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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 8-K

 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 27, 2020

 

HYRECAR INC.

 

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware   001-38561   47-2480487
(State of Incorporation)   (Commission File Number)  

(I.R.S. Employer

Identification No.)

 

355 South Grand Avenue, Suite 1650 Los Angeles, CA   90071
(Address of principal executive offices)   (Zip Code)

 

(888) 688-6769

Registrant’s telephone number, including area code

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.00001 per share   HYRE   The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 

 

 

 

Item 7.01. Regulation FD Disclosure

 

On August 27, 2020, HyreCar Inc. (the “Registrant”) made available an investor presentation (the “Presentation”) on its website at https://ir.hyrecar.com/investor-relations. A copy of the Presentation is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

 

The information contained in this Current Report on Form 8-K (including the Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly provided by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits

 

Exhibit
Number
  Description
99.1   Investor Presentation issued by HyreCar Inc. on August 27, 2020
104   Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  HyreCar Inc.
   
Date: August 27, 2020 /s/ Joseph Furnari
  By: Joseph Furnari
    Chief Executive Officer

 

 

2

 

Exhibit 99.1

NASDAQ: HYRE August 2020 The Car Sharing Marketplace for Ridesharing and Delivery

 

 

This presentation contains forward - looking statements, within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than historical facts are forward - looking statements, including without limitation, those regarding activities, events, financial results or developments that we intend, plan, expect, believe, project, forecast or anticipate will or may occur in the future. Examples of forward - looking statements include, but are not limited to, statements we make regarding the potential size of the market for our products, impacts of future legislation and regulatory action, forecasts of future performance, financial condition and results of operations, plans to expand to other markets, development of new technologies, potential acquisitions and the possibility of up - listing or cross - listing our equity securities. These statements reflect our management’s current views with respect to future events, are not guarantees of future performance, and involve risks and uncertainties that are difficult to predict. Further, forward - looking statements are based upon assumptions of future events that may not prove to be accurate. Such assumptions and assessments are made in light of our experience and perception of historical trends, current conditions and expected future results. These statements involve known and unknown risks, uncertainties, assumptions and other factors many of which are out of our control and difficult to forecast which may cause actual results to differ materially from those that may be described or implied herein. Such factors include but are not limited to general economic conditions, competitive factors, political, economic, and regulatory changes affecting the real estate industry and various other factors, both referenced and not referenced above, and other factors that are described in our filings with the Securities and Exchange Commission (the “Commission”), including our periodic reports on Forms 10 - K and 10 - Q and current reports on Form 8 - K. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements may vary materially from those set forth in this presentation. You should not place undue reliance on any forward - looking statements and are advised to carefully review and consider the various disclosures in our filings with the Commission. Except as required by law, we neither intend nor assume any obligation to revise or update these forward - looking statements, which speak only as of their dates. We nonetheless reserve the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this financial outlook. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates. Excluding the information from sources indicated, the content of this presentation is copyright 2020 HyreCar Inc. All Rights Reserved. 2 Safe Harbor Disclosure

 

 

NOTES: 1) Closing Price as of August 21, 2020 2) Fiscal Year Ending December 31, 2019 3) Last Twelve Months Ending June 30, 2020 4) Fiscal Quarter Ending June 30, 2020 Key Company Metrics 3 HyreCar Inc. (NASDAQ: HYRE) Stock Price 1 $3.90 52 Week Trading Range 1 $0.88 - $4.18 Market Cap 1 $70M Shares Outstanding 1 17.7M Annual Revenue Growth 2 62% LTM Revenue 3 $19.2M Gross Profit Margin 4 45% Cash 4 $7.2M Headquarters Los Angeles FTE 75 Founded 2014 ▱ HyreCar is the car sharing marketplace for ridesharing and delivery, connecting gig economy drivers with vehicle owners nationwide ▱ Driver Demand Outstrips Car Supply by 10x o 50,000+ drivers are applying monthly to TNCs like Uber and Lyft, ~40% of these drivers don’t own a qualifying vehicle o Attracts 50,000+ delivery and ridesharing drivers quarterly, 10 times the amount of vehicles currently on the platform ▱ Growing Scalable Domestic Business Model o Annualized run rate in excess of 1 Million Rental Days and ~$25M in Net Revenue is driven by matching supply in key markets o Driven by identifying where driver demand is highest and attracting cars quickly o More than 80% of car supply now comes from the 50,000 US New and Used Auto Dealers, Fleet and Rental Owners ▱ Decreasing Cash Burn and approaching Break - Even o Decreasing cash burn and strong cash position on the balance sheet o Custom insurance coverage to protect both owners and drivers, just completed annual renewal with lower cost and improved cash flow

 

 

T NC s Pac k ag e D eliver y Food D eliver y T a sks Lei su r e R e nt al s Dr ive r s Owners / Vehicles Connecting Drivers to All Gig Opportunities 4

 

 

Goldman Sachs research expects 13% year over year revenue growth in ridesharing through 2030 Lyft has 1.5 million drivers in the US and Canada (1) Uber is estimated 2.0 million drivers (1) - 2 4 6 8 10 12 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E Millions Rented Vehicles Owned Vehicles $6.5B HYRE US Rideshare /Delivery Rental TAM by 2029 (3) Large Total Addressable Market (TAM) 5 $1.2T US Transportation Market (4) (1) How Many Uber Drivers Are There?, The RideshareGuy.com, 8.1.2020( (2) Instacart, February 2020 (3) Assumes 10% of 2.5 Million combined Uber and Lyft Drivers Growing by 13% rent vs own vehicles for use in ridesharing or delivery (4) Lyft S - 1, March 1, 2019 Uber and Lyft are adding 50,000+ drivers a month, but many don’t have qualifying cars. HyreCar’s Addressable Market Estimated Owned Vehicles vs. Rented Vehicles (1,3) Instacart has 300,000 drivers, 75,000 in California. the end of 2018 (2)

 

 

Improved Competitive Position 6 Service Limitation No Limits Lyft & Uber Lyft Only Deposit $0 $200 $250 Available Markets All 50 states + DC 16 Cities Bought by Lyft Rental Length & Age Requirement Minimum 1 day rental, 21ysr+ Minimum 7 - day rental, 25yrs+ Minimum 7 day rental, 25yrs+ Average Weekly Rates Owners set pricing ~$200 per week $0.10 - $0.30 per mile (depends on geo location), taxes, fees ** $209/week – disqualified from Express Pay and driving bonuses $240 / Week + All - in Cost * $31 1 $37 6 $390 * Includes insurance, weekly cost assumes 1,000 miles driven per week, $0.10 per mile ($0.20 for fair) plus 15% taxes and fees applied to advertised competition pricing ** Assumes $150 per week in driver bonuses (conservative given Uber/Lyft drivers are seeing $500 starting bonuses) » HYRE: LARGEST GEOGRAPHIC FOOTPRINT OF AVAILABLE MARKETS IN THE U.S. » HYRE: LOWEST ALL - IN COST PROVIDER OF FLEET » HYRE: ASSET LIGHT & PLATFORM AGNOSTIC » HYRE: FLEXIBILITY ENABLES CUSTOMER SPEED TO MARKET » COMPETITION REDUCED: FAIR Changed business model due to high cost structure and Investor fatigue – exited ridesharing marketplace » FLEXDRIVE sold to Lyft - new business model

 

 

M a n ag eme n t Team Board of D i r ec to r s Experienced Management Team and Board 7 Grace Mellis Ch airman Scott Brogi CFO Henry Park COO Chairman C E O Jay Vijayan Auto Technology Joe Furnari Joe Furnari CEO Mike Furnari CBDO Brian Allan Strategic Partnerships M e m be r Michael Root Brooke Skinner CM O

 

 

Three - Sided Revenue Model 8 Daily Gross Revenue Example N ati on a l A vg D ail y R e n ta l R at e $36.00 Driver Fee $3.60 Daily Insurance Fee $13.00 Daily Gross Billing Paid by Drive r 1 $52.60 Opportunities for Margin Expansion: ● Reduction in direct insurance costs reduces COGS ● Addition of new higher revenue shares increases GPM ● Ancillary revenue subscriptions with dealerships just starting Net Revenue Margin Up to 45% - 47% 1) Gross billings is a non - GAAP term and an important measure by which HyreCar evaluates and manages its business. The Company defines gross billings as the amount billed to drivers, without any adjustments for amounts paid to owners or refunds. Gross billings include transactions from both revenues recorded on a net and a gross basis. Daily Net (GAAP) Revenue Example Hyr e C a r Own e r F e e (21% a vg) $7.50 HyreCar Driver Fee (10% rate) $3.60 Insurance Fee (100% of fee) $13.00 Daily Average Net Revenue $24.00 $24.00 Daily Avg Net Rev x 83,333 Monthly Rental Days = $2M Monthly Net Revenue

 

 

9 Rental Days have now fully rebounded, following an early spring drop due to Covid Source: Compay Filings Growing Rental Days after Rebounding

 

 

Financial Highlights 10 ▱ Revenue CAGR of over 70% over the last two fiscal years ▱ Q2 2020 230,000 Rental Days and Net Revenue of $5.6 million ▱ Services mix balanced for both delivery and rideshare driving within Q2 ▱ Q3 2020 Net Revenue estimated at $6.2 - $6.5 million Dynamic Growing Platform Clean Balance Sheet Improving Profitabilit y ▱ Q2 GPM improved to 45% from 38%, due to improving insurance and merchant processing costs ▱ We expect 45 - 50% in the near - term, with longer term opportunities to get higher from subscriptions ▱ Q2 Adjusted EBITDA of ($1.7M) was a sequential quarterly improvement of $1.6 million from Q1 (1) ▱ Increasing weekly rental days from current 22,000 to 30,000, will get HyreCar to profitability ▱ Systematically reducing cash burn, Q2 cash of $7.2 Million was down just $700,000 from prior quarter ▱ New auto liability insurance program with Apollo 1969 started in June 2020, will further improve cash flow ▱ $2.0M PPP Loan is expected to be forgiven in Q4 ▱ Closely - held with more than 70% of company owned by Top 20 Holders (1) See Reconciliation Slide at End of Presentation

 

 

Approaching Break - Even 11

 

 

Investor Relations John Evans j.evans@HyreCar.com 415 - 309 - 0230 HyreCar Inc. Scott Brogi, CFO s c o tt@HyreCa r .c o m Contact Us 12

 

 

Reconciliation of Non - GAAP Financial Measures 13 Reconciliation of Non - GAAP Financial Measures We use Adjusted EBITDA in conjunction with GAAP financial measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies, and to communicate with our board of directors concerning our financial performance. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Furthermore, these measures have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statements of operations that are necessary to run our business. Thus, our Adjusted EBITDA should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. We compensate for these limitations by providing a reconciliation of Adjusted EBITDA to the related GAAP financial measures, revenue and net loss, respectively. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted EBITDA in conjunction with their respective related GAAP financial measures. The following table provides a reconciliation of net loss to Adjusted EBITDA for the three and six months ended June 30, 2020 and 2019: