What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-03-28 compared with 2024-08-26 · 67 added, 100 removed, 235 unchanged (42% of the section changed)

39 unchanged sentences

For the three months

ended June 30, 2024, compared to the three months ended June 30, 2023

ended December 31, 2024, compared to the three months ended December 31, 2023

Our operating results for

the three months ended June 30, 2024 and 2023 are summarized as follows:

the three months ended December 31, 2024 and 2023 are summarized as follows:

Three months ended

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Other (income) / expense

Net income (loss) before income taxes

Income tax expense

Net income (loss)

Revenues for the three months

ended June 30, 2024, increased $32,394 from $78,005 for the period ending June 30, 2023, to $110,399 for the period ending June 30, 2024.

This was due to a $32,394 increase in rental revenue and insurance revenue.

We anticipate that, in 2024

automotive supply and demand will see a continuing return to more historically normal levels which should translate into greater vehicle

availability for vehicles on our platform, leading to a further increase in revenues.

Cost of revenue for the three months ended June 30, 2024, increased $1,356,

from $64,114 for the period ending June 30, 2023, to $65,470 for the period ending June 30, 2024.

Operating expenses for the three months ended June 30, 2024, increased $34,583 as

compared to the three months ended June 30, 2023.

The increase was primarily attributable to increases in salaries and payroll taxes of

$16,270, professional fees of $12,498, general and administrative of $7,253, and advertising and marketing expenses of $1,832, offset

by an decrease in software development of $3,270.

Loss from operations was $125,857 for the three months ended June 30, 2024,

as compared to $122,312 for the three months ended June 30, 2023.

The increase of $3,545 was negligible.

Other expense for the three

months ended June 30, 2024, was $403,792, as compared to net other expense of $34,783 for the three months ended June 30, 2023.

of $369,009 is primarily attributable to increases in interest expense of $455,640, related party interest expense of $253, in amortization

of debt discount of $103,770, and offset by a change in fair value of derivative liabilities of $190,654.

For the nine months

ended June 30, 2024, compared to the nine months ended June 30, 2023

Our operating results for

the nine months ended June 30, 2024 and 2023 are summarized as follows:

Nine months ended

Cost of revenue

Gross Profit Percentage

Operating expense

Operating loss

Other expense

$ (1,721,293 )

$ (1,023,811 )

Revenues for the nine months ended June 30, 2024, increased $103,121 from $193,088

for the period ending June 30, 2023, to $296,209 for the period ending June 30, 2024.

This was due to a $118,186 increase in rental revenue

and $28,237 increase in insurance revenue, offset by an increase of $43,302 in insurance lender payback costs.

ended December 31, 2024, increased $145,443 from $96,503 for the period ending December 31, 2023, to $241,946 for the period ending December

This was due to a $143,543 increase in rental revenue and insurance revenue as a result of more vehicles available to rent.

We anticipate that, in 2024

1 unchanged sentence

availability for vehicles on our platform, leading to a further increase in revenues.

Cost of revenue for the nine months ended June 30,

2024, increased $77,561, from $150,664 for the period ending June 30, 2023, to $228,225 for the period ending June 30, 2024.

primarily due to DIA fleet payments which increased alongside an increase in revenue.

Cost of revenue for the three months ended December

31, 2024, increased $57,576, from $85,679 for the period ending December 31, 2023, to $144,227 for the period ending December 31, 2024.

Operating expenses for the

nine months ended June 30, 2024, decreased $70,708 as compared to the nine months ended June 30, 2023.

The decrease was primarily attributable

to a decrease in salaries and payroll taxes of $6,855, professional fees of $41,923, software development costs of $6,024 and advertising

and marketing expenses of $34,550, offset by an increase in general and administrative expenses of $18,644.

three months ended December 31, 2024, increased $18,293 as compared to the three months ended December 31, 2023.

The increase was primarily

attributable to increases in salaries and payroll taxes of $29,125, , general and administrative of $66,367, software development of $9,735,

and, offset by an decrease in advertising and marketing expenses of $176 and professional fees of $86,758.

Loss from operations was

$439,537 for the nine months ended June 30, 2024, as compared to $535,805 for the nine months ended June 30, 2023.

The decrease of $96,268

was largely attributable to the decrease in operating expenses of $70,708 and an increase in gross profit of $25,560.

Other expenses for the nine

months ended June 30, 2024, were $1,281,756, as compared to $161,677 for the nine months ended June 30, 2023.

The increase of $1,120,079

is primarily attributable to increases in loss on change in fair value of derivative liabilities of $315,568, in interest expense of $576,560,

related party interest expense of $4,105, and in amortization of debt discount of $223,846.

$125,612 for the three months ended December 31, 2024, as compared to $195,186 for the three months ended December 31, 2023.

of $69,574 was due to higher gross profit and lower operating expenses.

Other income for the three

months ended December 31, 2024, was $582,075, as compared to net other expense of $520,243 for the three months ended December 31, 2023.

The change of $1,102,318 is primarily attributable to the change in fair value of derivative liabilities of $1,248,839.

Liquidity and Capital Resources:

The following table provides selected financial data about our Company

as of June 30, 2024, and September 30, 2023.

as of December 31, 2024, and September 30, 2024.

Working Capital

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$ (4,335,188 )

$ (2,245,184 )

As of June 30, 2024, our working capital deficiency increased $2,245,184 as

compared to September 30, 2023.

This was primarily attributable to a $2,246,640 increase in current liabilities.

As of December 31, 2024,

our working capital deficiency decreased $8,551 as compared to September 30, 2024.

