Tue, May 20, 8:15 PM (23 days ago)
**DriveItAway Holdings, Inc. (DRIV) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 revenue surged 136% YoY to $210.7K, driven by increased vehicle availability. H1 2025 revenue rose 144% YoY to $452.6K. - **Gross Profit:** Q1 2025 gross profit increased 142% YoY to $29.6K, with a consistent gross margin of 14%. H1 2025 gross profit soared 456% YoY to $128.3K, with a gross margin of 28%. - **Operating Loss:** Q1 2025 operating loss widened by 102% YoY to $238.7K due to higher operating expenses. H1 2025 operating loss increased by 16% YoY to $364.3K. - **Net Income:** Q1 2025 net loss narrowed by 6% YoY to $447.9K. H1 2025 net income turned positive, reporting a gain of $8.5K, compared to a loss of $1.2M in H1 2024. **Cash Flow:** - **Operating Cash Flow:** H1 2025 operating cash outflow was $161.9K, an improvement from $248.6K in H1 2024. - **Investing Cash Flow:** H1 2025 saw an outflow of $137.3K for vehicle purchases. - **Financing Cash Flow:** H1 2025 inflow was $316.7K from various financing activities. **Liquidity & Capital Resources:** - **Cash:** Increased by 52% QoQ to $51.2K. - **Working Capital:** Deficiency widened by 9% QoQ to $4.7M. **Uncertainties & Future Operations:** - **Going Concern:** DRIV faces substantial doubt about its ability to continue as a going concern due to its accumulated deficit of $5.6M and insufficient cash to cover expenses. - **Financing Needs:** DRIV plans to convert convertible debt into common stock and secure additional equity financing to fund operations and capital expenditures. - **Market Trends:** DRIV anticipates increased vehicle availability and revenues as automotive supply and demand normalize. **Operational Metrics:** - **Vehicles:** DRIV's fleet consists of vehicles owned, leased, or arranged through dealerships, with a net book value of $840.7K. - **Insurance:** DRIV offers insurance coverage, with revenue recognized ratably over the contract term. **Risk Factors:** - **Defaulted Notes:** DRIV has defaulted on several promissory notes, with outstanding principal totaling $450K. - **Derivative Liabilities:** DRIV's derivative liabilities, valued using the Black-Scholes model, pose a risk due to their sensitivity to input assumptions. - **Internal Controls:** DRIV's disclosure controls and internal controls were deemed ineffective due to material weaknesses. **Future Outlook:** - DRIV aims to expand its 'subscription to ownership' platform for electric vehicles, targeting entry-level consumers. - DRIV's success depends on securing additional financing, developing its business plan, and navigating market uncertainties.