procedures, no formal information or communication process, and no monitoring activities in place. Additionally, we lack policies that require formal written approval for related party transactions. ● We have not established and/or maintained adequately designed internal controls in order to prevent or detect and correct material misstatements to financial statements. We do not have controls in place to prevent individuals from manipulating financial data or entering inaccurate data into the accounting software, and there are no controls over the financial reporting close process. Additionally, we lack segregation of duties and review procedures to ensure our financial data is accurate. ● We lack the necessary accounting resources with sufficient SEC reporting experience, US GAAP knowledge and accounting experience. We also lack the resources to properly account for complex debt and equity transactions and are unable to analyze such transactions timely or in sufficient detail. 16 Management believes that despite our material weaknesses, our consolidated financial statements for the year ended September 30, 2023 are fairly stated, in all material respects, in accordance with GAAP. (c) Changes in Internal Control Over Financial Reporting During the fourth quarter of 2023, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Inherent Limitations Over Internal Controls Management, including our Principal Executive Officer and Principal Financial Officer, does not expect that disclosure controls and internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are no resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgements in decision making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. Attestation Report of the Independent Registered Public Accounting Firm This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Our management’s report was not subject to attestation by our independent registered public accounting firm pursuant to the Dodd-Frank Act that permanently exempted smaller reporting companies from the auditor attestation requirement. Item 9B. Other Information None. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. Not applicable 17 PART III Item 10. Directors, Executive Officers and Corporate Governance Directors and Executive Officers Our directors and executive officers and their ages at the date of this filing are listed in the following table: Name Age Title John Possumato 63 Chief Executive Officer and Director Adam Potash 36 Chief Operating Officer and Director Mike Elkin 67 Chief Financial Officer John Possumato is a noted consultant, author, and speaker in the automotive industry, and is the Founder and CEO of DIA since 2018. A serial entrepreneur and a franchise car dealership owner veteran, Possumato has over 35 years of leadership experience fostering and growing start-up companies. Also known by vehicle manufacturers, Possumato helped create the dealer focused commercial fleet programs for Ford, General Motors, and Jaguar. Possumato conceived of DriveItAway in 2017, while at Automotive Mobile Solutions LLC, a technology company he founded and led as CEO in 2012, to adapt new mobile marketing innovations to automotive retailers. He is also an attorney, a graduate of the Law School at the University of Pennsylvania (J.D.) and the Wharton School of Business (B.S.), is a member of the Bar of the State of Pennsylvania, was a Wharton School Entrepreneur in Residence, University City Science Center OnRamp Founder in Residence, a founding Board member of the International Automotive Remarketers Alliance, and past Counsel to the Board of Directors of the Automotive Fleet and Leasing Association. He most recently helped create the Drive For Freedom Foundation, a 501(c)(3) nonprofit created to alleviate the “Poverty of the Carless.” Adam Potash began his career in a start-up engaging in passenger transportation and has been involved in mobility-based start-ups ever since. In 2011, he founded and became CEO of Minds’ Eye Innovations, which provided ride sharing software to taxi companies to compete against Uber and Lyft. He helped to grow the company to service over 70 taxi companies processing 10,000+ orders per day. Mr. Potash later joined a ride share start-up called Leap that was assembled by former management members of Gett Taxi (3 rd largest ride share company in NYC) and became the CTO helping the team bring to market a new ride share concept. In 2019, Potash became COO of DIA, helping DIA launch its “Pay As You Go” car ownership program, where he continues to lead product development and operations. He is a graduate of Villanova University. Mike Elkin became the Company’s Chief