This was primarily attributable to a $35,770 increase

in current assets offset by the increase in current liabilities of $29,058.

Cash Flow Data:

Nine months ended

Three months ended

Cash provided by (used in) operating activities

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Cash Flows from Operating

During the nine months

ended June 30, 2024, we did not generate positive cash flows from operating activities.

For the nine months ended June 30, 2024, net

cash flows used in operating activities was $362,766, consisting of a net loss of $1,721,293, a loss on change in fair value of

derivative liability of $271,039, and decreased by amortization debt discount of $296,397, depreciation and amortization of $28,486,

financing fee of $484,197 and a change in operating assets and liabilities of $278,408.

nine months ended June 30, 2023, we did not generate positive cash flows from operating activities.

For the nine months ended June 30,

2023, net cash flows used in operating activities was $366,356, consisting of a net loss of $697,482, increased by a gain on change in

derivative liability of $44,529, and reduced by stock-based compensation expenses of $15,000, amortization debt discount of $72,551, depreciation

and amortization of $27,313, a change in operating assets and liabilities of $260,791.

During the three months ended

December 31, 2024, we did not generate positive cash flows from operating activities.

For the three months ended December 31, 2024, net

cash flows used in operating activities was $55,686, consisting of a net income of $456,463, a gain on change in fair value of derivative

liability of $913,562, and increased by amortization debt discount of $59,378, amortization of deferred financing costs of $137,580, depreciation

and amortization of $37,554, and a change in operating assets and liabilities of $166,901.

During the three months ended

December 31, 2023, we did not generate positive cash flows from operating activities.

For the three months ended December 31, 2023, net

cash flows used in operating activities was $104,496, consisting of a net loss of $715,429, reduced by a loss on change in fair value

of derivative liability of $335,277, amortization debt discount of $35,407, depreciation and amortization of $9,471, a financing fee of

$98,202, and a change in operating assets and liabilities of 132,576.

Cash Flows from Investing

During the nine months ended

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

nine months ended June 30, 2023, the Company used cash for the purchased two vehicles for $67,039 and website development costs of $5,833.

During the three months ended

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

During the three months ended

December 31, 2023, the Company did not use or generate any cash from investing activities.

Cash Flows from Financing

During the nine months ended June 30, 2024, the Company generated $437,834 from

financing activities including proceeds of $182,740 from the issuance of promissory notes, $477,064 from the issuance of convertible promissory

notes and proceeds from the sale of common stock of $15,000 which was partially offset by $87,121 for repayment of promissory notes and

payment for debt issuance costs of $149,849.

During the nine months ended June 30, 2023, the Company generated

$261,500 from the issuance of convertible notes, $50,000 from the issuance of promissory notes - related parties, $12,500 from issuance

of promissory notes, $35,982 from the issuance of notes payable, repaid $14,443 on the notes payable and payment for debt issuance costs

During the three months ended

December 31, 2024, the Company generated $228,745 from financing activities including proceeds of $450 from related party advances, $180,117

from the issuance of promissory notes, $57,458 from the issuance of convertible promissory notes, proceeds from the sale of warrants of

$50,000, and proceeds from the sale of common stock of $5,000 which was partially offset by $64,280 for repayment of promissory notes.

During the three months ended

December 31, 2023, the Company generated $22,222 from the issuance of convertible notes, and $195,000 from the issuance of promissory

notes, this was partially offset by $28,278 for repayment of promissory notes payable and payment for debt issuance costs of $46,472.

Going Concern

As of June 30, 2024, the Company had a net loss of $1,721,293, accumulated

deficit of $5,032,189 and did not have sufficient cash on hand to cover expenses for the next twelve (12) months.

The Company intends

to convert its convertible debt into common stock and to fund operations through equity financing arrangements, which may be insufficient

to fund its capital expenditures, working capital and other cash requirements for the ensuing twelve months.

As of December 31, 2024,

the Company had a net income of $456,463, accumulated deficit of $5,102,676 and did not have sufficient cash on hand to cover expenses

for the next twelve (12) months.

The Company intends to convert its convertible debt into common stock and to fund operations through

equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements

for the ensuing twelve months.

The ability of our Company

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Critical Accounting Policies and

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:

Our consolidated financial statements are prepared in accordance with accounting

principles generally accepted in the United States (“GAAP”), which require management to make estimates, judgments and assumptions

that affect the amounts reported in our condensed consolidated financial statements and accompanying notes.

We believe our most critical

accounting policies and estimates relate to the following:

Revenue Recognition

2 unchanged sentences

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.

While our estimates and assumptions are based on our knowledge of current events

and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions.

For a discussion

of the Company’s significant accounting policies, refer to Note 2 of Notes to the Condensed Consolidated Financial Statements.

Revenue Recognition

7 unchanged sentences

would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.

During the periods ended June 30, 2024 and 2023, the

Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships

During the periods ended December 31, 2024 and 2023,

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”).

55 unchanged sentences

date and relate to usages after that date.

As of June 30, 2024 and September 30, 2023 refundable deposits were $1,339 and $2,234 and deferred

revenue was $759 and $7,233, respectively.

As of December 31, 2024 and September 30, 2024 refundable deposits were $1,339 and $2,234 and

deferred revenue was $759 and $7,233, respectively.

In addition to the costs associated with rental revenue

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Derivative liabilities are valued at Level 3.

Fair Value Measurements as of June 30, 2024 using:

June 30, 2024

Fair Value Measurements as of December 31, 2024 using:

December 31, 2024

Quoted Prices in Active Markets for Identical Assets (Level 1)

32 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis