DWAY DriveItAway Holdings Inc (CE)

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-K

 

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended September 30, 2024

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 000-52883

 

DRIVEITAWAY HOLDINGS, INC.

 

Delaware	20-4456503
(State or other jurisdiction of Identification Number)	(I.R.S. Employer incorporation or organization)

 

3201 Market Street, Suite 200/201

Philadelphia, PA 10104 (856) 577-2763

 

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.0001 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒.

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒.

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

 

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	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. ☐

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

 

The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant as of March 31, 2024 was $1,547,437 based on the closing price of $0.057 of the Company’s common stock as quoted on the OTCQB Marketplace on that date.

 

As of February 24, 2025, there are 113,951,722 shares of common stock of the registrant outstanding.

 

Documents Incorporated by Reference:

 

None

 

☐

 

 

TABLE OF CONTENTS

 

PART I
Item 1.	Business	2
Item 1A.	Risk Factors	9
Item 1B.	Unresolved Staff Comments	9
Item 2.	Properties	9
Item 3.	Legal Proceedings	9
Item 4.	Mine Safety Disclosures	9
PART II
Item 5.	Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	9
Item 6.	Selected Financial Data	10
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	10
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	16
Item 8.	Financial Statements and Supplementary Data	16
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	17
Item 9A.	Controls and Procedures	17
Item 9B.	Other Information	18
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevents Inspection	18
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	19
Item 11.	Executive Compensation	21
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	22
Item 13.	Certain Relationships and Related Transactions, and Director Independence	23
Item 14.	Principal Accounting Fees and Services	24
PART IV
Item 15.	Exhibits and Financial Statement Schedules	25
Item 16.	Form 10-K Summary	26

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This Annual Report on Form 10-K (the “Report”) includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. There can be no assurance that actual results will not materially differ from expectations. You should read statements that contain these words carefully because they:

 

●

discuss future expectations;

 

●

contain projections of future results of operations or financial condition; or

 

●

state other “forward-looking” information.

 

We believe it is important to communicate our expectations to our stockholders. However, there may be events in the future that we are not able to accurately predict or over which we have no control. The cautionary language discussed in this Form 10-K provide examples of risks, uncertainties and events that may cause actual results to differ materially from the expectations described by us in our forward-looking statements, including among other things:

 

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the operating and financial results of the Company;

 

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our failure to successfully implement our growth strategy;

 

●

changing economic conditions;

 

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our need for additional financing;

 

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litigation and regulatory issues;

 

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our failure to comply with current or future laws or regulations; and

 

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this Form 10-K. Forward looking statements involve known and unknown risks and uncertainties that may cause our actual future results to differ materially from those projected or contemplated in the forward-looking statements.

 

All forward-looking statements included herein attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. Except to the extent required by applicable laws and regulations, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this Form 10K or to reflect the occurrence of unanticipated events.

 

 

PART I

 

Item 1. Business

 

General

 

As used in this Annual Report, references to the “Company,” “DriveItAway,” “we,” “our,” and “us” refer to DriveItAway Holdings, Inc. and its consolidated subsidiary, unless otherwise indicated. In addition, references to our “financial statements” are to our consolidated financial statements included elsewhere in this Annual Report except as the context otherwise requires.

 

We prepare our consolidated financial statements in United States dollars and in accordance with generally accepted accounting principles as applied in the United States, (“U.S. GAAP”). In this Annual Report, references to “$” and “dollars” are to United States dollars.

 

Overview

 

DriveItAway Holdings, Inc. was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. On April 12, 2024, the Company formed DIA Leasing, LLC, a Florida limited liability company, which is a wholly owned subsidiary.

 

The Company is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. We provide a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The Company has expanded its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles.

 

Agreement and Plan of Share Exchange

 

On December 7, 2021, the Company (f/k/a Creative Learning Corporation), DriveItAway, Inc., a Delaware corporation (“DIA”), and the existing shareholders of DIA executed an Agreement and Plan of Share Exchange, under which the Company would acquire all of the issued and outstanding common stock of DIA by issuing one share of Series A Convertible Preferred Stock (the “Series A Preferred”) of the Company for each outstanding share of DIA common stock (the “Share Exchange”). As a result of the Share Exchange, DIA will become a wholly-owned subsidiary of the Company.

 

Each share of Series A Preferred will be convertible into that number of shares of common stock of the Company which would entitle the Series A Preferred holders to 85% of the Company’s common stock, determined on a fully-diluted basis. The exact conversion rate of the Series A Preferred will be determined at closing of the Share Exchange. In addition, each share of Series A Preferred will be entitled to dividends and voting rights on an “as converted” basis with the common stockholders.

 

Closing on Share Exchange

 

On February 24, 2022, closing of the Share Exchange occurred. Each share of Series A Preferred is convertible into 33.94971 shares of common stock of the Company, which entitles the holders thereof to 85% of the Company’s common stock upon a conversion of all shares of Series A Preferred, determined on a fully-diluted basis. In addition, each share of Series A Preferred is entitled to dividends and voting rights on an “as converted” basis with the common stockholders.

 

 

Upon closing of the Share Exchange, all of the existing members of the board of directors (the “Board”) of the Company resigned, except that Rod Whiton’s resignation will not be effective until ten days after an information statement pursuant to Rule 14f-1 is mailed to shareholders. John Possumato, and Adam Potash were appointed to the Company’s Board, provided that the appointments of Messrs. Potash and Patrizio will not be effective until ten days after an information statement pursuant to Rule 14f-1 is mailed to shareholders. Upon closing of the Share Exchange, Christopher Rego and Rod Whiton resigned as officers, and John Possumato was appointed chief executive officer and Adam Potash was appointed chief operating officer. Mike Elkin agreed to remain as chief financial officer of the Company.

 

Sale Agreement with StroomX, LLC

 

On December 7, 2021, the Company entered into a Sale Agreement with StroomX, LLC (the “Purchaser”), under which the Company agreed to sell all of the Company’s subsidiaries (the “Learning Subsidiaries”) involved in its learning business (the “Learning Business”), as well as any assets of the Learning Business that are not owned by the Learning Subsidiaries, to the Purchaser. In connection with the sale, the Purchaser agreed to assume all liabilities of the Learning Business, and to indemnify and hold the Company harmless from any such liabilities. The Purchaser is controlled by Christopher Rego, the Company’s current chief executive officer. Closing of the sale will occur after the closing of the Share Exchange.

 

The sale of the Learning Business closed on March 18, 2022. As consideration for the purchase of the Learning Business, the parties agreed to offset $50,000 in severance due to Christopher Rego as part payment of the purchase price. The remainder of the purchase price was paid by a joint note executed by the Purchaser and Mr. Rego in the principal amount of $100,000, which is payable in full on April 20, 2022 without interest. Alternatively, the parties agreed that the promissory note may be satisfied in full by the delivery to the Company by the maturity date of the note of all shares of common stock owned by Mr. Rego and his spouse in the Company, provided that the number of shares is not less than 500,000. In the event the note is not paid in full by its maturity date, either in cash or shares, the note shall bear interest at 15% per annum until it is paid in full. 500,000 shares were returned to the transfer agent and cancelled as of May 12, 2022.

 

Series A Preferred Stock

 

February 24, 2022, the Company’s Board approved an amendment to its certificate of incorporation to designate a new series of preferred stock, which is known as the Series A Convertible Preferred Stock. Each share of Series A Preferred is convertible into 33.94971 shares of common stock of the Company, which entitles the holders thereof to 85% of the Company’s common stock upon a conversion of all shares of Series A Preferred, determined on a fully-diluted basis, but prior to any shares issued or issuable as a result of the Financing (as defined below). In addition, each share of Series A Preferred is entitled to dividends and voting rights on an “as converted” basis with the common stockholders.

 

On April 20, 2022, holders of 2,464,784 shares of Series A Preferred agreed to convert their Series A Preferred into common stock, which resulted in the issuance of 83,678,702 shares of common stock. On the same date, the board of directors approved a resolution to exercise the Company’s right to mandatorily convert the remaining 129,809 shares of Series A Preferred into common stock, which resulted in the issuance of an additional 4,406,979 shares of common stock.

 

Names Change and Capital Structure

 

On April 18, 2022, the Company filed an amendment to its certificate of incorporation with the Delaware Secretary of State to change its name from Creative Learning Corporation to DriveItAway Holdings, Inc. and to increase the number of authorized shares of common stock from 50,000,000 to 1,000,000,000.

 

Our Business

 

We have developed a consumer-facing app and Web-based platform that allows any automotive retailer the ability to provide a subscription to ownership “flexible-lease” model for any consumer, regardless of down payment or credit history, or for those who just do not want to make an immediate long term financial commitment, in an easy, transparent, and risk-free way for both the consumer and the retailer.

 

 

Under our “Drive Now, Decide Later” mantra, any consumer, regardless of credit, can go on our app, select a vehicle, sign for and pick it up, once approved, and have the subscription deal consummated in a matter of minutes. Unlike a vehicle sale or lease, a candidate that passes our detailed screening can be driving without making any long-term financial commitment, for as long as he/she wants, in the vehicle of choice. While there is really no such thing as “digital retailing” for the sale or lease of a vehicle in the U.S. today, as all states require actual “wet ink” signatures for documents either sent to the buyer or signed at a dealership, documents for a rental or subscription can all be legally signed digitally, so this process is quick, easy and can all be consummated in our app – with the vehicle delivered to the candidate. We are true digital retailing for the automotive industry.

 

Unlike rental car companies, or even subscription companies available to US and Canadian consumers today, a DriveItAway vehicle subscription program is differentiated with one vital element, all of our drivers are given the option to buy the vehicle they are subscribing to, with the portion of the money they are paying in as rental fees “writing down” the purchase price, should they choose to buy. All drivers have the right, but not the obligation, to buy at any time, and get the benefit of his or her specific vehicle’s reduced purchase price created by the payments they have made for vehicle usage.

 

 

 

 

Just as Divvy Homes has revolutionized the rent-to-own market for houses during these cash-strained times, DriveItAway seeks to revolutionize how both new and used vehicles are sold, where a purchase transaction starts in a commitment-free rental or subscription.

 

While we think this easy, transparent, and turnkey type of “Drive Now, Decide Later” subscription appeals to all potential vehicle buyers and will grow dramatically as the entire car market makes the transition to EV vehicles and we gain more visibility as an alternative in the marketplace, right now the “low hanging fruit” is indeed the subprime and deep subprime consumer, whose alternatives are limited to the bad choices outlined above.

 

We use a technology partner to extensively screen our applicants through a digital process for background and identity, driving history and insurance risk, income verification, etc., but we do not require any threshold credit score. As long as an applicant has a clean driving record and adequate income, etc., he/she can qualify for one of our vehicles. In the current environment, the average new vehicle is selling for approximately $47,000 dollars while the average used vehicle is selling for approximately $28,000 with an average six-year payment of over $716. Our average vehicle usage/rental fees are priced a little higher (between $150-225 a week, not counting insurance) on a subscription, but our driver is writing down the ultimate purchase price with his/her usage payments while driving, and most all are working towards a buyout – when the amount written down is low enough that he/she can successfully finance the purchase. As our mission is defined, we get our credit-challenged customers off of the “gerbil wheel” of never-ending payments, and out of vehicles that break down before the payments are finished.

 

In general, as banks and finance organizations are tightening up credit policies and increasing down payment requirements, particularly for subprime and deep subprime buyers as auto loan delinquencies increase, while vehicles have become higher in price relative to income, we see vehicle subscriptions at the same trajectory of growth today as consumer vehicle leasing was 25-30 years ago: a small percentage of “sales” now, but high growth in the years to come. We see our unique flexible lease to ownership model as the best subscription program for all consumers, as it offers the best of both the “walk away” ability of a turnkey monthly rental, but with the advantage of benefiting from the monthly usage payment reduction, should the driver choose to buy.

 

DriveItAway works with franchise and larger independent dealers (not with Buy Here/Pay Here stores), and is primarily a turnkey subscription dealer platform, although we do act as principal in many cases owning our own vehicles, always serviced and delivered by our car dealership partners. This both creates revenue for DriveItAway, and demonstrates, in an “open book” environment, how dealers can best use our technology as software as a service, to run their own program, as DriveItAway was created to offer. During 2024, we secured a 2 million dollar line of credit to expand operating our own company owned vehicles. We also acquired inventory in the past year from a large under a fleet lease agreement with a large national fleet owner. This allows the company to scale rapidly in many locations, without the burden of fixed overhead or personnel expenses.

 

How We Work

 

Without the technology available in recent years, it would not be possible for DriveItAway to exist. Many years ago, when the Buy Here/Pay Here market first developed it was necessary for those dealers to maintain 30/40% net profit margins, as typically a third of their vehicles ended up being repossessed, and, by the time the dealer actually received the vehicle back, it was in such bad repair it was worth next to nothing.

 

Today, with embedded app based technology, we can greatly reduce most of the risks, identify those problems that do occur quickly, and mitigate losses, so that we can maintain a high per-unit profit margin and still price very competitively as compared to other choices our retail customers might have, allowing for a good profit margin for ourselves and dealers that use us as a subscription/micro-lease platform. Note: most franchise dealers would like the extra profit and business deep subprime candidates represent (they have been, typically the most loyal and highest profit margin sector of vehicle buyers), particularly now when many “near prime” buyers are rapidly being reclassified as subprime, but do not want to deal with the typical problems a “Buy Here/Pay Here” operation represents, nor do they want to operate that type of “victimizing” enterprise.

 

 

First, our all in-app subscription process is not only quicker and much more transparent to our end user drivers, but it is also much easier to administer and maintain from an operational perspective. DriveItAway uses a third-party screening service to review an applicant’s identity and background, his/her driving history and insurance risk, income verification and employment, and credit tier. While we do not require any particular credit score, we do require a ratio of income to payment coverage for all renters, a clean driving history, and other criteria to mitigate risk. This automated screening process runs in the app with an API and is completed within minutes.

 

Once a candidate qualifies for the vehicle selected, we collect a security deposit commensurate with the payment and value of the vehicle, and all drivers pay in advance by credit card or ACH inside the app. Before such technologies existed, in the old days of “Buy Here/Pay Here” the payment process was (and still is in many of these small stores), literally done in person on a weekly basis – obviously, there is a lot of collection friction in a manual process.

 

One major key to what we do is the placement of advanced telematics on every vehicle we offer for subscription. All drivers in our subscription contract are informed and agree to have a live-time telematics device in each vehicle along with an ignition starter cut-off switch, which is tied back into our payment platform. With this, DriveItAway can monitor vehicle location, and driving pattern (speed versus speed limit, hard braking, etc.) and can set up a “red flag” monitor to identify unsafe driving. Unsafe driving is not tolerated and will result in a warning and possible vehicle return. In addition, the ignition starter cut-off switch automatically kills the start-up of the vehicle, if an advance payment is overdue (note: it does not in any way stop the vehicle while driving, but once the vehicle is shut off, it simply cannot be restarted, unless we “turn it back on”). This is not seen so much as a penalty, but a very explicit reminder that our driver must pay for the vehicle. Through our AI chat and automated system, a person can simply say when and what amount of payment they are prepared to make, and the vehicle will turn on, even if the payment commitment is in the future (we do not want to strand anyone or cause undue hardship). However, repeated late payments can result in a vehicle requiring a return.

 

One note, our entire program is focused on keeping our subscribers who want to buy “on the rails” and that is made clear at inception. We work with our subscribers to help each achieve their goal of vehicle ownership. We counsel all of our subscribers that, indeed, one of the benefits of being in a weekly/monthly subscription is the fact that no long-term commitment is made, so if his/her financial situation changes and the vehicle is no longer affordable, simply turn it in (each is paying in advance), and preserve the ability to come back for a new vehicle in the future.

 

Very clearly, without technology and integrations available in the last few years, a flexible lease to ownership platform such as DriveItAway could not exist. The fact that it does now, and we are introducing it into the market, enables us to achieve our mission to rationalize the one area of the automotive industry that has yet to become efficient and is filled with high-margin friction, the subprime and deep subprime Buy Here/Pay Here marketplace.

 

The EV Landscape

 

The DriveItAway program is uniquely designed to help alleviate the two biggest impediments to a mainstream or subprime EV sale, the higher cost (spread out over as long a period of time as required for our subscriber), and the “suitability” or anxiety of plunging into an EV sale.

 

While the future of federal EV new and used incentives is uncertain, what is clear is that the transition from internal combustion to electric vehicles will continue, but at a slower pace, and stimulated by new ways of ownership, one of which, we believe, will be the DriveItAway flexible lease program.

 

Also, during the past year used EV values continue to drop at a record pace, setting the stage for the DriveItAway platform to provide a turnkey profitable “safety valve” for a dealer’s used EV inventory creating income and sales. It is expected that in the coming quarters DriveItAway will also be able to leverage this dramatic drop in EV resale value by acting as principal in financing its own fleet of used EV vehicles and offering them at very affordable rates to its end user customers.

 

Getting EVs in mainstream consumer hands in a beneficial, profitable way for all constituencies, “EVs for Everyone,” is another problem that we solve.

 

 

Key Industry Tailwinds and Foundation for Future Growth

 

The year 2024 marked a dramatic shift in the automotive retail market, back to more “normal” conditions. Car dealers once again found themselves with an oversupply of vehicles, just as interest rates moved up to the highest level in decades, driving “floor plan” carrying costs much higher. At the same time, the average new and used vehicle sales prices did not come down significantly from historic highs of prior years, and finance institutions tightened credit and required higher down payment amounts, as delinquencies rose substantially. This has squeezed more and more “subprime” and “deep subprime” credit buyers out of the traditional market, leaving, again, few good personal vehicle purchase alternatives.

 

During this time, your Company has continued to lay the foundation for rapid future growth. As for the last one hundred and twenty or so years vehicles have been for sale, there has almost always been more “supply” than “demand,” we worked past the current market anomaly and we prepared for the future by continuing to develop the processes, technology, and relationships that we feel will make DriveItAway the high growth leader in its emerging market.

 

Highlights of the accomplishments of DriveItAway 2024 –

 

 · March 2024 – After a successful pilot test, DriveItAway announced its partnership with Partners Personnel, the 12th largest national staffing organization in the nation, to offer its micro-lease program to employees to help people get to work, as one of the largest employment problems for entry level employees is getting to and from the job, according to Kristy Gebhart, Regional Vice President and Chair for the Associate Resource Committee of Partners Personnel

 

· April 2024 – DriveItAway announced that automotive retailers can use the DriveItAway technology, with fleet credit line options provided by Westlake Fleet, part of Westlake Financial, providing a comprehensive package for a turnkey dealership-based flexible lease program

 

· May 2024 – DriveItAway secured a credit line of 2 million dollars, from a respected rental industry veteran, to fund its own fleet of vehicles for the DriveItAway platform, expanding its direct services and also serving as an introduction and demonstration to partner dealers on how the program works, to entice dealers to run their own fleet using DriveItAway technology

 

· July 2024 – DriveItAway announced a partnership with Corporate Claims Management, one of the oldest and largest independent comprehensive fleet service and accident management companies in the US, for national vehicle maintenance, mechanical service and accident management for driver-focused quality fleet care

 

· July 2024 – DriveItAway announced a partnership with Chapman Automotive Group, an eight location, multi-franchise dealership group in Pennsylvania and New Jersey, to supply new vehicles and to provide DriveItAway’s micro-lease to ownership program to Chapman store customers

 

· September 2024 – DriveItAway announced a partnership with AllShifts, one of the highest rated national healthcare staffing firms in the US, to help on-demand nurses get to the job

 

Long-Term Growth Strategy

 

 As macro developments of oversupply and affordability continue to create the automotive retail environment problems that the DriveItAway technology and platform was created to solve, and after creating the foundational relationships and technologies to scale, we look forward to further rapid growth and achievements in 2025.

 

Your Company has a number of goals to further growth and be ready to leverage what we see will be a massive waive towards alternative ways to drive and then buy new and used vehicles, particularly by younger buyers in the 18-34 age range, who need transportation but lack the cash, credit, or even desire to immediately make a long term financial commitment to own one.

 

 

First, we want to substantially increase our credit line to operate our own fleet of vehicles, to both increase revenues, continue to improve our technology, and act as an “open book” example to car dealers that are interested in using our platform as software-as-a-service to operate a fleet and expand sales and market share. We see this as a unique competitive advantage of DriveItAway, in partnering with dealers to supply our own fleet, to show completely how our program works – we don’t just offer SaaS, we put our “money where our mouth is” in demonstrating the returns and advantages. At root, we are designed for and remain an SaaS tool for dealers, but as any new innovation, the best sales process is live demonstration.

 

Second, we want to continue to make strong and deep industry alliances, not just with partner companies but with the best individuals in our sector of the market. In 2025, our goal is to have some of the best on a newly created Board of Advisors for your Company, and on our Board of Directors. Now that we have laid a firm foundation, we are looking for the best people to guide longer term strategy and growth, to fully leverage the massive opportunity we see before us.

 

Third, we want to open up the vast new market of small commercial (non-gig) customers. Up until now your company has focused demand for individuals, particularly those who need a vehicle to get to and from work, in 2025 our goal is to expand this market to those who use their SUV, truck or van to work, not in a gig or rideshare capacity, but as a small fleet vehicle.

 

There are over 3,275,000 vehicles used in small businesses in the US (Automotive News, March 2024), representing a market size of over $300B with anticipated growth CAGR of 5.59 during the next year (Precedence Research, Oct 2024). DriveItAway is now creating a strategic plan to address this large and fast-growing market with one of the leading experts in the fleet business, on how to address small commercial account needs with a flexible, pay as you go lease, with DriveItAway. As with subprime individuals, the credit criteria for conventional financing is very limited for these businesses, so DriveItAway sees a scalable, large opportunity to satisfy this need, in the same way it does for individuals, by de-risking the process for both the vehicle owner and the customer, that ultimately leads to more opportunity and sales.

 

Employees

 

As of September 30, 2024, we have 0 employees and 7 independent contractors. Some of our executive officers and directors are engaged in outside business activities that we do not believe conflict with our business. Over time, we may be required to hire additional employees or engage independent contractors to execute various projects that are necessary to grow and develop our business. These decisions will be made by our officers and directors, if and when appropriate.

 

Corporate Information

 

Our principal executive office is located at 3201 Market Street, Suite 200/201, Philadelphia, PA 19104. Our telephone number is (856) 577-2763. Our website is www.driveitaway.com. Our website’s information is not, and will not be deemed, a part of this Annual Report or incorporated into any other filings we make with the SEC.

 

Available Information

 

Copies of our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents that we will file with or furnish to the SEC will be available free of charge by sending a written request to our corporate headquarters. Additionally, the documents we file with the SEC are or will be available free of charge at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Other information on the operation of the Public Reference Room may be obtained by calling the SEC at (800) SEC-0330. The SEC maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The SEC’s website is www.sec.gov.

 

We maintain a corporate website at www.driveitaway.com. You will be able to access our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports, proxy statements and other information to be filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge at our website as soon as reasonably practicable after such material will be electronically filed with, or furnished to, the SEC. The information contained in, or that can be accessed through, our website is not part of this Annual Report.

 

 

Item 1A. Risk Factors

 

We are not required to provide this information as we are a smaller reporting company.

 

Item 1B. Unresolved Staff Comments

 

Not applicable.

 

Item 2. Properties

 

On April 1, 2022, the Company leased virtual office space at 3201 Market Street, Suite 200/201, Philadelphia, PA 19104 for its corporate office. The lease had a term of one year and was renewed on a month-to-month basis until August 2024, when the office was closed. The Company is not obligated to pay rent.

 

Item 3. Legal Proceedings

 

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, or proceeding by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or our subsidiary, threatened against or affecting our Company, our common stock, our subsidiary or of our companies or our subsidiary’s officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

 

Market Price for Equity Securities

 

Our common stock is quoted on the OTC Pink under the symbol “DWAY”. The following table sets forth the quarterly high and low daily close for our common stock for the two years ended September 30, 2024 and 2023. There is a very limited market for the Company’s common stock

 

		Price Range
		High				Low
Year ended September 30, 2024
First Quarter		$	0.10			$	0.0004
Second Quarter		$	0.11			$	0.0025
Third Quarter		$	0.09			$	0.02
Fourth Quarter		$	0.11			$	0.04
Year ended September 30, 2023
First Quarter		$	0.13			$	0.03
Second Quarter		$	0.13			$	0.02
Third Quarter		$	0.04			$	0.02
Fourth Quarter		$	0.04			$	0.00

 

Holders

 

At February 24, 2025 , the Company had 113,951,722 outstanding shares of common stock and 143 shareholders of record.

 

 

Dividends

 

Holders of common stock are entitled to receive dividends as may be declared by the Company’s Board. The Company’s Board is not restricted from paying any dividends but is not obligated to declare a dividend. No dividends have ever been declared, and it is not anticipated that dividends will be paid in the foreseeable future. Any indebtedness the Company incurs in the future may also limit its ability to pay dividends. Investors should not purchase the Company’s common stock with the expectation of receiving cash dividends.

 

Recent Sales of Unregistered Securities

 

In May 2024, the Company issued 750,000 shares of its common stock to an accredited investor for $15,000 in gross proceeds. The issuance to the investor relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder concerning the issuance of restricted stock.

 

In May 2024, the Company issued 1,000,000 shares of its common stock to a lender as a commitment fee. The fair market value of the common stock on the date of grant was $70,000. The issuance to the investor relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder concerning the issuance of restricted stock.

 

In July 2024, the Company issued 400,000 shares of its common stock to four accredited investors for $8,000 in gross proceeds. The issuance to the investor relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder concerning the issuance of restricted stock.

