DriveItAway Holdings, Inc.

What they do

DriveItAway, Inc., a wholly owned subsidiary, provides a turnkey mobility platform for car dealers to sell more vehicles through eCommerce and an app-based subscription program. The company offers proprietary mobile technology, a driver app, insurance coverages and training to get dealerships up and running quickly. Operations focus on rental and insurance revenue generated from vehicles made available on its platform.

Revenue drivers

• Rental revenue — Earned from vehicles rented through the dealer subscription platform; the primary driver of the $166,857 year-over-year increase in Q2 FY2026 revenue.
• Insurance revenue — Offered as part of the turnkey program; contributes to total revenue alongside rental revenue, as cited in the Q2 FY2026 revenue increase.
• Platform and subscription fees — The company provides a 'Pay as You Go' app-based subscription program to dealers; specific revenue contribution is not broken out in the excerpts.

Recent performance

For the three months ended March 31, 2026, revenue was $377,522, up 79% from $210,665 in the prior-year period. Gross profit rose 86% to $54,797, and gross margin improved to 15% from 14%. Operating expenses decreased 27%, leading to an operating loss of $142,053, compared with a $238,664 loss a year earlier. However, net loss widened to $1,517,380 from $447,958, driven by $1,375,327 in other expense, largely from amortization of debt discount. For the six months ended March 31, 2026, revenue totaled $706,636, up from $419,581 in the prior-year period, while net loss was $2,343,176 versus $1,627,196.

Strategy

Management plans to expand the company's consumer app 'subscription to ownership' platform to enable entry-level consumers to drive and acquire new electric vehicles. The company anticipates that a continuing return to historically normal automotive supply and demand in 2026 should translate into greater vehicle availability on its platform, leading to further revenue increases. Growth is expected to come from adding more vehicles to the platform and from expanding its dealer and consumer offerings. The company continues to rely on financing arrangements, including notes payable with attached warrants, to fund operations.

Risks

• Going concern — The company has an accumulated deficit of $10,461,619 and a working capital deficit of $8,988,114 as of September 30, 2025, raising substantial doubt about its ability to continue as a going concern.
• Severe balance sheet weakness — As of March 31, 2026, total liabilities of $9.3 million far exceed total assets of $250,180, resulting in negative shareholder equity of $9.1 million and cash of only $83,006.
• Financing and derivative volatility — Notes payable with attached warrants have created derivative liabilities that led to a $2.88 million loss from change in fair value for the year ended September 30, 2025, and a $1.38 million other expense in Q2 FY2026.
• Historical financial restatement — The company filed an 8-K on February 24, 2025, stating that previously issued financials were not reliable, which may raise concerns about financial reporting quality.

Outlook

Management expects that a return to more historically normal automotive supply and demand in 2026 will increase vehicle availability on its platform and lead to further revenue growth. The company plans to expand its consumer subscription-to-ownership platform to entry-level consumers for electric vehicles. No specific revenue or earnings guidance is provided. The ability to continue as a going concern will depend on raising additional capital or achieving profitable operations.