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Item 1. Financial Statements

2025-05-20 compared with 2025-03-28 · 191 added, 166 removed, 1070 unchanged (25% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2024

Condensed Consolidated Balance Sheets as of December 31, 2024 (Unaudited) and September 30, 2024

Condensed Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (Unaudited)

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three months ended December 31, 2024 and 2023 (Unaudited)

Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2024 and 2023 (Unaudited)

MARCH 31, 2025

Condensed Consolidated Balance Sheets as of March 31, 2025 (Unaudited) and September 30, 2024

Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three and six months ended March 31, 2025 and 2024 (Unaudited)

Condensed Consolidated Statements of Cash Flows for the three and six months ended March 31, 2025 and 2024 (Unaudited)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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1,000,000,000 shares authorized;

113,951,722 shares issued and 113,701,722 outstanding at December 31, 2024 and September 30, 2024, respectively

113,951,722 shares issued and 113,701,722 outstanding at March 31, 2025 and September 30, 2024, respectively

Additional paid in capital

Treasury stock, at cost - 15,100 shares at December 31, 2024 and September 30, 2024

Treasury stock, at cost - 15,100 shares at March 31, 2025 and September 30, 2024

Accumulated deficit

( 5,550,634 )

( 5,559,139 )

Total Stockholders’ Deficit

( 3,959,602 )

Total Liabilities and Stockholders’ Deficit

5 unchanged sentences

Three Months Ended

Six Months Ended

Cost of Goods Sold

Gross Profit (Loss)

Operating Expenses

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Income (Loss) Before Income Tax

Provision for income taxes – Note 2

( 1,191,644 )

Provision for income taxes

Net Income (Loss)

$ ( 447,958 )

( 1,191,644 )

Net Income (Loss) Per Common Share

8 unchanged sentences

Statement of Changes in Stockholders’ Deficit

For the Three Months Ended

December 31, 2024

For the Three and Six Months

Ended March 31, 2025

Treasury Stock

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Balance - December 31, 2024

For the Three Months Ended

December 31, 2023

Balance – March 31, 2025

For the Three and Six Months

Ended March 31, 2024

Treasury Stock

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Balance - December 31, 2023

Common stock issued in connection with promissory note

Balance – March 31, 2024

The accompanying notes are

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Statements of Cash Flows

For the Three Months Ended

For the Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$ ( 1,191,644 )

Adjustments to reconcile net income (loss) to net cash used in operating activities:

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Prepaid expenses

Due to related party

Accounts receivable

5 unchanged sentences

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of intangible assets

Purchase of vehicles

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Recognition of derivative liability as debt discount

Reclassification of Promissory notes payable - related parties to Promissory notes payable

Common stock in connection with promissory note

The accompanying notes are

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

1 – Organization, Description of Business and Going Concern

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For further information, please see www.driveitaway.com.

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 period ended December 31, 2024, the Company had net income of $ 456,463 and cash used in operating activities of $ 55,686 .

of December 31, 2024, the Company had an accumulated deficit of $ 5 , 102,676 .

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.

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 six months

ended March 31, 2025, the Company had net income of $ 8,505 and cash used in operating activities of $ 152,349.

As of March 31, 2025, the

Company had an accumulated deficit of $ 5,550,634 .

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 .

as a going concern, the Company will need, among other things, additional capital resources.

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Note 2 - Summary

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opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

results for the three months ended December 31, 2024, are not necessarily indicative of the results for the full year.

While management

of the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should

results for the three months ended March 31, 2025, are not necessarily indicative of the results for the full year.

While management of

the Company believes that the disclosures presented herein are adequate and not misleading, these interim financial statements should

be read in conjunction with the audited financial statements and the footnotes thereto for the year ended September 30, 2024, contained

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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 December

31, 2024 and September 30, 2024 , the Company had cash of $ 69,358 and $ 33,588 , respectively and did no t have any 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 March 31, 2025 and September

30, 2024 , the Company had cash of $ 51,170 and $ 33,588 , respectively and did no t have any cash equivalents.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Accounts Receivable

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The Company believes its allowances for

doubtful accounts as of December 31, 2024 and September 30, 2024 are adequate, but actual

write-offs could exceed the recorded allowance.

As of December 31, 2024 and September 30, 2024

the balances in the allowance for doubtful accounts was $ 0 .

doubtful accounts as of March 31, 2025 and September 30, 2024 are adequate, but actual write-offs

could exceed the recorded allowance.