 

On July 12, 2024, the Company sold a warrant to purchase 5,000,000 shares of the Company’s common stock at an exercise price of $0.00001 to an investor for $50,000. The warrant has no expiration date. The investor has the option of funding the Company with two additional tranches of $50,000. The second tranche of $50,000 is due within 60 days of the first funding date of July 12, 2024.

 

On August 19, 2024, the Company received the funding for the second tranche and issued to the investor a cash warrant to purchase up to 666,666 shares of Common Stock at an exercise price of $0.08 per share. The warrant has no expiration date.

 

In November 2024, the Company issued 250,000 shares of its common stock to an accredited investor for $5,000 in gross proceeds. The issuance to the investor relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder concerning the issuance of restricted stock.

 

At any time 90 days after the second tranche funding date the investor may invest an additional $50,000 and the Company will issue to the investor a pre-funded warrant to purchase up to 2,500,000 shares of Common Stock in the and a cash warrant to purchase up to 333,333 shares of Common Stock at an exercise price of $0.08 per share. The warrant does not have an expiration date.

 

The issuance to the investor relied on the exemption from registration provided by Section 4(2) of the Securities Act of 1933 and Rule 506 of Regulation D promulgated thereunder concerning the issuance of restricted stock.

 

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

 

We did not repurchase any securities during the fiscal year ended September 30, 2024.

 

Item 6. Selected Financial Data

 

As a smaller reporting company, we are not required to provide the information required by this Item.

 

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this Form 10-K. All information presented herein is based on the Company’s fiscal year, which ends September 30. Unless otherwise stated, references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in September and the associated quarters, months and periods of those fiscal years.

 

 

Overview

 

The Company was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. On April 12, 2024, the Company formed DIA Leasing, LLC, a Florida limited liability company, which is a wholly owned subsidiary.

 

The Company is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. DIA provides a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The company is planning to soon expand its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles.

 

RESULTS OF OPERATIONS

 

For the year ended September 30, 2024, compared to year ended September 30, 2023

 

Our operating results for the years ended September 30, 2024 and 2023 are summarized as follows:

 

		Years Ended
		September 30,
		2024				2023				Change $				Change %
Revenues		$	460,661			$	307,284			$	153,707				50	%
Cost of revenue			322,730				238,763				83,967				35	%
Gross Profit			138,261				68,521				69,740				102	%
Operating expense			706,416				830,976				(124,560	)			(15	%)
Operating loss			(568,155	)			(762,455	)			194,300				(25	%)
Other Income (expense)			(1,680,088	)			(167,682	)			(1,512,406	)			(902	%)
Net loss		$	(2,248,243	)		$	(930,137	)		$	(1,318,106	)			(142	%)

  

Revenues for the year ended September 30, 2024 was $460,991, as compared to $307,284 for the year ended September 30, 2023, an increase of $153,707 primarily due to a $149,248 increase in rental revenue.

 

Operating expenses for the year ended September 30, 2024 were $706,416 as compared to $830,976 for the year ended September 30, 2023. The decrease of $124,560 was primarily attributable to a $29,730 decrease in salaries and payroll taxes, and a $94,664 decrease in professional fees.

 

Operating loss was $568,155 for the year ended September 30, 2024, as compared to $762,455 for the year ended September 30, 2023. The increase of $194,300 was largely attributable to a decrease in professional fees, salaries, and payroll taxes and a large increase in rental revenue.

 

Other income (expenses) for year ended September 30, 2024 were ($1,680,088), as compared to ($167,682) for the year ended September 30, 2023. The increase of $1,512,406 was attributable to increases in amortization debt discount of $271,667, change in fair value of derivative liability of $512,474, amortization of deferred financing costs of $201,236, and interest expense of $563,342.

 

 

Liquidity and Capital Resources:

 

The following table provides selected financial data about our Company as of September 30, 2024 and 2023.

 

Working Capital

 

		September 30,				September 30,
		2024				2023				Change $
Cash		$	33,588			$	4,632			$	28,956
Current assets, net of restricted cash		$	37,996			$	16,216			$	21,780
Current liabilities			4,373,184				1,878,080				2,495,104
Working capital (deficiency)		$	(4,335,188	)		$	(1,861,864	)		$	(2,473,324	)

  

As of September 30, 2024 and September 30, 2023, our total current assets net of restricted cash were $37,996 and $16,216 which were comprised of $33,588 and $4,632 in cash, $1,438 and $11,584 in accounts receivable and $2,970 and $0 in prepaid expenses, respectively.

 

As of September 30, 2024, our current liabilities were $4,373,184 which were comprised of $994,270 in accounts payable and accrued liabilities, $12,752 in accrued interest – related party, $3,306 in deferred revenue, $1,339 in customer deposits, $25,080 in due to related party, $270,000 in promissory notes payable in default, $42,500 in promissory notes payable – related parties, $1,597,312 in convertible notes payable, and $1,386,014 in derivative liability. As of September 30, 2023 our current liabilities were $1,878,080  which were comprised of $664,707 in accounts payable and accrued liabilities, $4,918 in accrued interest – related party, $7,233 in deferred revenue, $2,234 in customer deposits, $25,080 in due to related party, $27,437 in promissory notes payable, $12,500 in promissory notes payable in default, $50,000 in promissory notes payable – related parties, $1,082,654 in convertible notes payable, and $1,317 in derivative liability.

 

As of September 30, 2024 and September 30, 2023, our working capital deficiency was $4,335,188 and $1,861,864, respectively.

 

Cash Flow Data:

 

		Years ended
		September 30,
		2024				2023				Change $
Cash used in operating activities		$	(424,379	)		$	(445,105	)		$	20,726
Cash provided by (used in) investing activities		$	(642,647	)		$	(72,872	)		$	(569,775	)
Cash provided by financing activities		$	1,077,423			$	414,059			$	663,364
Net Change in Cash and Restricted Cash		$	10,397			$	(103,918	)		$	114,315

        

Cash Flows from Operating Activities

 

During the year ended September 30, 2024 the company did not generate positive cash flows from operating activities. For the year ended September 30, 2024 net cash flows used in operating activities was $424,379 consisting of a net loss of $2,248,243, reduced by amortization debt discount of $393,964, amortization and depreciation of $57,324, gain on change in fair value of derivative liability of $342,751, amortization of deferred financing costs of $201,236, discount on lines of credit of $(85,000), addition to derivative liability of $686,102, discount on notes payable of $(112,246), and a change in operating assets and liabilities of $339,751.

 

During the year ended September 30, 2023 the company did not generate positive cash flows from operating activities. For the year ended September 30, 2023, net cash flows used in operating activities was $445,105 consisting of a net loss of $930,137, reduced by stock-based compensation expenses of $15,000, amortization debt discount of $122,279, depreciation of $36,783, a loss on debt extinguishment of $36,313, a change in operating assets and liabilities of $444,380, and gain on change in fair value of derivative liability of $169,723.

 

 

Cash Flows from Investing Activities

 

During the year ended September 30, 2024 the Company purchased 26 vehicles for $642,647.

 

During the year ended September 30, 2023 the Company purchased two vehicles for $67,039 and developed a website for a total of $5,833.

 

Cash Flows from Financing Activities

 

During the year ended September 30, 2024, the Company generated $23,000 from the sale of common stock, $100,000 from the sale of warrants, $454,250 from the issuance of notes payable, and $655,882 from lines of credit. These proceeds were partially offset by repayments on notes payable of $155,709.

 

During the year ended September 30, 2023, the Company generated $310,000 from the issuance of convertible notes, $104,458 from the promissory notes, $50,000 from related party notes payable, and $26,460 from related party advances. These proceeds were partially offset by repayments on related party advances, promissory notes payable, and payments for debt issuance costs of $1,460, $42,011, and $33,388, respectively.

 

Going Concern

 

As of September 30, 2024, the Company had a net loss of $2,248,243 accumulated deficit of $5,559,139 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 year ending September 30, 2025.

 

The ability of our Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of our business plan. In response to these requirements, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Critical Accounting Policies and Estimates

 

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 consolidated financial statements and accompanying notes. We believe our most critical accounting policies and estimates relate to the following:

 

●

Revenue Recognition

 

●

Stock-Based Compensation

 

●

Income Taxes

 

●

Financial Instruments

 

●

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 Consolidated Financial Statements.

 

 

Revenue Recognition

 

The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.

 

During the years ended September 30, 2024 and 2023, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”).

 

Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period.

 

Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share.

 

The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. The Company analyzes the start dates of all contracts and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.

 

Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized.

 

The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.

 

Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of September 30, 2024 and 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $3,306 and $7,233, respectively.

 

 

In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors.

 

Stock-Based Compensation

 

The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the Black Scholes pricing model is affected by our stock value as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility and the risk-free interest rate.

 

Fair Value Measurements

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value 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 on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The carrying amounts shown of the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities are approximate fair value due to their short-term nature.

 

Derivative Financial Instruments

 

The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification.

 

 

The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time, of our common stock, equal to the weighted average life of the options.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

 

As a smaller reporting company, we are not required to provide the information required by this Item.

 

Item 8. Financial Statements and Supplementary Data

 

The following audited consolidated financial statements are included in this Annual Report:

 

 

DRIVEITAWAY HOLDINGS, INC.

INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2024 and 2023

 

	Page
Report of Independent Registered Public Accounting Firm (PCAOB ID NO: 6258)	F-2
Report of Independent Registered Public Accounting Firm (PCAOB ID NO: 6771)	F-4
Consolidated Balance Sheets	F-5
Consolidated Statements of Operations	F-6
Consolidated Statements of Changes in Stockholders’ Deficit	F-7
Consolidated Statements of Cash Flows	F-8
Notes to Consolidated Financial Statements	F-9

 

 

Report of Independent Registered Public Accounting Firm

 

Board of Directors and Shareholders

DriveItAway Holdings, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheet of DriveItAway Holdings, Inc. as of September 30, 2023, and the related consolidated statements of operations, changes in stockholder’s deficit, and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of DriveItAway Holdings, Inc. as of September 30, 2023, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

 

Going Concern

 

The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 1 to the financial statements, the entity has suffered recurring losses from operations, has a net capital deficiency, and has not established sufficient revenue to cover its operating costs, therefore will require additional capital to continue operations. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to DriveItAway Holdings, Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. DriveItAway Holdings, Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

Critical Audit Matters

 

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 

 

Complex Debt Transaction

 

During the year under audit the Company entered into multiple amendments to their convertible note with AJB Capital Investments, LLC (see Note 7) that changed the terms of the original agreement, including changes to the note principal, the commitment fee shares, and the warrants that were issued in conjunction with the borrowing. Due to the number of modifications to the financing arrangement the accounting for the transaction was challenging and required complex auditor judgment, including a detailed analysis and interpretation of accounting literature, and took a significant amount of audit effort.

 

In order to audit the accounting for the debt agreement, we reviewed managements analysis of the transaction and had to perform a significant amount of research and analysis to gain comfort in the accounting of the transaction. The detailed analysis performed resulted in material audit adjustments to the recorded debt discount, amortization of debt discount, loss on extinguishment of debt, and change in derivative liability, as one of the modifications required extinguishment accounting.

 

/s/ Mac Accounting Group & CPAs, LLP

 

We served as DriveItAway Holdings Inc.’s auditor since 2019.

 

Midvale, Utah

March 8, 2024

 

 

 Report of Independent Registered Public Accounting Firm

 

To the Shareholders and

Board of Directors of DriveItAway Holdings, Inc.

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheet of DriveItAway Holdings, Inc. and Subsidiary (the “Company”) as of September 30, 2024, and the related consolidated statements of operations, changes in stockholders’ deficit, and cash flows, for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024, and the results of its operations and its cash flows for the year ended September 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

 

Substantial Doubt about the Company's ability to continue as a Going Concern

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As of September 30, 2024, the Company had a net loss of $2,248,243, an accumulated deficit of $5,559,139 and the Company has not established sufficient revenue to cover its operating costs 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 year ending September 30, 2025. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Basis for Opinion

 

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

 

Critical audit matter

 

The critical audit matter communicated below is a matter arising from the current audits of the financial statements that was communicated or required to be communicated to the Board of Directors and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved challenging, subjective, or complex judgments. The communication of critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

 

An audit of these elements is especially challenging and requires auditor judgment due to the nature and extent of audit effort required to address these matters, including the extent of specialized skill or knowledge needed.

 

Accounting for Warrants issued in connection with Notes Payable

 

As described in Notes 8, Derivative Liabilities, the Company issued prefunded warrants for the purchase of the Company’s common stock. The fair market value of the Warrants were recorded as a derivative liability. The assigned value of the warrants along with loan fees and broker fees was recorded as deferred financing costs and will be recorded as a discount to the note, amortized straight line over the life of the Promissory Note.

 

The Company determined that this is an asset in accordance with the guidance exception in ASC 470-20-25-2 (the “ASC”) which indicates the ASC does not apply when warrants are issued to obtain a line of credit rather than in connection with the issuance of a debt instrument. Issuing warrants to obtain a line of credit is equivalent to paying a loan commitment or access fee (equivalent to the fair value of the warrant). As such, these costs meet the definition of an asset. This exception applies, even if the line is fully drawn down at inception. The Company recorded deferred financing costs, net of discount of, $248,763, derivative liability of $1,386,014 and loss from change in fair value of derivative liability of $342,751, as of and for the year ended September 30, 2024.

 

Our audit procedures included, but were not limited to (1) a review of the assumptions by management and the guidance from the ASC (2) the derivative calculations, underlying assumptions to arrive at fair value, initial recognition and subsequent measurement at the balance sheet date (3) the fair value model employed in the derivative calculations (4) evaluation of whether the note exception from the ASC is applicable in the Company’s case (5) the ability of the Company to realize the asset value and (6) the method of amortization. 

 

/s/ Victor Mokuolu, CPA PLLC

 

We have served as the Company’s auditor since 2024.

 

Houston, Texas

February 24, 2025

 

 

DriveItAway Holdings, Inc.

Consolidated Balance Sheets

 

		September 30,				September 30,
		2024				2023
ASSETS
Current Assets:
Cash and cash equivalents		$	33,588			$	4,632
Restricted cash		$	—				18,559
Accounts receivable		$	1,438				11,584
Prepaid expenses		$	2,970				—
Total Current Assets			37,996				34,775
Property, net		$	774,995				184,228
Intangible assets, net		$	6,343				11,787
Deferred financing costs, net		$	248,763				—
TOTAL ASSETS		$	1,068,097			$	230,790
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable		$	994,270			$	664,707
Accrued interest - related party		$	12,752				4,918
Deferred revenue		$	3,306				7,233
Customer deposits		$	1,339				2,234
Due to related parties		$	25,080				25,080
Short term notes payable		$	38,159				—
Current portion of SBA Loan		$	2,452				—
Promissory notes payable, net of debt discount			—				27,437
Promissory notes payable, in default		$	20,000				12,500
Promissory notes, payable - related parties, in default		$	42,500				50,000
Convertible notes payable, net, in default		$	250,000				—
Convertible notes payable, net		$	1,597,312				1,082,654
Derivative liability		$	1,386,014				1,317
Total Current Liabilities		$	4,373,184				1,878,080
SBA Loan - noncurrent		$	114,386				114,700
Convertible note payable - noncurrent, net		$	—				175,720
Promissory notes payable - noncurrent		$	540,129				16,649
TOTAL LIABILITIES			5,027,699				2,185,149
Commitments and Contingencies			—				—
Stockholders' Deficit
Preferred stock , $0.0001par value, 10,000,000 shares authorized, no shares issued and outstanding		$	—				—
Common stock , $0.0001 par value, 1,000,000,000 shares authorized 113,701,722 shares issued, 113,686,622 outstanding as of September 30, 2024. 106,551,722 shares issued, and 106,536,622 outstanding as of September 30, 2023		$	11,371				10,656
Additional paid in capital		$	1,606,292				1,364,007
Treasury stock , at cost - 15,100 shares at September 30, 2024 and September 30, 2023		$	(18,126	)			(18,126	)
Accumulated deficit		$	(5,559,139	)			(3,310,896	)
Total Stockholders' Deficit			(3,959,602	)			(1,954,359	)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT		$	1,068,097			$	230,790

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

DriveItAway Holdings, Inc.

Consolidated Statements of Operations

 

		Years ended
		September 30,				September 30,
		2024				2023
Revenues		$	460,991			$	307,284
Cost of goods sold			322,730				238,763
Gross profit			138,261				68,521
Operating Expenses
Salaries and payroll taxes			267,895				297,625
Professional fees			250,437				345,101
General and administrative			142,021				92,749
Software development			39,244				56,529
Advertising and marketing			6,819				38,972
Total operating expenses			706,416				830,976
Operating Loss			(568,155	)			(762,455	)
Other Income (expense)
Change in FV of derivative			(342,751	)			169,723
Amortization debt discount			(393,946	)			(122,279	)
Amortization of deferred financing costs			(201,236	)			—
Loss on extinguishment of debt			—				(36,313	)
Interest expense			(733,560	)			(173,895	)
Interest expense - related parties			(8,595	)			(4,918	)
Total other income (expense)			(1,680,088	)			(167,682	)
Net Income (loss) before taxes			(2,248,243	)			(930,137	)
Income tax benefit			—				—
Net Income (Loss)		$	(2,248,243	)		$	(930,137	)
Net loss per common share - basic and diluted		$	(0.02	)		$	(0.01	)
Weighted average of common shares - basic and diluted			110,277,132				106,458,571

 

 

DriveItAway Holdings, Inc.

Consolidated Statement of Changes in Stockholders’ Deficit Years Ended September 30, 2024 and 2023

 

		Common Stock								Paid in				Treasury Stock								Accumulated				Equity
		Shares				Amount				Capital				Shares				Amount				Deficit				(Deficit)
Balance - September 30, 2022			105,301,722			$	10,531			$	1,289,132				(15,100	)		$	(18,126	)		$	(2,380,759	)		$	(1,099,222	)
Common stock issued in connection with promissory note			1,000,000				100				59,900				—				—				—				60,000
Stock based compensation			250,000				25				14,975				—				—				—				15,000
Net Income (Loss)			—				—				—				—				—				(930,137	)			(930,137	)
Balance - September 30, 2023			106,551,722			$	10,656			$	1,364,007				(15,100	)		$	(18,126	)		$	(3,310,896	)		$	(1,954,359	)

 

										Additional
		Common Stock								Paid in				Treasury Stock								Accumulated
		Shares				Amount				Capital				Shares				Amount				Deficit					Total
Balance, September 30, 2023			106,551,722			$	10,656			$	1,364,007			$	(15,100	)		$	(18,126	)		$	(3,310,896	)			(1,954,359)
Common stock issued for cash			1,150,000				115				228,555				—				—				—				23,000
Common stock issued in connection with promissory note			6,000,000				600				119,400				—				—				—				120,000
Warrants issued for cash			—				—				100,000				—				—				—				100,000
Net loss			—				—												-				(2,248,243	)			(2,248,243)
Balance, September 30, 2024			113,701,722				11,371				1,606,292				(15,100	)			(18,126	)			(5,559,139	)			(3,959,602)

 

  

The accompanying notes are an integral part of these consolidated financial statements.

 

 

DriveItAway Holdings, Inc.

Consolidated Statements of Cash Flows

  

 

		Years Ended September 30,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)		$	(2,248,243	)		$	(930,137	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of deferred financing costs			201,236				—
Stock compensation			—				15,000
Loss on change in fair value of derivative liability			342,751				(169,723	)
Loss on debt extinguishment			—				36,313
Amortization and depreciation			57,324				36,783
Amortization of debt discount			393,946				122,279
Discount on lines of credit			(85,000	)			—
Additions to derivative liability			686,102				—
Discount on notes payable			(112,246	)			—
Changes in operating assets and liabilities:
Prepaid expenses			(2,970	)			—
Accounts receivable			10,146				(5,502	)
Deferred revenue			(3,927	)			5,132
Accounts payable and accrued liabilities			329,563				437,598
Customer deposits			(895	)			2,234
Accrued interest related party			7,834				4,918
Net Cash Used in Operating Activities			(424,379	)			(445,105	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Website development			—				(5,833	)
Purchase of vehicles			(642,647	)			(67,039	)
Net Cash Used in Investing Activities			(642,647	)			(72,872	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party advances			—				26,460
Repayment of related party advances			—				(1,460	)
Proceeds from sale of common stock for cash			23,000				—
Proceeds from convertible notes payable			—				310,000
Proceeds from the sale of warrants			100,000				—
Proceeds from notes payable			454,250				—
Proceeds from lines of credit			655,882				—
Proceeds from promissory notes payable			—				104,458
Proceeds from promissory notes - related party			—				50,000
Repayment of notes payable			(155,709	)			(42,011	)
Debt issuance costs			—				(33,388	)
Net Cash Provided By Financing Activities			1,077,423				414,059
Net increase (decrease) in cash and cash equivalents			10,397				(103,918	)
Cash and cash equivalents, beginning of period			23,191				127,109
Cash and cash equivalents, end of period		$	33,588			$	23,191
Supplemental cash flow information
Cash paid for interest		$	—			$	49,863
Cash paid for taxes		$	—			$	—
Non-cash transactions:
Common stock issued in connection with promissory note		$	120,000			$	60,000
Recognition of derivative liability as debt discount		$	—			$	26,959
Debt discount in connection with original issue discount		$	28,000			$	—
Prepaid expenses reclassified to website development		$	—			$	10,498
Deferred financing costs		$	449,999			$	—

  

 

DriveItAway Holdings, Inc.

Notes to Consolidated Financial Statements September 30, 2024 and 2023

 

Note 1 – Organization, Description of Business and Going Concern

 

Nature of Organization

 

DriveItAway Holdings, Inc. (“DIA Holdings”, “the Company”, “we” or “us”) was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. On April 12, 2024, the Company formed DIA Leasing, LLC, a Florida limited liability company, which is a wholly owned subsidiary.

 

DIA Holdings is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. DIA provides a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The company is planning to soon expand its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles. For further information, please see www.driveitaway.com.

 

Share Exchange and Reorganization

 

On February 24, 2022 (the “Effective Date”), the Company, DriveItAway, Inc., and the existing shareholders of DriveItAway, Inc. (“DIA”) executed an Agreement and Plan of Share Exchange, under which the Company acquired all of the issued and outstanding common stock of DIA by issuing one share of Series A Convertible Preferred Stock (the “Series A Preferred”) of the Company for each outstanding share of DIA common stock (the “Share Exchange”). At the closing, the Company agreed to issue one share of Series A Preferred for each share of DIA common stock that was subsequently issued in conversion of certain outstanding convertible notes of DIA, provided that the holders converted their notes prior to December 31, 2022. All of the holders of the convertible notes of DIA agreed to convert their notes in March 2022 and were issued one share of Series A Preferred in exchange for the DIA common stock they acquired as a result of the conversion. A total of 2,594,593 shares of Series A Preferred were issued in exchange for all of the outstanding shares of DIA, including DIA shares issued at closing or shortly thereafter as a result of the exercise or conversion of all outstanding options or convertible notes issued by DIA.

 

Recapitalization

 

For financial accounting purposes, this transaction was treated as a reverse acquisition by DIA and resulted in a recapitalization with DIA being the accounting acquirer and DIA, Inc. as the acquired company. The consummation of this reverse acquisition resulted in a change of control. Accordingly, the historical financial statements prior to the acquisition are those of the accounting acquirer, DIA and have been prepared to give retroactive effect to the reverse acquisition completed on February 24, 2022, and represent the operations of DIA. The consolidated financial statements after the acquisition date, February 24, 2022, include the balance sheets of both companies at fair value, the historical results of DIA and the results of the Company from the acquisition date. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization.

 

Going Concern

 

The Company’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the year ended September 30, 2024, the Company had a net loss of $2,248,243, cash used in operating activities of $424,379 and a working capital deficit of $4,335,188. As of September 30, 2024, the Company had an accumulated deficit of $5,559,139. The Company has not established sufficient revenue to cover its operating costs and will require additional capital to continue its operating plan. The ability of the Company to continue as a going concern depends on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern.

 

F-9

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

To continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders to sufficiently meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan.

 

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Note 2 – Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”).

Basis of Consolidation

 

The consolidated financial statements include the accounts of DriveItAway Holdings Inc. and its wholly owned subsidiary DriveItAway, Inc., collectively referred to as the “Company”. All inter-company balances and transactions are eliminated in consolidation.

 

Use of Estimates

 

The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates and assumptions made by management include allowance for doubtful accounts, allowance for deferred tax assets, and fair value of equity instruments. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

 

Foreign Currency Translation

 

Foreign currency translation is recognized in accordance with ASC 830. The Company’s functional currency is USD, therefore all amounts of revenues received from foreign accounts are translated to the Company’s functional currency (USD) upon receipt and thereby, translation gains and losses are recognized upon receipt.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. As of September 30, 2024, and 2023, the Company had cash of $33,588 and $4,632, which included restricted cash of $0 and $18,559, respectively and did not have cash equivalents.

 

Restricted Cash

 

As of September 30, 2024 and September 30, 2023, the Company had $0 and $18,559 in restricted cash that is held by AJB Capital LLC, for funds advanced by them, but are to be used for future payment for professional fees.

 

F-10

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Accounts Receivable

 

The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and considers the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Accounts and receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowances for doubtful accounts as of September 30, 2024, and 2023, are adequate, but actual write-offs could exceed the recorded allowance. As of September 30, 2024, and 2023, the balances in the allowance for doubtful accounts was $0.

 

Fixed Assets

 

Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives, currently seven (7) years. Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated assets from the cost and accumulated depreciation amounts disclosed.

 

Intangible Assets

 

Our intangible assets include website and software development costs. The costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in operating expenses in our consolidated statements of operations.

 

Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at three (3) years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed.

 

Construction-in-progress primarily consists of website development costs that are capitalizable, but for which the associated applications have not been placed in service.

