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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 14, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	HyreCar Inc.
Entity Central Index Key	0001713832
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Entity Filer Category	Non-accelerated Filer
Entity Ex Transition Period	false
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity shell Company	false
Entity Common Stock, Shares Outstanding		17,295,835
Entity File Number	001-38561
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	DE

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalent	$ 7,822,967	$ 10,657,140
Accounts receivable	78,549	84,680
Other current assets	361,788	379,425
Total current assets	8,263,304	11,121,245
Property and equipment, net	8,450	9,138
Intangible assets, net	135,436	153,905
Other assets	95,000	95,000
Total assets	8,502,190	11,379,288
Current liabilities:
Accounts payable	2,879,113	2,232,629
Accrued liabilities	884,998	903,912
Insurance reserve	1,453,257	1,332,892
Deferred revenue	54,244	64,808
Related party advances	9,629	9,629
Total current liabilities	5,281,241	4,543,870
Total liabilities	5,281,241	4,543,870
Stockholders' equity:
Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively
Common stock, 50,000,000 shares authorized, par value $0.00001, 16,473,335 and 16,393,171 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	164	164
Additional paid-in capital	36,301,582	35,857,835
Subscription receivable - related party	(7,447)	(7,447)
Accumulated deficit	(33,073,350)	(29,015,134)
Total stockholders' equity	3,220,949	6,835,418
Total liabilities and stockholders' equity	$ 8,502,190	$ 11,379,288

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, authorized	15,000,000	15,000,000
Preferred stock, par value	$ 0.00001	$ 0.00001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares issued	16,473,335	16,393,171
Common stock, shares outstanding	16,473,335	16,393,171

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenues	$ 5,780,413	$ 3,510,725
Cost of revenues	3,605,301	2,015,048
Gross profit	2,175,112	1,495,677
Operating Expenses:
General and administrative	3,228,172	1,579,779
Sales and marketing	2,290,172	1,164,791
Research and development	743,813	479,996
Total operating expenses	6,262,157	3,224,566
Operating loss	(4,087,045)	(1,728,889)
Other (income) expense
Interest expense	19	810
Other income	(29,648)	(32,101)
Total other income	(29,629)	(31,291)
Loss before provision for income taxes	(4,057,416)	(1,697,598)
Provision for income taxes	800
Net loss	$ (4,058,216)	$ (1,697,598)
Weighted average shares outstanding - basic and diluted	16,424,969	11,883,460
Weighted average net loss per share - basic and diluted	$ (0.25)	$ (0.14)

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Subscription Receivable - Related Parties	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 117	$ 21,857,017	$ (7,447)	$ (16,496,757)	$ 5,352,930
Balance, shares at Dec. 31, 2018	11,708,041
Stock option compensation		219,170			219,170
Restricted stock unit compensation		34,511			34,511
Warrants exercised	$ 3	873,400			873,403
Warrants exercised, shares	274,224
Stock options exercised		52,500			$ 52,500
Stock options exercised, shares	30,000				0
Shares issued for services		27,500			$ 27,500
Shares issued for services, shares	10,000
Warrants exercised – cashless	$ 2	(2)
Warrants exercised – cashless, shares	169,243
Net loss				(1,697,598)	(1,697,598)
Balance at Mar. 31, 2019	$ 122	23,064,096	(7,447)	(18,194,355)	4,862,416
Balance, shares at Mar. 31, 2019	12,191,508
Balance at Dec. 31, 2019	$ 164	35,857,835	(7,447)	(29,015,134)	6,835,418
Balance, shares at Dec. 31, 2019	16,393,171
Stock option compensation		252,072			252,072
Restricted stock unit compensation		163,100			163,100
Warrants exercised
Warrants exercised, shares
Stock options exercised		28,575			$ 28,575
Stock options exercised, shares	40,869				6,650
Stock options exercised - cashless
Stock options exercised - cashless, shares	2,645
Shares issued for vested restricted stock units
Shares issued for vested restricted stock units, shares	36,650
Net loss				(4,058,216)	(4,058,216)
Balance at Mar. 31, 2020	$ 164	$ 36,301,582	$ (7,447)	$ (33,073,350)	$ 3,220,949
Balance, shares at Mar. 31, 2020	16,473,335

