PART II AND III 2 ridepair_1aa4.htm AMENDMENT NO. 4

Table of Contents

 

PART II — INFORMATION REQUIRED IN OFFERING CIRCULAR

 

Preliminary Offering Circular dated April 22, 2025

 

An Offering Statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the Offering Statement filed with the Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering Circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the Offering Statement in which such Final Offering Circular was filed may be obtained.

 

RidePair Inc.

 

$20,000,000

20,000 SHARES OF SERIES B 10% CONVERTIBLE PREFERRED STOCK

8,000,000 SHARES OF COMMON STOCK (FOR CONVERSION)

2,000 SHARES OF SERIES B 10% CONVERTIBLE PREFERRED STOCK (FOR DIVIDENDS)

800,000 SHARES OF COMMON STOCK (FOR CONVERSION OF DIVIDENDS)

$1,000.00 PER SHARE FOR EACH SHARE OF SERIES B 10% CONVERTIBLE PREFERRED STOCK

 

This is the public offering of securities of RidePair Inc., a Delaware corporation. We are offering 20,000 shares of our Series B 10% Convertible Preferred Stock, par value $0.0001 (the “Series B Preferred Stock”), at an offering price of $1,000 per share (the “Offered Shares”) by the Company. Each one Offered Share is convertible into four hundred (400) shares of the Company’s Common Stock. As per the Company’s designation for the Series B Preferred Stock, the first year of dividends will be paid through the payment of cash and through the issuance of additional shares of Series B Preferred Stock (“in-kind”). Approximately 2,000 shares of Series B Preferred Stock will be issued for the first year of dividends in the event that all Offered shares of Series B Preferred Stock are sold in this offering.

 

This offering statement also relates to the 8,000,000 shares of Common Stock issuable upon conversion of the Offered Shares and 800,000 shares of Common Stock issuable upon conversion of the Series B Preferred Stock issued as dividend payments.

 

This Offering will terminate on the earlier of (a) twelve (12) months from the date this Offering Circular is qualified for sale by the Securities Exchange Commission (“SEC”) (which date may be extended for an additional 90 days in our sole discretion); (b) the date when all Shares have been sold; or (c) the date on which this offering is earlier terminated by us, in our sole discretion. The minimum purchase requirement per investor is 1 Offered Share ($1,000).

 

Ridepair’s office is located at 2617 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405, Phone: 818-770-5933, Email: investor@ridepair.io. We maintain a website at http://www.ridepair.io. We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through, our website a part of this Offering Circular.

 

These securities are speculative securities. Investment in the Company’s stock involves significant risk. You should purchase these securities only if you can afford a complete loss of your investment. See the “Risk Factors” section on page 5 of this Offering Circular.

 

No Escrow

 

The proceeds of this offering will not be placed into an escrow account. We will offer our Series B Preferred Stock on a best efforts basis. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds.

 

Subscriptions are irrevocable and the purchase price is non-refundable as expressly stated in this Offering Circular. All proceeds received by the Company from subscribers for this Offering will be available for use by the Company upon acceptance of subscriptions for the securities by the Company.

 

The sale of these shares will commence within two calendar days of the qualification date and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).

 

This Offering will be conducted on a “best-efforts” basis, which means our Officers will use their commercially reasonable best efforts in an attempt to offer and sell the Shares. Our Officers will not receive any commission or any other remuneration for these sales. In offering the securities on our behalf, the Officers will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended.

 

This Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the laws of any such state.

 

As of the date of this prospectus, there is no trading market for our Preferred Stock or Common Stock, and we cannot assure you that a trading market will develop. Neither our Preferred Stock, nor our Common Stock, are currently listed on any national securities exchange, the NASDAQ stock market, or the OTC Markets. There is no guarantee that our securities will ever trade on any national securities exchange, the NASDAQ stock market, or the OTC Markets.

 

 

 

   

 

 

Investing in our Preferred Stock and Common Stock involves a high degree of risk. See “Risk Factors” beginning on page 5 for a discussion of certain risks that you should consider in connection with an investment in our Preferred Stock and Common Stock.

 

   Price to
Public
   Proceeds to
Issuer
 
Public Offering Price per Offered Share (1)(2)  $1,000   $20,000,000 
Common Stock Issuable upon Conversion of Offered Shares (8,000,000 shares) (3)  $   $ 
Shares of Series B Preferred Stock Issued as Dividend Payments (20,000 shares) (3)  $   $ 
Common Stock Issuable upon Conversion of Shares of Series B Preferred Stock Issued as Dividend Payments (800,000 shares) (3)  $   $ 
Underwriting Discounts and Commissions (4)  $   $ 
Proceeds to Company (5)  $1,000   $20,000,000 

 

(1) We are offering shares on a continuous basis. See “Distribution – Continuous Offering.

 

(2) This is a “best-efforts” offering. The proceeds of this offering will not be placed into an escrow account. We will offer our Offered Shares on a best-efforts basis primarily through direct communication with the Company. Upon the receipt of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds. See “How to Subscribe.”

 

(3) No additional consideration will be paid in connection with the issuance of shares of Common Stock issued upon conversion of the Offered Shares. In addition, no additional consideration will be paid in connection with the issuance of shares of Series B Preferred Stock issued as dividend payments, nor the shares of Common Stock issued upon conversion of the shares of the Series B Preferred Stock issued as dividend payments.

 

(4) We are offering these securities without an underwriter.

 

(5) Excludes estimated total offering expenses, inclusive of advertising, that we estimate will be approximately $2,000,000 assuming the maximum offering amount is sold.

 

Our Board of Directors used its business judgment in setting a value of $1,000 per share of Series B Preferred Stock as consideration for the stock to be issued under the Offering. The sales price per share bears no relationship to our book value or any other measure of our current value or worth.

 

No sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or your net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

THE U.S. SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

The date of this Offering Circular is April 22, 2025.

 

 

 

 

 

   

 

 

TABLE OF CONTENTS

 

  Page
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 1
SUMMARY 2
THE OFFERING 4
RISK FACTORS 5
USE OF PROCEEDS 17
DILUTION 19
DISTRIBUTION 22
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 25
BUSINESS 30
MANAGEMENT 34
EXECUTIVE COMPENSATION 36
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS 38
PRINCIPAL STOCKHOLDERS 39
SECURITIES OFFERED 41
DESCRIPTION OF SECURITIES 41
DIVIDEND POLICY 45
SHARES ELIGIBLE FOR FUTURE SALE 46
LEGAL MATTERS 47
EXPERTS 47
WHERE YOU CAN FIND MORE INFORMATION 47
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F-1

 

We are offering to sell, and seeking offers to buy, our securities only in jurisdictions where such offers and sales are permitted. You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with any information other than the information contained in this Offering Circular. The information contained in this Offering Circular is accurate only as of its date, regardless of the time of its delivery or of any sale or delivery of our securities. Neither the delivery of this Offering Circular nor any sale or delivery of our securities shall, under any circumstances, imply that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and made available for delivery to the extent required by the federal securities laws.

 

In this Offering Circular, unless the context indicates otherwise, references to “RidePair,” “we,” the “Company,” “our” and “us” refer to the activities of and the assets and liabilities of the business and operations of RidePair Inc.

 

 

 

 i 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

Some of the statements under “Summary”, “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Business” and elsewhere in this Offering Circular constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “should”, “will” and “would” or the negatives of these terms or other comparable terminology.

 

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Offering Circular, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things, may include statements about our:

 

  · business strategy;
     
  · our ability to successfully compete in highly competitive markets;
     
  · our expectations regarding financial performance, including but not limited to revenue, achieving or maintaining profitability, ability to generate or maintain positive Adjusted EBITDA or Free Cash Flow, expenses, and other results of operations;
     
  · our expectations regarding future operating performance, including but not limited to our expectations regarding future Trips, Revenue share, and Gross Margin;
     
  · our expectations regarding our competitors’ use of incentives and promotions, our competitors’ ability to raise capital, and the effects of such incentives and promotions on our growth and results of operations;
     
  · our anticipated investments in new products and offerings, and the effect of these investments on our results of operations;
     
  · our anticipated capital expenditures and our estimates regarding our capital requirements;
     
  · our ability to close and integrate acquisitions into our operations;
     
  · anticipated technology trends and developments and our ability to address those trends and developments with our products and offerings;
     
  · the size of our addressable markets, market share, category positions, and market trends, including our ability to grow our business in the countries we have identified as expansion markets;
     
  · our ability to identify, recruit, and retain skilled personnel, including key members of senior management;
     
  · our ability to effectively manage our growth and maintain and improve our corporate culture;
     
  · our expected growth in the number of platform users, and our ability to promote our brand and attract and retain platform users;
     
  · our ability to maintain, protect, and enhance our intellectual property rights;
     
  · our ability to successfully enter into new geographies, expand our presence in countries in which we are limited by regulatory restrictions, and manage our international expansion;
     
  · our ability to successfully renew licenses to operate our business in certain jurisdictions;
     
  · our ability to successfully respond to global economic conditions, including rising inflation and interest rates;
     
  · the availability of capital to grow our business;
     
  · our ability to meet the requirements of our existing debt;
     
  · our ability to prevent disturbances, including cybersecurity incidents, to our information technology systems;
     
  · our ability to comply with existing, modified, or new laws and regulations applying to our business; and
     
  · our ability to implement, maintain, and improve our internal control over financial reporting.