 

Leases

 

The Company’s operating lease portfolio for the years ended September 30, 2024 and 2023, includes the vehicle leases from third parties and the Company’s owned vehicles that are leased to the customers under operating leases. The contracts for these operating leases are short-term in nature with terms less than twelve (12) months. The Company has elected as an accounting policy not to apply the recognition requirements in ASC 2016-02, Leases (“ASC 842”) to short-term leases. The Company recognizes the lease payments for short-term leases on a straight-line basis over the lease term. As of September 30, 2024, the Company did not have leases that qualified as ROU assets.

 

Fair Value Measurements

 

The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value 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 on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 

F-11

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Level 1

 

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

 

Level 2

 

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

 

Level 3

 

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

 

The carrying amounts shown on the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities approximate fair value due to their short-term nature.

 

All financial assets and liabilities are approximate to their fair value. Derivative liabilities are valued at Level 3.

 

The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2024 and 2023:

 

Schedule of fair value of financial assets and liabilities
						Fair Value Measurements at September 30, 2024 using:
		September 30, 2024				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Liabilities		$	—				—				—			$	—
Derivative Liabilities		$	1,386,014				—				—			$	1,386,014

 

						Fair Value Measurements at September 30, 2023 using:
		September 30, 2023				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Liabilities		$	—				—				—			$	—
Derivative Liabilities		$	1,317				—				—			$	1,317

 

Derivative Financial Instruments

 

The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification.

 

F-12

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates.

 

Revenue Recognition

 

The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.

 

During the years ended September 30, 2024 and 2023, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”).

 

Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period.

 

Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share.

 

The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. The Company analyzes the start dates of all contracts and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.

  

Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized.

 

The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.

 

Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of September 30, 2024 and 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $3,306 and $7,233, respectively.

 

F-13

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors.

 

Stock-Based Compensation

 

The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the BlackScholes pricing model is affected by our stock value as well as assumptions regarding several complex and subjective variables, including expected stock price volatility and the risk-free interest rate.

 

Advertising and Marketing Costs

 

Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs for the years ended September 30, 2024 and 2023 of $6,819 and $38,972, respectively.

 

Income Taxes

 

The provision for income taxes and deferred income taxes are determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized.

 

Net Loss per Share of Common Stock

 

The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares issuable upon the conversion of outstanding convertible debt, preferred stock, warrants and stock option. For the years ended September 30, 2024, and 2023, the common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.

 

Schedule of computation of diluted net loss per share
		September 30,				September 30,
		2024				2023
Convertible notes			2,250,000				1,750,000
Commitment			5,000,000				—
Warrants			22,350,000				2,350,000
			29,600,000				4,100,000

 

Reclassification

 

Certain accounts from prior periods have been reclassified to conform to the current period presentation.

 

F-14

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Recent Accounting Pronouncements

 

In the period from October 2024 through January 2025 the FASB issued Accounting Standards Update 2023-09-Income Taxes (Topic 740): Improvement to Income Tax Disclosures. This amendment is effective for annual periods beginning after December 15, 2024. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

 

Note 3 – Related Party Transactions

 

Related Party Notes Payable

 

On September 13, 2019, the Company issued a Convertible Promissory Note to Driveitaway, LLC, a company controlled by John Possumato, the Company’s CEO, for $30,000, with a maturity date of September 13, 2022. On October 13 and October 14, 2020, the Company issued Convertible Promissory Notes to Driveitaway, LLC and Adam Potash, the Company’s COO, for $25,000 each, which mature on October 13 and 14, 2022, respectively. On December 24, 2020, the Company issued a Convertible Promissory Note to Adam Potash, for $15,000, which matures on December 24, 2022. Each of the notes bear interest at a rate of 6% per annum. The notes automatically convert into preferred stock of DIA in the event DIA raises at least $1,000,000 by the issuance of preferred stock prior to the maturity dates of the notes (a “Qualified Financing”). In the event DIA enters into a financing that is not a Qualified Financing prior to the maturity dates of the notes, the holders have the right to convert their notes into the class and series of equity securities offered in the non-Qualified Financing at the offer price thereof. In the event DIA effects a change of control, the holders have the option of converting their notes into common stock in order to participate in the change of control or accelerating the maturity date and receiving cash at the time of the change of control.

 

At the closing of the Share Exchange on February 24, 2022, the holders of the related party Convertible Promissory Notes agreed to convert all of the principal of $95,000 and interest of $9,565 due under the notes into 52,284 shares of DIA common stock, which was automatically converted into 52,284 shares of Series A Preferred (see Note 5).

 

On March 1, 2023, the Company entered into three promissory note agreements with three related parties for a total of $50,000 with interest bearing at 15% per annum, maturity date of 120 days from issuance (June 30, 2023) and issuance of 100,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $3,068 which was recorded as a derivative liability and debt discount (see Note 5).

 

During the years ended September 30, 2024 and 2023, the Company recorded related party interest expense of $8,595 and $4,918, respectively and amortization of debt discount of $0 and $3,068, respectively. As of September 30, 2024, the promissory note payable – related party balance was $42,500. As of September 30, 2024, the Company had defaulted on the promissory notes payable with aggregate outstanding principal of $42,500 and owed unpaid interest of $12,752. As of September 30, 2023, the Company had defaulted on the promissory notes payable with aggregate outstanding principal of $50,000 and owed unpaid interest of $4,918.

 

Advances and Repayments

 

In the normal course of business, the Company’s management team or their affiliates will make payments on behalf of the Company or will provide short-term advances to the Company to cover operating expenses. During the year ended September 30, 2024 and 2023, related parties made payments on the Company’s behalf or provided short-term advances to the Company totaling $0 and $26,460, respectively, and the Company made repayments to related parties of $0 and $1,460, respectively.

 

As of September 30, 2024 and 2023, the Company owed related parties $25,080 for this activity.

 

F-15

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Note 4 – Fixed and Intangible Assets

 

The following table summarizes the components of our fixed assets as of the dates presented:

 

Schedule of fixed assets
		September 30,				September 30,
		2024				2023
Vehicle costs		$	867,551			$	224,903
Accumulated depreciation			(92,556	)			(40,675	)
Vehicles, net		$	774,995			$	184,228

 

During the years ended September 30, 2024 and 2023, the Company purchased passenger vehicles for $642,647 and $67,039, respectively, and recorded depreciation of $51,880 and $32,239, respectively.

 

The following table summarizes the components of our intangible assets as of the dates presented:

 

Schedule of intangible assets
		September 30,				September 30,
		2024				2023
Website development costs		$	16,331			$	16,331
Accumulated amortization			(9,988	)			(4,544	)
Website, net		$	6,343			$	11,787

 

During the years ended September 30, 2024 and 2023 the Company recorded amortization of $5,444 and $4,544, respectively.

 

Note 5 – Equity

 

Authorized

 

The Company has authorized one billion (1,000,000,000) shares of common stock having a par value of $0.0001 per share, and ten million (10,000,000) shares of preferred stock having a par value of $0.0001 per share. All or any part of the capital stock may be issued by the Corporation from time to time and for such consideration and on such terms as may be determined and fixed by the Board of Directors, without action of the stockholders, as provided by law, unless the Board of Directors deems it advisable to obtain the advice of the stockholders.

 

Series A Preferred Stock

 

The Company has authorized one series of preferred stock, which is known as the Series A Convertible Preferred Stock (the “Series A Preferred”). The Board has authorized the issuance of 5,000,000 shares of Series A Preferred. The Series A Preferred Stock has the following rights and preferences:

 

Dividends: The Series A Preferred Stock is entitled to receive non-cumulative dividends equal to the amount of dividends that the holder of such share would have received if such share of Series A Preferred Stock were converted into shares of Common Stock immediately prior to the record date of the dividend declared on the Common Stock.

 

Liquidation Preference: The Series A Preferred Stock is entitled to receive, prior to any distribution to any junior class of securities, an amount equal to $0.01 per share as a liquidation preference before any distribution may be made to the holders of any junior security, including the Common Stock.

 

Voting Rights: Each holder of Series A Preferred Stock shall vote with holders of the Common Stock upon any matter submitted to a vote of shareholders, in which event it shall have the number of votes equal to the number of shares of Common Stock into which such share of Series A Preferred Stock would be convertible on the record date for the vote or consent of shareholders. Each holder of Series A Preferred Stock shall also be entitled to one vote per share on each submitted to a class vote of the holders of Series A Preferred Stock.

 

F-16

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Voluntary Conversion Rights: Each share of Series A Preferred Stock is convertible into 33.94971 shares of Common Stock at the option of the holder thereof.

 

Mandatory Conversion Right: The Company has the right to convert each share of Series A Preferred Stock into 33.94971 shares of Common Stock at any time that there are less than 200,000 shares of Series A Preferred Stock outstanding.

  

During the years ended September 30, 2024 and 2023 there were no issuances of the Series A Preferred shares.

 

As of September 30, 2024 and 2023, the Company had no shares of Series A Preferred stock outstanding, respectively.

 

F-17

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Common Stock

 

On October 17, 2022, 250,000 shares of common stock, valued at $15,000 based on the fair market value of the shares on the grant date, were issued for consulting services.

 

On October 31, 2022, the Company issued 1,000,000 shares of common stock valued at $60,000 for commitment fees in conjunction with the amendment of a promissory note of $750,000 (see Note 8).

 

On February 23, 2024, the Company issued 5,000,000 shares of common stock valued at $50,000 for commitment fees in conjunction with the issuance of a promissory note of $140,000.

 

In May 2024, the Company issued 750,000 shares of its common stock to an accredited investor for $15,000 in gross proceeds.

 

In May 2024, the Company issued 1,000,000 shares of common stock valued at $70,000 for commitment fees in conjunction with the issuance of a promissory note in the amount of $63,000.  

 

In July 2024, the Company issued 400,000 shares of its common stock to four accredited investors for $8,000 in gross proceeds.

 

As of September 30, 2024, and 2023, the Company had 113,701,722 and 106,551,722 common shares issued, respectively.

 

Treasury Stock

 

The Company records treasury stock at cost. Treasury stock is comprised of shares of common stock purchased by the Company in the secondary market. As of September 30, 2024, and 2023, the Company had 15,100 shares of treasury stock valued at $18,126.

 

Warrants

 

On February 24, 2022, in conjunction with the issuance of a promissory note of $750,000, the Company issued 1,000,000 warrants for $0.30 per share. The transaction led to no explicit limit to the number of shares to be delivered upon future settlement of the conversion options (see Note 8), therefore the equity environment became tainted and the warrants qualified for derivative accounting and were assigned a value of $107,283 which was recorded as a derivative liability and debt discount. The warrants expire on February 24, 2027.

 

F-18

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

In June 2022, in conjunction with a private offering and the issuance of secured promissory notes of $250,000 (see Note 8), the Company issued 125,000 warrants for $0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $8,136 which was recorded as a derivative liability and debt discount. The warrants expire in June 2027.

 

In November 2022, in conjunction with a private offering and the issuance of secured promissory notes of $200,000, the Company issued 100,000 warrants for $0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $4,074 which was recorded as a derivative liability and debt discount. The warrants expire in November 2027.

 

In February 2023, in conjunction with a promissory note amendment which was recognized as debt extinguishment, 2,000,000 warrants with exercise price of $0.05 were issued that expire on February 24, 2027 (4 year), which replaced the original 1,000,000 warrants issued with an exercise price of $0.30 previously issued with the original promissory note. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $21,469 which was recorded as a derivative liability and debt discount.

 

In March 2023, 125,000 warrants with exercise price of $0.05 were issued that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $3,837 which was recorded as a derivative liability and debt discount.

 

In December 2023, in conjunction with the issuance of a promissory note of $195,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after December 15, 2023 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $248,952 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $195,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.

 

In May 2024, in conjunction with the issuance of a promissory note of $63,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after May 28, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $348,500 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $63,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.

 

In May 2024, in conjunction with the issuance of a line of credit of $2,000,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after May 1, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $180,000 which was recorded as a derivative liability. The assigned value of the warrants along with $7,500 of loan fees and a 2% (or $40,000) required broker fee was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw.

 

F-19

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

In June 2024, in conjunction with the issuance of a line of credit of $250,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after June 14, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $337,500 which was recorded as a derivative liability. As the assigned value of the warrants plus a $25,000 original issue discount and $12,500 of loan fees exceeded the face value of the note, the face value of the note was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw. The difference between the fair value of the warrants and the face value of the note was recorded as interest expense.

 

On July 12, 2024, the Company sold a warrant to purchase 5,000,000 shares of the Company’s common stock at an exercise price of $0.00001 to an investor for $50,000. The warrant has no expiration date. The investor has the option of funding the Company with two additional tranches of $50,000. The second tranche of $50,000 is due within 60 days of the first funding date of July 12, 2024.

 

On August 19, 2024, the Company received the funding for the second tranche and issued to the investor a cash warrant to purchase up to 666,666 shares of Common Stock at an exercise price of $0.08 per share. The warrant has no expiration date.

 

At any time 90 days after the second tranche funding date the investor may invest an additional $50,000 and the Company will issue to the investor a pre-funded warrant to purchase up to 2,500,000 shares of Common Stock in the and a cash warrant to purchase up to 333,333 shares of Common Stock at an exercise price of $0.08 per share. The warrant does not have an expiration date.

 

All derivative liabilities recognized for the warrants issued were valued using the Black-Scholes pricing model. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement (see Note 9).

 

A summary of warrant activity during the years ended September 30, 2024 and 2023 is as follows:

 

Schedule of common stock warrants activity
			Warrants				Weighted-Average				Weighted-Average
			Outstanding				Exercise Price				Life (years)
Balance as of September 30, 2022				1,125,000			$	0.30				4.44
Issuance				2,225,000			$	0.06
Exercised				—			$	—
Expired/Cancelled				(1,000,000	)		$	0.30
Balance as of September 30, 2023				2,350,000			$	0.07				3.51
Issuance				25,666,666			$	0.00001				*
Exercised				—			$	—
Expired/Cancelled				—			$	—
Balance as of September 30, 2024				28,016,666			$	0.01				*

 

* 25,666,666 warrants issued during the year ending September 30, 2024 do not have an expiration date.

 

The intrinsic value of the warrants as of September 30, 2024 and 2023 is $200 and $0. All of the outstanding warrants are exercisable as of September 30, 2024.

 

F-20

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Note 6 – Notes Payable

 

SBA Loan

 

On June 3, 2020, the Company entered into a SBA Loan for $78,500 at a rate of 3.75%. On August 12, 2021 the loan increased to $114,700 and the Company obtained $36,200 on October 8, 2021. The SBA Loan requires payments starting 30 months from the initial funding date and matures on June 7, 2050. During the years ended September 30, 2024 and 2023, the Company recorded interest expense of $5,094 and $4,243, respectively, on the SBA Loan and as of September 30, 2024 and 2023, the accrued interest on the SBA Loan was $5,989 and $6,722, respectively. As of September 30, 2024 and 2023, the outstanding principal of SBA Loan was $116,838.

 

The following represents the future aggregate maturities of the Company’s SBA Loan as of September 30, 2024 for each of the five (5) succeeding years and thereafter as follows:

 

Schedule of future aggregate maturities
Fiscal year ending September 30,			Amount
2025			$	2,452
2026				2,431
2027				2,431
2028				2,431
2029				2,431
Thereafter				104,662
Total			$	116,838

 

Promissory Notes Payable, in Default

 

During June 2022, the Company sold a total of $250,000 worth of Units to U.S. Escrow Services Corporation and Kevin Leach, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $250,000 for cash proceeds of $230,000 (net of an original issuance discount of $20,000), and the issuance of 125,000 warrants (see Note 6). The $20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $50,491. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $8,136 which was recorded as a derivative liability (see Note 9) and debt discount. The total debt discount of $78,627 is being amortized to interest expense over the term of the Note. The debt discount was $0 on September 30, 2024. These notes matured in June 2024 and are still outstanding.

 

On March 1, 2023, the Company entered into a promissory note agreement with an investor for amount of $12,500 with interest bearing at 15% per annum, maturity date of 120 days from issuance and issuance of 25,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $767 which was recorded as a derivative liability and debt discount (see Note 6). During the years ended September 30,2024, the Company recorded interest expense of $2,500 and $1,109 and amortization of debt discount of $0 and $767, respectively. As of September 30, 2024, the debt discount recorded on the note was $0, resulting in a note payable balance of $12,500 and accrued interest of $3,609. As of September 30, 2023, the Company had defaulted on the promissory note payable.

 

During the year ended September 30, 2024, the Company reclassified a promissory note entered on March 1, 2023 with a value of $7,500, with interest bearing 15% per annum, maturity date 120 days from issuance (June 30, 2023) and issuance of 15,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year), from Promissory notes payable – related party to Promissory notes payable due the note holder, a former director, no longer being considered a related party. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $460 which was recorded as a derivative liability and debt discount (see Note 8). During the year ended September 30, 2024 and 2023, the Company recorded interest expense of $1,500 and $1,791, respectively. As of September 30, 2024 and 2023, the accrued interest on the promissory note was $2,166 and $666, respectively. As of September 30, 2024 and 2023, the total outstanding principal of the promissory note payable was $7,500. As of September 30, 2024, the Company had defaulted on the promissory note payable.

 

F-21

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Credit Agreement

 

On March 1, 2024, DIA Leasing, LLC. (the “Borrower”), a direct wholly owned subsidiary of DriveitAway Holdings, Inc. (“DIA”), closed a $2,000,000 line of credit facility (the “Credit Facility”) with an investor (the “Lender”). In connection with the Credit Facility, a credit agreement, promissory note, security agreement and several related ancillary agreements were entered into by the parties.

 

Pursuant to the Credit Agreement dated May 1, 2024 (the “Credit Agreement”), among the Borrower and the Lender, the Lender agreed to make advances of principal (the “draws”) to the Borrower and to issue letters of credit on behalf of the Borrower. The Lender committed to provide up to $250,000 for each draw and up to $2,000,000 of letters of credit. The Borrower must use the letters of credit and the proceeds of the draws only for the purchase of motor vehicles to be used in the course of the Borrower’s business. As of the date hereof, there are no Loans or letters of credit outstanding under the Credit Agreement. The Borrower will pay a commitment fee to the Lender’s broker equal to 2.0% of the available commitments. DIA is a guarantor on the draws.

 

Promissory Note

 

Pursuant to the Promissory Note (the “Note”) dated May 1, 2024, Borrower promises to pay Lender the principal sum of Two Million Dollars and 00/100 ($2,000,000.00), or so much thereof as may be disbursed to, or for the benefit of the Borrower, for the sole purpose of purchasing new motor vehicles for use in Borrower’s business. Disbursements shall be at the sole discretion of the Lender. The unpaid principal of this line of credit shall bear simple interest at the rate of fifteen percent (15%) per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances.

 

Each advance of principal shall be called a “Draw”. Each Draw shall be in an amount no greater than Two Hundred Fifty Thousand Dollars and 00/100 ($250,000.00). The eight Draws may be taken at any time over the 180 days following execution of the Note. Each Draw will be paid over a period of eighteen (18) months from the date that the funds for each Draw are disbursed to Borrower. During the first three (3) months after disbursement, Borrower shall make payments of interest only on the funds disbursed. From month four (4) through month seventeen (17), Borrower shall make payments of principal and interest based on an amortization of forty-eight (48) months. On month eighteen (18) all outstanding principal and unpaid interest shall be paid in full. All payments are due on first day of the month following disbursement.

 

The Borrower shall be in default of this Note on the occurrence of any of the following events: (i) the Borrower shall fail to meet its obligation to make the required principal or interest payments hereunder or any term contained in the Loan Documents. (ii) the Borrower shall be dissolved or liquidated; (iii) the Borrower shall make an assignment for the benefit of creditors or shall be unable to, or shall admit in writing their inability to pay their debts as they become due; (iv) the Borrower shall commence any case, proceeding, or other action under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors, or any such action shall be commenced against the undersigned; (v) the Borrower shall suffer a receiver to be appointed for it or for any of its property or shall suffer a garnishment, attachment, levy or execution. Upon default of this Note, Lender may declare the entire amount due and owing hereunder to be immediately due and payable.

 

As of September 30, 2024, the Company has drawn $526,978 on the Promissory Note and $47,500 in broker and legal fees. The Company recorded deferred offering costs of $199,999 related to the warrant issued in conjunction with the Promissory Note. The Company amortized $55,328 of deferred offering costs during the year ended September 30, 2024. The amount of interest accrued and paid on the Promissory note was $12,75217,253 as of September 30, 2024. The promissory notes payable balance was $540,129 as of September 30, 2024.

 

F-22

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Security Agreement

 

Pursuant to a Security Agreement dated May 1, 2024, all vehicles purchased shall be titled in the name of Borrower, and Borrower consents to a lien in favor of Lender on the title to each vehicle purchased. Lender shall only be required to release the lien on each vehicle once Lender has received payment in full of all principal, interest, and any other sums due on the Draw through which the vehicle was purchased. The net book value of the vehicles that serve as collateral on this obligation is $620,185. The gross value of the pledged vehicles is less than the gross borrowings on the Promissory Note.

 

Warrant

 

As further consideration for the credit facility, DIA issued Lender a prefunded warrant (the “Warrant”) for the purchase of up to 5,000,000 shares of DIA’s common stock. The fair market value of the Warrant was $180,000 the date of grant, which was recorded as a derivative liability. The assigned value of the warrants along with $7,500 of loan fees and a 2% (or $40,000) required broker fee was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note.

 

Promissory Notes Payable

 

On May 1, 2023 the Company executed a note payable with a face amount of $35,982. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $35,982 (including fixed fees of $3,682 or approximately 10% of the note amount). The Company received net proceeds of $32,300 and the $3,685 of fixed fees were recorded as debt discount. As of September 30, 2023, the Company had amortized the full $3,682 of debt discount, had made repayments of $27,752, and rolled $8,230 of the note’s principal still due into a second note (see below), therefore the loan was considered paid in full.

 

On August 15, 2023 the Company executed a second note payable with the same lender from the May 1, 2023 note, with a face amount of $64,206. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $64,206 (including fixed fees of $6,206 or approximately 10% of the note amount). The Company received net proceeds of $49,770 after paying off the May 1, 2023 note and rolling $8,230 of its balance into the August 15, 2023 note and recording the $6,206 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized the full $6,206 of the debt discount and made repayments of $57,820 and rolled $6,386 of the note’s principal still due into a third note (see below), therefore the loan was considered paid in full.

 

On February 22, 2024, the Company executed a third note payable with the same lender with a face amount of $57,474. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $57,474 (including fixed fees of $5,974 or approximately 10% of the note amount). The Company received net proceeds of $44,644 after paying off the August 15, 2023 note and rolling $6,856 of its balance into the February 22, 2024 note and recording the $5,974 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized the full $5,974 of the debt discount and made repayments of $38,211 and rolled $19,263 of the note’s principal still due into a fourth note (see below), therefore the loan was considered paid in full.

 

On July 3, 2024, the Company executed a fourth note payable with a lender with a face amount of $88,800. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $88,800 (including fixed fees of $8,800 or approximately 10% of the note amount). The Company received net proceeds of $60,737 after paying off the February 22, 2024 note and rolling $19,263 of its balance into the July 3, 2024 note and recording the $8,800 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized $2,939 of the debt discount and made repayments of $49,496, resulting in a debt discount balance of $5,861 and a loan balance of $39,304, for a net note balance of $38,159 at September 30, 2024.

 

F-23

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

The following represents the future aggregate maturities as of September 30, 2024 of the Company’s Promissory Notes Payable:

 

Schedule of future aggregate maturities
Fiscal year ending September 30,			Amount
2025			$	38,159
2026				—
Total			$	38,159

 

Note 7 – Convertible Notes Payable

  

AJB Capital Investments, LLC Note

 

Effective February 24, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $750,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $675,000 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid $33,750 in certain fees and due diligence costs of AJB and brokerage fees to J.H. Darbie & Co., a registered broker dealer. After payment of the fees and costs, the net proceeds to the Company were $641,250, which will be used for working capital and other general corporate purposes.

 

F-24

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

The maturity date of the AJB Note was extended to February 25, 2025. The AJB Note bears interest at 10% per annum for the original note’s period and 12% per annum for extension period which was started from August 24, 2022, and it is payable on the first of each month beginning April 1, 2022. The Company may prepay the AJB Note at any time without penalty.

 

The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 10% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.

 

Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $800,000, payable in the form of 4,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. If, after the sixth month anniversary of closing and before the thirty-sixth month anniversary of closing, AJB has been unable to sell the Commitment Fee Shares for $800,000, then the Company may be required to issue additional shares or pay cash in the amount of the shortfall. However, if the Company pays the AJB Note off on or before its maturity date, then the Company may redeem 2,000,000 of the Commitment Fee Shares for one dollar and the amount of the commitment fee will be reduced to $400,000. On issuance of the note, the Company determined that the guarantee on the commitment fee was a make-whole provision and an embedded derivative within the host instrument. The guarantee was bifurcated from the host instrument and recorded as a derivative liability valued at $384,287 using a Black-Scholes option pricing model (see Note 9).

 

Pursuant to the SPA, the Company also issued to AJB common stock purchase warrants (the “warrants”) to purchase 1,000,000 shares of the Company’s common stock for $0.30 per share, which was assigned a value of $107,283 that was recorded as derivative liability (see Notes 6 and 9). The warrants expire on February 24, 2027. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants.

 

After recording the derivative liabilities associated with the SPA, the Company allocated the net proceeds to the 4,000,000 common shares issued and the note itself based on their relative fair market values, resulting in the common shares being assigned a value of $65,274 (see Note 6). The allocation of the financing costs of $108,750, the derivative for the guarantee of $384,287, the derivative for the warrant of $107,283, and issuance of the 4,000,000 Commitment Fee shares of $65,274, to the debt component resulted in a $665,594 debt discount that is being amortized to interest expense over the term of the AJB Note.