As of March 31, 2025 and September 30, 2024 the balances

in the allowance for doubtful accounts was $ 423 .

Fixed assets are recorded at

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The Company’s operating

lease portfolio for the period ended December 31, 2024 and September 30, 2024, 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 December 31, 2024, the Company did not have leases that qualified as ROU assets.

lease portfolio for the period ended March 31, 2025 and September 30, 2024, 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 March 31, 2025, the Company did not have leases that qualified as ROU assets.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value as the exchange price that would be received

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Schedule of fair value of financial assets and liabilities

Fair Value Measurements at December 31, 2024 using:

December 31, 2024

Fair Value Measurements at March 31, 2025 using:

March 31, 2025

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

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Derivative Financial Instruments

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

During the periods ended December

During the periods ended March

31, 2025 and 2024, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Initial non-refundable fees

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overlap a reporting date and relate to usages after that date.

As of December 31, 2024 and September 30, 2024 refundable deposits were

As of March 31, 2025 and September 30, 2024 refundable deposits were $0

and $1,339 and deferred revenue was $ 7,663 and $ 3,306 , respectively.

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Advertising and marketing costs are expensed as incurred.

The Company incurred advertising and marketing costs for the three months ended December 31 , 2024

and 2023 of $ 0 and $ 176 , respectively.

The Company incurred advertising and marketing costs for the three months ended March 31, 2025 and 2024 of $ 0 and $ 176 , respectively.

The provision for income taxes and deferred income

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Reclassification

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Recent Accounting Pronouncements

In the period from October 2024 through February 2025 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 condensed consolidated

financial statements and related disclosures.

In the period from October 2024 through May 2025 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 condensed consolidated financial statements and related disclosures.

Related Party Transactions

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cover operating expenses.

As of December

31, 2025 and September 30, 2024, the Company owed related parties for an unsecured, non-interest-bearing advance, payable on demand,

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value of $ 3,068 which was recorded as a derivative liability and debt discount (see Note 8).

During the three months ended December 31 ,

2024 the Company reclassified one of these promissory notes with a value of $ 7,500 from Promissory notes payable – related

party to Promissory notes payable due the note holder, a former director, no longer being considered a related party.

As of December

During the three months ended March 31, 2025

the Company reclassified one of these promissory notes with a value of $ 7,500 from Promissory notes payable – related party to Promissory

notes payable due the note holder, a former director, no longer being considered a related party.

31, 2025 and September 30, 2024, the amount due to related parties for Promissory notes payable was $ 42,500 .

During the three months ended December 31 ,

2024 and 2023, the Company recorded related party interest expense of $ 2,142

respectively.

During the six months ended March 31, 2025 and 2024,

the Company recorded related party interest expense of $ 4,238 and $ 4,478 respectively.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Note 4 – Fixed

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$ 701,917 are pledged as collateral on a line of credit with an investor.

expense for the three months ended December 31, 2024 and 2023, was $ 36,182 and $ 8,099 , respectively.

During the three months ended

December 31, 2024 and 2023, the Company purchased vehicles of $ 137,289 and $ 0 , respectively.

expense for the six months ended March 31, 2025 and 2024, was $ 36,182 and $ 16,064 , respectively.

During the six months ended March

31, 2025 and 2024, the Company purchased vehicles of $ 65,712 and $ 0 , respectively.

The following

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Accumulated depreciation

expense for the three months ended December 31, 2024 and 2023, was $ 1,372 and $ 1,372 , respectively.

During the three months ended December

expense for the six months ended March 31, 2025 and 2024, was $ 2,714 and $ 2,714 , respectively.

During the six months ended March 31, 2025

and 2024, the Company incurred no website development costs.

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

The Series A Preferred Stock is entitled to receive, prior to any distribution to any junior class of securities,

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Stock at any time that there are less than 200,000 shares of Series A Preferred Stock outstanding.

During the three

months ended December 31, 2024 and 2023 there were no issuances of the Series A Preferred shares.

As of December

During the six

months ended March 31, 2025 and 2024 there were no issuances of the Series A Preferred shares.

31, 2025 and September 30, 2024, the Company had no shares of Series A Preferred

stock outstanding.

During the three

months ended December 31, 2024, the Company issued 250,000 shares of common stock to a private investor for gross proceeds of $ 5,000 .

During the three

months ended December 31, 2023, no common stock was issued.

As of December

During the six

months ended March 31, 2025, the Company issued 250,000 shares of common stock to a private investor for gross proceeds of $ 5,000 .