 

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as maybe be required by law, to re-issue this Offering Circular or otherwise make public statements updating our forward-looking statements.

 

 

 1 

 

 

MARKET AND INDUSTRY DATA

 

This prospectus contains estimates, projections and other information concerning our industry, our business and the markets for our for ride sharing, including data regarding the estimated size of such markets. We obtained the industry, market and similar data set forth in this prospectus from our internal estimates and research and from academic and industry research, publications, surveys and studies conducted by third parties, including governmental agencies. In some cases, we do not expressly refer to the sources from which this data is derived. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. While we believe our internal research is reliable, such research has not been verified by any third party.

 

SUMMARY

 

This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Common Stock. You should carefully read the entire Offering Circular, including the risks associated with an investment in the company discussed in the “Risk Factors” section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled “Cautionary Statement Regarding Forward-Looking Statements.”

 

Company Information

 

RidePair Inc. (“the Company”, “RidePair”, “we” and “us”) was incorporated under the laws of the State of Delaware on November 20, 2018 under the name of Bit Forge L.A. Inc. On August 20, 2020, the Company filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware and changed the name of the corporation to RidePair Inc.

 

RidePair is a software company that has developed an app for coordinating, enabling and verifying ride sharing. This is not ride sharing such as Uber where the driver is essentially offering a taxi service, but true ride sharing in which everyone in the car is sharing the ride to go to a similar place – e.g. co-commuting to work with colleagues. Unlike taxi-like services which increase the number of cars on the road, true ride sharing has been shown to be one of the most effective means of reducing cars on the roads and thus reducing traffic, emissions and even reducing roadway maintenance. The issue has been verifying the ride sharing or co-commuting is actually occurring, which issue is solved by the Ridepair app.

 

Ridepair’s office is located at 2617 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405, Phone: 818-770-5933, Email: investor@ridepair.io. We maintain a website at http://www.ridepair.io. We do not incorporate the information on or accessible through our website into this Offering Circular, and you should not consider any information on, or that can be accessed through, our website a part of this Offering Circular.

 

 

 

 

 2 

 

 

Section 15(g) of the Securities Exchange Act of 1934

 

Our shares are covered by section 15(g) of the Securities Exchange Act of 1934, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser’s written agreement to the transaction prior to the sale. Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.

 

Section 15(g) also imposes additional sales practice requirements on broker/dealers who sell penny securities. These rules require a one-page summary of certain essential items. The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important to in understanding of the function of the penny stock market, such as bid and offer quotes, a dealers spread and broker/dealer compensation; the broker/dealer compensation, the broker/dealers’ duties to its customers, including the disclosures required by any other penny stock disclosure rules; the customers’ rights and remedies in cases of fraud in penny stock transactions; and, the FINRA’s toll free telephone number and the central number of the North American Securities Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons.

 

Dividends

 

The Company has not declared or paid a cash dividend to stockholders since it was organized and does not intend to pay dividends in the foreseeable future, except for the dividends payable on the Series B 10% Convertible Preferred Stock (“Series B Preferred Stock”) issued in this offering. The board of directors presently intends to retain any earnings to finance our operations and does not expect to authorize cash dividends in the foreseeable future. Any other payment of cash dividends in the future will depend upon the Company’s earnings, capital requirements and other factors.

 

Series B Preferred Stock Dividend Policy

 

For the first year outstanding, dividends shall be paid through a combination of the issuance of additional shares of Preferred Stock (“in-kind”) and cash for any fractional dividend. For every year afterwards, dividends will be paid in cash. Payments for the first-year dividend shall be made on January 15, 2026. All dividend payments going forward shall be made on January 15th, April 15th, July 15th and October 15th beginning on April 15, 2026.

 

The Company will allocate 10% of the proceeds from this Offering into an escrow account as a contingency to make the payments to the holders of the Series B Preferred Stock during the second year after such Series B Preferred Stock has been issued . The Company believes that it will have sufficient operating profits to make a cash payment of dividends for the second year of payments. In the event that it does not have enough profits, it will use the capital in escrow as a return on capital as opposed to a dividend and the Preferred stockholders will be made informed through the dividend statements accompanying dividends and with their tax statements that they are not receiving net profits, and that they should not assume that the source of these distributions are net profits. If dividends are paid from operating profits, then the Company will move the escrowed capital to its operating account and use the capital for general working capital.

 

Example of first year dividend payment: If a Preferred Stockholder invested $1,000 in the the offering contemplated by this Offering Circular (the “Regulation A Offering”) and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $75. No fractional shares of the Preferred Stock may be issued, thus the Company shall pay the Preferred Stockholder a cash payment of $75.

 

Second Example of first year dividend payment: If a Preferred Stockholder invested $15,000 in the Regulation A Offering and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $1,125. The Company would issue the Preferred Stockholder one share (1) of the Preferred Stock and pay a cash dividend of $125.

 

Trading Market

 

As of the date of this prospectus, there is no trading market in our Series B Preferred Stock or Common Stock, and we cannot assure you that a trading market will develop. Neither our Series B Preferred Stock, nor our Common Stock, are currently listed on any national securities exchange, the NASDAQ stock market, or the OTC Markets . There is no guarantee that our securities will ever trade on any national securities exchange, the NASDAQ stock market, or the OTC Market .

 

 

 3 

 

THE OFFERING

 

Issuer:   RidePair Inc.
     
Securities offered:   A maximum of 20,000 shares of our Series B 10% Convertible Preferred Stock, par value $0.0001 (“Series B Preferred Stock”) at an offering price of $1,000 per share (the “Offered Shares”). (See “Distribution.”).
     
Conversion into Common Stock:   Each share of Series B Preferred Stock will be convertible into 400 shares of common stock (a conversion price of $2.50 per share).
     
Number of shares of Series A Preferred Stock outstanding before the offering   3,000,000 shares outstanding as of April 22, 2025.
     
Number of shares of Series B Preferred Stock to be outstanding after the offering   20,000 shares, if the maximum amount of Offered Shares are sold.
     
Number of shares of Common Stock outstanding before the offering   6,714,525 shares outstanding as of April 22, 2025.
     
Number of shares of Common Stock outstanding after conversion of all shares of Series A Preferred Stock   36,714,525
     
Number of shares of Common Stock outstanding after conversion of all shares of Series A and Series B Preferred Stock   44,714,525
     
Number of shares of Common Stock outstanding after conversion of all shares of Series A and Series B Preferred Stock inclusive of Series B Preferred Stock issued for dividends   45,514,525
     
Price per share:   $1,000
     
Maximum offering amount:   20,000 shares at $1,000 per share, or $20,000,000 (See “Distribution.”).
     
Dividend Payments   Please see “Summary” on page 2 for further information.
     
Trading Market:   As of the date of this prospectus, there is no trading market in our Series B Preferred Stock or Common Stock, and we cannot assure you that a trading market will develop. Neither our Series B Preferred Stock, nor our Common Stock, are currently listed on any national securities exchange, the NASDAQ stock market, or the OTC Markets. There is no guarantee that our securities will ever trade on any national securities exchange, the NASDAQ stock market, or the OTC Markets.
     
Use of proceeds:   If we sell all of the shares being offered, our net proceeds (after our estimated offering expenses) will be $20,000,000. We will use the majority of the net proceeds for product advertising and marketing, software development, escrow for dividend payments, deferred compensation and working capital and other general corporate purposes. Please see “Use of Proceeds” for further information.
     
Risk factors:  

Investing in our Series B Preferred Stock involves a high degree of risk, including:

 

Immediate and substantial dilution.

 

No market for our stock.

 

Competition

 

Limited operational history

 

Doubts about our ability to continue in business

 

See “Risk Factors.

 

 

 4 

 

 

RISK FACTORS

 

An investment in our Series B 10% Convertible Preferred Stock and Common Stock involves a high degree of risk. You should carefully consider the following risk factors, together with the other information contained in this Offering Circular, before purchasing our Common Stock. Any of the following factors could harm our business, financial condition, results of operations or prospects, and could result in a partial or complete loss of your investment. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. Please refer to the section entitled “Cautionary Statement Regarding Forward-Looking Statements”.

 

Risks Relating to Our Financial Condition

 

We have incurred significant losses and anticipate future losses.

 

As of September 30, 2024, we had an accumulated deficit of $3,509,252 and a stockholders’ deficit of approximately $2,223,747. Future losses are likely to occur until, we are able to generate revenue from our business plan and the RidePair app. As a result of these, among other factors, we have included a footnote within the financial statements for the years ended September 30, 2024 and 2023, an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern. Please see NOTE 2 – GOING CONCERN for further information.

 

Our existing financial resources are insufficient to meet our ongoing operating expenses.

 

We have no sources of income at this time and no existing cash balances to meet our ongoing operating expenses. In the short term, unless we are able to raise additional debt and/or equity we shall be unable to meet our ongoing operating expenses. On a longer-term basis, we intend to raise debt and/or equity to meet our ongoing operating expenses for growth in return for shares of our common stock to create value for our shareholders. There can be no assurance that we will be able to raise the capital to fund our operations and growth.

 

Management has expressed concerns about our ability to continue as a going concern.

 

Management has expressed concern about our ability to continue as a going concern based on the absence of significant revenues, our significant losses from operations and our need for additional financing to fund all of our operations. It is not possible at this time for us to predict with assurance the potential success of our business. The revenue and income potential of our proposed business and operations are unknown. If we cannot continue as a viable entity, we may be unable to continue our operations and you may lose some or all of your investment in our common stock.

 

We have limited operational history in an emerging industry, making it difficult to accurately predict and forecast business operation.

 

As we have less than ten years of corporate operational history and have yet to generate any significant revenue under our business model, it is extremely difficult to make accurate predictions and forecasts on our finances. There is no guarantee that we will properly execute our business model in the transportation/ride share sector.

 

As an early stage company, we have yet to achieve revenues, a profit and may not achieve a profit in the near future, if at all.

 

We have not yet produced revenues nor a net profit and may not in the near future, if at all. While we expect our revenue to begin and grow in the near future, we have not achieved profitability and cannot be certain that we will be able to realize sufficient revenue to achieve profitability. Our ability to continue as a going concern may be dependent upon raising capital from financing transactions, increasing revenue throughout the year and keeping operating expenses below our revenue levels in order to achieve positive cash flows, none of which can be assured.

 

 

 

 5 

 

 

We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.

 

We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the need to develop new features and products or enhance our existing products, improve our operating infrastructure or acquire complementary businesses and technologies. Accordingly, we may need to engage in continued equity or debt financings to secure additional funds. If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of our common stock. Any debt financing we secure in the future, could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. We may not be able to obtain additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be impaired, and our business may be harmed.

 

We expect our quarterly financial results to fluctuate.

 

We expect our net sales and operating results to vary significantly from quarter to quarter due to a number of factors, including changes in:

 

  · demand for app from end-users;
     
  · our ability to retain and to grow our contracts with the State of California Air Resources Board;
     
  · our ability to reach potential users through efficient advertising and marketing;
     
  · general economic conditions, both domestically and in foreign markets;
     
  · our ability to bring advertising partners onto the platform so that we are not dependent solely on the State of California to be able to pay the users and so we can increase the amount that we pay to each user;
     
  · our ability to expand to other metropolitan areas with the United States and abroad; and
     
  · retaining key personnel.

 

As a result of the variability of these and other factors, our operating results in future quarters may be below the expectations of our stockholders.

 

 

 

 

 6 

 

 

Risks Relating to Our Business and Industry

 

Our business requires substantial capital expenditures. We may be unable to obtain required capital or financing on satisfactory terms, which could lead to a decline in our advertising and marketing and thus a decrease in new user growth.

 

To launch an app to end-users requires substantial capital – primarily in marketing and advertisings. We make and expect to continue to make substantial capital expenditures to attract end-users to our platform. We also plan to continue to make expenditures to continually improve our software and develop additional features within our app. Also, our business model relies on the ability to pay the end-users for ride sharing and co-commuting. We expect to fund our 2025 and 2026 capital expenditures with cash generated by operations and from the net proceeds of this offering. The actual amount and timing of our future capital expenditures may differ materially from our estimates as a result of, among other things, attracting advertisers to our app and, and regulatory, technological and competitive developments. We intend to finance our future capital expenditures primarily through cash flow from operations; however, our financing needs may require us to alter or increase our capitalization substantially through the issuance of debt or equity securities or the sale of assets. The issuance of additional indebtedness would require that a portion of our cash flow from operations be used for the payment of interest and principal on our indebtedness, thereby reducing our ability to use cash flow from operations to fund working capital, capital expenditures and acquisitions.

 

Our cash flow from operations and access to capital are subject to a number of variables, including:

 

  · our ability to roll out our app;
     
  · the amount of advertising and marketing that will be needed to attract end-users to our app;
     
  · our ability to interest advertisers and marketing companies to advertise on our app; and
     
  · the levels of our operating expenses.

 

If additional capital is needed, we may not be able to obtain debt or equity financing on terms acceptable to us, if at all. If cash flow generated by our operations is not sufficient to meet our capital requirements, the failure to obtain additional financing could result in a curtailment of our operations relating to continued development of our app and advertising and marketing for new end-users, which in turn could lead to a decline in our revenues, and could adversely affect our business, financial condition and results of operations.

 

 

 

 

 

 

 

 7 

 

 

Introducing and rolling out a new software app to consumers are high-risk activities with many uncertainties that could result in a total loss of investment or otherwise adversely affect our business, financial condition or results of operations.

 

Our future financial condition and results of operations will depend on the success of our rollout activities including marketing and advertising, which are subject to numerous risks beyond our control, including the risk that consumers will not adapt our app, which will not result in a commercially viable business model.

 

Further, many factors may curtail, delay or cancel our scheduled rollout, including the following:

 

  · delays imposed by or resulting from compliance with regulatory requirements;
     
  · delays in moving our app from Beta to a full production product;
     
  · shortages of or delays in keeping or obtaining qualified personnel in software programming or in product marketing;
     
  · delays in expanding our contract with the State of California to other counties and municipalities within the State, assuming that we can expand it at all;
     
  · lack of interested advertisers that want to advertise on our app;
     
  · limited availability of financing at acceptable terms;
     
  · increase in competition in which other ride share applications implement our business model of paying people to share their cars; and
     
  · limited availability of financing at acceptable terms.

 

Our initial rollout will be concentrated in Placer County California, making us vulnerable to risks associated with operating in one major geographic area.

 

Our initial rollout will be geographically concentrated in Placer County California. As a result of this concentration, we may be disproportionately exposed to the impact of regional factors and preferences such as driving habits of the people from this area. These preferences might not be the same as potential end users from other areas. We might adapt our system for this end user base and it might not translate to other end users as we rollout our software to the rest of California, other US municipalities and even globally.

 

 

 

 

 8 

 

 

We may be unable to make attractive acquisitions or successfully integrate acquired businesses, and any inability to do so may disrupt our business and hinder our ability to grow.

 

Although there are no currently planned acquisitions or even potential targets, in the future we may make acquisitions of businesses that complement or expand our current business. We may not be able to identify attractive acquisition opportunities. Even if we do identify attractive acquisition opportunities, we may not be able to complete the acquisition or do so on commercially acceptable terms.

 

The success of any completed acquisition will depend on our ability to integrate effectively the acquired business into our existing operations. The process of integrating acquired businesses may involve unforeseen difficulties and may require a disproportionate amount of our managerial and financial resources. No assurance can be given that we will be able to identify additional suitable acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms or successfully acquire identified targets. Our failure to achieve consolidation savings, to integrate the acquired businesses and assets into our existing operations successfully or to minimize any unforeseen operational difficulties could have a material adverse effect on our financial condition and results of operations.

 

Competition in the ride share industry is intense.

 

Although we believe that RidePair is substantially different from other ride share companies, many of our perceived competitors possess and employ financial, technical and personnel resources substantially greater than ours. Those companies may be able to shift their business plans and directly compete with us by offering to pay all riders and drivers for sharing a ride. In addition, other companies may be able to offer better compensation packages to attract and retain qualified personnel than we are able to offer. We may not be able to compete successfully in the future in attracting end users to our app, attracting and retaining quality personnel and raising additional capital, which could have a material adverse effect on our business.

 

If we experience significant fluctuations in our rate of anticipated growth and fail to balance our expenses with our revenue forecasts, our results could be harmed.

 

Due to the early stages of our business model, the unpredictability of new markets that we enter and unpredictability of future general economic and financial market conditions, we may not be able to accurately forecast our rate of growth. We plan our expense levels and investment on estimates of future revenue and future anticipated rate of growth. We may not be able to adjust our spending quickly enough if the addition of new subscriptions or the renewal rate for existing subscriptions falls short of our expectations.

 

As a result, we expect that our revenues, operating results and cash flows may fluctuate significantly on a quarterly basis. Our recent revenue growth rates may not be sustainable and may decline in the future. We believe that period-to-period comparisons of our revenues, operating results and cash flows may not be meaningful and should not be relied upon as an indication of future performance.

 

 

 

 9 

 

 

If we acquire companies or technologies in the future, they could prove difficult to integrate, disrupt our business, dilute stockholder value and adversely affect our operating results and the value of your investment.

 

Although it is not part of our current business strategy, we might in the future decide that it is prudent to evaluate acquisitions of complementary businesses, joint ventures, services and technologies. Acquisitions and investments involve numerous risks, including:

 

  · the potential failure to achieve the expected benefits of the combination or acquisition;
     
  · difficulties in and the cost of integrating operations, technologies, services and personnel;
     
  · diversion of financial and managerial resources from existing operations;
     
  · risk of entering new markets in which we have little or no experience;
     
  · potential write-offs of acquired assets or investments;

 

  · potential loss of key employees;
     
  · inability to generate sufficient revenue to offset acquisition or investment costs;
     
  · the inability to maintain relationships with customers and partners of the acquired business;
     
  · potential unknown liabilities associated with the acquired businesses;
     
  · unanticipated expenses related to the acquired technology and its integration into existing technology;
     
  · negative impact to our results of operations because of the depreciation and amortization of amounts related to acquired intangible assets, fixed assets and deferred compensation, and the loss of acquired deferred revenue;
     
  · delays in customer purchases due to uncertainty;
     
  · the need to implement controls, procedures and policies appropriate for a public company at companies that prior to the acquisition lacked such controls, procedures and policies; and
     
  · challenges caused by distance, language and cultural differences.

 

In addition, if we finance acquisitions by issuing additional convertible debt or equity securities, our existing stockholders may be diluted which could affect the market price of our stock. Further, if we fail to properly evaluate and execute acquisitions or investments, our business and prospects may be seriously harmed, and the value of your investment may decline.

 

 

 10 

 

 

We are dependent on our management team and development and operations personnel, and the loss of one or more key employees or groups could harm our business and prevent us from implementing our business plan in a timely manner.

 

Our success depends substantially upon the continued services of our executive officers and other key members of management, particularly our Chief Executive Officer. From time to time, there may be changes in our executive management team resulting from the hiring or departure of executives. Such changes in our executive management team may be disruptive to our business. We are also substantially dependent on the continued service of our existing development and operations personnel because of the complexity of our service and technologies. We only have an employment agreement with our Chief Executive Officer. As a result of this, other key management, development or operations personnel, could terminate their employment with us at any time. We do not maintain key person life insurance policies on any of our employees. The loss of one or more of our key employees or groups could seriously harm our business.

 

Because competition for our target employees is intense, we may not be able to attract and retain the highly skilled employees we need to support our operations and increasing customer base.

 

In the transportation industry, there is substantial and continuous competition for programmers and marketing experts with high levels of experience and operations personnel. We may not be successful in attracting and retaining qualified personnel. We expect to experience difficulty in hiring and retaining highly skilled employees with appropriate qualifications. In addition, job candidates and existing employees often consider the value of the stock awards they receive in connection with their employment. Once listed, if our future stock price performs poorly, it may adversely affect our ability to retain highly skilled employees. In addition, since we expense all stock-based compensation, we may periodically change our stock compensation practices, which may include reducing the number of employees eligible for options or reducing the size of equity awards granted per employee. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects could be severely harmed.

 

Our officers and directors may have conflicts of interest which may not be resolved favorably to us.

 

Certain conflicts of interest may exist between our officers and directors and us. Certain of our officers and directors have other business interests to which they devote their attention and may be expected to continue to do so although management time should be devoted to our business. As a result, conflicts of interest may arise that can be resolved only through the exercise of such judgment as is consistent with fiduciary duties to us.

 

Natural disasters and other events beyond our control could materially adversely affect us.

 

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce and the global economy, and thus could have a strong negative effect on us. Our business operations are subject to interruption by natural disasters, fire, power shortages, pandemics and other events beyond our control.

 

Our lack of adequate D&O insurance may also make it difficult for us to retain and attract talented and skilled directors and officers.

 

We may in the future be subject to additional litigation, including potential class action and stockholder derivative actions. Risks associated with legal liability are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time. To date, we have not obtained directors and officers liability (“D&O”) insurance. While neither Delaware law nor our Articles of Incorporation or bylaws require us to indemnify or advance expenses to our officers and directors involved in such a legal action, we have entered into an indemnification agreement with our President and intend to enter into similar agreements with other officers and directors in the future. Without adequate D&O insurance, the amounts we would pay to indemnify our officers and directors should they be subject to legal action based on their service to the Company could have a material adverse effect on our financial condition, results of operations and liquidity. Furthermore, our lack of adequate D&O insurance may make it difficult for us to retain and attract talented and skilled directors and officers, which could adversely affect our business.

 

 

 

 11 

 

 

 

We may experience significant losses from operations.

 

Even if we do generate operating income in one or more quarters in the future, subsequent developments in our industry, customer base, business or cost structure or an event such as significant litigation or a significant transaction may cause us to again experience operating losses. We may not become profitable for the long-term, or even for any quarter.

 

If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. As a result, current and potential stockholders could lose confidence in our financial reporting, which would harm our business.

 

Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. If we cannot provide reliable financial reports or prevent fraud, our brand and operating results could be harmed. We may in the future discover areas of our internal controls that need improvement. We cannot be certain that any measures we implement will ensure that we achieve and maintain adequate controls over our financial processes and reporting in the future. Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations. Inferior internal controls could also cause investors to lose confidence in our reported financial information.

 

We cannot be certain that additional financing will be available on reasonable terms when required, or at all.

 

From time to time, we may need additional financing. Our ability to obtain additional financing, if and when required, will depend on investor demand, our operating performance, the condition of the capital markets, and other factors. We cannot assure you that additional financing will be available to us on favorable terms when required, or at all. We may need to raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences, or privileges senior to the rights of our Common Stock, and our existing stockholders may experience dilution.

 

Reliance upon third parties.

 

The Company does not intend on maintaining a significant back-office, programming or marketing staff. Rather it will rely heavily on consultants and contractors to perform these services for the Company. Accordingly, there is no assurance that such third parties will be available when needed at affordable prices.

 

 

 

 

 

 12 

 

 

Risks Related to this Offering and Our Preferred and Common Stock

 

There is no existing market for our Preferred or Common Stock and we cannot predict whether one will develop to provide you with adequate liquidity to sell our Preferred or Common Stock at prices equal to or greater than the price you paid in this offering.

 

Prior to this offering, there has not been a public market for our Preferred or Common Stock and we have not applied to list or quote our securities on any market, exchange or interdealer quotation system. We cannot predict the extent to which investor interest in our company will lead to the development of an active trading market on the stock exchange on which we list our Common Stock or otherwise or how liquid that market might become. If an active trading market does not develop, you may have difficulty selling any of our common stock that you buy. The initial public offering price for the common stock will be determined by negotiations between us and the representatives of the underwriters and may not be indicative of prices that will prevail in the open market following this offering. Consequently, you may not be able to sell our common stock at prices equal to or greater than the price you paid in this offering, or at all.

 

If our Common Stock becomes quoted, the market price of our Common Stock may fluctuate, and you could lose all or part of your investment.

 

The offering price for our Common Stock will be set by us based on a number of factors and may not be indicative of prices that will prevail on any national securities exchange, the NASDAQ stock market, or the OTC Markets following this Offering. The price of our Common Stock may decline following this Offering. The stock market in general, and the market price of our Common Stock will likely be subject to fluctuation, whether due to, or irrespective of, our operating results, financial condition and prospects.

 

Our financial performance, our industry’s overall performance, changing consumer preferences, technologies and advertiser requirements, government regulatory action, tax laws and market conditions in general could have a significant impact on the future market price of our Common Stock. Some of the other factors that could negatively affect our share price or result in fluctuations in our share price include:

 

  · our operating and financial performance;
     
  · quarterly variations in the rate of growth of our financial indicators, such as net income per share, net income and revenues;
     
  · the public reaction to our press releases, our other public announcements and our filings with the SEC;
     
  · strategic actions by our competitors;
     
  · our failure to meet revenue, reserves or earnings estimates by research analysts or other investors;
     
  · changes in revenue or earnings estimates, or changes in recommendations or withdrawal of research coverage, by equity research analysts;
     
  · speculation in the press or investment community;
     
  · the failure of research analysts to cover our common stock;
     
  · sales of our common stock by us, the selling stockholder or other stockholders, or the perception that such sales may occur;
     
  · changes in accounting principles, policies, guidance, interpretations or standards;
     
  · additions or departures of key management personnel;
     
  · actions by our stockholders;
     
  · general market conditions, including fluctuations in commodity prices;
     
  · domestic and international economic, legal and regulatory factors unrelated to our performance; and
     
  · the realization of any risks describes under this “Risk Factors” section.

 

 

 

 13 

 

 

The stock markets in general have experienced extreme volatility that has often been unrelated to the operating performance of particular companies. These broad market fluctuations may adversely affect the trading price of our common stock. Securities class action litigation has often been instituted against companies following periods of volatility in the overall market and in the market price of a company’s securities. Such litigation, if instituted against us, could result in very substantial costs, divert our management’s attention and resources and harm our business, operating results and financial condition.

 

We do not expect to declare or pay dividends on our Common Stock in the foreseeable future.

 

We do not expect to declare or pay dividends in the foreseeable future with the exception of the dividends associated with our Series B 10% Convertible Preferred Stock, as we anticipate that we will invest future earnings in the development and growth of our business. Therefore, holders of our Common Stock or holders of our Preferred Stock, who have converted to Common Stock, will not receive any return on their investment unless they sell their securities, and holders may be unable to sell their securities on favorable terms or at all.

 

Because we do not have an audit or compensation committee, shareholders will have to rely on our directors, none of whom is not independent, to perform these functions.

 

We do not have an audit or compensation committee comprised of an independent director. Indeed, we do not have any audit or compensation committee. The Board of Directors performs these functions as a whole. No members of the Board of Directors are an independent director. Thus, there is a potential conflict in that board members who are also part of management will participate in discussions concerning management compensation and audit issues that may affect management decisions.

 

Because we lack certain internal controls over financial reporting in that we do not have an audit committee and our Board of Directors has no technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company’s financial personnel to advise the Board on such matters, we are subject to increased risk related to financial statement disclosures.

 

We lack certain internal controls over financial reporting in that we do not have an audit committee and our Board of Directors has no technical knowledge of U.S. GAAP and internal control of financial reporting and relies upon the Company’s financial personnel to advise the Board on such matters. Accordingly, we are subject to increased risk related to financial statement disclosures. 

 

The preparation of our consolidated financial statements involves the use of estimates, judgments and assumptions, and our consolidated financial statements may be materially affected if such estimates, judgments or assumptions prove to be inaccurate.

 

Financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) typically require the use of estimates, judgments and assumptions that affect the reported amounts. Often, different estimates, judgments and assumptions could reasonably be used that would have a material effect on such financial statements, and changes in these estimates, judgments and assumptions may occur from period to period over time. Significant areas of accounting requiring the application of management’s judgment include, but are not limited to, determining the fair value of assets and the timing and amount of cash flows from assets. These estimates, judgments and assumptions are inherently uncertain and, if our estimates were to prove to be wrong, we would face the risk that charges to income or other financial statement changes or adjustments would be required. Any such charges or changes could harm our business, including our financial condition and results of operations and the price of our securities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of the accounting estimates, judgments and assumptions that we believe are the most critical to an understanding of our consolidated financial statements and our business.

 

 

 

 14 

 

 

 

Future issuances of our Common Stock or securities convertible into our Common Stock, or the expiration of lock-up agreements that restrict the issuance of new Common Stock or the trading of outstanding stock, could cause the future market price of our Common Stock to decline and would result in the dilution of your shareholding.

 

Future issuances of our Common Stock or securities convertible into our Common Stock, and/or conversion of the Notes convertible into Common Stock, or the expiration of lock-up agreements that restrict the sale of Common Stock by selling shareholders, or the trading of outstanding stock, could cause the future market price of our Common Stock to decline. We cannot predict the effect, if any, of the exercise of conversion of the Notes into Common Stock or other future issuances of our Common Stock or securities convertible into our Common Stock, or the future expirations of lock-up agreements, on the price of our Common Stock. In all events, future issuances of our Common Stock would result in the dilution of your shareholding. In addition, the perception that locked-up parties will sell their securities when the lock-ups expire, could adversely affect the market price of our Common Stock.

 

Our management has broad discretion as to the use of certain of the net proceeds from this Offering.

 

We intend to use up to $820,000 of the net proceeds from this Offering (if we sell all of the shares being offered) for working capital and other general corporate purposes. However, we cannot specify with certainty the particular uses of such proceeds. Our management will have broad discretion in the application of the net proceeds designated for use as working capital or for other general corporate purposes. Accordingly, you will have to rely upon the judgment of our management with respect to the use of these proceeds. Our management may spend a portion or all of the net proceeds from this Offering in ways that holders of our Preferred and Common Stock may not desire or that may not yield a significant return or any return at all. The failure by our management to apply these funds effectively could harm our business. Pending their use, we may also invest the net proceeds from this Offering in a manner that does not produce income or that loses value. Please see “Use of Proceeds” below for more information.

 

We may issue additional series of Preferred Stock whose terms could adversely affect the voting power or value of our Common Stock.

 

Our certificate of incorporation authorizes us to issue, without the approval of our stockholders, one or more classes or series of preferred stock having such designations, preferences, limitations and relative rights, including preferences over our common stock respecting dividends and distributions, as our board of directors may determine. The terms of one or more classes or series of preferred stock could adversely impact the voting power or value of our common stock. For example, we might grant holders of preferred stock the right to elect some number of our directors in all events or on the happening of specified events or the right to veto specified transactions. Similarly, the repurchase or redemption rights or liquidation preferences we might assign to holders of preferred stock could affect the residual value of the common stock.

 

By purchasing shares in this offering, an investor agrees to waive certain inspection rights set forth in Section 220 of the General Corporation Law of Delaware, which limits such investor’s ability to obtain certain corporate information from us.

 

Section 220 of the General Corporation Law of Delaware allows a stockholder of a company to inspect for any proper purpose, a company’s stock ledger, list of stockholders, and other books and records and the books and records of a company’s subsidiary in certain circumstances. By purchasing shares in this offering, investors agree to waive the inspection rights set forth in Section 220 of the General Corporation Law of Delaware. Despite our obligation to publicly file certain reports under Regulation A, such waiver will limit an investor’s ability to obtain information from us for certain proper purposes under the General Corporation Law of Delaware, which may prevent or delay an investor from evaluating our business or such investor’s investment in our securities.

 

 

 

 15 

 

 

 

Because our Series A Preferred Stockholders currently and for the foreseeable future will continue to control RidePair, it is not likely that you will be able to elect directors or have any say in the policies of the Company

 

Our shareholders are not entitled to cumulative voting rights. Consequently, the election of directors and all other matters requiring shareholder approval will be decided by majority vote. The holders of the Company’s Series A Preferred Stock beneficially own approximately 90% of our outstanding common stock either through direct ownership or through another class of capital stock that may be convertible into shares of our common stock. Due to such significant ownership position, new investors may not be able to effect a change in our business or management, and therefore, shareholders would have no recourse as a result of decisions made by management. Our President, Deborah Kenney, owns 1,500,000 shares of Series A Preferred Stock convertible into 15,000,000 shares of Common Stock.

 

Cautionary Note

 

We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our Series B Preferred Stock or Common Stock.

 

Cautionary Statement Regarding Forward-Looking Statements

 

This Offering Circular contains various “forward-looking statements.” You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “would,” “could,” “should,” “seeks,” “approximately,” “intends,” “plans,” “projects,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements may be impacted by a number of risks and uncertainties.

 

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our Securities. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled “Risk Factors.

 

 

 

 

 16 

 

 

USE OF PROCEEDS

 

If we sell all of the shares being offered, our net proceeds (after our estimated offering expenses of $2,000,000) will be $18,000,000. We will use these net proceeds for:

 

 

If 100% of the Shares are sold:      
Planned Actions   Estimated Cost to Complete  
Advertising and additional offering costs   $ 2,000,000  
Product Marketing and Advertising     12,000,000  
Additional Software Development Expenses     1,300,000  
Convertible Preferred Stock Interest Escrow     2,000,000  
Payment of Payables     700,000  
Payment of Deferred Compensation to the Company’s Chief Executive Officer     700,000  
Executive salaries     480,000  
Working Capital and General Corporate Purposes     820,000  
TOTAL   $ 20,000,000  

 

If 75% of the Shares are sold:      
Planned Actions   Estimated Cost to Complete  
Advertising and additional offering costs   $ 1,500,000  
Product Marketing and Advertising     9,000,000  
Additional Software Development Expenses     975,000  
Convertible Preferred Stock Interest Escrow     1,500,000  
Payment of Payables     525,000  
Payment of Deferred Compensation to the Company’s Chief Executive Officer     525,000  
Executive salaries     360,000  
Working Capital and General Corporate Purposes     615,000  
TOTAL   $ 15,000,000  

 

If 50% of the Shares are sold:      
       
Planned Actions   Estimated Cost to Complete  
Advertising and additional offering costs   $ 1,000,000  
Product Marketing and Advertising     6,000,000  
Additional Software Development Expenses     650,000  
Convertible Preferred Stock Interest Escrow     1,000,000  
Payment of Payables     350,000  
Payment of Deferred Compensation to the Company’s Chief Executive Officer     350,000  
Executive salaries     240,000  
Working Capital and General Corporate Purposes     410,000  
TOTAL   $ 10,000,000  

 

 

 

 17 

 

  

If 25% of the Shares are sold:      
       
Planned Actions   Estimated Cost to Complete  
Advertising and additional offering costs   $ 500,000  
Product Marketing and Advertising     3,000,000  
Additional Software Development     325,000  
Convertible Preferred Stock Interest Escrow     500,000  
Payment of Payables     175,000  
Payment of Deferred Compensation to the Company’s Chief Executive Officer     175,000  
Executive salaries     120,000  
Working Capital and General Corporate Purposes     205,000  
TOTAL   $ 5,000,000  

  

The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors.

 

As indicated in the table above, if we sell only 25%, 50% or 75% of the shares offered for sale in this Offering, we would expect to use the resulting net proceeds for the same purposes as we would use the net proceeds from a sale of 100% of the shares, and in approximately the same proportions, until such time as such use of proceeds would leave us without working capital reserve. At that point we would expect to modify our use of proceeds by limiting our expansion, leaving us with the working capital reserve indicated.

 

The expected use of net proceeds from this Offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this Offering.

 

In the event we do not sell all of the shares being offered, we may seek additional financing from other sources in order to support the intended use of proceeds indicated above. If we secure additional equity funding, investors in this Offering would be diluted. In all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us.

 

 

 

 

 

 18 

 

 

DILUTION

 

If you purchase shares in this Offering, your ownership interest in our Common Stock, upon conversion of the Series B 10% Convertible Preferred Stock (“Series B Preferred Stock”) into shares of the Company’s Common Stock, will be diluted immediately, to the extent of the difference between the price to the public charged for each share in this Offering and the net tangible book value per share of our Common Stock after this Offering.