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (4,058,216)	$ (1,697,598)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,157	12,930
Stock-based compensation	415,172	281,181
Changes in operating assets and liabilities:
Accounts receivable	6,131	9,150
Deferred expense		2,641
Other current assets	17,637	(34,618)
Accounts payable	646,484	180,363
Accrued liabilities	(18,914)	(138,832)
Insurance reserve	120,365	22,019
Deferred revenues	(10,564)	18,111
Net cash used in operating activities	(2,862,748)	(1,344,653)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(2,249)
Deposits and other		(5,000)
Net cash used in investing activities		(7,249)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants		873,403
Proceeds from stock options	28,575	52,500
Net cash provided by financing activities	28,575	925,903
Decrease in cash and cash equivalents	(2,834,173)	(425,999)
Cash and cash equivalents, beginning of period	10,657,140	6,764,870
Cash and cash equivalents, end of period	7,822,967	6,338,871
Supplemental disclosures of cash flow information:
Cash paid for interest	19	810
Cash paid for income taxes

Nature of Operations

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF OPERATIONS

NOTE 1 – NATURE OF OPERATIONS

HyreCar Inc. (which may be referred to herein as "HyreCar," the "Company," "we," "us" or "our") was incorporated on November 24, 2014 ("Inception") in the State of Delaware. The Company's headquarters are located in Los Angeles, California. The Company operates a web-based marketplace that allows car and fleet owners to rent their cars to Uber, Lyft and other gig economy service drivers safely, securely and reliably. The consolidated financial statements of HyreCar Inc. are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

Follow-On Public Offering

On July 23, 2019 and July 29, 2019, the Company closed a follow-on public offering (the "Follow-On Public Offering"), in which the Company issued and sold 4,025,000 shares of common stock at a price of $3.00 per share for gross proceeds of $12,075,000, before deducting underwriters' discounts and commissions totaling $603,750 and reimbursable expenses of $150,000. Accordingly, net proceeds from the offering totaled $11,321,250. In connection with the offering, we paid additional offering costs of $263,873.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Management's Plans

We have incurred operating losses since Inception and historically relied on debt and equity financing for working capital. Throughout the next 12 months, the Company intends to fund its operations through revenue from operations, the remaining capital raised through the Follow-On Public Offering and cash received on April 13, 2020 through a Paycheck Protection Plan Loan ("PPP Loan") for $2,004,175. Based on the revenue and margin impact of the COVID-19 novel coronavirus ("COVID-19") situation, we have adjusted many of the variable expenses which make up a significant portion of our entire cost structure and continue to adjust other operating costs appropriate for the situation. The PPP Loan, in addition to our existing capital and the ability to reduce expense levels further if necessary, depending on the duration of the COVID-19 situation, causes us to continue to believe the Company has sufficient resources to continue as a going concern.

Basis of Presentation – Unaudited Interim Financial Information

The unaudited interim consolidated financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information, within the rules and regulations of the United States Securities and Exchange Commission (the "SEC"). Certain information and disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited interim consolidated financial statements have been prepared on a basis consistent with the audited consolidated financial statements and in the opinion of management, reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the results for the interim periods presented and of the financial condition as of the date of the interim consolidated balance sheet. The financial data and the other information disclosed in these notes to the interim consolidated financial statements related to the three month periods are unaudited. Unaudited interim consolidated results are not necessarily indicative of the results for the full fiscal year. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company for the year ended December 31, 2019 and notes thereto that are included in the Company's Annual Report on Form 10-K.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amount of revenues and expenses during the reporting period. Actual results could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

The Company's most significant estimates and judgments involve recognition of revenue and estimates for future contingent customer incentive obligations, calculating insurance reserves, the measurement of the Company's stock-based compensation, and allowance for doubtful accounts.

Fair Value of Financial Instruments

Fair value is defined 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 as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Fair-value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2020 and December 31, 2019. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and cash equivalents, accounts payable, and accrued liabilities. Fair values for these items were assumed to approximate carrying values because of their short-term nature or they are payable on demand.

