What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-20 compared with 2025-03-28 · 104 added, 66 removed, 236 unchanged (42% of the section changed)

39 unchanged sentences

For the three months

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

ended March 31, 2025, compared to the three months ended March 31, 2024

Our operating results for

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

the three months ended March 31, 2025 and 2024 are summarized as follows:

Three months ended

7 unchanged sentences

Net income (loss)

Revenues for the three months

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

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

Revenues for the three months ended March 31, 2025, increased $121,358 from $89,307

for the period ending March 31, 2024, to $210,665 for the period ending March 31, 2025.

This was due to a $121,358 increase in rental

revenue and insurance revenue as a result of more vehicles available to rent.

We anticipate that, in 2025

1 unchanged sentence

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

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

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

$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.

Cost of revenue for the three months ended March 31, 2025, increased $104,013,

from $77,076 for the period ending March 31, 2024, to $181,089 for the period ending March 31, 2025.

Operating expenses for the three months ended March 31, 2025, increased $137,515

as compared to the three months ended March 31, 2024.

The increase was primarily attributable to increases in general and administrative

of $86,800, professional fees of $79,683, and offset by decreases in advertising and marketing expenses of $1,893, salaries and payroll

taxes of $23,625, and software development of $3,450.

Loss from operations was $238,664 for the three months ended March 31, 2025,

as compared to $118,494 for the three months ended March 31, 2024.

The increase of $120,170 was due to higher operating expenses.

Other income for the three months ended March 31, 2025, was $209,294, as compared

to net other expense of $357,721 for the three months ended March 31, 2024.

The change of $148,427 is primarily attributable to the reduced

amortization of debt discount as the maturity dates of notes payable is reached.

For the six months

ended March 31, 2025, compared to the six months ended March 31, 2024

Our operating results for

the six months ended March 31, 2025 and 2024 are summarized as follows:

Six months ended

Cost of revenue

Gross Profit Percentage

Operating expense

Operating loss

Other (income) / expense

Net income (loss) before income taxes

$ (1,191,644 )

Income tax expense

Net income (loss)

$ (1,191,644 )

Revenues for the six months ended March 31, 2025, increased $266,801 from $185,810

for the period ending March 31, 2024, to $452,611 for the period ending March 31, 2025.

This was due to a $266,801 increase in rental

revenue and insurance revenue as a result of more vehicles available to rent.

We anticipate that, in 2025

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

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

Cost of revenue for the six months ended March 31, 2025, increased $161,589,

from $162,755 for the period ending March 31, 2024, to $324,344 for the period ending March 31, 2025.

Operating expenses for the six months ended March 31, 2025, increased $155,808 as

compared to the six months ended March 31, 2024.

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

$5,500, general and administrative of 153,167, and software development of $6,285, offset by decreases in advertising and marketing expenses

of $2,069 and professional fees of $7,075.

Loss from operations was $364,276 for the six months ended March 31, 2025, as

compared to $336,735 for the six months ended March 31, 2024.

The increase of $50,596 was due to higher operating expenses.

Other income for the six

months ended March 31, 2025, was $372,781, as compared to net other expense of $877,964 for the six months ended March 31, 2024.

of $1,250,745 is primarily attributable to the change in fair value of derivative liabilities of $1,421,400 offset by increase in amortization

of deferred financing costs of $171,468.

Liquidity and Capital Resources:

The following table provides selected financial data about our Company

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

as of March 31, 2025, and September 30, 2024.

Working Capital

5 unchanged sentences

$ (4,335,188 )

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.

As of March 31, 2025, our working capital deficiency increased $379,416 as

compared to September 30, 2024.

This was primarily attributable to a $30,373 increase in current assets offset by the increase in current

liabilities of $409,789.

Cash Flow Data:

Three months ended

Six months ended

Cash provided by (used in) operating activities

3 unchanged sentences

Cash Flows from Operating

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.

During the six months ended March 31, 2025, we did not generate positive cash

flows from operating activities.

For the six months ended March 31, 2025, net cash flows used in operating activities was $(161,862),

consisting of a net income of $8,505, a gain on change in fair value of derivative liability of $911,982, and increased by amortization

debt discount of $78,480, amortization of deferred financing costs of $171,468, depreciation and amortization of $74,292, and a change

in operating assets and liabilities of $417,375.

During the six months ended

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

For the six months ended March 31, 2024, net cash flows

used in operating activities was $248,617, consisting of a net loss of $1,191,644, reduced by a loss on change in fair value of derivative

liability of $509,418, amortization debt discount of $162,051, depreciation and amortization of $18,779, a financing fee of $98,202, and

a change in operating assets and liabilities of $154,577.

Cash Flows from Investing

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.

During the six months ended

March 31, 2025, the Company used $137,289 cash from investing activities to purchase vehicles for its rental fleet.

During the six months ended

March 31, 2024, the Company did not use or generate any cash from investing activities.

Cash Flows from Financing

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.

During the six months ended March 31, 2025, the Company generated $316,733 from

financing activities including proceeds of $1,300 from related party advances, $268,812 from the issuance of promissory notes, $103,708

from the issuance of convertible promissory notes, proceeds from the sale of warrants of $50,000, and proceeds from the sale of common

stock of $5,000 which was partially offset by $112,087 for repayment of promissory notes.

During the six months ended

March 31, 2024, the Company generated $357,222 from the issuance of convertible notes and $57,474 from the issuance of promissory notes

which was partially offset by $59,988 for repayment of promissory notes and payment for debt issuance costs of $90,445.

Going Concern

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.

As of March 31, 2025, the Company had a net income of $8,505, accumulated

deficit of $5,550,634 and did not have sufficient cash on hand to cover expenses for the next twelve (12) months.

The Company intends

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

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

The ability of our Company

6 unchanged sentences

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 condensed 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 Condensed 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 December 31, 2024 and 2023,

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 companies, or car dealerships

56 unchanged sentences

date and relate to usages after that date.

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

As of March 31, 2025 and September 30, 2024 refundable deposits were $1,339 and $2,234 and

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

51 unchanged sentences

Derivative liabilities are valued at Level 3.

Fair Value Measurements as of December 31, 2024 using:

December 31, 2024

Fair Value Measurements as of March 31, 2025 using:

March 31, 2025

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