Financial Officer on October 1, 2020. Mr. Elkin has over 20 years of experience as a controller and financial manager. His experience includes providing financial and accounting advice to REIT’s, non-profits and turnaround situations in the manufacturing, distribution and service company sectors. Since 2017, Mr. Elkin has served as the controller for a private Real Estate Investment Trust (“REIT”). From 2005 to 2006, Mr. Elkin operated a consulting business in which he served as part-time controller or chief financial officer for various private businesses. Mr. Elkin has a B.S. Degree in Accounting from the University of Florida, a Masters Degree in Accounting from Nova Southeastern University, and a Masters Degree in Finance from Florida International University. Mr. Elkin has been recognized by the Jacksonville Business Journal as CFO of the year. He was also honored by the Jacksonville Jewish Journal for Social Action Work in the community. None of the directors and executive officers has been involved in any legal proceedings as listed in Regulation S-K, Item 401(f). Term of Office Our directors are appointed for a one-year term to hold office until the next annual general meeting of our stockholders or until removed from office in accordance with our Bylaws and the provisions of the Delaware General Corporation Law. Our directors hold office after the expiration of his or her term until his or her successor is elected and qualified, or until his or her resignation, death, or removal in accordance with our Bylaws or the Delaware General Corporation Law. Our officers are appointed by our board of directors and hold office until removed by our board of directors at any time for any reason. 18 Family Relationships There are no family relationships between or among any of our directors or executive officers or persons nominated or chosen by us to become directors or executive officers. Director Independence Our board of directors has reviewed the independence of our directors and has determined that no director qualifies as an independent director pursuant to Rule 5605(a)(2) of Nasdaq and applicable SEC rules and regulations. In making this determination, our board of directors considered the relationships that each of our directors has with us and all other facts and circumstances our board of directors deemed relevant in determining their independence. Board Committees Our board of directors has no separately designated committees and our board members carry out the functions of both an audit committee and a compensation committee. We do not have an audit committee financial expert serving on our board of directors. Due to our limited financial resources, we are not in a position to retain an independent director with the qualifications to serve as an audit committee financial expert at this time. Audit Committee Financial Expert The Board has determined that it does not have an “audit committee financial expert” within the meaning of SEC rules. Code of Ethics The Company has adopted a Code of Ethics applicable to its principal executive, financial and accounting officers and persons performing similar functions, as well as all directors and employees of the Company. Communication with the Board Our stockholders and other interested parties may send written communications directly to the Board or to specified individual directors, including the Chairman or any other non-management directors, by sending such communications to the Chief Executive Officer of the Company, P.O. Box 4502, Boise, Idaho 83711. Such communications will be reviewed by our outside legal counsel and, depending on the content, will be: ● forwarded to the addressees or distributed at the next scheduled board meeting; ● if they relate to financial or accounting matters, forwarded to the audit committee or distributed at the next scheduled audit committee meeting; ● if they relate to executive officer compensation matters, forwarded to the compensation committee or discussed at the next scheduled compensation committee meeting; ● if they relate to the recommendation of the nomination of an individual, forwarded to the full Board or discussed at the next scheduled Board meeting; or ● if they relate to our operations, forwarded to the appropriate officers of our company, and the response or other handling of such communications reported to the Board at the next scheduled board meeting. If multiple communications are received on a similar topic, the Secretary may, in his discretion, forward only representative correspondence. Any communications that are abusive, in bad taste or present safety or security concerns may be handled differently. 