Cash and Cash Equivalents

For purpose of the consolidated statement of cash flows, the Company considers institutional money market funds and all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

Insurance Reserve

The Company records a loss reserve for insurance deductible or physical damage that the Company pays to car owners based on the Company's policy in relation to the insurance policy in effect at the time. This reserve represents an estimate for both reported accidents claims not yet paid, and claims incurred but not yet reported and are recorded on a non-discounted basis. The lag time in reported claims is minimal and as such represents a low risk of unreported claims being excluded from the loss reserve assessment. The adequacy of the reserve is monitored quarterly and is subject to adjustment in the future based upon changes in claims experience, including the number of incidents for which the Company is ultimately responsible and changes in the cost per claim, or changes to the Company's policy as to what amounts of the deductible or claim will be paid by the Company. As of March 31, 2020 and December 31, 2019, $1,453,257 and $1,332,892 was included in the accompanying consolidated balance sheets, respectively, related to the loss reserve, where the expense is included in costs of revenues.

Liability insurance claims may take several years to completely settle, and the Company has limited historical loss experience. Because of the limited operational history, the Company makes certain assumptions based on currently available information to estimate the reserves as well as third party claims adjuster data provided on existing claims. A number of factors can affect the actual cost of a claim, including the length of time the claim remains open, economic and healthcare cost trends and the results of related litigation. Furthermore, claims may emerge in future periods for events that occurred in a prior period that differs from expectations. Accordingly, actual losses may vary significantly from the estimated amounts reported in the consolidated financial statements. Reserves are continually reviewed and adjusted as necessary as experience develops or new information becomes known. However, ultimate results may differ from the Company's estimates, which could result in losses over the Company's reserved amounts. Such adjustments are recorded in general and administrative expenses.

Revenue Recognition

The Company generates the majority of its revenue from its ridesharing marketplace that connects vehicle owners and drivers and the related insurance issued for each rental.

The Company also recognizes revenue from other sources such as referrals, motor vehicle record fees (application fees), late rental fees, dealership subscription fees, and other fees charged to drivers in specific situations.

In applying the guidance of ASC 606, the Company 1) identifies the contract with the customer 2) identifies the performance obligations in the contract 3) determines the transaction price, 4) determines if an allocation of that transaction price is required to the performance obligations in the contract, and 5) recognizes revenue when or as the companies satisfies a performance obligation.

Refunds may occur when the driver returns the owner vehicle early based on the terms of the original contract or cancels the rental prior to completing the exchange. In limited circumstances, the Company provides contingent consideration in the form of a rebate that is redeemable only if the customer completes a specific level of transaction over a specific time period. In such cases, the rebate or refund obligation is recognized as a reduction of revenues. The Company defers revenue in all instances when the earnings process is not yet complete.

The following is a breakout of revenue components by subcategory for the three-months ended March 31, 2020 and 2019.

	2020			2019
Insurance and administration fees	$	2,873,843		$	1,766,702
Transaction fees		2,558,295			1,259,291
Other fees		507,477			627,292
Incentives and rebates		(159,202	)		(142,560	)
Net revenue	$	5,780,413		$	3,510,725

Principal Agent Considerations

The Company evaluates our service offerings to determine if we are acting as the principal or as an agent, which we consider in determining if revenue should be reported gross or net. One of our primary revenue sources is a transaction fee made from a confirmed booking of a vehicle on our platform. Key indicators that we evaluate to reach this determination include:

●

the terms and conditions of our contracts;

●

whether we are paid a fixed percentage of the arrangement's consideration or a fixed fee for each transaction;

●

the party which sets the pricing with the end-user, has the credit risk and provides customer support; and

●

the party responsible for delivery/fulfillment of the product or service to the end consumer.

We have determined we act as the agent in the transaction for vehicle bookings, as we are not the primary obligor of the arrangement and receive a fixed percentage of the transaction. Therefore, revenue is recognized on a net basis.

For other fees such as insurance, referrals, motor vehicle records (application fees), and dealer subscription we have determined revenue should be recorded on a gross basis. In such arrangements, the Company sets pricing, has risk of economic loss, has certain credit risk, provides support services related to these transactions, and has decision making ability about service providers used.