During the six

months ended March 31, 2024, no common stock was issued.

31, 2025 and September 30, 2024, the Company had 113,951,722 and 113,701,722 common

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Treasury stock is comprised of shares of common stock purchased by the Company in the secondary market.

As of December 31, 2024 and September 30, 2024 the Company had 15,100 shares of treasury stock valued at $18,126.

As of March 31, 2025 and September 30, 2024 the Company had 15,100 shares of treasury stock valued at $ 18,126 .

On February 24, 2022, in conjunction with the issuance

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

In June 2022, in conjunction with a private offering

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

In May 2024, in conjunction with the issuance of a

44 unchanged sentences

was amended to allow the purchase warrants to purchase up to 2,500,000 shares in a third tranche.

During the three months ended December

During the three months ended March

31, 2025, the Company issued warrants to purchase up to 625,000 shares of common stock for gross proceeds of $ 50,000 .

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Changes to these inputs could produce a significantly higher or lower fair value measurement (see Note 8).

warrant activity during the three months ended December 31, 2024, is as follows:

warrant activity during the six months ended March 31, 2025, is as follows:

Schedule of common stock warrants activity

1 unchanged sentence

Balance as of September 30, 2024

Balance as of December 31, 2024

Balance as of March 31, 2025

*25,666,666 warrants issued during the year ended

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# 625,000 warrants

issued during the three months ended December 31, 2024 do not have an expiration date.

issued during the six months ended March 31, 2025 do not have an expiration date.

The intrinsic

value of the warrants as of December 31, 2024, is $ 200 .

All of the outstanding warrants are exercisable as of December 31, 2024.

value of the warrants as of March 31, 2025, is $ 200 .

All of the outstanding warrants are exercisable as of March 31, 2025.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Note 6 – Notes Payable

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and matures on June 7, 2050.

During the three months ended December 31 , 2024

and 2023, the Company recorded interest expense of $ 1,093 and $ 1,116 , respectively, on the SBA Loan and as of December

31, 2024 and September 30, 2024, the accrued interest on the SBA Loan was $ 5,989 and $ 5,989 , respectively.

As of December 31, 2024

and September 30, 2024 the outstanding principal of SBA Loan was $ 116,233 and $ 116,838 , respectively.

During the six months ended March 31, 2025 and 2023, the Company recorded interest expense of

$ 2,180 and $ 2,157 , respectively, on the SBA Loan and as of March 31, 2025 and September 30,

2024, the accrued interest on the SBA Loan was $ 5,989 and $ 5,989 , respectively.

As of March 31, 2025 and September 30, 2024 the outstanding

principal of SBA Loan was $ 115,623 and $ 116,838 , respectively.

The following represents the future aggregate maturities

of the Company’s SBA Loan as of December 31, 2024 , for each of the five (5) succeeding

of the Company’s SBA Loan as of March 31, 2025 , for each of the five (5) succeeding

years and thereafter as follows:

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Promissory Notes Payable, in Default

As of December

31, 2025 and September 30, 2024, the Company had defaulted on the following promissory notes payable with aggregate outstanding

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Each advance of principal shall be called a “Draw”.

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Upon default of this Note, Lender may declare the entire amount due and owing hereunder to be immediately due and payable.

As of December 31, 2024, the Company has drawn $ 637,009

on the Promissory Note and $ 47,500 in broker and legal fees.

The Company recorded deferred offering costs of $ 199,999 related to the warrant

issued in conjunction with the Promissory Note.

The Company amortized $ 33,488 of deferred offering costs during the three months ended

December 31, 2024.

The amount of interest accrued on the Promissory note was $ 46,279 during the three months ended December 31,

The promissory notes payable balance was $ 684,509 and $ 574,478 as of December 31, 2024 and September 30, 2024, respectively.

unamortized discount on the note payable was $ 26,389 and $ 34,349 at December 31, 2024 and September 30, 2024, respectively.

As of March 31, 2025, the Company has drawn $ 684,509 on the Promissory Note

and $ 47,500 in broker and legal fees.

The Company recorded deferred offering costs of $ 199,999 related to the warrant issued in conjunction

with the Promissory Note.

The Company amortized $ 66,248 of deferred offering costs during the six months ended March 31, 2025.

of interest accrued on the Promissory note was $ 98,808 during the six months ended March 31, 2025.

The promissory notes payable balance

was $ 684,509 and $ 574,478 as of March 31, 2025 and September 30, 2024, respectively.

