DropCar Announces Financial Results for the Three and Nine Months Ended September 30, 2019
Summary
NEW YORK--(BUSINESS WIRE)--DropCar, Inc. (Nasdaq:DCAR) (“DropCar” or the “Company”), a provider of micro logistics technology, mobility services and cloud based software for both the automotive industry and consumers, today announced financial results and the filing of its Form 10-Q for the three and nine months ended September 30, 2019, including an update on the results of initiatives implemented to conserve cash on hand, while focusing on its most profitable business segments. These improvements have also afforded the Company the opportunity to thoroughly explore the best options for strategic growth and alternatives.” During the past few months, DropCar has taken the following actions to continue to reduce its cash burn and focus on the most profitable segments of its business: (i) leverage improvements to its in-house technology and data analysis to refine labor scheduling and service pricing models, resulting in the Company transitioning from a gross loss of $399,887 for the quarter ended September 30, 2018 to a gross profit of $131,628, or 133% increase for the quarter ended September 30, 2019; and (ii) improving efficiency of overall backend and driver field operations while reducing low margin services, resulting in the Company transitioning from a gross loss of $1,658,377 for the nine months ended September 30, 2018 to a gross profit of $234,783, or 114% increase for the nine months ended September 30, 2019. Founded and launched in New York City in 2015, DropCar’s mission is to power the next generation of mobility by bringing the automotive industry’s products and services to everyone’s front door. This press release contains “forward-looking statements” that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources of the company to meet its business objectives and operational requirements and the impact of competitive products and services and technological changes.