Cost of Revenues

Cost of revenues primarily include direct fees paid for insurance to cover the vehicle driver and owner, insurance claim payments based on the policy in effect at the time of loss, merchant processing fees, technology and hosting costs, and motor vehicle record fees incurred for paid driver applications. General liability insurance that covers corporate risk from activity on our platform is included in general and administrative costs.

Advertising

The Company expenses the cost of advertising and promotions as incurred. Advertising expense was $785,228 and $335,396 for the three months ended March 31, 2020 and 2019, respectively.

Research and Development

We incur research and development costs during the process of researching and developing our technologies and future offerings. Our research and development costs consist primarily of non-capitalized development and maintenance costs. We expense these costs as incurred unless such costs qualify for capitalization under applicable guidance.

Stock-Based Compensation

The Company accounts for stock awards issued under ASC 718, Compensation – Stock Compensation. Under ASC 718, stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award. Stock-based compensation is recognized as expense over the employee's requisite vesting period and over the nonemployee's period of providing goods or services. The fair value of each stock option or warrant award is estimated on the date of grant using the Black-Scholes option valuation model. Restricted shares are measured based on the fair market value of the underlying stock on the grant date.

Stock-based compensation is included in the consolidated statements of operations as follows:

	Three months ended March 31, 2020		Three months ended March 31, 2019
General and administrative	$	281,953	$	169,238
Sales and marketing		41,282		99,479
Research and development	$	91,937	$	12,464

Loss per Common Share

The Company presents basic loss per share ("EPS") and diluted EPS on the face of the consolidated statements of operations. Basic loss per share is computed as net loss divided by the weighted average number of common shares outstanding for the period. For periods in which we incur a net loss, the effects of potentially dilutive securities would be antidilutive and would be excluded from diluted EPS calculations. For the three months ended March 31, 2020 and 2019, there were 2,680,093 and 2,888,883 options or warrants excluded, 403,100 and 138,800 restricted stock units excluded, and 0 and 400,000 forfeitable restricted stock shares excluded, respectively.

Concentration of Credit Risk

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be credit worthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company maintains balances in excess of the federally insured limits.

Other Concentrations

The Company has historically relied on a two primary insurance brokers and underwriters to provide all automobile insurance on vehicles in service over the last few years. There are multiple brokers and carriers who issue this type of insurance coverage, and the Company is regularly making reviewing leading insurers in the transportation and mobility sectors as this is an important part of our operations. The company does not believe the loss of our current broker or underwriter would have a material effect on our operations.

New Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), specifying the accounting for leases, which supersedes the leases requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of consolidated financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors' accounting is largely unchanged from the previous accounting standard. In addition, Topic 842 expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes several practical expedients. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 for emerging growth companies, with early adoption permitted. The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company.

In December 2019, the FASB issued guidance that simplifies the accounting for income taxes by removing certain exceptions in existing guidance and improves consistency in application by clarifying and amending existing guidance. This guidance is effective for annual periods beginning after December 15, 2020, and interim periods within those annual periods, where the transition method varies depending upon the specific amendment. Early adoption is permitted, including adoption in any interim period. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period, and all amendments must be adopted in the same period. The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company.

In January 2020, the FASB issued ASU No. 2020-01, "Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815", which clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting under Topic 323, and the accounting for certain forward contracts and purchased options accounted for under Topic 815. This guidance is effective for the Company for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company has reviewed the provisions of the new standard, but it is not expected to have a significant impact on the Company.

The FASB issues ASUs to amend the authoritative literature in ASC. There have been several ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact our consolidated financial statements.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 3 – COMMITMENTS AND CONTINGENCIES

Settlement and Legal

Except as may be set forth below, we are not a party to any legal proceedings, and we are not aware of any claims or actions pending or threatened against us. In the future, we might from time to time become involved in litigation relating to claims arising from our ordinary course of business, the resolution of which we do not anticipate would have a material adverse impact on our financial position, results of operations or cash flows.