The unamortized discount on the note payable was

$ 18,720 and $ 34,349 at March 31, 2025 and September 30, 2024, respectively.

Security Agreement

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net proceeds of $ 32,300 and the $ 3,685 of fixed fees were recorded as debt discount.

As of December 31, 2024, 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.

As of March 31, 2025, 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.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

August 15, 2023 the Company executed a second note payable with the same lender with a face amount of $ 64,206 .

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$ 38,159 at September 30, 2024.

As of December 31, 2024, the note balance was rolled into the fifth note, therefore the loan was considered

paid in full as of December 31, 2024.

As of March 31, 2025, the note balance was rolled into the fifth note, therefore the loan was considered

paid in full as of March 31, 2025.

November 19, 2024, the Company executed a fifth note payable with a lender with a face amount of $ 85,314 .

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the $ 7,614 of fixed fees as a debt discount.

As of December 31, 2024, the Company had amortized $ 585 of the debt discount and made repayments

of $ 6,217 , resulting in a debt discount balance of $ 10,226 and a loan balance of $ 56,900 at December 31, 2024.

following represents the future aggregate maturities as of December 31, 2024 of the Company’s Promissory Notes Payable:

As of March 31, 2025, the Company had amortized $ 7,614 of the debt discount and made repayments

of 85,314 , resulting in a debt discount balance of $ 0 and a loan balance of $ 0 at March 31, 2025.

March 17, 2025, the Company executed a sixth note payable with a lender with a face amount of $ 113,600 .

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 $ 113,600 (including fixed fees of $ 11,132 or approximately 10% of the note amount).

The Company received

net proceeds of $ 88,695 after paying off the November 2024 note and rolling $ 24,905 of its balance into the March 17, 2025 note and recording

the $ 11,132 of fixed fees as a debt discount.

As of March 31, 2025, the Company had amortized $ 388 of the debt discount and made repayments

of $ 3,962 , resulting in a debt discount balance of $ 10,744 and a loan balance of $ 109,639 at March 31, 2025.

following represents the future aggregate maturities as of March 31, 2025 of the Company’s Promissory Notes Payable:

Schedule of future aggregate maturities

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Also pursuant to the SPA,

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

The note is convertible into

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is an exempt issuance.

The maturity date of the note has been extended to March 31, 2025.

The maturity date of the note has been extended to May 31, 2025.

On December 15, 2023, in

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were $ 102,000 , which were used for working capital and other general corporate purposes.

The maturity date of the AJB Note is March 31,

The maturity date of the AJB Note is May 31,

The AJB Note bears interest at 12 % per year, and principal and accrued interest is due on the maturity date.

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

The maturity date of the AJB Note is March 31,

March 31, 2025

The maturity date of the AJB Note is May 31,

The AJB Note bears interest at 12 % per year, and principal and accrued interest is due on the maturity date.

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for this note as a line of credit.

The maturity date of the AJB Note is March 31,

The maturity date of the AJB Note is May 31,

The AJB Note bears interest at 15 % per year, and principal and accrued interest is due on the maturity date.

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Also pursuant to the SPA, the Company paid to AJB

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The difference between the fair value of the warrants and the face value of the note was recorded as interest expense.

Company has drawn 100% of the available credit on the note as of December 31, 2024.

During the three months ended

December 31, 2024, the Company recorded interest expense of $ 62,591 , amortization of debt discount of $ 46,674 , amortization of deferred

Company has drawn 100% of the available credit on the note as of March 31, 2025.

During the six months ended

March 31, 2025, the Company recorded interest expense of $ 141,121 , amortization of debt discount of $ 46,674 , amortization of deferred

financing costs of $ 104,092 , and a gain on change in fair value of derivative liability of $ 699,850 for the guarantee and warrants.

of December 31, 2024 and September 30, 2024, the derivative liability was $ 332,531 and $ 1,034,472 for the guarantee and warrants, the

debt discount recorded on the notes was $ 0 and $ 46,674 , the note payable principal was $ 1,504,084 and $ 1,446,626 , and the Company owed

accrued interest of $ 316,728 and $ 270,549 .

During the three months ended December 31, 2023, the

Company recorded interest expense of $ 72,217 , additional debt discount of $ 26,478 , amortization of debt discount of $ 25,902 , a loss on

change in fair value of derivative liability of $( 272,161 ) for the guarantee and warrants and repaid $ 31,042 of interest.

of March 31, 2025 and September 30, 2024, the derivative liability was $ 342,731 and $ 1,034,472 for the guarantee and warrants, the debt

discount recorded on the notes was $ 0 and $ 46,674 , the note payable principal was $ 1,280,222 and $ 1,446,626 , and the Company owed accrued

interest of $ 411,670 and $ 270,549 .