19 Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Exchange Act requires directors, executive officer and persons who beneficially own more than 10% of a registered class of our equity securities to file with the SEC initial reports of ownership and reports or changes in ownership of such equity securities. Such persons are also required to furnish us with copies of all Section 16(a) forms that they file. Based upon a review of the copies of the forms furnished to us and written representations from certain reporting persons, we believe that, during the year ended September 30, 2022, none of our executive officers, directors or beneficial owners of more than 10% of any class of registered equity security failed to file on a timely basis any such report. Item 11. Executive Compensation The following identifies the elements of compensation for the fiscal years 2022 and 2021 with respect to our “named executive officers,” which term is defined by Item 402 of the SEC’s Regulation S-K to include (i) all individuals serving as our principal executive officer at any time during fiscal year 2021, (ii) our two most highly compensated executive officers other than the principal executive officer who were serving as executive officers at September 30, 2022 and whose total compensation (excluding nonqualified deferred compensation earnings) exceeded $100,000, and (iii) up to two additional individuals for whom disclosure would have been provided pursuant to the foregoing item (ii) but for the fact that the individual was not serving as an executive officer of the Company at September 30, 2021. Summar y Compensation Table Fiscal Stock All Other Name and Principal Position Year Salary Compensation Compensation Total John Possumato 2023 $ 104,000 $ — $ — $ 104,000 Chief Executive Officer (1) 2022 $ 61,000 $ $ $ 61,000 Adam Potash 2023 $ 104,000 $ — $ — $ 104,000 Chief Operating Officer (2) 2022 $ 61,000 $ $ $ 61,000 Mike Elkin 2023 $ 48,000 $ — $ — $ 48,000 Chief Financial Officer 2022 $ 48,000 $ $ $ 48,000 Rod K. Whiton 2023 $ N/A $ — $ — $ N/A President (3) 2022 $ 41,666 $ — $ — $ 41,666 Christopher Rego 2023 $ N/A $ — $ — $ N/A CEO (4) 2022 $ 60,000 $ — $ — $ 60,000 1) On February 24, 2022, John Possumato was appointed Chief Executive Officer of the Company 2) On February 24, 2022, Adam Potash was appointed Chief Operating Officer of the Company 3) On February 24, 2022, Rod Whiton resigned as President of the Company 4) On February 24, 2022, Christopher Rego resigned as Chief Executive Officer of the Company. Narrative Disclosure of Compensation Policies and Practices as They Relate to Our Risk Management We believe that our compensation policies and practices for all employees and other individual service providers, including executive officers, do not create risks that are reasonably likely to have a material adverse effect on us. Outstanding Equity Awards At Fiscal Year-End None of the named executive officers have any unvested equity awards or unexercised options in the Company as of September 30, 2023. 20 Employee Benefit Plans and Pension Benefits The Company does not provide its officers or employees with pension, stock appreciation rights, long-term incentive or other plans. The Company does not have a defined benefit, pension or profit-sharing plan. Director Compensation Our Board does not have a current compensation policy for its directors. However, we reimburse our directors for reasonable travel and other related expenses. None of our directors received any director compensation during the year ended September 30, 2023. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The following table sets forth, as of January 9, 2024, certain information concerning the beneficial ownership of our common stock by (i) each person known by us to own beneficially five percent (5%) or more of the outstanding shares of each class, (ii) each of our directors and named executive officers, and (iii) all of our executive officers and directors as a group. The number of shares beneficially owned by each 5% stockholder, director or executive officer is determined under the rules of the Securities & Exchange Commission, or SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under those rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power and also any shares that the individual or entity has the right to acquire within 60 days through the exercise of any stock option, warrant or other right, or the conversion of any security. Unless otherwise indicated, each person or entity has sole voting and investment power (or shares such power with his or her spouse) with respect to the shares set forth in the following table. The