On November 13, 2018, two founders of the Company (the "Claimant Founders"), initiated two lawsuits in the Superior Court of California, County of San Francisco ("SFSC"), entitled Nathaniel Farber v. HyreCar Inc., Case No. CGC-18-571257 and Josiah Larkin v. HyreCar Inc., Case No. CGC-18-571258. The complaints for the lawsuits, which were largely duplicative, alleged that the Company breached a Settlement Agreement by and between the Company and the Claimant Founders by not allowing the Claimant Founders to sell stock in the Company's initial public offering ("IPO"), failing to buyback Claimant Founders' stock at the time of the IPO, allowing the issuance of certain stock without proportionately increasing the stock ownership of Claimant Founders, and not providing certain required information to the Claimant Founders. The Company strongly disagreed with all of the allegations and has vigorously contested both lawsuits. The Company believes that, at all times, its actions have been consistent with the terms, conditions, and context of the Settlement Agreement, as well as applicable law. Pursuant to a motion brought by the Company, the two lawsuits were joined for pretrial and trial purposes. The joined litigation is currently in the discovery phase. As the case has been litigated, the Claimant Founders have narrowed their allegations significantly. Mr. Larkin dismissed all of his claims in their entirety. Mr. Farber dismissed all of his allegations except for an allegation that the Company failed to buyback the Claimant Founders' stock at the time of the IPO. HyreCar believes that this remaining claim is without merit and has filed a motion for summary judgment regarding the same. Mr. Farber has filed his own motion for summary judgment, which HyreCar believes lacks merit and will vigorously challenge. Due to the COVID-19 pandemic, SFSC operations have largely been suspended and the litigation has effectively been stayed. At this time, the Company is unable to estimate potential damage exposure, if any, related to the litigation.

Debt and Liabilities

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

DEBT AND LIABILITIES

NOTE 4 – DEBT AND LIABILITIES

Accrued Liabilities

A summary of accrued liabilities for the three months ended March 31, 2020 and December 31, 2019 is as follows:

	2020		2019
Accrued payables	$	547,406	$	394,896
Driver deposit		154,601		161,601
Deferred rent		110,250		98,000
Payroll liabilities		-		161,113
Other accrued liabilities		72,741		88,302
Accrued liabilities	$	884,998	$	903,912

Stockholders' Deficit

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

STOCKHOLDERS' DEFICIT

NOTE 5 – STOCKHOLDERS' DEFICIT

Common Stock

The Company is authorized to issue 50,000,000 shares of common stock, $0.00001 par value per share.

Stock Options

In 2016, the board of directors adopted the HyreCar Inc. 2016 Incentive Plan (the "2016 Plan"). The 2016 Plan provides for the grant of equity awards to highly qualified personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares of common stock. Up to 2,227,777 shares of common stock may be issued pursuant to awards granted under the 2016 Plan. The 2016 Plan is administered by the board of directors, and expires ten years after adoption, unless terminated earlier by the Board.

In 2018, the board of directors adopted the HyreCar Inc. 2018 Incentive Plan (the "2018 Plan"). The 2018 Plan provides for the grant of equity awards to purchase shares of common stock. Up to 3,000,000 shares of common stock may be issued pursuant to awards granted under the 2018 Plan, subject to increases that occur starting in 2021. The 2018 Plan is administered by the board of directors, and expires ten years after adoption, unless terminated earlier by the Board.

No stock options were granted during the three months ended March 31, 2020. During the three months ended March 31, 2019, the board of directors approved the grant of 975,000 stock options to various contractors and employees.

The first quarter 2019 granted options had an exercise price of $3.20, expire in ten years, and generally vest over four years. The total grant date fair value of these options was $1,762,180. The Company estimates the fair value of stock options that contain service and/or performance conditions using the Black-Scholes option pricing model. The range of input assumptions used by the Company were as follows for the three months ended March 31, 2019.

	Three Months Ended March 31, 2019

Expected volatility		45%
Risk-free interest rate		2.61%
Expected life in years		6.25
Expected dividend yield		0%

Stock -based compensation expense for stock options for the three months ended March 31, 2020 and 2019 was and $252,072 and $219,170, respectively. As of March 31, 2020, the total estimated remaining stock-based compensation expense for unvested stock options is approximately $1,506,000 which is expected to be recognized over a weighted average period of 2.1 years.

Restricted Stock Units and Shares Issued for Services

During the three months ended March 31, 2020, the Company granted a contractor 100,000 RSU's that vest based on specified milestones and business objectives. None of these milestones or objectives have been achieved to date and none are expected to vest under current circumstances.

During the three months ended March 31, 2019, the Company granted 10,000 shares of common stock to one consultant for services based on agreement entered into in January 2019. The Company valued the shares based on the closing price of the Company's common stock on the date of the agreement and recognized $27,500 in stock-based compensation. Included in the agreement were 400,000 forfeitable restricted stock shares that vest upon achieving specific performance and strategic milestones. As none of the milestones were achieved, all 400,000 restricted stock shares were forfeited in 2019.

During the three months ended March 31, 2019, the Company granted 140,000 restricted stock units to employees of the Company that generally vest between one and four years.

Stock-based compensation related to restricted stock units for the three months ended March 31, 2020 and 2019 was $163,100 and $34,511, respectively. As of March 31, 2020, unrecognized compensation expense related to the unvested restricted stock units is $742,617 and is expected to be recognized over approximately 2.1 years.

Warrants

During the three months ended March 31, 2019 several of warrant holders exercised 274,224 warrants for total proceeds from the exercise of $873,403. There were also 461,294 warrants exercised in cashless exercises resulting in 169,243 shares of common stock being issued. There were no such transactions during the three months ended March 31, 2020.

Related Party Transactions

3 Months Ended

Mar. 31, 2020

RELATED PARTY TRANSACTIONS

NOTE 6 – RELATED PARTY TRANSACTIONS

Insurance

The president of the Company's primary insurance broker is also a minority stockholder and holder of warrants. As of March 31, 2020 and December 31, 2019, the Company had outstanding balances to the insurer totaling $144,669 and $101,167 , included in accounts payable or accrued liabilities, respectively. During the three months ended March 31, 2020 and 2019, the Company paid the insurer approximately $1,388,000 and $1,347,000, respectively.

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 7 – SUBSEQUENT EVENTS

On April 13, 2020, the Company entered into a loan with JPMorgan Chase Bank, N.A. as the lender (“Lender”) in an aggregate principal amount of $2,004,175 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The PPP Loan is evidenced by a promissory note (“Note”). Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred, has an initial term of two years, and is unsecured and guaranteed by the Small Business Administration. The Company may apply to the Lender for forgiveness of the PPP Loan, with the amount which may be forgiven equal to the sum of payroll costs, covered rent, and covered utility payments incurred by the Company during the eight-week period beginning on April 13, 2020, calculated in accordance with the terms of the CARES Act.

The Note provides for customary events of default including, among other things, cross-defaults on any other loan with the Lender. The PPP Loan may be accelerated upon the occurrence of an event of default.

On April 29, 2020, the Compensation Committee of the board of directors approved an exchange (the “Exchange”) of grants under the HyreCar Inc. 2018 Equity Incentive Plan (the “2018 Plan”) previously made to executive officers and directors of the Company (the “Grantees”). The board of directors, upon recommendation from the Committee, approved the Exchange on April 29, 2020. Pursuant to the Exchange, the Grantees agreed to the cancellation of options to purchase an aggregate of 1,497,500 shares of the Company’s common stock under the 2018 Plan in exchange for the issuance of an aggregate of 822,500 shares of fully-vested restricted stock under the 2018 Plan.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Management's Plans

Management's Plans

Basis of Presentation - Unaudited Interim Financial Information

Basis of Presentation – Unaudited Interim Financial Information

Use of Estimates

Use of Estimates

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Cash and Cash Equivalents

Cash and Cash Equivalents

Insurance Reserves

Insurance Reserve

Revenue Recognition

Revenue Recognition

The Company generates the majority of its revenue from its ridesharing marketplace that connects vehicle owners and drivers and the related insurance issued for each rental.

The following is a breakout of revenue components by subcategory for the three-months ended March 31, 2020 and 2019.