During the six months ended March 31, 2024, the Company

recorded interest expense of $ 60,832 , additional debt discount of $ 262,064 , amortization of debt discount of $ 125,326 , and a loss on change

in fair value of derivative liability of $ 414,351 for the guarantee and warrants.

Effective February 14, 2023,

the Company went into default on the AJB Note, however the lender waived all default provisions through March 31, 2025 therefore no default

interest or penalties were incurred during the three months ended December 31, 2024 and the AJB note was not convertible as of December

the Company went into default on the AJB Note, however the lender waived all default provisions through May 31, 2025 therefore no default

interest or penalties were incurred during the six months ended March 31, 2025 and the AJB note was not convertible as of March 31, 2025.

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

The following represents the future aggregate maturities

of the Company’s Convertible Notes Payable as of December 31, 2024 for each of the five (5) succeeding years and thereafter as follows:

of the Company’s Convertible Notes Payable as of March 31, 2025 for each of the five (5) succeeding years and thereafter as follows:

Schedule of future aggregate maturities

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Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

2022, the Company sold a total of $250,000 worth of Units to U.S.

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The total debt discount of $43,124 is being amortized to interest expense over the term of

the three months ended December 31, 2024 and 2023, the Company recorded interest expense of $ 21,425 and $ 639 , respectively on these notes.

As of December 31, 2024 and September 30, 2024, the accrued interest on the promissory notes was $ 152,014 and $ 130,589 , respectively.

As of December 31, 2024 and September 30, 2024 the outstanding principal of Promissory Notes Payable was $ 450,000 and $ 250,000 , respectively.

As of December 31, 2024, the Company had defaulted on these promissory notes payable.

the six months ended March 31, 2024 , the Company recorded interest expense of $ 34,313 , paid

interest of $ 0 and amortization of debt discount of $ 30,451 .

of March 31, 2025 and September 30, 2024, the accrued interest on the promissory notes was $ 147,602 and $ 130,589 , respectively.

March 31, 2025 and September 30, 2024 the outstanding principal of Promissory Notes Payable was $ 450,000 and $ 250,000 , respectively.

of March 31, 2025, the Company had defaulted on these promissory notes payable.

Note 8 – Derivative

6 unchanged sentences

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 December 31, 2024 .

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 March 31, 2025.

The Black-Scholes model requires six basic data inputs:

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.

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 three months ended December 31, 2024 ,

and year ended September 30, 2024 :

The following assumptions

were used in the Black-Scholes model during the six months ended March 31, 2025, and year ended September 30, 2024:

DriveItAway Holdings, Inc.

Notes to the Condensed Consolidated Financial Statements

December 31, 2024

March 31, 2025

Schedule of defined benefit plan, assumptions

Three months ended

Six months ended

September 30,

7 unchanged sentences

3.93 % - 4.93

625,000 warrants issued during the three months ended December 31, 2024 do not have an expiration date.

625,000 warrants issued during the six months ended March 31, 2025 do not have an expiration date.

The following table provides a summary of changes

in fair value of the Company’s Level 3 financial liabilities during the three months ended December 31, 2024:

in fair value of the Company’s Level 3 financial liabilities during the three months ended March 31, 2025:

Schedule of derivative liabilities

2 unchanged sentences

Gain on change in fair value of the derivative

Derivative liability balance – December 31, 2024

Derivative liability balance – March 31, 2025

Note 9 – Subsequent

The Company performed a review of events subsequent to the balance sheet

date through the date the financial statements were issued and determined that there were no such events requiring recognition or disclosure

in the financial statements.

On May 8, 2025, the Company

executed a note agreement with AJB Capital with a principal balance of $ 80,000

and an original issue discount of $ 8,000 .

The notes is due on November 8, 2025 and bears interest at 12 %.

Legal and due diligence fees totaling $ 10,000

were deducted from the gross proceeds of the note, resulting in net proceeds of $ 62,000

to the Company.

The note is convertible into common stock of the Company in the event of a default.

In conjunction with this note,

the Company issued a warrant to purchase 5,000,000 shares of the Company’s common stock at a price of $ 0.00001 per share.

of the warrant extends until such time as the warrant is exercised in full.

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 1. Financial Statements