 

On October 31, 2022, the Company amended the AJB Note to issue 1,000,000 additional Commitment Fee Shares, recognizing the value of the shares and a debt discount of $60,000 (see Note 6).

 

On February 10, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $85,000, which increased the restricted cash balance to be used for payments for professional services, replacing the original 1,000,000 warrants with an exercise price of $0.30 with 2,000,000 warrants with an exercise price of $0.05 (see Note 6), and extending the maturity date of the note to May 24, 2023. The Company determined the extension of cash and modification to other terms met the conditions of a debt extinguishment; therefore the Company recorded a loss on extinguishment of debt for the total amount of $36,313 included in other income (expenses) within the accompanying statement of operation.

 

On September 27, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $25,000 which increased the restricted cash balance to be used for payments for professional services.

 

F-25

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

On November 28, 2023, the Company entered into a third amendment with AJB Capital Investments, LLC by increasing the original principal of note with amount of $22,222 in which the Company received $20,000 in cash (after giving effect to a 10% original issue discount) for payment to vendors.

 

Effective December 15, 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $195,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $165,750 (after giving effect to a 15% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $150,750, which will be used for working capital and other general corporate purposes.

 

The maturity date of the AJB Note is February 25, 2025 Company may prepay the AJB Note at any time without penalty.

 

The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 15% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.

 

In December 2023, in conjunction with the issuance of a promissory note of $195,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercised at any time on or after December 15, 2023 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on The holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $248,952 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $195,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.

 

Effective February 23, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $140,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $112,000 (after giving effect to a 20% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $102,000, which was used for working capital and other general corporate purposes.

 

The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 12% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.

 

Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $50,000, payable in the form of 5,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception.

 

On May 28, 2024, the Company entered into another SPA with AJB, and issued a promissory note in the amount of $63,000 (the “May 2024 AJB Note”) to AJB in a private transaction for a purchase price of $56,700 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees, totaling $6,700. After payment of the fees and costs, the net proceeds to the Company were $50,000, which will be used for working capital and other general corporate purposes.

 

F-26

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 12% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.

 

Also pursuant to the SPA, the Company paid to AJB a commitment fee in the form of 1,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. The Company also issued to AJB common stock purchase warrants (the “May 2024 warrants”) to purchase 5,000,000 shares of the Company’s common stock for a nominal exercise price of $0.00001 per share. The May 2024 warrants may be exercised at any time on or after May 28, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $348,499 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $63,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.

 

On June 14, 2024, the Company entered into another SPA with AJB, and issued a promissory note with a face amount of $250,000 (the “June 2024 AJB Note”) to AJB in a private transaction for a purchase price of $225,000 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees, totaling $12,500. The Company may draw on the June 2024 AJB Note as automobiles for the rental fleet are purchased, up to a maximum amount of $212,500. As a result, the Company accounted for this note as a line of credit.

 

The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 15% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.

 

The note is convertible into Common Stock of the Company at any time that the note is in default provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 9.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price shall equal $0.01 per share, subject to adjustments. The conversion is subject to reduction in the following situations: (i) a 15% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.

  

Also pursuant to the SPA, the Company paid to AJB a commitment fee in the form of a warrant to purchase 5,000,000 unregistered shares of the Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after June 14, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $337,499 which was recorded as a derivative liability. As the assigned value of the warrants plus a $25,000 original issue discount and $12,500 of loan fees exceeded the face value of the note, the face value of the note was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw. The difference between the fair value of the warrants and the face value of the note was recorded as interest expense.

 

F-27

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

During the year ended September 30, 2023, the Company recorded interest expense of $97,849, increased debt discount by $63,500 (of which $65,259 was amortized and $7,241 was recorded as part of the loss on debt extinguishment), recorded a loss on change in fair value of derivative liability of $126,338, recorded an additional $29,072 for a loss on debt extinguishment, and repaid $31,042 of interest. As of September 30, 2023, the derivative liability was $663, the debt discount recorded on the note was $0, the note payable principal was $860,000, and the Company owed accrued interest of $68,562.

 

During the year ended September 30, 2024, the Company recorded interest expense of $105,443 and recorded a loss on change in fair value of derivative liability of $293,574. As of September 30, 2024, the derivative liability was $245,442, the debt discount recorded on the note was $0, the note payable principal was $860,000, and the Company owed accrued interest of $174,005.

 

Effective February 14, 2023 the Company went into default on the AJB Note, however the lender waived all default provisions through February 25, 2025 therefore no default interest or penalties were incurred during the year ended September 30, 2024 and 2023 and the AJB note was not convertible as of September 30, 2024 and 2023.

 

Secured Convertible Notes

 

In June 2022, the Company’s board of directors approved an offering of up to 10 Units at $50,000 per Unit in a private offering. Each Unit consists of a Secured Convertible Note with an original principal balance of $50,000 and one warrant to purchase Common Stock for every $2 invested in the offering. The warrants have an exercise price of $0.30 per share and expire five (5) years from the date of issuance. Each Secured Convertible Note bears interest at 15% per annum, matures two years after the date of issuance, and is convertible at the option of the holder into common stock at $0.20 per share. Pursuant to a security agreement between the Company and investors in the Unit offering, and the subscription agreements executed by the Company and the investors, the Secured Convertible Notes are secured by liens on four existing electric vehicles that were owned by the Company at the time of the commencement of the offering, and eight additional electric vehicles that will be purchased with the proceeds of the offering, assuming all 10 Units are sold in the offering. The Company also granted subscribers in the Unit offering piggyback registration rights with respect to any shares of common stock issuable upon conversion of the Secured Convertible Notes or upon exercise of the warrants issued in the Unit offering.

 

During November 2022, the Company sold a total of $200,000 worth of Units to Cestone Family Foundation and Michele and Agnese Cestone Foundation, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $200,000 for cash proceeds of $180,000 (net of an original issuance discount of $20,000), and the issuance of 100,000 warrants (see Note 6). The $20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $19,330. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $7,254 which was recorded as a derivative liability (see Note 9) and debt discount). The total debt discount of $43,124 is being amortized to interest expense over the term of the Note.

 

F-28

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

   

During the year ended September 30, 2023, the Company recorded interest expense of $64,605, paid interest of $13,125, and recorded amortization of debt discount of $58,158. As of September 30, 2023, the debt discount recorded on the notes was $51,626 and the principal balance was $450,000, resulting in a net note payable balance of $398,374. As of September 30, 2023, the Company owed accrued interest of $63,063.

 

During the year ended September 30, 2024, the Company recorded interest expense of $30,000, paid interest of $0, and recorded amortization of debt discount of $21,640. As of September 30, 2024, the debt discount recorded on the notes was $2,640 and the principal balance was $200,000, resulting in a net note payable balance of $197,360. As of September 30, 2024, the Company owed accrued interest of $56,584.

 

The following represents the future aggregate maturities of the Company’s Secured Convertible Notes as of September 30, 2024 for each of the five (5) succeeding years and thereafter as follows:

 

Schedule of future aggregate maturities
Fiscal year ending September 30,			Amount
2025			$	200,000
Total			$	200,000

 

Note 8 – Derivative Liabilities

 

As discussed in Note 7, certain features and instruments issued as part of the Company’s debt financing arrangements qualified for derivative accounting under ASC 815, Derivatives and Hedging, as the number of common shares that are to be issued under the arrangements are indeterminate, therefore the Company’s equity environment is tainted.

 

ASC 815 requires we record the fair market value of the derivative liabilities at inception and at the end of each reporting period and recognize any change in the fair market value as other income or expense item.

 

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair values at inception and as of September 30, 2024 and 2023. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The following assumptions were used in the Black-Scholes model during the year ended September 30, 2024:

 

Schedule of defined benefit plan, assumptions
Expected term			0.68 - 5.00 years
Expected average volatility			111% - 499%
Expected dividend yield
Risk-free interest rate			3.93% - 4.93%

 

At September 30, 2024, the estimated fair values of the liabilities measured on a recurring basis are as follows (level 3):

 

F-29

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

Schedule of estimated fair value of liabilities
Commitment fee guarantee issued February 24, 2022		$	213,033
Warrants issued February 24, 2022			48,799
Embedded conversion feature in Note issued June 3, 2022			2,444
Warrants issued June 3, 2022			24,400
Embedded conversion feature in Note issued June 16, 2022			3,666
Warrants issued June 16, 2022			36,500
Embedded conversion feature in Note issued November 15, 2022			4,890
Warrants issued November 15, 2022			20,596
Warrants issued on February 10, 2023			48,799
Warrants issued on March 1, 2023			6,837
Warrants issued on December 15, 2023			243,950
Warrants issued on May 1, 2024			244,000
Warrants issued on May 28, 2024			244,000
Warrants issued on June 16, 2024			244,000
Derivative liability balance - September 30, 2024		$	1,386,014

 

The following table summarizes the changes in the derivative liabilities during the years ended September 30, 2024 and 2023:

Schedule of derivative liabilities
Derivative liability balance - September 30, 2022		$	115,009
Addition of new derivatives recognized as debt discounts			26,959
Loss on debt extinguishment			29,072
Gain on change in fair value of the derivative			(169,723	)
Derivative liability balance - September 30, 2023			1,317
Addition of new derivatives recognized as debt discounts			1,089,454
Gain on change in fair value of the derivative			342,751
Derivative liability balance - September 30, 2024		$	1,386,014

 

Note 9 – Income Taxes

 

The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

 

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate of 31% to the income tax amount recorded as of September 30, 2024 and 2023 are as follows:

 

Schedule of Components of Deferred Taxes
		Years Ended
		September 30,
		2024				2023
Deferred tax assets:
Net operating loss carryover		$	914,000			$	773,800
Accruals			4,100				17,800
Development			—				14,700
Depreciation & amortization			(13,200	)			(12,200	)
Valuation allowance			(904,900	)			(794,100	)
Net deferred tax asset		$	—			$	—

 

F-30

 

 

DriveItAway Holdings, Inc.

Notes to the Consolidated Financial Statements

September 30, 2024

 

The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended September 30, 2024 and 2023, due to the following:

 

Schedule of effective income tax rate reconciliation
		Years Ended
		September 30,
		2024								2023
Expected Federal Tax		$	(619,800	)			21.0	%		$	(195,300	)			21.0	%
State income taxes (net of federal benefit)			(103,900	)			3.5	%			(73,500	)			7.9	%
Permanent adjustments			340,200				(11.5	)%			800				(0.1	)%
State tax rate change			38,200				(1.3	)%			38,200				(4.1	)%
Change in valuation allowance			345,300				(11.5	)%			229,800				(24.7	)%
Total income tax provision		$	—							$	—

 

The net operating losses (“NOLs”) carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382. The Company experienced a change in control for tax purposes in February 24, 2022. Due to change of control, the Company estimates not being able to carryover approximately $1,700,000 of NOL generated before February 24, 2022 to offset future income.

 

As of September 30, 2024, the Company had approximately $3,450,000 of net operating loss carryforwards that may be offset against future taxable income. No tax benefit has been reported in the September 30, 2024 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Tax returns for the years ended 2020 and forward are subject to review by the tax authorities.

 

Note 10 – Subsequent Events

 

Management has evaluated subsequent events through the date these financial statements were available to be issued. Please note the following matters deemed to be subsequent events.

 

On October 24, 2024, the Company entered into an agreement with Free2Move North America, Inc. (Free2Move) to become an operator of Free2Moves vehicle network. Free2Move, owned by the vehicle manufacturer Stellantis, has a fleet lease program designed for companies like DriveItAway, that operate subscription rental vehicle services, with preferred fleet lease terms, for both interest carrying costs and residual value, for all Stellantis (Jeep, Dodge, Ram, Chrysler, Alfa Romeo) vehicles.

 

To date, the Company has two vehicles on the Free2Move program on a pilot, and anticipates having many more Free2Move lease vehicles in the future.

 

On November 7^th, the Company entered into an agreement with Crum & Forster, represented by the broker Marsh, for contingent liability insurance for our fleet of owned vehicles.

 

On November 19, 2024, the Company entered into a loan agreement with an existing note holder for a promissory note with a face value of $77,700 and an original issue discount of $7,614. The loan is due on May 20, 2026.

 

On November 25, 2024, the Company issued 250,000 shares of its common stock to an accredited investor for $5,000 in gross proceeds.

 

Subsequent to year end and up to the date of this filing, the Company purchased six vehicles for $137,289. The purchases were financed from draws on existing credit lines.

 

 

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

On September 30, 2024, the Board of Directors of DriveItAway Holdings, Inc. (the “Registrant” or the ‘Company”) dismissed Mac Accounting Group & CPAs, LLP (MAC) as its independent registered public accounting firm.

 

During the period of MAC’s engagement as the Company’s independent registered public accounting firm through September 30, 2024 (the “Engagement Period”), there were no disagreements as defined in Item 304 of Regulation S-K with MAC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of MAC, would have caused it to make reference in connection with any opinion to the subject matter of the disagreement. Further, during the Engagement Period, there were no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K).

 

On October 7, 2024, the Board of Directors appointed Victor Mokoulu, CPA PLLC (“Mokoulu”), an independent registered public accounting firm which is registered with, and governed by the rules of, the Public Company Accounting Oversight Board, as our independent registered public accounting firm. During our two most recent fiscal years through September 30, 2024, neither us nor anyone on our behalf consulted Mokoulu regarding either (1) the application of accounting principles to a specified transaction regarding us, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements; or (2) any matter regarding us that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and related instructions to Item 304 of Regulation S-K) or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K).

 

Item 9A. Controls and Procedures

 

(a)

Evaluation of Disclosure Controls and Procedures

 

Our Principal Executive Officer and Principal Financial Officer conducted an evaluation of the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that in light of the material weaknesses described below, our disclosure controls and procedures were not effective as of September 30, 2024. See material weaknesses discussed below in Management’s Annual Report on Internal Control over Financial Reporting.

 

(b)

Management’s Annual Report on Internal Control Over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Our management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

 

Our internal control over financial reporting is a process designed under the supervision of our Principal Executive Officer and Principal Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of our financial statements for external reporting purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditure are being made only in accordance with authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

 

 

As of September 30, 2024, we conducted an evaluation of the effectiveness of our internal control over financial reporting. Our management concluded that our internal controls over financial reporting were not effective as of September 30, 2024 due to the following identified material weaknesses:

 

●

Our control environment is inadequate. We have no risk assessment procedures, no formal information or communication process, and no monitoring activities in place. Additionally, we lack policies that require formal written approval for related party transactions.

 

●

We have not established and/or maintained adequately designed internal controls in order to prevent or detect and correct material misstatements to financial statements. We do not have controls in place to prevent individuals from manipulating financial data or entering inaccurate data into the accounting software, and there are no controls over the financial reporting close process. Additionally, we lack segregation of duties and review procedures to ensure our financial data is accurate.

 

●

We lack the necessary accounting resources with sufficient SEC reporting experience, US GAAP knowledge and accounting experience. We also lack the resources to properly account for complex debt and equity transactions and are unable to analyze such transactions timely or in sufficient detail.

 

Management believes that despite our material weaknesses, our consolidated financial statements for the year ended September 30, 2024 are fairly stated, in all material respects, in accordance with GAAP.

 

(c) Changes in Internal Control Over Financial Reporting

 

During the fourth quarter of 2024, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Inherent Limitations Over Internal Controls

 

Management, including our Principal Executive Officer and Principal Financial Officer, does not expect that disclosure controls and internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are no resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgements in decision making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls.

 

Attestation Report of the Independent Registered Public Accounting Firm

 

This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Our management’s report was not subject to attestation by our independent registered public accounting firm pursuant to the Dodd-Frank Act that permanently exempted smaller reporting companies from the auditor attestation requirement.

 

Item 9B. Other Information

 

None.

 

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.

 

Not applicable

 

 

PART III

 

Item 10. Directors, Executive Officers and Corporate Governance Directors and Executive Officers

 

Our directors and executive officers and their ages at the date of this filing are listed in the following table:

 

Name		Age				Title
John Possumato			63			Chief Executive Officer and Director
Adam Potash			36			Chief Operating Officer and Director
Steven M. Plumb			65			Chief Financial Officer

 

John Possumato is a noted consultant, author, and speaker in the automotive industry, and is the Founder and CEO of DIA since 2018. A serial entrepreneur and a franchise car dealership owner veteran, Possumato has over 35 years of leadership experience fostering and growing start-up companies. Also known by vehicle manufacturers, Possumato helped create the dealer focused commercial fleet programs for Ford, General Motors, and Jaguar. Possumato conceived of DriveItAway in 2017, while at Automotive Mobile Solutions LLC, a technology company he founded and led as CEO in 2012, to adapt new mobile marketing innovations to automotive retailers.

 

He is also an attorney, a graduate of the Law School at the University of Pennsylvania (J.D.) and the Wharton School of Business (B.S.), is a member of the Bar of the State of Pennsylvania, was a Wharton School Entrepreneur in Residence, University City Science Center OnRamp Founder in Residence, a founding Board member of the International Automotive Remarketers Alliance, and past Counsel to the Board of Directors of the Automotive Fleet and Leasing Association. He most recently helped create the Drive For Freedom Foundation, a 501(c)(3) nonprofit created to alleviate the “Poverty of the Carless.”

 

Adam Potash began his career in a start-up engaging in passenger transportation and has been involved in mobility-based start-ups ever since. In 2011, he founded and became CEO of Minds’ Eye Innovations, which provided ride sharing software to taxi companies to compete against Uber and Lyft. He helped to grow the company to service over 70 taxi companies processing 10,000+ orders per day. Mr. Potash later joined a ride share start-up called Leap that was assembled by former management members of Gett Taxi (3^rd largest ride share company in NYC) and became the CTO helping the team bring to market a new ride share concept. In 2019, Potash became COO of DIA, helping DIA launch its “Pay As You Go” car ownership program, where he continues to lead product development and operations. He is a graduate of Villanova University.

 

Steven M. Plumb became the Company’s Chief Financial Officer on April 4, 2024. Mr. Plumb is a seasoned senior executive and financial manager experienced in operations, finance and marketing. He has Big 4 CPA experience, a background in IT, biotech, oil and gas, real estate, medical and utility companies. Since 2001, he has served as the owner and president of Clear Financial Solutions, Inc., a consulting firm that provides interim CFO services to small public companies. In this capacity he has prepared SEC filings, managed investor relations, raised capital, conducted mergers and acquisition activities, developed successful offering memorandum, registration statements and investor presentations. Mr. Plumb is a former auditor with PriceWaterhouseCoopers and KPMG. Mr. Plumb has a Bachelor of Business Administration degree from the University of Texas at Austin, Austin, Texas.

 

None of the directors and executive officers has been involved in any legal proceedings as listed in Regulation S-K, Item 401(f).

 

Term of Office

 

Our directors are appointed for a one-year term to hold office until the next annual general meeting of our stockholders or until removed from office in accordance with our Bylaws and the provisions of the Delaware General Corporation Law. Our directors hold office after the expiration of his or her term until his or her successor is elected and qualified, or until his or her resignation, death, or removal in accordance with our Bylaws or the Delaware General Corporation Law.

 

 

Our officers are appointed by our board of directors and hold office until removed by our board of directors at any time for any reason.

 

Family Relationships

 

There are no family relationships between or among any of our directors or executive officers or persons nominated or chosen by us to become directors or executive officers.

 

Director Independence

 

Our board of directors has reviewed the independence of our directors and has determined that no director qualifies as an independent director pursuant to Rule 5605(a)(2) of Nasdaq and applicable SEC rules and regulations. In making this determination, our board of directors considered the relationships that each of our directors has with us and all other facts and circumstances our board of directors deemed relevant in determining their independence.

 

Board Committees

 

Our board of directors has no separately designated committees and our board members carry out the functions of both an audit committee and a compensation committee. We do not have an audit committee financial expert serving on our board of directors. Due to our limited financial resources, we are not in a position to retain an independent director with the qualifications to serve as an audit committee financial expert at this time.

 

Audit Committee Financial Expert

 

The Board has determined that it does not have an “audit committee financial expert” within the meaning of SEC rules.

 

Code of Ethics

 

The Company has adopted a Code of Ethics applicable to its principal executive, financial and accounting officers and persons performing similar functions, as well as all directors and employees of the Company.

 

Communication with the Board

 

Our stockholders and other interested parties may send written communications directly to the Board or to specified individual directors, including the Chairman or any other non-management directors, by sending such communications to the Chief Executive Officer of the Company, P.O. Box 4502, Boise, Idaho 83711. Such communications will be reviewed by our outside legal counsel and, depending on the content, will be:

 

●

forwarded to the addressees or distributed at the next scheduled board meeting;

 

●

if they relate to financial or accounting matters, forwarded to the audit committee or distributed at the next scheduled audit committee meeting;

 

●

if they relate to executive officer compensation matters, forwarded to the compensation committee or discussed at the next scheduled compensation committee meeting;

 

●

if they relate to the recommendation of the nomination of an individual, forwarded to the full Board or discussed at the next scheduled Board meeting; or

 

●

if they relate to our operations, forwarded to the appropriate officers of our company, and the response or other handling of such communications reported to the Board at the next scheduled board meeting.

 

 

If multiple communications are received on a similar topic, the Secretary may, in his discretion, forward only representative correspondence. Any communications that are abusive, in bad taste or present safety or security concerns may be handled differently.

 

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Exchange Act requires directors, executive officer and persons who beneficially own more than 10% of a registered class of our equity securities to file with the SEC initial reports of ownership and reports or changes in ownership of such equity securities. Such persons are also required to furnish us with copies of all Section 16(a) forms that they file. Based upon a review of the copies of the forms furnished to us and written representations from certain reporting persons, we believe that, during the year ended September 30, 2024, none of our executive officers, directors or beneficial owners of more than 10% of any class of registered equity security failed to file on a timely basis any such report.

 

Item 11. Executive Compensation

 

The following identifies the elements of compensation for the fiscal years 2024 and 2023 with respect to our “named executive officers,” which term is defined by Item 402 of the SEC’s Regulation S-K to include (i) all individuals serving as our principal executive officer at any time during fiscal year 2024, (ii) our two most highly compensated executive officers other than the principal executive officer who were serving as executive officers at September 30, 2024 and whose total compensation (excluding nonqualified deferred compensation earnings) exceeded $100,000, and (iii) up to two additional individuals for whom disclosure would have been provided pursuant to the foregoing item (ii) but for the fact that the individual was not serving as an executive officer of the Company at September 30, 2023.

 

Summary Compensation Table

 

		Fiscal								Stock				All Other
Name and Principal Position		Year				Salary				Compensation				Compensation				Total
John Possumato			2024			$	80,500			$	—			$	—			$	80,500
Chief Executive Officer (1)			2023			$	104,000			$	—			$	—			$	104,000
Adam Potash			2024			$	80,500			$	—			$	—			$	80,500
Chief Operating Officer (2)			2023			$	104,000			$	—			$	—			$	104,000
Steven M. Plumb			2024			$	18,750			$	—			$	—			$	18,750
Chief Financial Officer (3)			2023			$	—			$	—			$	—			$	—
Mike Elkin			2024			$	12,000			$	—			$	—			$	12,000
Chief Financial Officer (4)			2023			$	48,000			$	—			$	—			$	48,000

 

1)

On February 24, 2022, John Possumato was appointed Chief Executive Officer of the Company

 

2)

On February 24, 2022, Adam Potash was appointed Chief Operating Officer of the Company

 

3)

On April 4, 2024, Steven Plumb was appointed Chief Financial Officer of the Company

 

4)

In March 2024, Mike Elkin resigned as Chief Financial Officer of the Company.

 

 

Narrative Disclosure of Compensation Policies and Practices as They Relate to Our Risk Management

 

We believe that our compensation policies and practices for all employees and other individual service providers, including executive officers, do not create risks that are reasonably likely to have a material adverse effect on us.

 

Outstanding Equity Awards At Fiscal Year-End

 

None of the named executive officers have any unvested equity awards or unexercised options in the Company as of September 30, 2024.

 

Employee Benefit Plans and Pension Benefits

 

The Company does not provide its officers or employees with pension, stock appreciation rights, long-term incentive or other plans. The Company does not have a defined benefit, pension or profit-sharing plan.

 

Director Compensation

 

Our Board does not have a current compensation policy for its directors. However, we reimburse our directors for reasonable travel and other related expenses. None of our directors received any director compensation during the year ended September 30, 2024.

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

The following table sets forth, as of February 24, 2025,  certain information concerning the beneficial ownership of our common stock by (i) each person known by us to own beneficially five percent (5%) or more of the outstanding shares of each class, (ii) each of our directors and named executive officers, and (iii) all of our executive officers and directors as a group.

 

The number of shares beneficially owned by each 5% stockholder, director or executive officer is determined under the rules of the Securities & Exchange Commission, or SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Under those rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power and also any shares that the individual or entity has the right to acquire within 60 days through the exercise of any stock option, warrant or other right, or the conversion of any security. Unless otherwise indicated, each person or entity has sole voting and investment power (or shares such power with his or her spouse) with respect to the shares set forth in the following table. The inclusion in the table below of any shares deemed beneficially owned does not constitute an admission of beneficial ownership of those shares.