	2020			2019
Insurance and administration fees	$	2,873,843		$	1,766,702
Transaction fees		2,558,295			1,259,291
Other fees		507,477			627,292
Incentives and rebates		(159,202	)		(142,560	)
Net revenue	$	5,780,413		$	3,510,725

Principal Agent Considerations

Principal Agent Considerations

●

the terms and conditions of our contracts;

●

whether we are paid a fixed percentage of the arrangement's consideration or a fixed fee for each transaction;

●

the party which sets the pricing with the end-user, has the credit risk and provides customer support; and

●

the party responsible for delivery/fulfillment of the product or service to the end consumer.

Cost of Revenues

Cost of Revenues

Advertising

Advertising

The Company expenses the cost of advertising and promotions as incurred. Advertising expense was $785,228 and $335,396 for the three months ended March 31, 2020 and 2019, respectively.

Research and Development

Research and Development

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation is included in the consolidated statements of operations as follows:

	Three months ended March 31, 2020		Three months ended March 31, 2019
General and administrative	$	281,953	$	169,238
Sales and marketing		41,282		99,479
Research and development	$	91,937	$	12,464

Loss per Common Share

Loss per Common Share

Concentration of Credit Risk

Concentration of Credit Risk

Other Concentrations

Other Concentrations

New Accounting Standards

New Accounting Standards

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of breakout of revenue components by subcategory

	2020			2019
Insurance and administration fees	$	2,873,843		$	1,766,702
Transaction fees		2,558,295			1,259,291
Other fees		507,477			627,292
Incentives and rebates		(159,202	)		(142,560	)
Net revenue	$	5,780,413		$	3,510,725

Schedule of stock-based compensation

	Three months ended March 31, 2020		Three months ended March 31, 2019
General and administrative	$	281,953	$	169,238
Sales and marketing		41,282		99,479
Research and development	$	91,937	$	12,464

Debt and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of summary of accrued liabilities

	2020		2019
Accrued payables	$	547,406	$	394,896
Driver deposit		154,601		161,601
Deferred rent		110,250		98,000
Payroll liabilities		-		161,113
Other accrued liabilities		72,741		88,302
Accrued liabilities	$	884,998	$	903,912

Stockholders’ Deficit (Tables)

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

Schedule of Black Scholes pricing model with range of inputs

	Three Months Ended March 31, 2019

Expected volatility		45%
Risk-free interest rate		2.61%
Expected life in years		6.25
Expected dividend yield		0%

Nature of Operations (Details) - Initial Public Offering [Member] - USD ($)	1 Months Ended
	Jul. 29, 2019	Jul. 23, 2019
Nature of Operations (Textual)
Issued of shares of common stock	4,025,000	4,025,000
Sale of stock price	$ 3.00	$ 3.00
Offering costs	$ 263,873	$ 263,873
Proceeds from the IPO	11,321,250	11,321,250
Aggregate proceeds of underwriters'	12,075,000	12,075,000
Underwriters' discounts and commissions	603,750	603,750
Reimbursable expenses	$ 150,000	$ 150,000

Summary of Significant Accounting Policies (Details 1) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Insurance and administration fees	$ 2,873,843	$ 1,766,702
Transaction fees	2,558,295	1,259,291
Other fees	507,477	627,292
Incentives and rebates	(159,202)	(142,560)
Net revenue	$ 5,780,413	$ 3,510,725

Summary of Significant Accounting Policies (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
General and administrative [Member]
Stock-based compensation	$ 281,953	$ 169,238
Sales and marketing [Member]
Stock-based compensation	41,282	99,479
Research and development [Member]
Stock-based compensation	$ 91,937	$ 12,464

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Apr. 13, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies (Textual)
Stock options and warrants	2,680,093	2,888,883
Restricted stock	403,100	138,800
Advertising expense	$ 785,228	$ 335,396
Insurance reserve	$ 1,453,257	$ 1,453,257		$ 1,332,892
Insured by Federal Deposit Insurance Corporation				$ 250,000
Forfeitable restricted stock shares	0	400,000
Subsequent Event [Member]
Summary of Significant Accounting Policies (Textual)
Paycheck Protection Program Loan			$ 2,004,175

Debt and Liabilities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Accrued payables	$ 547,406	$ 394,896
Driver deposit	154,601	161,601
Deferred rent	110,250	98,000
Payroll liabilities		161,113
Other accrued liabilities	72,741	88,302
Accrued liabilities	$ 884,998	$ 903,912

Stockholders’ Deficit (Details)	3 Months Ended
Stockholders’ Deficit (Details)	Mar. 31, 2019
Equity [Abstract]
Expected volatility	45.00%
Risk-free interest rate	2.61%
Expected life in years	6 years 2 months 30 days
Expected dividend yield	0.00%

Stockholders' Deficit (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
Stockholders' Deficit (Details Textual) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2016	Dec. 31, 2019
Common stock, shares authorized	50,000,000				50,000,000
Common stock, par value	$ 0.00001				$ 0.00001
Shares based compensation	$ 415,172	$ 281,181
Stock option expense	$ 252,072	$ 219,170
Stock-based compensation expenses, description	Stock-based compensation related to restricted stock units for the three months ended March 31, 2020 and 2019 was $163,100 and $34,511, respectively. As of March 31, 2020, unrecognized compensation expense related to the unvested restricted stock units is $742,617 and is expected to be recognized over approximately 2.1 years.	The Company valued the shares based on the closing price of the Company’s common stock on the date of the agreement and recognized $27,500 in stock-based compensation.
Unvested restricted stock expense	$ 163,100	$ 34,511
Acquisition of stock, description			The 2018 Plan provides for the grant of equity awards to purchase shares of common stock. Up to 3,000,000 shares of common stock may be issued pursuant to awards granted under the 2018 Plan, subject to increases that occur starting in 2021. The 2018 Plan is administered by the Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board.	The 2016 Plan provides for the grant of equity awards to highly qualified personnel, including stock options, restricted stock, stock appreciation rights, and restricted stock units to purchase shares of common stock. Up to 2,227,777 shares of common stock may be issued pursuant to awards granted under the 2016 Plan.
Public offering price, percentage			125.00%
Granted restricted stock units vest	100,000
Granted restricted stock		10,000
Forfeitable restricted stock shares		400,000
Description of restricted stock		The Company granted 140,000 restricted stock units to employees of the Company that generally vest between one and four years.
Granted restricted stock units were forfeited		400,000
Granted common shares		140,000
Warrants exercised for cash		$ 873,403
Warrant [Member]
Number of shares, Granted
Warrants to purchase of common stock shares	0	169,243
Warrants exercised - cashless, shares	0	461,294
Warrants exercised for cash		$ 873,403
Several of warrant exercised		274,224
Stock Options [Member]
Shares based compensation	$ 252,072	$ 219,170
Stock options exercise price	$ 3.20
Stock option expire term		10 years
Option vested year		4 years
Fair value of options granted		$ 1,762,180
Number of shares, Granted		975,000
Stock-based compensation expenses, description	The total estimated remaining stock-based compensation expense for unvested stock options is approximately $1,506,000 which is expected to be recognized over a weighted average period of 2.1 years.

Related Party Transactions (Details) - USD ($)	3 Months Ended
Related Party Transactions (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transactions (Textual)
Related party outstanding	$ 9,629		$ 9,629
Outstanding liabilities to insurer	144,669		$ 101,167
Payment to insurer	$ 1,388,000	$ 1,347,000

Subsequent Events (Details) - Subsequent Event [Member] - USD ($)		1 Months Ended
	Apr. 13, 2020	Apr. 29, 2020
Subsequent Events (Textual)
Paycheck Protection program principle amount	$ 2,004,175
Terms of loan interest at fixed rate, description	Subject to the terms of the Note, the PPP Loan bears interest at a fixed rate of one percent (1%) per annum, with the first six months of interest deferred, has an initial term of two years, and is unsecured and guaranteed by the Small Business Administration.
2018 Plan [Member]
Subsequent Events (Textual)
Aggregate shares of common stock		1,497,500
Aggregate of shares of fully-vested restricted stock		822,500