inclusion in the table below of any shares deemed beneficially owned does not constitute an admission of beneficial ownership of those shares. Number of Commons Shares Percent of of Beneficial Class Name and Address of Beneficial Owner (1) Ownership (2) 5% Beneficial Owners: — — None Named Executive Officers and Directors: John Possumato (3) 34,590,190 (3) 32.46 % Adam Potash (4) 35,528,599 (4) 33.34 % Paul Patrizio (5) (6) 9,284,913 (5)(6) 8.71 % All Officers and Directors as a Group 79,403,702 74.52 % (1) Unless otherwise noted, the address of each beneficial owner is c/o DriveItAway Holdings, Inc. 3201 Market Street, Suite 200/201, Philadelphia, PA 10104. (2) Applicable percentages are based on 106,551,722 shares of our common stock outstanding as of January 9, 2023. (3) Includes 32,680,519 common shares owned by Driveitaway, LLC. John Possumato, has investing and dispositive power of shares beneficially owned by Driveitaway, LLC. (4) Includes 32,887,210 common shares owned by Minds Eye Innovation, Inc. Adam Potash has investing and dispositive power of shares beneficially owned by Minds Eye Innovation, Inc. (5) All 9,284,913 common shares are owned by AEP Holdings, LLC. Paul Patrizio has investing and dispositive power of shares beneficially owned by AEP Holdings, LLC. (6) Paul Patrizio resigned from the Board of Directors, effective May 31, 2023. The resignation was not a result of any disagreement with the company on any matter relating to the operations, policies, or practices. 21 Equity Compensation Plan The Company does not have an equity compensation plan. Item 13. Certain Relationships and Related Transactions, and Director Independence Related Party Convertible Notes Payable On September 13, 2019, the Company issued a Convertible Promissory Note to Driveitaway, LLC, a company controlled by John Possumato, the Company’s CEO, for $30,000, with a maturity date of September 13, 2022. On October 13 and October 14, 2020, the Company issued Convertible Promissory Notes to Driveitaway, LLC and Adam Potash, the Company’s COO, for $25,000 each, which mature on October 13 and 14, 2022, respectively. On December 24, 2020, the Company issued a Convertible Promissory Note to Adam Potash, for $15,000, which matures on December 24, 2022. Each of the notes bear interest at a rate of 6% per annum. The notes automatically convert into preferred stock of DIA in the event DIA raises at least $1,000,000 by the issuance of preferred stock prior to the maturity dates of the notes (a “Qualified Financing”). In the event DIA enters into a financing that is not a Qualified Financing prior to the maturity dates of the notes, the holders have the right to convert their notes into the class and series of equity securities offered in the non-Qualified Financing at the offer price thereof. In the event DIA effects a change of control, the holders have the option of converting their notes into common stock in order to participate in the change of control or accelerating the maturity date and receiving cash at the time of the change of control. At the closing of the Share Exchange on February 24, 2022, the holders of the related party Convertible Promissory Notes agreed to convert all of the principal and interest of $104,564 due under the notes into 52,284 shares of DIA common stock, which was automatically converted into 52,284 shares of Series A Preferred. During the years ended September 30, 2023, and 2022, the Company recorded interest expense for related parties of $4,918 and $2,296, respectively. As of September 30, 2023 and 2022, the Company had accrued interest owed to related parties of $4,918 and $0, respectively. Advances and Repayments In the normal course of business, the Company’s management team or their affiliates will make payments on behalf of the Company or will provide short-term advances to the Company to cover operating expenses. During the year ended September 30, 2023, related parties made payments on the Company’s behalf or provided short-term advances to the Company totaling $26,460 and the Company made repayments to related parties of $1,460. As of September 30, 2023 and 2022, the Company owed related parties $25,080 and $80, respectively, for this activity. Director Independence Our current Board consists of John Possumato, and Adam Potash. Our common stock is currently quoted on the over-the-counter market. Since the over-the-counter market does not have its own rules for director independence, we use the definition of independence established by the NASDAQ Stock Market. Under applicable NASDAQ Stock Market rules, a director will only qualify as an “independent director” if none of the following conditions existed throughout the year (a) was employed by us, (b) received more than $120,000 in compensation from us, other than for board services, (c) had a family member who was employed as an executive officer of us, (d) was, or had a family member that was, a partner, controlling shareholder or executive officer of any organization that received payments for property or services that exceeded the greater of 5% of the recipient’s gross revenues or $200,000, (e) was, or had a family member that was, employed as an executive officer of another entity during the past three years where any of the executive officers of us serve on the compensation committee, or (f) was, or had a family member that was, a partner in our auditor at any time in the past three years. At this time, we have determined that we have no independent directors. The Board does not currently have any committees. The Board has approved the formation of an Audit Committee, and an Audit Committee charter, but no members currently serve on the Audit Committee. The independent directors perform the functions of the Audit Committee. 22 Item 14. Principal Accountant Fees and Services. The following table presents fees for professional services provided by Mac Accounting Group & CPAs, LLP for the years September 30, 2023 and 2022, respectively: The following table shows the fees billed aggregate to the Company for the periods shown: Fiscal Year Fiscal Year 2023 2022 Audit Fees (1) $ 82,000 $ 81,250 Audit-Related Fees (2) — — Tax Fees (3) — — All Other Fees (4) — — Total Fees $ 82,000 $ 81,250 (1) Audit Fees. Audit services include work performed for the audit of our financial statements and the review of financial statements included in our quarterly reports, as well as work that is normally provided by the independent registered public accounting firm in connection with statutory and regulatory filings. (2) Audit-related services . Audit-related services are for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not covered above under “audit services.” (3) Tax services . Tax services include all services performed by the independent registered public accounting firm’s tax personnel for tax compliance, tax advice and tax planning. (4) All other Fees . All other fees are those services and/or travel expenses not described in the other categories. The SEC requires that before our independent registered public accounting firm is engaged by us to render any auditing or permitted non-audit related service, the engagement be either: (i) approved by our audit committee or (ii) entered into pursuant to pre-approval policies and procedures established by the audit committee, provided that the policies and procedures are detailed as to the particular service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee’s responsibilities to management. Pre-Approval Policies and Procedures We do not have an audit committee. Our Board pre-approves all services provided by our independent registered public accounting firm. All of the above services and fees during the fiscal years ended September 30, 2023 and 2022 were reviewed and approved by our Board before the respective services were rendered. 23 PART IV Item 15. Exhibits, Financial Statement Schedules. (a) Exhibits INDEX TO EXHIBITS Exhibits Description 3.1 Certificate of Incorporation, dated March 8 , 2006 ( incor p orated b y reference to Exhibit 3.1 to the Com p an y ’s Re g istration Statement on Form SB-2 , File No. 333-1459990) 3.2 Amendment to Certificate of Incor p oration, ( incor p orated b y reference to Exhibit 3.1.2 to the Com p an y ’s Annual Re p ort on Form 10-K for the fiscal y ear ended Se p tember 30 , 2010) 3.3 B y laws ( incor p orated b y reference to Exhibit 3.1 to the Com p an y ’s Re g istration Statement on Form SB-2 , File No. 333-145999) 3.3.1 Amended and Restated B y laws , dated December 6 , 2019 ( incor p orated b y reference to Exhibit 3.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on December 6 , 2019) 3.4 Certificate of Desi g nation , Ri g hts and Preferences of Series A Convertible Stock , dated Februar y 24 , 2022 ( incor p orated by reference to Exhibit 3.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on March 2 , 2022) 3.5 Amendment to Certificate of Incor p oration , dated A p ril 18 , 2022 ( incor p orated b y reference to Exhibit 3.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on A p ril 29 , 2022) 4.1 Promissor y Note issued b y the Com p an y to ABJ Ca p ital Investments , LLC , dated Februar y 24 , 2022 ( incor p orated by reference to Exhibit 4.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 4 , 2022) 4.2 Common Stock Purchase Warrant , issued b y the Com p an y to ABJ Ca p ital Investments , LLC , dated Februar y 24 , 2022 (incor p orated b y reference to Exhibit 4.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 4 , 2022) 4.3 Form of Secured Convertible Note , dated June 30 , 2022 ( 2022 ( incor p orated b y reference to Exhibit 4.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on Jul y 7 , 2022) 4.4 Form of Common Stock Purchase Warrant , dated June 30 , 2022 ( 2022 ( incor p orated b y reference to Exhibit 4.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on Jul y 7 , 2022) 4.5 Form of Secured Convertible Note , dated November 15 , 2022 ( incor p orated b y reference to Exhibit 4.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 21 , 2022) 4.6 Form of Common Stock Purchase Warrant , dated November 15 , 2022 ( incor p orated b y reference to Exhibit 4.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 21 , 2022) 10.1* Virtual Membership Agreement (Lease) by and between the Company and The Innovation Center, dated March 22, 2022 10.2 A g reement and Plan of Share Exchan g e, dated December 7 , 2021 b y and amon g the Com p any , Driveitaway , Inc. and the shareholders of Driveitaway , Inc. ( incor p orated b y reference to Exhibit 10.1 to the Current Re p ort on Form 8-K filed on December 7 , 2021) 24 10.3 Sale A g reement , dated December 7 , 2021 b y and between the Com p an y and StroomX , LLC ( incor p orated b y reference to Exhibit 10.2 to the Current Re p ort on Form 8-K dated December 7 , 2021) 10.4 Securities Purchase A g reement , b y and between the Com p an y and AJB Ca p ital Investments LLC , dated Februar y 24 , 2022 ( incor p orated b y reference to Exhibit 10.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 4 , 2022) 10.5 First Amendment to the Securities Purchase A g reement, b y and between the Com p an y and AJB Ca p ital Investments LLV , dated Februar y 24 , 2022 ( incor p orated b y reference to Exhibit 10.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 4 , 2022) 10.5 Form of Subscri p tion A g reement , dated June 30 , 2022 ( incor p orated b y reference to Exhibit 10.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on Jul y 7 , 2022) 10.6 Form of Securit y A g reement , dated June 30 , 2022 ( incor p orated b y reference to Exhibit 10.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on Jul y 7 , 2022) 10.7 Form of Pi ggy back Re g istration Ri g hts A g reement , dated June 30 , 2022 ( incor p orated b y reference to Exhibit 10.3 to the Com p an y ’s Current Re p ort on Form 8-K , filed on Jul y 7 , 2022) 10.8 Form of Subscri p tion A g reement , dated November 15 , 2022 ( incor p orated b y reference to Exhibit 10.1 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 21 , 2022) 10.9 Form of Securit y A g reement , dated November 15 , 2022 ( incor p orated b y reference to Exhibit 10.2 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 21 , 2022) 10.10 Form of Pi ggy Ri g hts Re g istration A g reement , dated November 15 , 2022 ( incor p orated b y reference to Exhibit 10.3 to the Com p an y ’s Current Re p ort on Form 8-K , filed on November 21 , 2022) 14 Code of Ethics ( incor p orated b y reference to Exhibit 14 to the Com p an y ’s Annual Re p ort on Form 10-K for the fiscal y ear ended Se p tember 30 , 2015) 21* Subsidiaries of the Company. 31.1* Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 31.2* Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32.1** Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2** Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 104 Cover Page Interactive Data File (embedded within the Inline XBRL). 101.INS* XBRL Instance Document 101.SCH* XBRL Taxonomy Extension Schema Document 101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF* XBRL Taxonomy Extension Definition Linkbase Document 101.LAB* XBRL Taxonomy Extension Label Linkbase Document 101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document * Filed herewith. ** Furnished herewith. Item 16. 10-K Summary None. 25 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DRIVEITAWAY HOLDINGS, INC. Dated: March 8, 2024 By: /s/ John Possumato John Possumato, Chief Executive Officer (Principal Executive Officer) Dated: March 8, 2024 By: /s/ Mike Elkin Mike Elkin, Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Exchange Act, this report has been signed below on the 8 th day of March 2024 by the following persons on behalf of the registrant and in the capacities indicated. Name Title /s/ John Possumato Director, Chief Executive Officer John Possumato /s/ Mike Elkin Director, Chief Financial Officer Mike Elkin /s/ Adam Potash Director, Chief of Operating Officer Adam Potash 26