 

		Number of
		Commons Shares				Percent of
		of Beneficial				Class
Name and Address of Beneficial Owner (1)		Ownership				(2)
5% Beneficial Owners:			—				—
AJB Capital Holdings, LLC			7,000,000				6.2	%
Named Executive Officers and Directors:
John Possumato (3)			34,590,190	(3)			30.4	%
Adam Potash (4)			35,528,599	(4)			31.2	%
Steven M. Plumb			—				0.0	%
All Officers and Directors as a Group			77,118,789				67.8	%

 

 

	(1)	Unless otherwise noted, the address of each beneficial owner is c/o DriveItAway Holdings, Inc. 3201 Market Street, Suite 200/201, Philadelphia, PA 10104.
	(2)	Applicable percentages are based on 113,701,722 shares of our common stock outstanding as of September 30, 2024.
	(3)	Includes 32,680,519 common shares owned by Driveitaway, LLC. John Possumato, has investing and dispositive power of shares beneficially owned by Driveitaway, LLC.
	(4)	Includes 32,887,210 common shares owned by Minds Eye Innovation, Inc. Adam Potash has investing and dispositive power of shares beneficially owned by Minds Eye Innovation, Inc.

 

Equity Compensation Plan

 

The Company does not have an equity compensation plan.

 

Item 13. Certain Relationships and Related Transactions, and Director Independence

 

Related Party Convertible Notes Payable

 

On September 13, 2019, the Company issued a Convertible Promissory Note to Driveitaway, LLC, a company controlled by John Possumato, the Company’s CEO, for $30,000, with a maturity date of September 13, 2022. On October 13 and October 14, 2020, the Company issued Convertible Promissory Notes to Driveitaway, LLC and Adam Potash, the Company’s COO, for $25,000 each, which mature on October 13 and 14, 2022, respectively. On December 24, 2020, the Company issued a Convertible Promissory Note to Adam Potash, for $15,000, which matures on December 24, 2022. Each of the notes bear interest at a rate of 6% per annum. The notes automatically convert into preferred stock of DIA in the event DIA raises at least $1,000,000 by the issuance of preferred stock prior to the maturity dates of the notes (a “Qualified Financing”). In the event DIA enters into a financing that is not a Qualified Financing prior to the maturity dates of the notes, the holders have the right to convert their notes into the class and series of equity securities offered in the non-Qualified Financing at the offer price thereof. In the event DIA effects a change of control, the holders have the option of converting their notes into common stock in order to participate in the change of control or accelerating the maturity date and receiving cash at the time of the change of control.

 

At the closing of the Share Exchange on February 24, 2022, the holders of the related party Convertible Promissory Notes agreed to convert all of the principal and interest of $104,564 due under the notes into 52,284 shares of DIA common stock, which was automatically converted into 52,284 shares of Series A Preferred.

 

During the years ended September 30, 2024, and 2023, the Company recorded interest expense for related parties of $8,595 and $4,918, respectively. As of September 30, 2024 and 2023, the Company had accrued interest owed to related parties of $12,752 and $4,918, respectively.

 

Advances and Repayments

 

In the normal course of business, the Company’s management team or their affiliates will make payments on behalf of the Company or will provide short-term advances to the Company to cover operating expenses. During the year ended September 30, 2024, related parties made payments on the Company’s behalf or provided short-term advances to the Company totaling $0 and the Company made repayments to related parties of $0. As of September 30, 2024 and 2023, the Company owed related parties $25,080 and $25,080, respectively, for this activity.

 

 

Director Independence

 

Our current Board consists of John Possumato, and Adam Potash. Our common stock is currently quoted on the over-the-counter market. Since the over-the-counter market does not have its own rules for director independence, we use the definition of independence established by the NASDAQ Stock Market. Under applicable NASDAQ Stock Market rules, a director will only qualify as an “independent director” if none of the following conditions existed throughout the year (a) was employed by us, (b) received more than $120,000 in compensation from us, other than for board services, (c) had a family member who was employed as an executive officer of us, (d) was, or had a family member that was, a partner, controlling shareholder or executive officer of any organization that received payments for property or services that exceeded the greater of 5% of the recipient’s gross revenues or $200,000, (e) was, or had a family member that was, employed as an executive officer of another entity during the past three years where any of the executive officers of us serve on the compensation committee, or (f) was, or had a family member that was, a partner in our auditor at any time in the past three years. At this time, we have determined that we have no independent directors.

 

The Board does not currently have any committees. The Board has approved the formation of an Audit Committee, and an Audit Committee charter, but no members currently serve on the Audit Committee. The independent directors perform the functions of the Audit Committee.

 

Item 14. Principal Accountant Fees and Services.

 

The following table presents fees for professional services provided by our independent registered public accounting firm for the years September 30, 2024 and 2023, respectively:

 

The following table shows the fees billed aggregate to the Company for the periods shown:

 

		Fiscal Year				Fiscal Year
		2024				2023
Audit Fees (1)		$	77,455			$	82,000
Audit-Related Fees (2)			—				—
Tax Fees (3)			—				—
All Other Fees (4)			—				—
Total Fees		$	77,455			$	82,000

 

(1)

Audit Fees. Audit services include work performed for the audit of our financial statements and the review of financial statements included in our quarterly reports, as well as work that is normally provided by the independent registered public accounting firm in connection with statutory and regulatory filings.

 

(2)

Audit-related services. Audit-related services are for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not covered above under “audit services.”

 

(3)

Tax services. Tax services include all services performed by the independent registered public accounting firm’s tax personnel for tax compliance, tax advice and tax planning.

 

(4)

All other Fees. All other fees are those services and/or travel expenses not described in the other categories. The SEC requires that before our independent registered public accounting firm is engaged by us to render any auditing or permitted non-audit related service, the engagement be either: (i) approved by our audit committee or (ii) entered into pursuant to pre-approval policies and procedures established by the audit committee, provided that the policies and procedures are detailed as to the particular service, the audit committee is informed of each service, and such policies and procedures do not include delegation of the audit committee’s responsibilities to management.

 

Pre-Approval Policies and Procedures

 

We do not have an audit committee. Our Board pre-approves all services provided by our independent registered public accounting firm. All of the above services and fees during the fiscal years ended September 30, 2024 and 2023 were reviewed and approved by our Board before the respective services were rendered.

 

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules.

 

(a) Exhibits

 

INDEX TO EXHIBITS

 

Exhibits		Description
3.1		Certificate of Incorporation, dated March 8, 2006 (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2, File No. 333-1459990)
3.2		Amendment to Certificate of Incorporation, (incorporated by reference to Exhibit 3.1.2 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2010)
3.3		Bylaws (incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form SB-2, File No. 333-145999)
3.3.1		Amended and Restated Bylaws, dated December 6, 2019 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K, filed on December 6, 2019)
3.4		Certificate of Designation, Rights and Preferences of Series A Convertible Stock, dated February 24, 2022 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed on March 2, 2022)
3.5		Amendment to Certificate of Incorporation, dated April 18, 2022 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K , filed on April 29, 2022)
4.1		Promissory Note issued by the Company to ABJ Capital Investments, LLC, dated February 24, 2022 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K, filed on November 4, 2022)
4.2		Common Stock Purchase Warrant, issued by the Company to ABJ Capital Investments, LLC, dated February 24, 2022 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K, filed on November 4, 2022)
4.3		Form of Secured Convertible Note, dated June 30, 2022 (2022 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K , filed on July 7, 2022)
4.4		Form of Common Stock Purchase Warrant, dated June 30, 2022 (2022 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K , filed on July 7, 2022)
4.5		Form of Secured Convertible Note, dated November 15, 2022 (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K , filed on November 21, 2022)
4.6		Form of Common Stock Purchase Warrant, dated November 15, 2022 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K , filed on November 21, 2022)
10.1*		Virtual Membership Agreement (Lease) by and between the Company and The Innovation Center, dated March 22, 2022
10.2		Agreement and Plan of Share Exchange, dated December 7, 2021 by and among the Company, Driveitaway, Inc. and the shareholders of Driveitaway, Inc. (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on December 7, 2021)

  

 

10.3		Sale Agreement, dated December 7, 2021 by and between the Company and StroomX, LLC (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K dated December 7, 2021)
10.4		Securities Purchase Agreement, by and between the Company and AJB Capital Investments LLC, dated February 24, 2022 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on November 4, 2022)
10.5		First Amendment to the Securities Purchase Agreement, by and between the Company and AJB Capital Investments LLV, dated February 24, 2022 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on November 4, 2022)
10.5		Form of Subscription Agreement, dated June 30, 2022 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K , filed on July 7, 2022)
10.6		Form of Security Agreement, dated June 30, 2022 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K , filed on July 7, 2022)
10.7		Form of Piggyback Registration Rights Agreement, dated June 30, 2022 (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K , filed on July 7, 2022)
10.8		Form of Subscription Agreement, dated November 15, 2022 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K , filed on November 21, 2022)
10.9		Form of Security Agreement, dated November 15, 2022 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K , filed on November 21, 2022)
10.10		Form of Piggy Rights Registration Agreement, dated November 15, 2022 (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K , filed on November 21, 2022)
14		Code of Ethics (incorporated by reference to Exhibit 14 to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2015)
21*		Subsidiaries of the Company.
31.1*		Certification of Principal Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
104		Cover Page Interactive Data File (embedded within the Inline XBRL).
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document

 

* Filed herewith.

 

** Furnished herewith.

 

Item 16. 10-K Summary

 

None.

 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	DRIVEITAWAY HOLDINGS, INC.
Dated: February 24, 2025	By:	/s/ John Possumato
		John Possumato, Chief Executive Officer
		(Principal Executive Officer)
Dated: February 24, 2025	By:	/s/ Steven M. Plumb
		Steven M. Plumb, Chief Financial Officer
		(Principal Financial and Accounting Officer)

  

Pursuant to the requirements of the Securities Exchange Act, this report has been signed below on the 24th day of February 2025 by the following persons on behalf of the registrant and in the capacities indicated.

 

Name		Title
/s/ John Possumato		Director, Chief Executive Officer
John Possumato
/s/ Steven M. Plumb		Director, Chief Financial Officer
Steven M. Plumb
/s/Adam Potash		Director, Chief Operating Officer
Adam Potash

 

27

 

 

EXHIBIT 10.1

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT 21

 

SUBSIDIARIES OF DRIVEITAWAY HOLDINGS, INC

 

DriveItAway, Inc. Incorporated in Delaware. Wholly-owned subsidiary

 

DriveItAway Leasing, LLC formed in Florida. Wholly-owned subsidiary

 

 

 

EXHIBIT 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

I, John Possumato, certify that:

 

1.

I have reviewed this annual report on Form 10-K of DriveItAway, Holdings, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: February 24, 2025	By:	/s/ John Possumato
		John Possumato
		Chief Executive Officer (Principal Executive Officer)

 

 

 

EXHIBIT 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

I, Steven M. Plumb, certify that:

 

1.

I have reviewed this annual report on Form 10-K of DriveItAway Holdings, Inc.;

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this annual report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this annual report is being prepared;

 

b)

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

 

d)

disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

 

a)

all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: February 24, 2025	By:	/s/ Steven M. Plumb
		Steven M. Plumb
		Chief Financial Officer (Principal Financial Officer)

  

 

EXHIBIT 32.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

 

In connection with the Annual Report of DriveItAway Holdings, Inc., (the “Company”) on Form 10-K for the year ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), John Possumato, Chief Executive Officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: February 24, 2025	By:	/s/ John Possumato
		Chief Executive Officer
		(Principal Executive Officer)

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

EXHIBIT 32.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

 

In connection with the Annual Report of DriveItAway Holdings, Inc., (the “Company”) on Form 10-K for the year ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Steven M. Plumb, Chief Financial Officer of the Company, certifies, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

 

(1)

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: February 24, 2025	By:	/s/ Steven M. Plumb
		Steven M. Plumb
		Chief Financial Officer
		(Principal Financial Officer)

  

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

v3.25.0.1

Cover - USD ($)	12 Months Ended
	Sep. 30, 2024	Feb. 24, 2025	Mar. 31, 2024
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--09-30
Entity File Number	000-52883
Entity Registrant Name	DRIVEITAWAY HOLDINGS, INC.
Entity Central Index Key	0001394638
Entity Tax Identification Number	20-4456503
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3201 Market Street
Entity Address, Address Line Two	Suite 200/201
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	10104
City Area Code	(856)
Local Phone Number	577-2763
Title of 12(g) Security	Common Stock, par value $0.0001 per share
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,547,437
Entity Common Stock, Shares Outstanding		113,951,722
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Auditor Firm ID	6771
Auditor Name	Victor Mokuolu, CPA PLLC
Auditor Location	Houston, Texas

v3.25.0.1

Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Current Assets:
Cash and cash equivalents	$ 33,588	$ 4,632
Restricted cash		18,559
Accounts receivable	1,438	11,584
Prepaid expenses	2,970
Total Current Assets	37,996	34,775
Property, net	774,995	184,228
Intangible assets, net	6,343	11,787
Deferred financing costs, net	248,763
TOTAL ASSETS	1,068,097	230,790
Current Liabilities:
Accounts payable	994,270	664,707
Accrued interest - related party	12,752	4,918
Deferred revenue	3,306	7,233
Customer deposits	1,339	2,234
Due to related parties	25,080	25,080
Short term notes payable	38,159
Current portion of SBA Loan	2,452
Promissory notes payable, net of debt discount		27,437
Promissory notes payable, in default	20,000	12,500
Promissory notes, payable - related parties, in default	42,500	50,000
Convertible notes payable, net, in default	250,000
Convertible notes payable, net	1,597,312	1,082,654
Derivative liability	1,386,014	1,317
Total Current Liabilities	4,373,184	1,878,080
SBA Loan - noncurrent	114,386	114,700
Convertible note payable - noncurrent, net		175,720
Promissory notes payable - noncurrent	540,129	16,649
TOTAL LIABILITIES	5,027,699	2,185,149
Commitments and Contingencies
Stockholders' Deficit
Preferred stock , $0.0001par value, 10,000,000 shares authorized, no shares issued and outstanding
Common stock , $0.0001 par value, 1,000,000,000 shares authorized 113,701,722 shares issued, 113,686,622 outstanding as of September 30, 2024. 106,551,722 shares issued, and 106,536,622 outstanding as of September 30, 2023	11,371	10,656
Additional paid in capital	1,606,292	1,364,007
Treasury stock , at cost - 15,100 shares at September 30, 2024 and September 30, 2023	(18,126)	(18,126)
Accumulated deficit	(5,559,139)	(3,310,896)
Total Stockholders' Deficit	(3,959,602)	(1,954,359)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 1,068,097	$ 230,790

v3.25.0.1

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	1,000,000,000	1,000,000,000
Common stock, issued	113,701,722	106,551,722
Common stock, outstanding	113,686,622	106,536,622
Treasury stock, shares	15,100	15,100

v3.25.0.1

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenues	$ 460,991	$ 307,284
Cost of goods sold	322,730	238,763
Gross profit	138,261	68,521
Operating Expenses
Salaries and payroll taxes	267,895	297,625
Professional fees	250,437	345,101
General and administrative	142,021	92,749
Software development	39,244	56,529
Advertising and marketing	6,819	38,972
Total operating expenses	706,416	830,976
Operating Loss	(568,155)	(762,455)
Other Income (expense)
Change in FV of derivative	(342,751)	169,723
Amortization debt discount	(393,946)	(122,279)
Amortization of deferred financing costs	(201,236)
Loss on extinguishment of debt		(36,313)
Interest expense	(733,560)	(173,895)
Interest expense - related parties	(8,595)	(4,918)
Total other income (expense)	(1,680,088)	(167,682)
Net Income (loss) before taxes	(2,248,243)	(930,137)
Income tax benefit
Net Income (Loss)	$ (2,248,243)	$ (930,137)
Net loss per common share - basic and diluted	$ (0.02)	$ (0.01)
Weighted average of common shares - basic and diluted	110,277,132	106,458,571

v3.25.0.1

Consolidated Statement of Changes in Stockholders' Deficit - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stocks [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Sep. 30, 2022	$ 10,531	$ 1,289,132	$ (18,126)	$ (2,380,759)	$ (1,099,222)
Shares, Outstanding, Beginning Balance at Sep. 30, 2022	105,301,722		(15,100)
Common stock issued in connection with promissory note	$ 100	59,900			60,000
[custom:CommonStockIssuedInConnectionWithPromissoryNoteShares]	1,000,000
Stock based compensation	$ 25	14,975			15,000
Stock based compensation, Shares	250,000
Net loss				(930,137)	(930,137)
Ending balance, value at Sep. 30, 2023	$ 10,656	1,364,007	$ (18,126)	(3,310,896)	(1,954,359)
Shares, Outstanding, Ending Balance at Sep. 30, 2023	106,551,722		(15,100)
Common stock issued in connection with promissory note	$ 600	119,400			120,000
[custom:CommonStockIssuedInConnectionWithPromissoryNoteShares]	6,000,000
Net loss				(2,248,243)	(2,248,243)
Common stock issued for cash	$ 115	228,555			23,000
[custom:CommonStockIssuedForCashShares]	1,150,000
Warrants issued for cash		100,000			100,000
Ending balance, value at Sep. 30, 2024	$ 11,371	$ 1,606,292	$ (18,126)	$ (5,559,139)	$ (3,959,602)
Shares, Outstanding, Ending Balance at Sep. 30, 2024	113,701,722		(15,100)

v3.25.0.1

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (2,248,243)	$ (930,137)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization of deferred financing costs	201,236
Stock compensation		15,000
Loss on change in fair value of derivative liability	342,751	(169,723)
Loss on debt extinguishment		36,313
Amortization and depreciation	57,324	36,783
Amortization of debt discount	393,946	122,279
Discount on lines of credit	(85,000)
Additions to derivative liability	686,102
Discount on notes payable	(112,246)
Changes in operating assets and liabilities:
Prepaid expenses	(2,970)
Accounts receivable	10,146	(5,502)
Deferred revenue	(3,927)	5,132
Accounts payable and accrued liabilities	329,563	437,598
Customer deposits	(895)	2,234
Accrued interest related party	7,834	4,918
Net Cash Used in Operating Activities	(424,379)	(445,105)
CASH FLOWS FROM INVESTING ACTIVITIES:
Website development		(5,833)
Purchase of vehicles	(642,647)	(67,039)
Net Cash Used in Investing Activities	(642,647)	(72,872)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party advances		26,460
Repayment of related party advances		(1,460)
Proceeds from sale of common stock for cash	23,000
Proceeds from convertible notes payable		310,000
Proceeds from the sale of warrants	100,000
Proceeds from notes payable	454,250
Proceeds from lines of credit	655,882
Proceeds from promissory notes payable		104,458
Proceeds from promissory notes - related party		50,000
Repayment of notes payable	(155,709)	(42,011)
Debt issuance costs		(33,388)
Net Cash Provided By Financing Activities	1,077,423	414,059
Net increase (decrease) in cash and cash equivalents	10,397	(103,918)
Cash and cash equivalents, beginning of period	23,191	127,109
Cash and cash equivalents, end of period	33,588	23,191
Supplemental cash flow information
Cash paid for interest		49,863
Cash paid for taxes
Non-cash transactions:
Common stock issued in connection with promissory note	120,000	60,000
Recognition of derivative liability as debt discount		26,959
Debt discount in connection with original issue discount	28,000
Prepaid expenses reclassified to website development		10,498
Deferred financing costs	$ 449,999

v3.25.0.1

Insider Trading Arrangements	12 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual [Table]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.25.0.1

Organization, Description of Business and Going Concern	12 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Description of Business and Going Concern	Note 1 – Organization, Description of Business and Going Concern   Nature of Organization   DriveItAway Holdings, Inc. (“DIA Holdings”, “the Company”, “we” or “us”) was formed in Delaware on March 8, 2006 as B2 Health, Inc. On July 2, 2010, the Company acquired BFK Franchise Company, LLC (“BFK”), a Nevada limited liability company, and concurrently changed its name to Creative Learning Corporation. On February 24, 2022, the Company acquired DriveItAway, Inc., and on March 18, 2022, disposed of BFK and its other subsidiaries involved in the learning business. On April 18, 2022, the name was changed to DriveItAway Holdings, Inc. On April 12, 2024, the Company formed DIA Leasing, LLC, a Florida limited liability company, which is a wholly owned subsidiary.   DIA Holdings is a national dealer focused mobility platform that enables car dealers to sell more vehicles in a seamless way through eCommerce, with its exclusive “Pay as You Go” app-based subscription program. DIA provides a comprehensive turnkey, solutions driven program with proprietary mobile technology and driver app, insurance coverages and training to get dealerships up and running quickly and profitably in emerging online sales opportunities. The company is planning to soon expand its easy and transparent consumer app ‘subscription to ownership’ platform to enable entry level consumers to drive and acquire new Electric Vehicles. For further information, please see www.driveitaway.com.   Share Exchange and Reorganization   On February 24, 2022 (the “Effective Date”), the Company, DriveItAway, Inc., and the existing shareholders of DriveItAway, Inc. (“DIA”) executed an Agreement and Plan of Share Exchange, under which the Company acquired all of the issued and outstanding common stock of DIA by issuing one share of Series A Convertible Preferred Stock (the “Series A Preferred”) of the Company for each outstanding share of DIA common stock (the “Share Exchange”). At the closing, the Company agreed to issue one share of Series A Preferred for each share of DIA common stock that was subsequently issued in conversion of certain outstanding convertible notes of DIA, provided that the holders converted their notes prior to December 31, 2022. All of the holders of the convertible notes of DIA agreed to convert their notes in March 2022 and were issued one share of Series A Preferred in exchange for the DIA common stock they acquired as a result of the conversion. A total of 2,594,593 shares of Series A Preferred were issued in exchange for all of the outstanding shares of DIA, including DIA shares issued at closing or shortly thereafter as a result of the exercise or conversion of all outstanding options or convertible notes issued by DIA.   Recapitalization   For financial accounting purposes, this transaction was treated as a reverse acquisition by DIA and resulted in a recapitalization with DIA being the accounting acquirer and DIA, Inc. as the acquired company. The consummation of this reverse acquisition resulted in a change of control. Accordingly, the historical financial statements prior to the acquisition are those of the accounting acquirer, DIA and have been prepared to give retroactive effect to the reverse acquisition completed on February 24, 2022, and represent the operations of DIA. The consolidated financial statements after the acquisition date, February 24, 2022, include the balance sheets of both companies at fair value, the historical results of DIA and the results of the Company from the acquisition date. All share and per share information in the accompanying consolidated financial statements and footnotes has been retroactively restated to reflect the recapitalization.   Going Concern   The Company’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) of the United States, applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. During the year ended September 30, 2024, the Company had a net loss of $2,248,243, cash used in operating activities of $424,379 and a working capital deficit of $4,335,188. As of September 30, 2024, the Company had an accumulated deficit of $5,559,139. The Company has not established sufficient revenue to cover its operating costs and will require additional capital to continue its operating plan. The ability of the Company to continue as a going concern depends on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. These factors raise substantial doubt about its ability to continue as a going concern. To continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan to obtain such resources for the Company includes sales of equity instruments; traditional financing, such as loans; and obtaining capital from management and significant stockholders to sufficiently meet its minimum operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing this plan.   There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

v3.25.0.1

Summary of Significant Accounting Policies	12 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies   Basis of Presentation   The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”). Basis of Consolidation   The consolidated financial statements include the accounts of DriveItAway Holdings Inc. and its wholly owned subsidiary DriveItAway, Inc., collectively referred to as the “Company”. All inter-company balances and transactions are eliminated in consolidation.   Use of Estimates   The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates and assumptions made by management include allowance for doubtful accounts, allowance for deferred tax assets, and fair value of equity instruments. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.   Foreign Currency Translation   Foreign currency translation is recognized in accordance with ASC 830. The Company’s functional currency is USD, therefore all amounts of revenues received from foreign accounts are translated to the Company’s functional currency (USD) upon receipt and thereby, translation gains and losses are recognized upon receipt.   Cash and Cash Equivalents   The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. As of September 30, 2024, and 2023, the Company had cash of $33,588 and $4,632, which included restricted cash of $0 and $18,559, respectively and did not have cash equivalents.   Restricted Cash   As of September 30, 2024 and September 30, 2023, the Company had $0 and $18,559 in restricted cash that is held by AJB Capital LLC, for funds advanced by them, but are to be used for future payment for professional fees. Accounts Receivable   The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and considers the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Accounts and receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowances for doubtful accounts as of September 30, 2024, and 2023, are adequate, but actual write-offs could exceed the recorded allowance. As of September 30, 2024, and 2023, the balances in the allowance for doubtful accounts was $0.   Fixed Assets   Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives, currently seven (7) years. Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated assets from the cost and accumulated depreciation amounts disclosed.   Intangible Assets   Our intangible assets include website and software development costs. The costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in operating expenses in our consolidated statements of operations.   Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at three (3) years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed.   Construction-in-progress primarily consists of website development costs that are capitalizable, but for which the associated applications have not been placed in service.   Leases   The Company’s operating lease portfolio for the years ended September 30, 2024 and 2023, includes the vehicle leases from third parties and the Company’s owned vehicles that are leased to the customers under operating leases. The contracts for these operating leases are short-term in nature with terms less than twelve (12) months. The Company has elected as an accounting policy not to apply the recognition requirements in ASC 2016-02, Leases (“ASC 842”) to short-term leases. The Company recognizes the lease payments for short-term leases on a straight-line basis over the lease term. As of September 30, 2024, the Company did not have leases that qualified as ROU assets.   Fair Value Measurements   The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value 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 on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1   Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.   Level 2   Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.   Level 3   Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   The carrying amounts shown on the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities approximate fair value due to their short-term nature.   All financial assets and liabilities are approximate to their fair value. Derivative liabilities are valued at Level 3.   The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2024 and 2023:   Schedule of fair value of financial assets and liabilities                                         Fair Value Measurements at September 30, 2024 using:     September 30, 2024   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,386,014       —       —     $ 1,386,014                                               Fair Value Measurements at September 30, 2023 using:     September 30, 2023   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,317       —       —     $ 1,317     Derivative Financial Instruments   The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates.   Revenue Recognition   The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.   During the years ended September 30, 2024 and 2023, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”).   Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period.   Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share.   The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. The Company analyzes the start dates of all contracts and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.    Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized.   The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.   Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of September 30, 2024 and 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $3,306 and $7,233, respectively. In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors.   Stock-Based Compensation   The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the BlackScholes pricing model is affected by our stock value as well as assumptions regarding several complex and subjective variables, including expected stock price volatility and the risk-free interest rate.   Advertising and Marketing Costs   Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs for the years ended September 30, 2024 and 2023 of $6,819 and $38,972, respectively.   Income Taxes   The provision for income taxes and deferred income taxes are determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized.   Net Loss per Share of Common Stock   The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares issuable upon the conversion of outstanding convertible debt, preferred stock, warrants and stock option. For the years ended September 30, 2024, and 2023, the common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.   Schedule of computation of diluted net loss per share                     September 30,   September 30,     2024   2023 Convertible notes     2,250,000       1,750,000   Commitment     5,000,000       —   Warrants     22,350,000       2,350,000         29,600,000       4,100,000     Reclassification   Certain accounts from prior periods have been reclassified to conform to the current period presentation. Recent Accounting Pronouncements   In the period from October 2024 through January 2025 the FASB issued Accounting Standards Update 2023-09-Income Taxes (Topic 740): Improvement to Income Tax Disclosures. This amendment is effective for annual periods beginning after December 15, 2024. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

v3.25.0.1

Related Party Transactions	12 Months Ended
	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Note 3 – Related Party Transactions   Related Party Notes Payable   On September 13, 2019, the Company issued a Convertible Promissory Note to Driveitaway, LLC, a company controlled by John Possumato, the Company’s CEO, for $30,000, with a maturity date of September 13, 2022. On October 13 and October 14, 2020, the Company issued Convertible Promissory Notes to Driveitaway, LLC and Adam Potash, the Company’s COO, for $25,000 each, which mature on October 13 and 14, 2022, respectively. On December 24, 2020, the Company issued a Convertible Promissory Note to Adam Potash, for $15,000, which matures on December 24, 2022. Each of the notes bear interest at a rate of 6% per annum. The notes automatically convert into preferred stock of DIA in the event DIA raises at least $1,000,000 by the issuance of preferred stock prior to the maturity dates of the notes (a “Qualified Financing”). In the event DIA enters into a financing that is not a Qualified Financing prior to the maturity dates of the notes, the holders have the right to convert their notes into the class and series of equity securities offered in the non-Qualified Financing at the offer price thereof. In the event DIA effects a change of control, the holders have the option of converting their notes into common stock in order to participate in the change of control or accelerating the maturity date and receiving cash at the time of the change of control.   At the closing of the Share Exchange on February 24, 2022, the holders of the related party Convertible Promissory Notes agreed to convert all of the principal of $95,000 and interest of $9,565 due under the notes into 52,284 shares of DIA common stock, which was automatically converted into 52,284 shares of Series A Preferred (see Note 5).   On March 1, 2023, the Company entered into three promissory note agreements with three related parties for a total of $50,000 with interest bearing at 15% per annum, maturity date of 120 days from issuance (June 30, 2023) and issuance of 100,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $3,068 which was recorded as a derivative liability and debt discount (see Note 5).   During the years ended September 30, 2024 and 2023, the Company recorded related party interest expense of $8,595 and $4,918, respectively and amortization of debt discount of $0 and $3,068, respectively. As of September 30, 2024, the promissory note payable – related party balance was $42,500. As of September 30, 2024, the Company had defaulted on the promissory notes payable with aggregate outstanding principal of $42,500 and owed unpaid interest of $12,752. As of September 30, 2023, the Company had defaulted on the promissory notes payable with aggregate outstanding principal of $50,000 and owed unpaid interest of $4,918.   Advances and Repayments   In the normal course of business, the Company’s management team or their affiliates will make payments on behalf of the Company or will provide short-term advances to the Company to cover operating expenses. During the year ended September 30, 2024 and 2023, related parties made payments on the Company’s behalf or provided short-term advances to the Company totaling $0 and $26,460, respectively, and the Company made repayments to related parties of $0 and $1,460, respectively.   As of September 30, 2024 and 2023, the Company owed related parties $25,080 for this activity.

v3.25.0.1

Fixed and Intangible Assets	12 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Fixed and Intangible Assets	Note 4 – Fixed and Intangible Assets   The following table summarizes the components of our fixed assets as of the dates presented:   Schedule of fixed assets                     September 30,   September 30,     2024   2023 Vehicle costs   $ 867,551     $ 224,903   Accumulated depreciation     (92,556 )     (40,675 ) Vehicles, net   $ 774,995     $ 184,228     During the years ended September 30, 2024 and 2023, the Company purchased passenger vehicles for $642,647 and $67,039, respectively, and recorded depreciation of $51,880 and $32,239, respectively.   The following table summarizes the components of our intangible assets as of the dates presented:   Schedule of intangible assets                     September 30,   September 30,     2024   2023 Website development costs   $ 16,331     $ 16,331   Accumulated amortization     (9,988 )     (4,544 ) Website, net   $ 6,343     $ 11,787     During the years ended September 30, 2024 and 2023 the Company recorded amortization of $5,444 and $4,544, respectively.

v3.25.0.1

Equity	12 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Equity	Note 5 – Equity   Authorized   The Company has authorized one billion (1,000,000,000) shares of common stock having a par value of $0.0001 per share, and ten million (10,000,000) shares of preferred stock having a par value of $0.0001 per share. All or any part of the capital stock may be issued by the Corporation from time to time and for such consideration and on such terms as may be determined and fixed by the Board of Directors, without action of the stockholders, as provided by law, unless the Board of Directors deems it advisable to obtain the advice of the stockholders.   Series A Preferred Stock   The Company has authorized one series of preferred stock, which is known as the Series A Convertible Preferred Stock (the “Series A Preferred”). The Board has authorized the issuance of 5,000,000 shares of Series A Preferred. The Series A Preferred Stock has the following rights and preferences:   Dividends: The Series A Preferred Stock is entitled to receive non-cumulative dividends equal to the amount of dividends that the holder of such share would have received if such share of Series A Preferred Stock were converted into shares of Common Stock immediately prior to the record date of the dividend declared on the Common Stock.   Liquidation Preference: The Series A Preferred Stock is entitled to receive, prior to any distribution to any junior class of securities, an amount equal to $0.01 per share as a liquidation preference before any distribution may be made to the holders of any junior security, including the Common Stock.   Voting Rights: Each holder of Series A Preferred Stock shall vote with holders of the Common Stock upon any matter submitted to a vote of shareholders, in which event it shall have the number of votes equal to the number of shares of Common Stock into which such share of Series A Preferred Stock would be convertible on the record date for the vote or consent of shareholders. Each holder of Series A Preferred Stock shall also be entitled to one vote per share on each submitted to a class vote of the holders of Series A Preferred Stock. Voluntary Conversion Rights: Each share of Series A Preferred Stock is convertible into 33.94971 shares of Common Stock at the option of the holder thereof.   Mandatory Conversion Right: The Company has the right to convert each share of Series A Preferred Stock into 33.94971 shares of Common Stock at any time that there are less than 200,000 shares of Series A Preferred Stock outstanding.    During the years ended September 30, 2024 and 2023 there were no issuances of the Series A Preferred shares.   As of September 30, 2024 and 2023, the Company had no shares of Series A Preferred stock outstanding, respectively. Common Stock   On October 17, 2022, 250,000 shares of common stock, valued at $15,000 based on the fair market value of the shares on the grant date, were issued for consulting services.   On October 31, 2022, the Company issued 1,000,000 shares of common stock valued at $60,000 for commitment fees in conjunction with the amendment of a promissory note of $750,000 (see Note 8).   On February 23, 2024, the Company issued 5,000,000 shares of common stock valued at $50,000 for commitment fees in conjunction with the issuance of a promissory note of $140,000.   In May 2024, the Company issued 750,000 shares of its common stock to an accredited investor for $15,000 in gross proceeds.   In May 2024, the Company issued 1,000,000 shares of common stock valued at $70,000 for commitment fees in conjunction with the issuance of a promissory note in the amount of $63,000.     In July 2024, the Company issued 400,000 shares of its common stock to four accredited investors for $8,000 in gross proceeds.   As of September 30, 2024, and 2023, the Company had 113,701,722 and 106,551,722 common shares issued, respectively.   Treasury Stock   The Company records treasury stock at cost. Treasury stock is comprised of shares of common stock purchased by the Company in the secondary market. As of September 30, 2024, and 2023, the Company had 15,100 shares of treasury stock valued at $18,126.   Warrants   On February 24, 2022, in conjunction with the issuance of a promissory note of $750,000, the Company issued 1,000,000 warrants for $0.30 per share. The transaction led to no explicit limit to the number of shares to be delivered upon future settlement of the conversion options (see Note 8), therefore the equity environment became tainted and the warrants qualified for derivative accounting and were assigned a value of $107,283 which was recorded as a derivative liability and debt discount. The warrants expire on February 24, 2027. In June 2022, in conjunction with a private offering and the issuance of secured promissory notes of $250,000 (see Note 8), the Company issued 125,000 warrants for $0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $8,136 which was recorded as a derivative liability and debt discount. The warrants expire in June 2027.   In November 2022, in conjunction with a private offering and the issuance of secured promissory notes of $200,000, the Company issued 100,000 warrants for $0.30 per share. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $4,074 which was recorded as a derivative liability and debt discount. The warrants expire in November 2027.   In February 2023, in conjunction with a promissory note amendment which was recognized as debt extinguishment, 2,000,000 warrants with exercise price of $0.05 were issued that expire on February 24, 2027 (4 year), which replaced the original 1,000,000 warrants issued with an exercise price of $0.30 previously issued with the original promissory note. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $21,469 which was recorded as a derivative liability and debt discount.   In March 2023, 125,000 warrants with exercise price of $0.05 were issued that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $3,837 which was recorded as a derivative liability and debt discount.   In December 2023, in conjunction with the issuance of a promissory note of $195,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after December 15, 2023 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $248,952 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $195,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.   In May 2024, in conjunction with the issuance of a promissory note of $63,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after May 28, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $348,500 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $63,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.   In May 2024, in conjunction with the issuance of a line of credit of $2,000,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after May 1, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $180,000 which was recorded as a derivative liability. The assigned value of the warrants along with $7,500 of loan fees and a 2% (or $40,000) required broker fee was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw. In June 2024, in conjunction with the issuance of a line of credit of $250,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after June 14, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $337,500 which was recorded as a derivative liability. As the assigned value of the warrants plus a $25,000 original issue discount and $12,500 of loan fees exceeded the face value of the note, the face value of the note was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw. The difference between the fair value of the warrants and the face value of the note was recorded as interest expense.   On July 12, 2024, the Company sold a warrant to purchase 5,000,000 shares of the Company’s common stock at an exercise price of $0.00001 to an investor for $50,000. The warrant has no expiration date. The investor has the option of funding the Company with two additional tranches of $50,000. The second tranche of $50,000 is due within 60 days of the first funding date of July 12, 2024.   On August 19, 2024, the Company received the funding for the second tranche and issued to the investor a cash warrant to purchase up to 666,666 shares of Common Stock at an exercise price of $0.08 per share. The warrant has no expiration date.   At any time 90 days after the second tranche funding date the investor may invest an additional $50,000 and the Company will issue to the investor a pre-funded warrant to purchase up to 2,500,000 shares of Common Stock in the and a cash warrant to purchase up to 333,333 shares of Common Stock at an exercise price of $0.08 per share. The warrant does not have an expiration date.   All derivative liabilities recognized for the warrants issued were valued using the Black-Scholes pricing model. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement (see Note 9).   A summary of warrant activity during the years ended September 30, 2024 and 2023 is as follows:   Schedule of common stock warrants activity                               Warrants   Weighted-Average   Weighted-Average     Outstanding   Exercise Price   Life (years) Balance as of September 30, 2022       1,125,000     $ 0.30       4.44   Issuance       2,225,000     $ 0.06           Exercised       —     $ —           Expired/Cancelled       (1,000,000 )   $ 0.30           Balance as of September 30, 2023       2,350,000     $ 0.07       3.51   Issuance       25,666,666     $ 0.00001       *    Exercised       —     $ —           Expired/Cancelled       —     $ —           Balance as of September 30, 2024       28,016,666     $ 0.01       *     * 25,666,666 warrants issued during the year ending September 30, 2024 do not have an expiration date.   The intrinsic value of the warrants as of September 30, 2024 and 2023 is $200 and $0. All of the outstanding warrants are exercisable as of September 30, 2024.

v3.25.0.1

Notes Payable	12 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Notes Payable	Note 6 – Notes Payable   SBA Loan   On June 3, 2020, the Company entered into a SBA Loan for $78,500 at a rate of 3.75%. On August 12, 2021 the loan increased to $114,700 and the Company obtained $36,200 on October 8, 2021. The SBA Loan requires payments starting 30 months from the initial funding date and matures on June 7, 2050. During the years ended September 30, 2024 and 2023, the Company recorded interest expense of $5,094 and $4,243, respectively, on the SBA Loan and as of September 30, 2024 and 2023, the accrued interest on the SBA Loan was $5,989 and $6,722, respectively. As of September 30, 2024 and 2023, the outstanding principal of SBA Loan was $116,838.   The following represents the future aggregate maturities of the Company’s SBA Loan as of September 30, 2024 for each of the five (5) succeeding years and thereafter as follows:   Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 2,452   2026       2,431   2027       2,431   2028       2,431   2029         2,431   Thereafter       104,662   Total     $ 116,838     Promissory Notes Payable, in Default   During June 2022, the Company sold a total of $250,000 worth of Units to U.S. Escrow Services Corporation and Kevin Leach, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $250,000 for cash proceeds of $230,000 (net of an original issuance discount of $20,000), and the issuance of 125,000 warrants (see Note 6). The $20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $50,491. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $8,136 which was recorded as a derivative liability (see Note 9) and debt discount. The total debt discount of $78,627 is being amortized to interest expense over the term of the Note. The debt discount was $0 on September 30, 2024. These notes matured in June 2024 and are still outstanding.   On March 1, 2023, the Company entered into a promissory note agreement with an investor for amount of $12,500 with interest bearing at 15% per annum, maturity date of 120 days from issuance and issuance of 25,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year). As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $767 which was recorded as a derivative liability and debt discount (see Note 6). During the years ended September 30,2024, the Company recorded interest expense of $2,500 and $1,109 and amortization of debt discount of $0 and $767, respectively. As of September 30, 2024, the debt discount recorded on the note was $0, resulting in a note payable balance of $12,500 and accrued interest of $3,609. As of September 30, 2023, the Company had defaulted on the promissory note payable.   During the year ended September 30, 2024, the Company reclassified a promissory note entered on March 1, 2023 with a value of $7,500, with interest bearing 15% per annum, maturity date 120 days from issuance (June 30, 2023) and issuance of 15,000 warrants with exercise price of $0.05 that expire on March 1, 2028 (5 year), from Promissory notes payable – related party to Promissory notes payable due the note holder, a former director, no longer being considered a related party. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $460 which was recorded as a derivative liability and debt discount (see Note 8). During the year ended September 30, 2024 and 2023, the Company recorded interest expense of $1,500 and $1,791, respectively. As of September 30, 2024 and 2023, the accrued interest on the promissory note was $2,166 and $666, respectively. As of September 30, 2024 and 2023, the total outstanding principal of the promissory note payable was $7,500. As of September 30, 2024, the Company had defaulted on the promissory note payable. Credit Agreement   On March 1, 2024, DIA Leasing, LLC. (the “Borrower”), a direct wholly owned subsidiary of DriveitAway Holdings, Inc. (“DIA”), closed a $2,000,000 line of credit facility (the “Credit Facility”) with an investor (the “Lender”). In connection with the Credit Facility, a credit agreement, promissory note, security agreement and several related ancillary agreements were entered into by the parties.   Pursuant to the Credit Agreement dated May 1, 2024 (the “Credit Agreement”), among the Borrower and the Lender, the Lender agreed to make advances of principal (the “draws”) to the Borrower and to issue letters of credit on behalf of the Borrower. The Lender committed to provide up to $250,000 for each draw and up to $2,000,000 of letters of credit. The Borrower must use the letters of credit and the proceeds of the draws only for the purchase of motor vehicles to be used in the course of the Borrower’s business. As of the date hereof, there are no Loans or letters of credit outstanding under the Credit Agreement. The Borrower will pay a commitment fee to the Lender’s broker equal to 2.0% of the available commitments. DIA is a guarantor on the draws.   Promissory Note   Pursuant to the Promissory Note (the “Note”) dated May 1, 2024, Borrower promises to pay Lender the principal sum of Two Million Dollars and 00/100 ($2,000,000.00), or so much thereof as may be disbursed to, or for the benefit of the Borrower, for the sole purpose of purchasing new motor vehicles for use in Borrower’s business. Disbursements shall be at the sole discretion of the Lender. The unpaid principal of this line of credit shall bear simple interest at the rate of fifteen percent (15%) per annum. Interest shall be calculated based on the principal balance as may be adjusted from time to time to reflect additional advances.   Each advance of principal shall be called a “Draw”. Each Draw shall be in an amount no greater than Two Hundred Fifty Thousand Dollars and 00/100 ($250,000.00). The eight Draws may be taken at any time over the 180 days following execution of the Note. Each Draw will be paid over a period of eighteen (18) months from the date that the funds for each Draw are disbursed to Borrower. During the first three (3) months after disbursement, Borrower shall make payments of interest only on the funds disbursed. From month four (4) through month seventeen (17), Borrower shall make payments of principal and interest based on an amortization of forty-eight (48) months. On month eighteen (18) all outstanding principal and unpaid interest shall be paid in full. All payments are due on first day of the month following disbursement.   The Borrower shall be in default of this Note on the occurrence of any of the following events: (i) the Borrower shall fail to meet its obligation to make the required principal or interest payments hereunder or any term contained in the Loan Documents. (ii) the Borrower shall be dissolved or liquidated; (iii) the Borrower shall make an assignment for the benefit of creditors or shall be unable to, or shall admit in writing their inability to pay their debts as they become due; (iv) the Borrower shall commence any case, proceeding, or other action under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors, or any such action shall be commenced against the undersigned; (v) the Borrower shall suffer a receiver to be appointed for it or for any of its property or shall suffer a garnishment, attachment, levy or execution. Upon default of this Note, Lender may declare the entire amount due and owing hereunder to be immediately due and payable.   As of September 30, 2024, the Company has drawn $526,978 on the Promissory Note and $47,500 in broker and legal fees. The Company recorded deferred offering costs of $199,999 related to the warrant issued in conjunction with the Promissory Note. The Company amortized $55,328 of deferred offering costs during the year ended September 30, 2024. The amount of interest accrued and paid on the Promissory note was $12,75217,253 as of September 30, 2024. The promissory notes payable balance was $540,129 as of September 30, 2024. Security Agreement   Pursuant to a Security Agreement dated May 1, 2024, all vehicles purchased shall be titled in the name of Borrower, and Borrower consents to a lien in favor of Lender on the title to each vehicle purchased. Lender shall only be required to release the lien on each vehicle once Lender has received payment in full of all principal, interest, and any other sums due on the Draw through which the vehicle was purchased. The net book value of the vehicles that serve as collateral on this obligation is $620,185. The gross value of the pledged vehicles is less than the gross borrowings on the Promissory Note.   Warrant   As further consideration for the credit facility, DIA issued Lender a prefunded warrant (the “Warrant”) for the purchase of up to 5,000,000 shares of DIA’s common stock. The fair market value of the Warrant was $180,000 the date of grant, which was recorded as a derivative liability. The assigned value of the warrants along with $7,500 of loan fees and a 2% (or $40,000) required broker fee was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note.   Promissory Notes Payable   On May 1, 2023 the Company executed a note payable with a face amount of $35,982. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $35,982 (including fixed fees of $3,682 or approximately 10% of the note amount). The Company received net proceeds of $32,300 and the $3,685 of fixed fees were recorded as debt discount. As of September 30, 2023, the Company had amortized the full $3,682 of debt discount, had made repayments of $27,752, and rolled $8,230 of the note’s principal still due into a second note (see below), therefore the loan was considered paid in full.   On August 15, 2023 the Company executed a second note payable with the same lender from the May 1, 2023 note, with a face amount of $64,206. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $64,206 (including fixed fees of $6,206 or approximately 10% of the note amount). The Company received net proceeds of $49,770 after paying off the May 1, 2023 note and rolling $8,230 of its balance into the August 15, 2023 note and recording the $6,206 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized the full $6,206 of the debt discount and made repayments of $57,820 and rolled $6,386 of the note’s principal still due into a third note (see below), therefore the loan was considered paid in full.   On February 22, 2024, the Company executed a third note payable with the same lender with a face amount of $57,474. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $57,474 (including fixed fees of $5,974 or approximately 10% of the note amount). The Company received net proceeds of $44,644 after paying off the August 15, 2023 note and rolling $6,856 of its balance into the February 22, 2024 note and recording the $5,974 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized the full $5,974 of the debt discount and made repayments of $38,211 and rolled $19,263 of the note’s principal still due into a fourth note (see below), therefore the loan was considered paid in full.   On July 3, 2024, the Company executed a fourth note payable with a lender with a face amount of $88,800. Under the terms of the agreement, the lender will withhold 20% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $88,800 (including fixed fees of $8,800 or approximately 10% of the note amount). The Company received net proceeds of $60,737 after paying off the February 22, 2024 note and rolling $19,263 of its balance into the July 3, 2024 note and recording the $8,800 of fixed fees as a debt discount. As of September 30, 2024, the Company had amortized $2,939 of the debt discount and made repayments of $49,496, resulting in a debt discount balance of $5,861 and a loan balance of $39,304, for a net note balance of $38,159 at September 30, 2024. The following represents the future aggregate maturities as of September 30, 2024 of the Company’s Promissory Notes Payable:   Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 38,159   2026       —   Total     $ 38,159

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Convertible Notes Payable	12 Months Ended
	Sep. 30, 2024
Convertible Notes Payable
Convertible Notes Payable	Note 7 – Convertible Notes Payable    AJB Capital Investments, LLC Note   Effective February 24, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $750,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $675,000 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid $33,750 in certain fees and due diligence costs of AJB and brokerage fees to J.H. Darbie & Co., a registered broker dealer. After payment of the fees and costs, the net proceeds to the Company were $641,250, which will be used for working capital and other general corporate purposes. The maturity date of the AJB Note was extended to February 25, 2025. The AJB Note bears interest at 10% per annum for the original note’s period and 12% per annum for extension period which was started from August 24, 2022, and it is payable on the first of each month beginning April 1, 2022. The Company may prepay the AJB Note at any time without penalty.   The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 10% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.   Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $800,000, payable in the form of 4,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. If, after the sixth month anniversary of closing and before the thirty-sixth month anniversary of closing, AJB has been unable to sell the Commitment Fee Shares for $800,000, then the Company may be required to issue additional shares or pay cash in the amount of the shortfall. However, if the Company pays the AJB Note off on or before its maturity date, then the Company may redeem 2,000,000 of the Commitment Fee Shares for one dollar and the amount of the commitment fee will be reduced to $400,000. On issuance of the note, the Company determined that the guarantee on the commitment fee was a make-whole provision and an embedded derivative within the host instrument. The guarantee was bifurcated from the host instrument and recorded as a derivative liability valued at $384,287 using a Black-Scholes option pricing model (see Note 9).   Pursuant to the SPA, the Company also issued to AJB common stock purchase warrants (the “warrants”) to purchase 1,000,000 shares of the Company’s common stock for $0.30 per share, which was assigned a value of $107,283 that was recorded as derivative liability (see Notes 6 and 9). The warrants expire on February 24, 2027. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants.   After recording the derivative liabilities associated with the SPA, the Company allocated the net proceeds to the 4,000,000 common shares issued and the note itself based on their relative fair market values, resulting in the common shares being assigned a value of $65,274 (see Note 6). The allocation of the financing costs of $108,750, the derivative for the guarantee of $384,287, the derivative for the warrant of $107,283, and issuance of the 4,000,000 Commitment Fee shares of $65,274, to the debt component resulted in a $665,594 debt discount that is being amortized to interest expense over the term of the AJB Note.   On October 31, 2022, the Company amended the AJB Note to issue 1,000,000 additional Commitment Fee Shares, recognizing the value of the shares and a debt discount of $60,000 (see Note 6).   On February 10, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $85,000, which increased the restricted cash balance to be used for payments for professional services, replacing the original 1,000,000 warrants with an exercise price of $0.30 with 2,000,000 warrants with an exercise price of $0.05 (see Note 6), and extending the maturity date of the note to May 24, 2023. The Company determined the extension of cash and modification to other terms met the conditions of a debt extinguishment; therefore the Company recorded a loss on extinguishment of debt for the total amount of $36,313 included in other income (expenses) within the accompanying statement of operation.   On September 27, 2023, the Company entered into second amendment with AJB by increasing the original principal of the note by $25,000 which increased the restricted cash balance to be used for payments for professional services. On November 28, 2023, the Company entered into a third amendment with AJB Capital Investments, LLC by increasing the original principal of note with amount of $22,222 in which the Company received $20,000 in cash (after giving effect to a 10% original issue discount) for payment to vendors.   Effective December 15, 2023, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $195,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $165,750 (after giving effect to a 15% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $150,750, which will be used for working capital and other general corporate purposes.   The maturity date of the AJB Note is February 25, 2025 Company may prepay the AJB Note at any time without penalty.   The note is convertible into Common Stock of the Company at any time that the note is in default, provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 4.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price equals the lowest trading price during either the 20 days trading days prior to the date of conversion or the 20 trading days prior to the date of issuance of the note (which was $0.14 per share). The conversion is subject to reduction in the following situations: (i) a 15% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.   In December 2023, in conjunction with the issuance of a promissory note of $195,000, the Company issued warrants to purchase 5,000,000 shares of Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercised at any time on or after December 15, 2023 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on The holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $248,952 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $195,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.   Effective February 23, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with AJB Capital Investments, LLC (“AJB”), and issued a Promissory Note in the principal amount of $140,000 (the “AJB Note”) to AJB in a private transaction for a purchase price of $112,000 (after giving effect to a 20% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees. After payment of the fees and costs, the net proceeds to the Company were $102,000, which was used for working capital and other general corporate purposes.   The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 12% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.   Also pursuant to the SPA, the Company was to pay AJB a commitment fee of $50,000, payable in the form of 5,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception.   On May 28, 2024, the Company entered into another SPA with AJB, and issued a promissory note in the amount of $63,000 (the “May 2024 AJB Note”) to AJB in a private transaction for a purchase price of $56,700 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees, totaling $6,700. After payment of the fees and costs, the net proceeds to the Company were $50,000, which will be used for working capital and other general corporate purposes. The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 12% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.   Also pursuant to the SPA, the Company paid to AJB a commitment fee in the form of 1,000,000 unregistered shares of the Company’s common stock (the “Commitment Fee Shares”) which were issued at note inception. The Company also issued to AJB common stock purchase warrants (the “May 2024 warrants”) to purchase 5,000,000 shares of the Company’s common stock for a nominal exercise price of $0.00001 per share. The May 2024 warrants may be exercised at any time on or after May 28, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $348,499 which was recorded as a derivative liability. The note was discounted to a principal balance of $0 and a debt discount of $63,000 was recorded at inception. The difference between the fair value of the warrants and the net proceeds received was recognized as interest expense.   On June 14, 2024, the Company entered into another SPA with AJB, and issued a promissory note with a face amount of $250,000 (the “June 2024 AJB Note”) to AJB in a private transaction for a purchase price of $225,000 (after giving effect to a 10% original issue discount). In connection with the sale of the AJB Note, the Company also paid certain fees and due diligence costs of AJB and brokerage fees, totaling $12,500. The Company may draw on the June 2024 AJB Note as automobiles for the rental fleet are purchased, up to a maximum amount of $212,500. As a result, the Company accounted for this note as a line of credit.   The maturity date of the AJB Note is February 25, 2025. The AJB Note bears interest at 15% per year, and principal and accrued interest is due on the maturity date. The Company may prepay the AJB Note at any time without penalty.   The note is convertible into Common Stock of the Company at any time that the note is in default provided that at no time may the note be convertible into an amount of common stock that would result in the holder having beneficial ownership of more than 9.99% of the outstanding shares of common stock, as determined in accordance with Section 13(d) under the Securities Exchange Act of 1934 (the “Exchange Act”). The conversion price shall equal $0.01 per share, subject to adjustments. The conversion is subject to reduction in the following situations: (i) a 15% discount will apply anytime a conversion occurs when the company is not eligible to deliver the shares by DWAC; (ii) a 15% discount will apply whenever the shares are “chilled” for deposit into the DTC system; (iii) a 15% discount will apply if the Company’s common stock ceases to be registered under Section 12 of the Exchange Act; (iv) a 15% discount will apply if the note cannot be converted into free trading shares 181 days after its issue date; (v) in the event any other party has the right to convert debt into Common Stock at a greater discount to market than under the note, then the holder has the right to utilize such discount in determining the conversion price; or (vi) if the Company issues any shares of Common Stock for less than the conversion price in effect on the date of issuance, including any options, warrants or securities convertible into Common Stock at price less than the conversion price, then the conversion price shall be automatically reduced to the amount of consideration received by the company for such shares, except for any issuance that is an exempt issuance.    Also pursuant to the SPA, the Company paid to AJB a commitment fee in the form of a warrant to purchase 5,000,000 unregistered shares of the Company’s common stock for nominal exercise price of $0.00001 per share. The warrant is exercisable at any time on or after June 14, 2024 and until the warrant is exercised in full. The warrants also include various covenants of the Company for the benefit of the warrant holder and includes a beneficial ownership limitation on the holder that, in certain circumstances, may serve to restrict the holder’s right to exercise the warrants. As a result of the Company’s equity environment being tainted, the warrants qualified for derivative accounting and were assigned a value of $337,499 which was recorded as a derivative liability. As the assigned value of the warrants plus a $25,000 original issue discount and $12,500 of loan fees exceeded the face value of the note, the face value of the note was initially recorded as deferred financing costs and will be recorded as a discount to the note pro rata to draws made on the Promissory Note. Discounts will be amortized over the repayment term of the draw. The difference between the fair value of the warrants and the face value of the note was recorded as interest expense. During the year ended September 30, 2023, the Company recorded interest expense of $97,849, increased debt discount by $63,500 (of which $65,259 was amortized and $7,241 was recorded as part of the loss on debt extinguishment), recorded a loss on change in fair value of derivative liability of $126,338, recorded an additional $29,072 for a loss on debt extinguishment, and repaid $31,042 of interest. As of September 30, 2023, the derivative liability was $663, the debt discount recorded on the note was $0, the note payable principal was $860,000, and the Company owed accrued interest of $68,562.   During the year ended September 30, 2024, the Company recorded interest expense of $105,443 and recorded a loss on change in fair value of derivative liability of $293,574. As of September 30, 2024, the derivative liability was $245,442, the debt discount recorded on the note was $0, the note payable principal was $860,000, and the Company owed accrued interest of $174,005.   Effective February 14, 2023 the Company went into default on the AJB Note, however the lender waived all default provisions through February 25, 2025 therefore no default interest or penalties were incurred during the year ended September 30, 2024 and 2023 and the AJB note was not convertible as of September 30, 2024 and 2023.   Secured Convertible Notes   In June 2022, the Company’s board of directors approved an offering of up to 10 Units at $50,000 per Unit in a private offering. Each Unit consists of a Secured Convertible Note with an original principal balance of $50,000 and one warrant to purchase Common Stock for every $2 invested in the offering. The warrants have an exercise price of $0.30 per share and expire five (5) years from the date of issuance. Each Secured Convertible Note bears interest at 15% per annum, matures two years after the date of issuance, and is convertible at the option of the holder into common stock at $0.20 per share. Pursuant to a security agreement between the Company and investors in the Unit offering, and the subscription agreements executed by the Company and the investors, the Secured Convertible Notes are secured by liens on four existing electric vehicles that were owned by the Company at the time of the commencement of the offering, and eight additional electric vehicles that will be purchased with the proceeds of the offering, assuming all 10 Units are sold in the offering. The Company also granted subscribers in the Unit offering piggyback registration rights with respect to any shares of common stock issuable upon conversion of the Secured Convertible Notes or upon exercise of the warrants issued in the Unit offering.   During November 2022, the Company sold a total of $200,000 worth of Units to Cestone Family Foundation and Michele and Agnese Cestone Foundation, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $200,000 for cash proceeds of $180,000 (net of an original issuance discount of $20,000), and the issuance of 100,000 warrants (see Note 6). The $20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $19,330. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $7,254 which was recorded as a derivative liability (see Note 9) and debt discount). The total debt discount of $43,124 is being amortized to interest expense over the term of the Note. During the year ended September 30, 2023, the Company recorded interest expense of $64,605, paid interest of $13,125, and recorded amortization of debt discount of $58,158. As of September 30, 2023, the debt discount recorded on the notes was $51,626 and the principal balance was $450,000, resulting in a net note payable balance of $398,374. As of September 30, 2023, the Company owed accrued interest of $63,063.   During the year ended September 30, 2024, the Company recorded interest expense of $30,000, paid interest of $0, and recorded amortization of debt discount of $21,640. As of September 30, 2024, the debt discount recorded on the notes was $2,640 and the principal balance was $200,000, resulting in a net note payable balance of $197,360. As of September 30, 2024, the Company owed accrued interest of $56,584.   The following represents the future aggregate maturities of the Company’s Secured Convertible Notes as of September 30, 2024 for each of the five (5) succeeding years and thereafter as follows:   Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 200,000   Total     $ 200,000

v3.25.0.1

Derivative Liabilities	12 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	Note 8 – Derivative Liabilities   As discussed in Note 7, certain features and instruments issued as part of the Company’s debt financing arrangements qualified for derivative accounting under ASC 815, Derivatives and Hedging, as the number of common shares that are to be issued under the arrangements are indeterminate, therefore the Company’s equity environment is tainted.   ASC 815 requires we record the fair market value of the derivative liabilities at inception and at the end of each reporting period and recognize any change in the fair market value as other income or expense item.   The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair values at inception and as of September 30, 2024 and 2023. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate. Changes to these inputs could produce a significantly higher or lower fair value measurement. The following assumptions were used in the Black-Scholes model during the year ended September 30, 2024:   Schedule of defined benefit plan, assumptions         Expected term     0.68 - 5.00 years   Expected average volatility     111% - 499%   Expected dividend yield         Risk-free interest rate     3.93% - 4.93%     At September 30, 2024, the estimated fair values of the liabilities measured on a recurring basis are as follows (level 3): Schedule of estimated fair value of liabilities         Commitment fee guarantee issued February 24, 2022   $ 213,033   Warrants issued February 24, 2022     48,799   Embedded conversion feature in Note issued June 3, 2022     2,444   Warrants issued June 3, 2022     24,400   Embedded conversion feature in Note issued June 16, 2022     3,666   Warrants issued June 16, 2022     36,500   Embedded conversion feature in Note issued November 15, 2022     4,890   Warrants issued November 15, 2022     20,596   Warrants issued on February 10, 2023     48,799   Warrants issued on March 1, 2023     6,837   Warrants issued on December 15, 2023     243,950   Warrants issued on May 1, 2024     244,000   Warrants issued on May 28, 2024     244,000   Warrants issued on June 16, 2024     244,000             Derivative liability balance - September 30, 2024   $ 1,386,014     The following table summarizes the changes in the derivative liabilities during the years ended September 30, 2024 and 2023: Schedule of derivative liabilities         Derivative liability balance - September 30, 2022   $ 115,009   Addition of new derivatives recognized as debt discounts     26,959   Loss on debt extinguishment     29,072   Gain on change in fair value of the derivative     (169,723 ) Derivative liability balance - September 30, 2023     1,317   Addition of new derivatives recognized as debt discounts     1,089,454   Gain on change in fair value of the derivative     342,751   Derivative liability balance - September 30, 2024   $ 1,386,014

v3.25.0.1

Income Taxes	12 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 9 – Income Taxes   The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.   The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate of 31% to the income tax amount recorded as of September 30, 2024 and 2023 are as follows:   Schedule of Components of Deferred Taxes                     Years Ended     September 30,     2024   2023 Deferred tax assets:                 Net operating loss carryover   $ 914,000     $ 773,800   Accruals     4,100       17,800   Development     —       14,700   Depreciation & amortization     (13,200 )     (12,200 ) Valuation allowance     (904,900 )     (794,100 ) Net deferred tax asset   $ —     $ —     The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the years ended September 30, 2024 and 2023, due to the following:   Schedule of effective income tax rate reconciliation                                     Years Ended     September 30,     2024   2023 Expected Federal Tax   $ (619,800 )     21.0 %   $ (195,300 )     21.0 % State income taxes (net of federal benefit)     (103,900 )     3.5 %     (73,500 )     7.9 % Permanent adjustments     340,200       (11.5 )%     800       (0.1 )% State tax rate change     38,200       (1.3 )%     38,200       (4.1 )% Change in valuation allowance     345,300       (11.5 )%     229,800       (24.7 )% Total income tax provision   $ —             $ —             The net operating losses (“NOLs”) carry forwards are subject to certain limitations due to the change in control of the Company pursuant to Internal Revenue Code Section 382. The Company experienced a change in control for tax purposes in February 24, 2022. Due to change of control, the Company estimates not being able to carryover approximately $1,700,000 of NOL generated before February 24, 2022 to offset future income.   As of September 30, 2024, the Company had approximately $3,450,000 of net operating loss carryforwards that may be offset against future taxable income. No tax benefit has been reported in the September 30, 2024 consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Tax returns for the years ended 2020 and forward are subject to review by the tax authorities.

v3.25.0.1

Subsequent Events	12 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Note 10 – Subsequent Events   Management has evaluated subsequent events through the date these financial statements were available to be issued. Please note the following matters deemed to be subsequent events.   On October 24, 2024, the Company entered into an agreement with Free2Move North America, Inc. (Free2Move) to become an operator of Free2Moves vehicle network. Free2Move, owned by the vehicle manufacturer Stellantis, has a fleet lease program designed for companies like DriveItAway, that operate subscription rental vehicle services, with preferred fleet lease terms, for both interest carrying costs and residual value, for all Stellantis (Jeep, Dodge, Ram, Chrysler, Alfa Romeo) vehicles.   To date, the Company has two vehicles on the Free2Move program on a pilot, and anticipates having many more Free2Move lease vehicles in the future.   On November 7th, the Company entered into an agreement with Crum & Forster, represented by the broker Marsh, for contingent liability insurance for our fleet of owned vehicles.   On November 19, 2024, the Company entered into a loan agreement with an existing note holder for a promissory note with a face value of $77,700 and an original issue discount of $7,614. The loan is due on May 20, 2026.   On November 25, 2024, the Company issued 250,000 shares of its common stock to an accredited investor for $5,000 in gross proceeds.   Subsequent to year end and up to the date of this filing, the Company purchased six vehicles for $137,289. The purchases were financed from draws on existing credit lines.

v3.25.0.1

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation   The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”).
Basis of Consolidation	Basis of Consolidation   The consolidated financial statements include the accounts of DriveItAway Holdings Inc. and its wholly owned subsidiary DriveItAway, Inc., collectively referred to as the “Company”. All inter-company balances and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates   The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The significant estimates and assumptions made by management include allowance for doubtful accounts, allowance for deferred tax assets, and fair value of equity instruments. Actual results could differ from those estimates as the current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.
Foreign Currency Translation	Foreign Currency Translation   Foreign currency translation is recognized in accordance with ASC 830. The Company’s functional currency is USD, therefore all amounts of revenues received from foreign accounts are translated to the Company’s functional currency (USD) upon receipt and thereby, translation gains and losses are recognized upon receipt.
Cash and Cash Equivalents	Cash and Cash Equivalents   The Company considers all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. As of September 30, 2024, and 2023, the Company had cash of $33,588 and $4,632, which included restricted cash of $0 and $18,559, respectively and did not have cash equivalents.
Restricted Cash	Restricted Cash   As of September 30, 2024 and September 30, 2023, the Company had $0 and $18,559 in restricted cash that is held by AJB Capital LLC, for funds advanced by them, but are to be used for future payment for professional fees.
Accounts Receivable	Accounts Receivable   The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary. The Company records an allowance for doubtful accounts that is based on historical trends, customer knowledge, any known disputes, and considers the aging of the accounts receivable balances combined with management’s estimate of future potential recoverability. Accounts and receivables are written off against the allowance after all attempts to collect a receivable have failed. The Company believes its allowances for doubtful accounts as of September 30, 2024, and 2023, are adequate, but actual write-offs could exceed the recorded allowance. As of September 30, 2024, and 2023, the balances in the allowance for doubtful accounts was $0.
Fixed Assets	Fixed Assets   Fixed assets are recorded at cost and depreciated using the straight-line method over the estimated useful lives, currently seven (7) years. Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated assets from the cost and accumulated depreciation amounts disclosed.
Intangible Assets	Intangible Assets   Our intangible assets include website and software development costs. The costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful lives. Amortization expense related to capitalized website and software development costs is included in operating expenses in our consolidated statements of operations.   Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at three (3) years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed.   Construction-in-progress primarily consists of website development costs that are capitalizable, but for which the associated applications have not been placed in service.
Leases	Leases   The Company’s operating lease portfolio for the years ended September 30, 2024 and 2023, includes the vehicle leases from third parties and the Company’s owned vehicles that are leased to the customers under operating leases. The contracts for these operating leases are short-term in nature with terms less than twelve (12) months. The Company has elected as an accounting policy not to apply the recognition requirements in ASC 2016-02, Leases (“ASC 842”) to short-term leases. The Company recognizes the lease payments for short-term leases on a straight-line basis over the lease term. As of September 30, 2024, the Company did not have leases that qualified as ROU assets.
Fair Value Measurements	Fair Value Measurements   The Company follows ASC 820, “Fair Value Measurements and Disclosures”, which defines fair value 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 on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1   Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.   Level 2   Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.   Level 3   Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.   The carrying amounts shown on the Company’s financial instruments including cash, accounts receivable, prepaid expense, accounts payable, and accrued liabilities approximate fair value due to their short-term nature.   All financial assets and liabilities are approximate to their fair value. Derivative liabilities are valued at Level 3.   The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2024 and 2023:   Schedule of fair value of financial assets and liabilities                                         Fair Value Measurements at September 30, 2024 using:     September 30, 2024   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,386,014       —       —     $ 1,386,014                                               Fair Value Measurements at September 30, 2023 using:     September 30, 2023   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,317       —       —     $ 1,317
Derivative Financial Instruments	Derivative Financial Instruments   The Company accounts for their derivative financial instruments in accordance with ASC 815 “Derivatives and Hedging” therefore any embedded conversion options and warrants accounted for as derivatives are to be recorded at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. The Black-Scholes option valuation model was used to estimate the fair value of the embedded conversion options and warrants. The model includes subjective input assumptions that can materially affect the fair value estimates.
Revenue Recognition	Revenue Recognition   The Company’s revenue is recognized in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, for all periods presented. The Company, through its DriveItAway online/app-based platform (“platform”), operates in the automotive rental industry. The Company assists subprime and deep subprime candidates to rent/lease vehicles on a short-term basis, generally on a weekly or, in some cases monthly, basis under a Pay-As You-Go program. Through its platform the Company will track vehicle values and reduce vehicle pricing through the customers usage payments to show drivers a vehicle purchase price should they be interested in buying the vehicle, at which time the customer would procure financing if the Company determined they wanted to sell the vehicle at the listed purchase price.   During the years ended September 30, 2024 and 2023, the Company derived its revenue from signed contracts for vehicle rentals between the Company, other leasing companies, or car dealerships and individual car rental customers (“customers”).   Customers book a vehicle through the Company’s platform, starting first with a rental contract with the vehicle. When the customer books the vehicle, per the terms of the individual rental agreements, the customer shall pay a stated rental rate, a stated insurance amount, an initial non-refundable fee, and, in some cases, a refundable deposit. At the end of the usage cycle, the system calculates miles driven and if the customer has driven more than the prorated, included amount, they pay extra usage/mileage fees. In instances when a customer pays late, they pay a late fee and in cases of incurring charges for tolls they pay for the toll costs incurred. Additionally, contracts may be extended (a new contract is signed) at which time the credit card on file for the customer will be charged at the beginning of the contract extension period for rental rate and insurance amount for the new extension period.   Vehicles available in the platform can be owned or leased by the Company or made available through arrangements with independent car dealerships (“dealerships”). For vehicles owned or leased by the Company, the Company’s performance obligation for rental revenue is to provide customers with a vehicle and an application to track vehicle rental arrangements. For vehicles made available through dealerships the Company’s performance obligation for rental revenue is to provide an application to track vehicle rental arrangements and to collect cash from customers and remit those amounts to dealerships net of the Company’s revenue share.   The vehicle rental arrangements are over a fixed contracted period; therefore, the Company recognizes rental revenue ratably over the contract term. The Company analyzes the start dates of all contracts and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.    Costs related to rental revenue include depreciation for Company owned vehicles and monthly lease payments when the vehicles are leased from a leasing company. The amount of revenue transferred to dealerships is treated as contra-revenue because the Company acts as an agent in these transactions resulting in only the Company’s revenue share being recognized.   The Pay-As-You-Go program manages or includes insurance. Fleet insurance is sometimes provided where the Company has a fleet policy and the driver is added to it when needed. In this case, the driver pays the cost of insurance as a separate payment in the system. This payment is a type of revenue. The Company pays the insurance company providing the coverage. This is a cost of goods sold. The Company also allows for drivers to bring their own insurance. The Company works with associated insurance brokers to write a policy for the customer for that vehicle and a separate finance company that pays for the policy in full. The Company acts as trustee in collecting installments and transferring them to the finance company. Collected payments are treated as a revenue and transfers to the finance company are treated as contra-revenue because the Company acts as an agent in these transactions. Lastly, in markets where the Company cannot support this program, drivers are allowed to bring their own insurance and pay it directly themselves with no involvement of the Company. No revenue is collected or recognized in this instance. Because any insurance revenue is collected at contract inception and covers the fixed contract period the Company recognizes insurance revenue ratably over the contract term and allocates charges to customer credit cards for this service between revenue and deferred revenue at the end of each month.   Initial non-refundable fees are recognized when payment is received as the Company has no obligation to provide additional services at that point. Miscellaneous charges for extra mileage, late fees, or toll charges calculated and charged to the customer credit card at the end of the usage cycle are recognized when the credit card charge goes through. Refundable deposits are recorded on the balance sheet until deposits are returned to customers or applied to their account for fees incurred. Deferred revenue includes rental and insurance amounts that are paid for contracts that overlap a reporting date and relate to usages after that date. As of September 30, 2024 and 2023 refundable deposits were $1,339 and $2,234 and deferred revenue was $3,306 and $7,233, respectively. In addition to the costs associated with rental revenue and insurance revenue, within the Cost of Goods Sold account the Company also records credit card fees incurred from the cash collections and cash remittance process, as a significant portion of its performance obligation is to collect and remit payments through its credit card processors.
Stock-Based Compensation	Stock-Based Compensation   The Company recognizes compensation expense for all restricted stock awards and stock options. The fair value of restricted stock awards is measured using the grant date fair value of our stock, as determined by the Board of Directors. The fair value of stock options is estimated at the grant date using the Black-Scholes option-pricing model, and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. We have elected to recognize compensation expense for all options with graded vesting on a straight-line basis over the vesting period of the entire option. The determination of fair value using the BlackScholes pricing model is affected by our stock value as well as assumptions regarding several complex and subjective variables, including expected stock price volatility and the risk-free interest rate.
Advertising and Marketing Costs	Advertising and Marketing Costs   Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs for the years ended September 30, 2024 and 2023 of $6,819 and $38,972, respectively.
Income Taxes	Income Taxes   The provision for income taxes and deferred income taxes are determined using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. On a periodic basis, the Company assesses the probability that its net deferred tax assets, if any, will be recovered. If after evaluating all of the positive and negative evidence, a conclusion is made that it is more likely than not that some portion or all of the net deferred tax assets will not be recovered, a valuation allowance is provided by a charge to tax expense to reserve the portion of the deferred tax assets which are not expected to be realized.
Net Loss per Share of Common Stock	Net Loss per Share of Common Stock   The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock are computed by dividing net earnings by the weighted average number of shares and potential shares outstanding during the period. Potential shares of common stock consist of shares issuable upon the conversion of outstanding convertible debt, preferred stock, warrants and stock option. For the years ended September 30, 2024, and 2023, the common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.   Schedule of computation of diluted net loss per share                     September 30,   September 30,     2024   2023 Convertible notes     2,250,000       1,750,000   Commitment     5,000,000       —   Warrants     22,350,000       2,350,000         29,600,000       4,100,000
Reclassification	Reclassification   Certain accounts from prior periods have been reclassified to conform to the current period presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements   In the period from October 2024 through January 2025 the FASB issued Accounting Standards Update 2023-09-Income Taxes (Topic 740): Improvement to Income Tax Disclosures. This amendment is effective for annual periods beginning after December 15, 2024. Management has evaluated other recently issued accounting pronouncements and does not believe that any of these pronouncements will have a significant impact on our consolidated financial statements and related disclosures.

v3.25.0.1

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of fair value of financial assets and liabilities	Schedule of fair value of financial assets and liabilities                                         Fair Value Measurements at September 30, 2024 using:     September 30, 2024   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,386,014       —       —     $ 1,386,014                                               Fair Value Measurements at September 30, 2023 using:     September 30, 2023   Quoted Prices in Active Markets for Identical Assets (Level 1)   Significant Other Observable Inputs (Level 2)   Significant Unobservable Inputs (Level 3)                   Liabilities   $ —       —       —     $ —   Derivative Liabilities   $ 1,317       —       —     $ 1,317
Schedule of computation of diluted net loss per share	Schedule of computation of diluted net loss per share                     September 30,   September 30,     2024   2023 Convertible notes     2,250,000       1,750,000   Commitment     5,000,000       —   Warrants     22,350,000       2,350,000         29,600,000       4,100,000

v3.25.0.1

Fixed and Intangible Assets (Tables)	12 Months Ended
	Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of fixed assets	Schedule of fixed assets                     September 30,   September 30,     2024   2023 Vehicle costs   $ 867,551     $ 224,903   Accumulated depreciation     (92,556 )     (40,675 ) Vehicles, net   $ 774,995     $ 184,228
Schedule of intangible assets	Schedule of intangible assets                     September 30,   September 30,     2024   2023 Website development costs   $ 16,331     $ 16,331   Accumulated amortization     (9,988 )     (4,544 ) Website, net   $ 6,343     $ 11,787

v3.25.0.1

Equity (Tables)	12 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of common stock warrants activity	Schedule of common stock warrants activity                               Warrants   Weighted-Average   Weighted-Average     Outstanding   Exercise Price   Life (years) Balance as of September 30, 2022       1,125,000     $ 0.30       4.44   Issuance       2,225,000     $ 0.06           Exercised       —     $ —           Expired/Cancelled       (1,000,000 )   $ 0.30           Balance as of September 30, 2023       2,350,000     $ 0.07       3.51   Issuance       25,666,666     $ 0.00001       *    Exercised       —     $ —           Expired/Cancelled       —     $ —           Balance as of September 30, 2024       28,016,666     $ 0.01       *     * 25,666,666 warrants issued during the year ending September 30, 2024 do not have an expiration date.

v3.25.0.1

Notes Payable (Tables)	12 Months Ended
	Sep. 30, 2024
S B A Loan [Member]
Debt Instrument [Line Items]
Schedule of future aggregate maturities	Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 2,452   2026       2,431   2027       2,431   2028       2,431   2029         2,431   Thereafter       104,662   Total     $ 116,838
Promissory Notes Payable [Member]
Debt Instrument [Line Items]
Schedule of future aggregate maturities	Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 38,159   2026       —   Total     $ 38,159

v3.25.0.1

Convertible Notes Payable (Tables)	12 Months Ended
	Sep. 30, 2024
Secured Convertible Notes [Member]
Debt Instrument [Line Items]
Schedule of future aggregate maturities	Schedule of future aggregate maturities           Fiscal year ending September 30,   Amount 2025     $ 200,000   Total     $ 200,000

v3.25.0.1

Derivative Liabilities (Tables)	12 Months Ended
	Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of defined benefit plan, assumptions	Schedule of defined benefit plan, assumptions         Expected term     0.68 - 5.00 years   Expected average volatility     111% - 499%   Expected dividend yield         Risk-free interest rate     3.93% - 4.93%
Schedule of estimated fair value of liabilities	Schedule of estimated fair value of liabilities         Commitment fee guarantee issued February 24, 2022   $ 213,033   Warrants issued February 24, 2022     48,799   Embedded conversion feature in Note issued June 3, 2022     2,444   Warrants issued June 3, 2022     24,400   Embedded conversion feature in Note issued June 16, 2022     3,666   Warrants issued June 16, 2022     36,500   Embedded conversion feature in Note issued November 15, 2022     4,890   Warrants issued November 15, 2022     20,596   Warrants issued on February 10, 2023     48,799   Warrants issued on March 1, 2023     6,837   Warrants issued on December 15, 2023     243,950   Warrants issued on May 1, 2024     244,000   Warrants issued on May 28, 2024     244,000   Warrants issued on June 16, 2024     244,000             Derivative liability balance - September 30, 2024   $ 1,386,014
Schedule of derivative liabilities	Schedule of derivative liabilities         Derivative liability balance - September 30, 2022   $ 115,009   Addition of new derivatives recognized as debt discounts     26,959   Loss on debt extinguishment     29,072   Gain on change in fair value of the derivative     (169,723 ) Derivative liability balance - September 30, 2023     1,317   Addition of new derivatives recognized as debt discounts     1,089,454   Gain on change in fair value of the derivative     342,751   Derivative liability balance - September 30, 2024   $ 1,386,014

v3.25.0.1

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Schedule of Components of Deferred Taxes	Schedule of Components of Deferred Taxes                     Years Ended     September 30,     2024   2023 Deferred tax assets:                 Net operating loss carryover   $ 914,000     $ 773,800   Accruals     4,100       17,800   Development     —       14,700   Depreciation & amortization     (13,200 )     (12,200 ) Valuation allowance     (904,900 )     (794,100 ) Net deferred tax asset   $ —     $ —
Schedule of effective income tax rate reconciliation	Schedule of effective income tax rate reconciliation                                     Years Ended     September 30,     2024   2023 Expected Federal Tax   $ (619,800 )     21.0 %   $ (195,300 )     21.0 % State income taxes (net of federal benefit)     (103,900 )     3.5 %     (73,500 )     7.9 % Permanent adjustments     340,200       (11.5 )%     800       (0.1 )% State tax rate change     38,200       (1.3 )%     38,200       (4.1 )% Change in valuation allowance     345,300       (11.5 )%     229,800       (24.7 )% Total income tax provision   $ —             $ —

v3.25.0.1

Organization, Description of Business and Going Concern (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number Of Shares Exchaged	2,594,593
Net Income (Loss) Attributable to Parent	$ 2,248,243	$ 930,137
Net Cash Provided by (Used in) Operating Activities	424,379	445,105
Working capital deficit	4,335,188
Retained Earnings Accumulated Deficits	$ 5,559,139	$ 3,310,896

v3.25.0.1

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Platform Operator, Crypto Asset [Line Items]
Liabilities
Derivative Liabilities	1,386,014	1,317
Fair Value, Inputs, Level 1 [Member]
Platform Operator, Crypto Asset [Line Items]
Liabilities
Derivative Liabilities
Fair Value, Inputs, Level 2 [Member]
Platform Operator, Crypto Asset [Line Items]
Liabilities
Derivative Liabilities
Fair Value, Inputs, Level 3 [Member]
Platform Operator, Crypto Asset [Line Items]
Liabilities
Derivative Liabilities	$ 1,386,014	$ 1,317

v3.25.0.1

Summary of Significant Accounting Policies (Details 1) - shares	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	29,600,000	4,100,000
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	2,250,000	1,750,000
Commitment [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	5,000,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares	22,350,000	2,350,000

v3.25.0.1

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Cash	$ 33,588	$ 4,632
Restricted Cash and Cash Equivalents	0	18,559
Cash equivalents	0	0
Restricted Cash and Cash Equivalents	0	18,559
Accounts Receivable, Allowance for Credit Loss, Current	$ 0	0
Property, Plant and Equipment, Useful Life	3 years
Refundable deposits	$ 1,339	2,234
Deferred revenue	3,306	7,233
Advertising and marketing costs	$ 6,819	$ 38,972

v3.25.0.1

Related Party Transactions (Details Narrative) - USD ($)			1 Months Ended	12 Months Ended
	Feb. 24, 2022	Sep. 13, 2019	Dec. 24, 2020	Sep. 30, 2024	Sep. 30, 2023	Oct. 14, 2020
Debt Instrument, Interest Rate During Period		6.00%
Conversion of Stock, Amount Converted		$ 1,000,000
Proceeds from Related Party Debt					$ 26,460
Amortization of Debt Discount (Premium)				393,946	122,279
Related party interest expense				8,595	4,918
Amortization of debt discount				0	3,068
Promissory notes payable- related parties, in default				42,500	50,000
Debt instrument outstanding principal				42,500	50,000
Debt Instrument, Increase, Accrued Interest				12,752	4,918
Due to related parties				25,080	25,080
Short-Term Debt [Member]
Proceeds from Related Party Debt				$ 0	26,460
Repayments of Related Party Debt					$ 1,460
Convertible Promissory Notes [Member] | D I A Common Stock [Member]
Conversion of Stock, Shares Converted	52,284
Convertible Promissory Notes [Member] | Series A Preferred Stock [Member]
Conversion of Stock, Shares Converted	52,284
Promissory Notes Payable [Member]
Debt Instrument, Interest Rate During Period				15.00%
Warrants issued				100,000
Warrants expire date				Mar. 01, 2028
Warrants and Rights Outstanding, Term				5 years
Amortization of Debt Discount (Premium)				$ 3,068
Short Term Advances [Member] | Short-Term Debt [Member]
Repayments of Related Party Debt				0
Principal [Member] | Convertible Promissory Notes [Member]
Conversion of Stock, Amount Converted	$ 95,000
Interest [Member] | Convertible Promissory Notes [Member]
Conversion of Stock, Amount Converted	$ 9,565
Driveitaway L L C [Member]
Convertible Notes Payable						$ 25,000
Adam Potash [Member]
Convertible Notes Payable			$ 15,000
Debt Instrument, Maturity Date			Dec. 24, 2022
Three Related Parties [Member]
Proceeds from Related Party Debt				$ 50,000
Chief Executive Officer [Member] | John Possumato [Member]
Convertible Notes Payable		$ 30,000

v3.25.0.1

Fixed and Intangible Assets (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Vehicle costs	$ 867,551	$ 224,903
Accumulated depreciation	(92,556)	(40,675)
Vehicles, net	$ 774,995	$ 184,228

v3.25.0.1

Fixed and Intangible Assets (Details 1) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Website development costs	$ 16,331	$ 16,331
Accumulated amortization	(9,988)	(4,544)
Website, net	$ 6,343	$ 11,787

v3.25.0.1

Fixed and Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Payments to Acquire Other Property, Plant, and Equipment	$ 642,647	$ 67,039
Depreciation	51,880	32,239
Amortization of Acquisition Costs	$ 5,444	$ 4,544

v3.25.0.1

Equity (Details 1) - Warrant [Member] - $ / shares	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of warrants outstanding, beginning	2,350,000	1,125,000
Weighted-average exercise price, Beginning balance	$ 0.07	$ 0.30
Weighted-average life (years)	3 years 6 months 3 days	4 years 5 months 8 days
Warrants outstanding, Issuance	25,666,666	2,225,000
Weighted-average exercise price, Issuance	$ 0.00001	$ 0.06
Warrants outstanding, Exercised	0	0
Weighted-average exercise price, Exercised		$ 0
Warrants outstanding, Expired	0	(1,000,000)
Weighted-average exercise price, Expired	$ 0	$ 0.30
Warrants outstanding, Expired	0	1,000,000
Number of warrants outstanding, ending	28,016,666	2,350,000
Weighted-average exercise price, Ending balance	$ 0.01	$ 0.07

v3.25.0.1

Equity (Details Narrative) - USD ($)				1 Months Ended								12 Months Ended
	Jul. 12, 2024	May 31, 2024	Feb. 24, 2022	Jul. 31, 2024	Jun. 30, 2024	May 31, 2024	Feb. 23, 2024	Dec. 31, 2023	Nov. 30, 2022	Oct. 31, 2022	Jun. 30, 2022	Sep. 30, 2024	Aug. 19, 2024	Sep. 30, 2023	May 31, 2023	Mar. 31, 2023	Mar. 01, 2023	Feb. 28, 2023	Oct. 17, 2022
Class of Stock [Line Items]
Common stock, shares authorized												1,000,000,000		1,000,000,000
Common stock, par value												$ 0.0001		$ 0.0001
Preferred stock, shares authorized												10,000,000		10,000,000
Preferred stock, par value												$ 0.0001		$ 0.0001
Preferred Stock, Redemption Terms												The Series A Preferred Stock is entitled to receive, prior to any distribution to any junior class of securities, an amount equal to $0.01 per share as a liquidation preference before any distribution may be made to the holders of any junior security, including the Common Stock.
Preferred Stock, Voting Rights												Each holder of Series A Preferred Stock shall vote with holders of the Common Stock upon any matter submitted to a vote of shareholders, in which event it shall have the number of votes equal to the number of shares of Common Stock into which such share of Series A Preferred Stock would be convertible on the record date for the vote or consent of shareholders. Each holder of Series A Preferred Stock shall also be entitled to one vote per share on each submitted to a class vote of the holders of Series A Preferred Stock.
Conversion of Stock, Description												Each share of Series A Preferred Stock is convertible into 33.94971 shares of Common Stock at the option of the holder thereof
Mandatory conversion right, description												The Company has the right to convert each share of Series A Preferred Stock into 33.94971 shares of Common Stock at any time that there are less than 200,000 shares of Series A Preferred Stock outstanding.
Preferred stock shares, issued												0		0
Preferred Stock, Shares Outstanding												0		0
Shares issued for market fair value, shares																			250,000
Shares issued for market fair value																			$ 15,000
Shares Issued For Commitment Fees Shares							5,000,000			1,000,000
Shares Issued For Commitment Fees		$ 70,000				$ 70,000	$ 50,000			$ 60,000
Shares issued for promissory note, value			$ 750,000			63,000	$ 140,000	$ 195,000	$ 200,000	$ 750,000	$ 250,000
Number of shares issued															750,000
Gross proceeds common stock						$ 15,000
Common Stock, Shares, Issued												113,701,722		106,551,722
Treasury stock, shares												15,100		15,100
Treasury stock, value												$ 18,126		$ 18,126
Number of warrants issued			1,000,000			5,000,000		5,000,000	100,000		125,000
Derivative liability			$ 107,283						$ 4,074		$ 8,136
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Date												Feb. 24, 2027
Class of Warrant or Right, Exercise Price of Warrants or Rights																	$ 0.05
Warrant shares																		1,000,000
Debt discount												$ 0		767			$ 1,109
Warrant purchase	5,000,000											333,333	666,666
Exercise price	$ 0.00001											$ 0.08	$ 0.08
Investor amount	$ 50,000
Two additional tranches	50,000
Second tranche	$ 50,000
Additional Investor amount												$ 50,000
Rre funded warrants purchase												2,500,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Intrinsic Value												$ 200		$ 0
Warrants [Member]
Class of Stock [Line Items]
Warrant shares																125,000		2,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.00001			$ 0.00001	$ 0.00001		$ 0.00001								$ 0.05		$ 0.05
Term																5 years		4 years
Warrant [Member]
Class of Stock [Line Items]
Fair value of derivative liability						$ 348,500		$ 248,952
Principal balance						0		0
Debt discount		$ 63,000				63,000		$ 195,000
Line of Credit, Current		$ 2,000,000			$ 250,000	2,000,000
Purchase shares		5,000,000			5,000,000
Derivative liability		$ 180,000			$ 337,500	$ 180,000
Loan fee		$ 7,500			$ 25,000
Investor [Member]
Class of Stock [Line Items]
Number of shares issued		1,000,000		400,000		1,000,000
Gross proceeds common stock				$ 8,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized												5,000,000
Preferred stock shares, issued														0
Preferred Stock, Shares Outstanding														0

v3.25.0.1

Notes Payable (Details) - S B A Loan [Member]	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
2025	$ 2,452
2026	2,431
2027	2,431
2028	2,431
2029	2,431
Thereafter	104,662
Total	$ 116,838

v3.25.0.1

Notes Payable (Details 1) - Promissory Notes Payable [Member]	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
2025	$ 38,159
2026
Total	$ 38,159

v3.25.0.1

Notes Payable (Details Narrative) - USD ($)										1 Months Ended	12 Months Ended
	Jul. 03, 2024	Feb. 22, 2024	Aug. 15, 2023	May 01, 2023	Mar. 01, 2023	Oct. 08, 2021	Aug. 12, 2021	Jun. 03, 2020	Sep. 13, 2019	Jun. 30, 2022	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Interest rate									6.00%
Recorded interest expense											$ 733,560	$ 173,895
Accrued interest											56,584	63,063
Promissory notes payable description										During June 2022, the Company sold a total of $250,000 worth of Units to U.S. Escrow Services Corporation and Kevin Leach, two accredited investors, which resulted in the issuance of two secured promissory notes with an aggregate principal amount of $250,000 for cash proceeds of $230,000 (net of an original issuance discount of $20,000), and the issuance of 125,000 warrants (see Note 6). The $20,000 was recorded as a debt discount and the conversion option embedded in the notes was bifurcated and accounted for as a derivative liability resulting in the Company recording a debt discount and derivative liability of $50,491. As a result of the Company’s equity environment being tainted the warrants qualified for derivative accounting and were assigned a value of $8,136 which was recorded as a derivative liability (see Note 9) and debt discount. The total debt discount of $78,627 is being amortized to interest expense over the term of the Note. The debt discount was $0 on September 30, 2024. These notes matured in June 2024 and are still outstanding.
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.05
Debt Instrument, Unamortized Discount					$ 1,109						0	767
Note payable balance											12,500
Accrued interest											12,752	4,918
Promissory note reclassified											$ 7,500
Warrants issued											15,000
Recorded interest expense											$ 1,500	1,791
Promissory note payable											7,500
Promissory Note											526,978
Broker and legal fees											47,500
Deferred offering costs											199,999
Amortized of Deferred Offering Costs											55,328
Promissory Notes Payable											540,129
Obligation value											$ 620,185
Purchase warrant											5,000,000
Fair market value of warrant											$ 180,000
Loan fees											7,500
Broker fee											40,000
Debt discount											5,861
Loan balance											39,304
Net note balance											38,159
Promissory Note Payable [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ 2,939	$ 5,974	$ 6,206	$ 3,682
Accrued interest											3,609
Accrued interest											2,166	666
Face amount			64,206	35,982
Payment for processing services			64,206	35,982
Payment for debt			6,206	3,682
Net proceeds received			$ 49,770	$ 32,300
Fixed fees			6,206	3,685
Convertible Debt	49,496	38,211	$ 57,820	$ 27,752
Convertible Notes Payable		19,263	$ 6,386	$ 8,230
Promissory Note Payable In Default [Member]
Debt Instrument [Line Items]
Recorded interest expense											2,500
Promissory Third Note Payable [Member]
Debt Instrument [Line Items]
Face amount	88,800	57,474
Payment for processing services	88,800	57,474
Payment for debt	8,800	5,974
Net proceeds received	$ 60,737	$ 44,644
Fixed fees	8,800	5,974
Other net proceeds amount	$ 19,263	$ 6,856
Investor [Member] | Promissory Note Payable [Member]
Debt Instrument [Line Items]
Capital Units, Net Amount					$ 12,500
Short-Term Debt, Percentage Bearing Fixed Interest Rate					15.00%
Issuance of warrants					25,000
Investor [Member] | Promissory Note Payable In Default [Member]
Debt Instrument [Line Items]
Warrants expire date					March 1, 2028
Fair value of derivative liability					$ 767
S B A Loan [Member]
Debt Instrument [Line Items]
Proceeds from SBA loan						$ 36,200	$ 114,700	$ 78,500
Interest rate								3.75%
Recorded interest expense											5,094	4,243
Accrued interest											5,989	6,722
Outstanding principal											$ 116,838	$ 116,838

v3.25.0.1

Convertible Notes Payable (Details) - Secured Convertible Notes [Member]	12 Months Ended
	Sep. 30, 2024 USD ($)
Debt Instrument [Line Items]
2025	$ 200,000
Total	$ 200,000

v3.25.0.1

Convertible Notes Payable (Details Narrative) - USD ($)								1 Months Ended			12 Months Ended
	Jun. 14, 2024	May 28, 2024	Feb. 23, 2024	Dec. 15, 2023	Nov. 28, 2023	Feb. 24, 2022	Sep. 13, 2019	Nov. 30, 2022	Oct. 31, 2022	Jun. 30, 2022	Sep. 30, 2024	Sep. 30, 2023	Nov. 19, 2024	May 31, 2024	Sep. 27, 2023	Mar. 01, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Interest rate							6.00%
Shares issued for commitment fees			5,000,000						1,000,000
Commitment fee value			$ 50,000						$ 60,000					$ 70,000
Number of shares issued other shares											4,000,000
Number of shares issued other value											$ 65,274
Financing costs											108,750
Derivative guarantee											384,287
Derivative warrant											$ 107,283
Shares issued											4,000,000		250,000
Commitment fee											$ 65,274
Amortized debt discount											0	$ 767				$ 1,109
Received on debt											(155,709)	(42,011)
Debt discount											393,946	122,279
Interest expense other											30,000	64,605
Amortization of debt discount											21,640	58,158
Gain (Loss) on Extinguishment of Debt												29,072
Derivative liability for guarantee and warrants											1,386,014	1,317					$ 115,009
Accrued interest owed											$ 56,584	63,063
Warrants exercise price																$ 0.05
Warrants issued											15,000
Derivative liability											$ 1,386,014	1,317
Interest Paid, Including Capitalized Interest, Operating and Investing Activities											0	13,125
Debt Instrument, Unamortized Discount, Current											2,640	51,626
Long-Term Debt, Gross											200,000	450,000
Notes Payable											197,360	398,374
A J B Note [Member]
Debt Instrument [Line Items]
Principal amount					$ 22,222										$ 25,000
Commitment fee shares						$ 800,000
Shares issued for commitment fees						4,000,000
Commitment fee value						$ 400,000
Amortized debt discount									$ 60,000		665,594
Additional commitment fee shares									1,000,000
Received on debt					$ 20,000
Shares issued for promissory note value				$ 195,000
Purchase shares				5,000,000
Nominal exercise price per share				0.00001
Derivative liability				$ 248,952
Debt discount				0
Interest and debt expense				195,000
A J B Note [Member] | Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Principal amount			140,000	195,000		750,000
Purchase price	$ 225,000	$ 56,700	112,000	165,750		675,000
Brokerage fees						33,750
Net proceeds from loans		$ 50,000	$ 102,000	$ 150,750		$ 641,250
Maturity date	Feb. 25, 2025	Feb. 25, 2025	Feb. 25, 2025	Feb. 25, 2025		Feb. 25, 2025
Interest rate	15.00%	12.00%	12.00%			10.00%
Shares issued for commitment fees			5,000,000
Warrants expire date						Feb. 24, 2027
Commitment fee		$ 1,000,000	$ 50,000
Amortized debt discount	$ 12,500	63,000									0	0
Shares issued for promissory note value	$ 250,000	63,000
Nominal exercise price per share	0.00001
Fees and due	$ 12,500	$ 6,700
Warrant to purchase unregistered shares	5,000,000	5,000,000
Fair value of derivative liability	$ 337,499	$ 348,499
Principal balance		$ 0
Rental properties	$ 212,500
Original issue discount	25,000
Interest expense other											105,443	97,849
Increase in debt discount												63,500
Amortization of debt discount												65,259
Gain (Loss) on Extinguishment of Debt												7,241
Change in fair value of derivative liability											293,574	126,338
Additional loss on debt extinguishment												29,072
Repayments of debt												31,042
Derivative liability for guarantee and warrants											245,442	663
Note payable											860,000	860,000
Accrued interest owed											$ 174,005	$ 68,562
A J B Notes [Member]
Debt Instrument [Line Items]
Shares issued for commitment fees						2,000,000
Convertible Debt [Member] | Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Share price						$ 0.30
Secured Convertible Notes [Member]
Debt Instrument [Line Items]
Share price										$ 0.20
Warrants exercise price										$ 0.30
Warrants term										5 years
Warrants issued								100,000
Secured Convertible Notes [Member] | Two Accredited Investors [Member]
Debt Instrument [Line Items]
Principal amount								$ 200,000
Debt discount								43,124
Number of shares sold, value								200,000
Cash proceeds								180,000
Original issuance discount								20,000
Derivative liability								7,254
Secured Convertible Notes [Member] | Two Accredited Investors [Member] | Options [Member]
Debt Instrument [Line Items]
Debt discount								19,330
Conversion of debt discount								$ 20,000
Secured Convertible Notes [Member] | Board of Directors Chairman [Member]
Debt Instrument [Line Items]
Principal amount										$ 50,000
Number of shares issued, shares										10
Number of shares issued, value										$ 50,000

v3.25.0.1

Derivative Liabilities (Details)	12 Months Ended
	Sep. 30, 2024
Minimum [Member]
Derivative [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	8 months 4 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate	111.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	3.93%
Maximum [Member]
Derivative [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Term	5 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Volatility Rate	499.00%
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.93%

v3.25.0.1

Derivative Liabilities (Details 1)	12 Months Ended
	Sep. 30, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Commitment fee guarantee issued February 24, 2022	$ 213,033
Warrants issued February 24, 2022	48,799
Embedded conversion feature in Note issued June 3, 2022	2,444
Warrants issued June 3, 2022	24,400
Embedded conversion feature in Note issued June 16, 2022	3,666
Warrants issued June 16, 2022	36,500
Embedded conversion feature in Note issued November 15, 2022	4,890
Warrants issued November 15, 2022	20,596
Warrants issued on February 10, 2023	48,799
Warrants issued on March 1, 2023	6,837
Warrants issued on December 15, 2023	243,950
Warrants issued on May 1, 2024	244,000
Warrants issued on May 28, 2024	244,000
Warrants issued on June 16, 2024	244,000
Derivative liability balance - September 30, 2024	$ 1,386,014

v3.25.0.1

Derivative Liabilities (Details 2) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability, Current	$ 1,317	$ 115,009
Addition Of New Derivatives Recognized As Debt Discounts	1,089,454	26,959
Gain (Loss) on Extinguishment of Debt		29,072
Gain On Change In Fair Value Of Derivative	342,751	(169,723)
Derivative Liability, Current	$ 1,386,014	$ 1,317

v3.25.0.1

Income Taxes (Details) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Deferred tax assets:
Net operating loss carryover	$ 914,000	$ 773,800
Accruals	4,100	17,800
Development		14,700
Depreciation & amortization	(13,200)	(12,200)
Valuation allowance	(904,900)	(794,100)
Net deferred tax asset

v3.25.0.1

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Expected Federal Tax	$ (619,800)	$ (195,300)
Expected federal tax, percent	21.00%	21.00%
State income taxes (net of federal benefit)	$ (103,900)	$ (73,500)
State income taxes (net of federal benefit), percent	3.50%	7.90%
Permanent adjustments	$ 340,200	$ 800
Permanent adjustments, percent	(11.50%)	(0.10%)
State tax rate change	$ 38,200	$ 38,200
State tax rate change, percent	(1.30%)	(4.10%)
Change in valuation allowance	$ 345,300	$ 229,800
Change in valuation allowance, percent	(11.50%)	(24.70%)
Total income tax provision

v3.25.0.1

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Feb. 24, 2022
Income Tax Disclosure [Abstract]
Statutory rate	31.00%	31.00%
Net operating loss carryforwards	$ 3,450,000		$ 1,700,000

v3.25.0.1

Subsequent Events (Details Narrative) - USD ($)	Nov. 19, 2024	Sep. 30, 2024	Sep. 30, 2023	Mar. 01, 2023
Subsequent Event [Line Items]
Debt discount		$ 0	$ 767	$ 1,109
Issued Shares	250,000	4,000,000
Gross proceeds	$ 5,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Principal amount	77,700
Debt discount	$ 7,614
Maturity date	May 20, 2026
Purchased six vehicles	$ 137,289

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