 

Our historical net tangible book value as of September 30, 2024 was ($2,666,947) or ($0.41) per then-outstanding shares of our Common Stock. Historical net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of our Common Stock outstanding, all as of the date specified.

 

The following table illustrates the per share dilution to new investors discussed above, assuming the sale of, respectively, 100%, 50% and 25% of the shares offered for sale in this Offering (after deducting estimated offering expenses of $2,000,000, $1,000,000 and $500,000, respectively):

 

Percentage of shares offered that are sold   100%     50%     25%  
                   
Price to the public charged for each share in this Offering (1)   $ 2.50     $ 2.50     $ 2.50  
                         
Historical net tangible book value per share as of September 30, 2024 (2)   $ (0.41   $ (0.41   $ (0.41
                         
Increase in net tangible book value per share attributable to new investors in this Offering (3)   $ 1.47     $ 1.02     $ 0.63  
                         
Net tangible book value per share, after this Offering (4)   $ 1.06     $ 0.60     $ 0.22  
                         
Dilution per share to new investors   $ 1.44     $ 1.90     $ 2.28  

 

(1) Based on the issuance of four hundred (400) shares of Common Stock for each share of Series B Preferred Stock.
   
(2) Based on net tangible book value as of September 30, 2024 of ($2,666,947) and 6,484,525 outstanding shares of Common stock.
   
(3) After deducting estimated offering expenses of $2,000,000, $1,000,000 and $500,000, respectively.
   
(4) Assumes that all 20,000 shares of Series B Preferred Stock are converted into shares of Common Stock, or 8,000,000 shares of Common Stock.

 

 

 

 19 

 

 

This second table calculates dilution based on our historical net tangible book value as of September 30, 2024 of ($2,666,947) or ($0.07) per then-outstanding shares of our Common Stock and Series A Preferred Stock assuming conversion of all Preferred Stock to Common Stock. Historical net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of our Common Stock outstanding, assuming the conversion of all Series A Preferred Stock, all as of the date specified.

 

The following table illustrates the per share dilution to new investors discussed above, assuming the sale of, respectively, 100%, 50% and 25% of the shares offered for sale in this Offering (after deducting estimated offering expenses of $2,000,000, $1,000,000 and $500,000, respectively):

 

Percentage of shares offered that are sold   100%     50%     25%  
                   
Price to the public charged for each share in this Offering (1)   $ 2.50     $ 2.50     $ 2.50  
                         
Historical net tangible book value per share as of September 30, 2024 (2)   $ (0.07   $ (0.07   $ (0.07
                         
Increase in net tangible book value per share attributable to new investors in this Offering (3)   $ 0.42     $ 0.23     $ 0.12  
                         
Net tangible book value per share, after this Offering (4)   $ 0.34     $ 0.16     $ 0.05  
                         
Dilution per share to new investors   $ 2.16     $ 2.34     $ 2.45  

 

(1) Based on the issuance of four hundred (400) shares of Common Stock for each share of Series B Preferred Stock.
   
(2) Based on net tangible book value as of September 30, 2024 of ($2,666,947) and 36,484,525 outstanding shares of Common stock including the conversion of all shares of Series A Preferred Stock converted into 30,000,000 shares of Common Stock.
   
(3) After deducting estimated offering expenses of $2,000,000, $1,000,000 and $500,000, respectively.
   
(4) Assumes that all 20,000 shares of Series B Preferred Stock are converted into shares of Common Stock, or 8,000,000 shares of Common Stock.

 

Future Dilution

 

Dilution may also result from future actions by our Company, and specifically from any increase in the number of shares of the Company’s capital stock outstanding resulting from a stock offering (such as a public offering, a crowdfunding round, a venture capital round or an angel investment), employees exercising stock options, or conversion of certain instruments (such as convertible bonds, preferred shares or warrants) into stock.

 

If we decide to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if we offer dividends, and most early-stage companies are unlikely to offer dividends, preferring to invest any earnings into the Company).

 

 

 

 20 

 

 

Dilution might also happen upon conversion of any convertible notes into shares of Common Stock the Company may issue in the future. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a “discount” to the price paid by the new investors, i.e., they get more shares than the new investors would for the same price. Additionally, convertible notes may have a “price cap” on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a “down round” the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to the amount of convertible notes that the company has issued (and may issue in the future), and the terms of those notes.

 

If you are making an investment expecting to own a certain percentage of our Company or expecting each share to hold a certain amount of value, it’s important to realize how the value of those shares can decrease by actions taken by us. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

 

Series A Preferred Stock Percentage Ownership Including All Shares Issued and Outstanding

 

Share Structure 

Number of Shares

Beneficially Owned

  

Percent of Class

Before Offering

  

Percent of Class

After Offering

 
Shares outstanding prior to offering   3,000,000    100.00%    100.00% 
Shares of Series A Preferred Stock offered in offering   0    0.00%    0.00% 
Total shares (a)   3,000,000    100.00%    100.00% 

 

Series B Preferred Stock Percentage Ownership Including All Shares Issued and Outstanding

 

Share Structure  

Number of Shares

Beneficially Owned

   

Percent of Class

Before Offering

   

Percent of Class

After Offering

 
Shares outstanding prior to offering     0       0.00%       0.00%  
Shares of Series B Preferred Stock offered in offering     20,000       0.00%       100.00%  
Total shares (a)     20,000       0.00%       100.00%  

 

  (a) Total shares outstanding after the offering assumes that all shares in the offering are sold, but does not include shares of Series B Preferred Stock to be issued as dividend payments.

 

Common Stock Percentage Ownership Including All Shares Issued and Outstanding

 

Share Structure  

Number of Shares

Beneficially Owned

   

Percent of Class

Before Offering

   

Percent of Class

After Offering

 
Shares outstanding prior to offering     6,714,525       18.29%       15.02%  
Shares issued upon conversion of Series A Preferred Stock     30,000,000       81.71%       67.09%  
Shares issued upon conversion of the Series B Preferred Stock     8,000,000       0%       17.89%  
Total shares (a)     44,714,525       100.00%       100.00%  

 

  (a) Total shares outstanding after the offering and after the conversion of all shares of Series A and Series B Preferred Stock into shares of the Company’s Common Stock equals 44,714,525 and assumes that all shares in the offering are sold, but does not include shares of Series B Preferred Stock to be issued as dividend payments.

 

 

 

 21 

 

 

DISTRIBUTION

 

This Offering Circular is part of an Offering Statement that we filed with the SEC, using a continuous offering process. Periodically, as we have material developments, we will provide an Offering Circular supplement that may add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent Offering Circular supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any Offering Circular supplement, together with additional information contained in our annual reports, semi-annual reports and other reports and information statements that we will file periodically with the SEC. See the section entitled “Additional Information” below for more details.

 

Exchange Listing

 

As of the date of this prospectus, there is no trading market in our Preferred Stock or Common Stock, and we cannot assure you that a trading market will develop. Neither our Preferred Stock, nor our Common Stock, are currently listed on any national securities exchange, the NASDAQ stock market, or the OTC Markets. There is no guarantee that our securities will ever trade on any national securities exchange, the NASDAQ stock market, or the OTC Markets . As of the date of this Offering Circular, we have not applied to have our securities listed or quoted on any national securities exchange or interdealer quotation system.

 

Pricing of the Offering

 

Prior to the Offering, there has been no public market for the Offered Shares. The initial public offering price was determined by us. The principal factors considered in determining the initial public offering price include:

 

  · the information set forth in this Offering Circular and otherwise available;
     
  · our history and prospects and the history of and prospects for the industry in which we compete;
     
  · our past and present financial performance;
     
  · our prospects for future earnings and the present state of our development;
     
  · the general condition of the securities markets at the time of this Offering;
     
  · the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and
     
  · other factors deemed relevant by us.

 

Offering Period and Expiration Date

 

This Offering will start on or after the Qualification Date and will terminate on the earlier of (a) twelve (12) months from the date this Offering Circular is qualified for sale by the Securities Exchange Commission (“SEC”) (which date may be extended for an additional 90 days in our sole discretion); (b) the date when all Shares have been sold; or (c) the date on which this offering is earlier terminated by us, in our sole discretion.

 

The Company may extend the Offering for an additional time period unless the Offering is completed or otherwise terminated by us, or unless we are required to terminate by application of Regulation A of the JOBS Act. Funds received from investors will be counted towards the Offering only if the form of payment, such as a check or wire transfer, clears the banking system and represents immediately available funds held by us prior to the termination of the subscription period, or prior to the termination of the extended subscription period if extended by the Company.

 

Broker Dealers

 

The Company will not initially sell the Shares through commissioned broker-dealers, but may do so after the commencement of the offering. Any such arrangement will add to our expenses in connection with the offering. If we engage one or more commissioned sales agents or underwriters, we will supplement this Form 1-A to describe the arrangement.

 

 

 22 

 

 

Subscription Procedures

 

If you decide to subscribe for our Shares in this Offering, you should review your subscription agreement. Completed and signed subscription documents shall be either mailed directly to the Company at RidePair Inc., 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405 or sent via electronic correspondence to investor@ridepair.io.

 

You shall deliver funds by either check, ACH deposit or wire transfer, pursuant to the instructions set forth in the subscription agreement. Upon confirmation that a subscriber’s funds have cleared, the Offered Shares will be sent to the subscriber within 48 hours.

 

Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such subscription agreement upon request after a potential investor has had ample opportunity to review this Offering Circular.

 

Acceptance of Subscriptions

 

Upon our receipt of a subscription agreement and payment, we will countersign the subscription agreement and issue the Shares subscribed at closing. Once you submit the subscription agreement, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

 

Under Rule 251 of Regulation A, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed ten percent (10%) of the greater of the purchaser’s revenue or net assets (as of the purchaser’s most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed ten percent (10%) of the greater of the purchaser’s annual income or net worth (please see below on how to calculate your net worth).

 

NOTE: For the purposes of calculating your net worth, it is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary if the fiduciary directly or indirectly provides funds for the purchase of the Offered Shares.

 

In order to purchase our Shares and prior to the acceptance of any funds from an investor, an investor will be required to represent, to the Company’s satisfaction, that he is either an accredited investor or is in compliance with the ten percent (10%) of net worth or annual income limitation on investment in this Offering.

 

Investor Suitability Standards

 

As a Tier 1 Regulation A offering, investors must comply with the 10% limitation to investment in the offering, as prescribed in Rule 251. Under Rule 251 of Regulation A, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser’s revenue or net assets (as of the purchaser’s most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed 10% of the greater of the purchaser’s annual income or net worth (please see below on how to calculate your net worth).

 

NOTE: For the purposes of calculating your net worth, Net Worth is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the donor or grantor is the fiduciary and the fiduciary directly or indirectly provides funds for the purchase of the Shares.

 

 

 23 

 

 

The only investor in this offering exempt from this limitation is an accredited investor, an “Accredited Investor,” as defined under Rule 501 of Regulation D. If you meet one of the following tests you qualify as an Accredited Investor:

 

(i) You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year;

 

(ii) You are a natural person and your individual net worth, or joint net worth with your spouse, exceeds $1,000,000 at the time you purchase the Shares (please see below on how to calculate your net worth);

 

(iii) You are an executive officer or general partner of the issuer or a management team or executive officer of the general partner of the issuer;

 

(iv) You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, the Code, a corporation, a Massachusetts or similar business trust or a partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

 

(v) You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended, the Exchange Act, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940, as amended, the Investment Company Act, or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958 or a private business development company as defined in the Investment Advisers Act of 1940;

 

(vi) You are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor;

 

(vii) You are a trust with total assets in excess of $5,000,000, your purchase of the Shares is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the Shares; or

 

(viii) You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000.

 

No Selling Security holders

 

There are no selling security holders in this Offering.

 

Provisions of Note in Our Subscription Agreement

 

Inspection Rights

 

The subscription agreement provides a waiver for inspection rights granted under Delaware law. Delaware law specifies that stockholders have the right to inspect and to make copies and extracts from, our stock ledger, a list of our stockholders, and our other books and records, and the books and records of our subsidiaries, if any. Delaware law specifies the circumstances and manner that these rights can be exercised, including requiring that the stockholder must provide under oath a proper purpose for the exercise of these rights. 

 

Blue Sky Law Considerations

 

The holders of our shares of Series B 10% Convertible Stock should be aware that there may be significant state law restrictions upon the ability of investors to resell our securities. Accordingly, investors should consider any secondary market for the Company's securities to be a limited one.

 

 

 

 24 

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

You should read the following discussion and analysis of our financial condition and results of our operations together with our consolidated financial statements and the notes thereto appearing elsewhere in this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections entitled “Risk Factors”, “Cautionary Statement Regarding Forward-Looking Statements” and elsewhere in this Offering Circular. Please see the notes to our Financial Statements for information about our Critical Accounting Policies and Recently Issued Accounting Pronouncements.

 

Overview

 

Ridepair Inc. (hereinafter “RidePair”, the “Company”, “Our”, “We”, or “Us”) was incorporated under the laws of the State of Delaware on November 20, 2018 under the name of Bit Forge L.A. Inc. On August 20, 2020, the Company filed an Amended and Restated Certificate of Incorporation changing the name of the corporation to RidePair Inc. Our principal executive office is located at 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405 and our telephone number is (818) 770-5933. Our website address is www.ridepair.io. The information contained on, or that can be accessed through, our website is not a part of this Registration Statement. We have included our website address in this Registration Statement solely as an inactive textual reference.

 

RidePair is a software company that has developed an app for coordinating, enabling and verifying ride sharing. This is not ride sharing such as Uber where the driver is essentially offering a taxi service, but true ride sharing in which everyone in the car is sharing the ride to go to a similar place – e.g. co-commuting to work with colleagues. Unlike taxi-like services which increase the number of cars on the road, true ride sharing has been shown to be one of the most effective means of reducing cars on the roads and thus reducing traffic, emissions and even reducing roadway maintenance.  The issue has been verifying the ride sharing or co-commuting is actually occurring, which issue is solved by the Ridepair app.

 

The app is currently in beta testing and is expected to be fully operational in the second calendar quarter of 2025. 

 

Validating Users

 

RidePair employs a multi-step process to validate its ride-sharers/co-commuters. The first step takes place when a user initially downloads the RidePair App and registers which includes individual verification, and proof of vehicle ownership by uploading a photo of the car’s registration or insurance. Only registered users will receive payments from RidePair.

 

Prior to a ridesharing event, the driver and the rider(s) must provide the required information on the app, including pickup location, destination, and the names of all users that will be sharing the ride. RidePair can also match drivers with riders: a user can put in an originating and terminating location, estimated time of travel, and whether they are a driver or passenger, and the app will find people to share the ride. Users have the ability to establish preferences for those with whom they will share rides (e.g., a user can specify that they only want people of the same gender). This is not done last minute but days if not weeks ahead of time.

 

The final validation takes place at the time of the rideshare, when all occupants get in the vehicle, log in to the app and indicate that the rideshare has begun. Using geolocation on the phones, RidePair guarantees that all of the users are at the pick-up location, are moving together in the same car and that they arrive at the final destination together. Upon arrival, the app notifies the driver and riders that they have arrived at their destination and will be credited with the appropriate miles.

 

 

 

 25 

 

 

 

Plan of Operation for the Next Twelve Months

 

The Company believes that the proceeds of this Offering will satisfy its cash requirements for the next twelve months. To complete the Company’s entire development plan, it may have to raise additional funds in the next twelve months.

 

The Company may make significant changes in the number of employees at the corporate level, as well as expanding the services of third-party contract labor for product marketing and software development.

 

Investments. The Company intends to make substantial investments in the marketing and advertising of its app to potential end-users to increase its subscriber base. It will also continue to invest in upgrading and enhancing its software.

 

Marketing and sales. We anticipate that our sales will occur with new users on its app and grow proportionately to the growth of its user base. The Company plans to utilize many forms of advertising and marketing to attract new users. This will include everything from billboard advertising to online banner ads. The Company also intends to work directly with corporations to have them encourage their employees to co-commute – turning a cost into a revenue center for their employees. In California, corporations with more than fifty employees are required to have a plan for reducing emissions and during poor air quality days are required to report to the State results of their programs. RidePair has the ability to provide these corporations with a tangible and reportable air quality improvement method. In addition, as many corporations are trying to encourage their employees to come back to the office, RidePair believes that this app in which the employees are being paid to commute could be a useful tool.

 

Cost of revenue. The Company expects that the cost of revenue for its operations will consist primarily of expenses associated with payments to the users for ridesharing and co-commuting. The model calls for the Company to retain half of the money it receives from advertisers or other potential sources of payments such as government incentives and payout the other half to the drivers and riders of the co-commuters.

 

Research and development. Research and Development will primarily consist of software development costs spent to maintain, upgrade and improve the app. RidePair is planning on using approximately $1 million from the proceeds of this offering towards this research and development.

 

General and administrative. The majority of our general and administrative expenses will consist of salaries, benefits, and share-based compensation for certain of our executives as well as our legal, finance, human resources, corporate communications and policy employees, and other administrative employees. In addition, general and administrative expenses include professional and legal services. The Company expects to incur substantial expenses in marketing the current Offering, in closing sales, and in promoting and managing its operations. Further, the company expects to incur significant general and administrative expenses in the following areas:

 

  · Accounting, including audit, accounting, and tax compliance-related costs;
  · Filing and transfer agent costs;
  · Investor relations and news dissemination, including maintaining and updating a planned website and disseminating news releases; and
  · Management fees, including executive officer salaries.

 

 

 

 26 

 

 

RESULTS OF OPERATIONS

 

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

 

The following table sets forth information comparing the components of net (loss) for the years ended September 30, 2024 and 2023:

 

   

Years Ended

September 30,

   

Period over

Period Change

 
    2024     2023     $     %  
Revenues, net   $     $     $       –%  
Cost of revenues                       –%  
Gross profit                       –%  
                                 
Operating expenses:                                
General and administrative     97,447       41,552       55,895       134.52%  
Professional fees     605,363       1,061,292       (455,929 )     -42.96%  
Amortization     110,800             110,800       100.00%  
Total operating expenses     813,610       1,102,844       (289,234 )     -26.23%  
Operating loss     (813,610 )     (1,102,844 )     (289,234 )     -26.23%  
                                 
Other income (expenses):                                
Other income (expense)     94       28       66       235.71%  
Interest expense     (118,404 )     (34,465 )     (83,939 )     243.55%  
Total other income (expense)     (118,310 )     (34,437 )     (83,873 )     243.55%  
Loss before income taxes     (931,920 )     (1,137,281 )     205,261       -18.06%  
Income tax expense                       –%  
Net loss   $ (931,920 )   $ (1,137,281. )   $ 205,261       -18.06%  

 

During the year ended September 30, 2024, revenues were $– compared to revenues of $- during the year ended September 30, 2023.

 

Cost of sales were $– and $– for the years ended September 30, 2024 and 2023.

 

Gross profits were $– and $– during the years ended September 30, 2024 and 2023.

 

Operating expenses were $813,610 for the year ended September 30, 2024 compared to $1,102,844 for the year ended September 30, 2023. The decrease in operating expenses for the year ended September 30, 2024 is largely attributable to a decrease in professional fees.

 

Loss from operations was ($813,610) for the year ended September 30, 2024 compared to ($1,102,844) for the year ended September 30, 2023.

 

Other (expenses) was ($118,310) for the year ended September 30, 2024 compared to ($34,437) for the year ended September 30, 2023, a decrease of $83,873 or 243.55%. Other expenses are largely attributable to our interest expense.

 

Net loss for the year ended September 30, 2024 was ($931,920) compared to ($1,137,281) for the year ended September 30, 2024, a decrease of $205,261 or 18.06%. The decrease in net loss is largely attributable to a decrease in professional fees.

 

 

 27 

 

 

LIQUIDITY AND CAPITAL RESOURCES

 

The following table summarizes the cash flows for the years ended September 30, 2024 and 2023:

 

   September 30, 2024   September 30, 2023 
Cash Flows:          
           
Net cash provided by operating activities  $55,840   $167,958 
Net cash (used in) investing activities   (544,000)   (10,000)
Net cash provided by (used in) financing activities   194,000    110,100 
           
Net (decrease) increase in cash   (294,160)   268,058 
Cash at beginning of period   322,112    54,054 
           
Cash at end of period  $27,952   $322,112 

 

During the year ended September 30, 2024 net cash provided by operating activities was $55,840 compared to $167,958 of net cash provided by operating activities for the year ended September 30, 2023. This decrease for the year ended September 30, 2024 is largely attributable to a decrease in related party loan and accounts payable and accrued liabilities.

 

During the year ended September 30, 2024, we used ($544,000) net cash from investing activities compared to ($10,000) for the year ended September 30, 2023.

 

During the year ended September 30, 2024, the Company had $194,000 net cash provided by financing activities compared to $110,100 for the year ended September 30, 2023. The increase in cash provided from financing activities is largely attributable to the proceeds from the exercise of warrants.

 

At September 30, 2024, we had current assets of $27,952, current liabilities of $734,854, working capital deficit of $706,902 and an accumulated deficit of $3,509,252.

 

At September 30, 2023, we had current assets of $322,112, current liabilities of $605,167, working capital deficit of $283,055 and an accumulated deficit of $2,577,332.

 

We presently have limited and expensive available credit, and do not have bank financing or other external sources of liquidity. We will need to obtain additional capital in order to expand operations and become profitable. In order to obtain capital, we may need to sell additional shares of our common stock or borrow funds from private lenders. There can be no assurance that we will be successful in obtaining additional funding. We will still need additional capital in order to continue operations until we are able to achieve positive operating cash flow. Additional capital is being sought, but we cannot guarantee that we will be able to obtain such investments. Financing transactions may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. However, even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our common stock. If additional financing is not available or is not available on acceptable terms, we will have to curtail our operations.

 

 

 

 28 

 

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We do not have any off-balance sheet arrangements that are reasonably likely to have a current or future effect on our financial condition, revenues, results of operations, liquidity, or capital expenditures.

 

Recent Financing Transactions

 

Master Revolving Note

 

On October 11, 2021, the Company entered into a Master Revolving Note (the “Note”) with Ridepair Programming, LLC (the “Holder”). Under the terms of the Note, the Holder may advance to the Company the sum of up to One Million Five Hundred Thousand Dollars ($1,500,000). Interest shall not be payable on the unpaid principal balance until maturity, whether by acceleration or otherwise or upon the occurrence of an Event of Default, as later defined, at a per annum rate equal to Ten Percent (10.0%), and after that at a rate equal to the Default Rate of Fifteen Percent (15%). The Note is secured by three million (3,000,000) shares of the Company’s Common Stock. As of the date of this filing, the Holder has advanced a total of $1,029,004 to the Company. The total due to the Holder as of September 30, 2024 is $1,206,469, which includes $108,486 interest.

 

Quantitative and Qualitative Disclosures about Market Risk

 

In the ordinary course of our business, we are not exposed to market risk of the sort that may arise from changes in interest rates or foreign currency exchange rates, or that may otherwise arise from transactions in derivatives.

 

The preparation of financial statements in conformity with GAAP requires our 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 the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s significant estimates and assumptions include the fair value of the Company’s common stock, stock-based compensation, the recoverability and useful lives of long-lived assets, and the valuation allowance relating to the Company’s deferred tax assets.

 

Contingencies

 

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management, in consultation with its legal counsel as appropriate, assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

 

 

 

 29 

 

 

BUSINESS

 

Ridepair Inc. (hereinafter “RidePair”, the “Company”, “Our”, “We”, or “Us”) was incorporated under the laws of the State of Delaware on November 20, 2018 under the name of Bit Forge L.A. Inc. On August 20, 2020, the Company filed an Amended and Restated Certificate of Incorporation changing the name of the corporation to RidePair Inc. Our principal executive office is located at 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405 and our telephone number is (818) 770-5933. Our website address is www.ridepair.io. The information contained on, or that can be accessed through, our website is not a part of this Registration Statement. We have included our website address in this Registration Statement solely as an inactive textual reference.

 

RidePair is a software company that has developed an app for coordinating, enabling and verifying ride sharing. This is not ride sharing such as Uber where the driver is essentially offering a taxi service, but true ride sharing in which everyone in the car is sharing the ride to go to a similar place – e.g. co-commuting to work with colleagues. Unlike taxi-like services which increase the number of cars on the road, true ride sharing has been shown to be one of the most effective means of reducing cars on the roads and thus reducing traffic, emissions and even reducing roadway maintenance.  The issue has been verifying the ride sharing or co-commuting is actually occurring, which issue is solved by the Ridepair app.

 

Business Plan

 

RidePair is the perfect solution for a multitude of simple, yet complex problems while commuting. Five years ago, the Company was founded on the idea of making the community an active part to help solve problems with traffic, excessive greenhouse gas emissions, and overall well-being of a community by reconnecting individuals within the community. RidePair developed an AI powered ride sharing system, unlike the options that are currently offered mainly because current “ride share” options such as Uber and Lyft exacerbate the problems by adding more vehicles to the roads and increasing the amount of greenhouse gas emissions. RidePair reimagined the traditional carpool idea and brought it into the 21st century with the technology that is available presently, creating a true RideShare and co-commuting service not a taxi service like the other “ride sharing” companies are operating. We believe utilizing AI to gather human data on commuting and social behavior will lead to very positive benefits within our communities. Most importantly, RidePair is determined to modify commuting behavior by providing financial incentives to the commuter.

 

RidePair is in discussions with advertisers in which commuters will be paid to take a small detour – for example to drive by a new restaurant opening or receiving advertisements at the freeway exits from local retailers interested in marketing to drive by traffic. These detours would increase the payments to the occupants. The discussion with the advertisers has centered around paying the car approximately $20 per detour and making sure that the detours do not add more than 5 minutes to the commute time. There is no formal agreement with any advertisers as of yet, but RidePair believes that they will be able to finalize at least one such agreement by the middle of 2025. Although no formal studies have been performed, both RidePair and the advertisers in which it has talked with believe that there are certain riders that would be willing to take a small detour of less than 5 minutes to earn additional money.

 

 

 

 

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The average commuter travels approximately 40 miles per day to and from the office.  There are also a number of commuters who travel in excess of 100 miles per day as a commute. With the addition of one detour each way ($20 per detour for the car that will also be split between the occupants – assuming two occupants, the driver would get approximately $13.40 per detour and the passenger would receive the remaining $6.60).

In addition, by reducing cars on the roads, States and Municipalities greatly benefit as less cars on the road reduces traffic, air pollution and road maintenance.  

 

RidePair believes that this program is expandable from its initial rollout in California to most of the world's metropolitan areas as all of these municipalities are looking for ways to verifiably get cars off the road. RideShare believes that providing a platform where commuters can be paid to commute with others is the only way to actually guarantee that cars get off the roads.

 

Validating Users

 

RidePair employs a multi-step process to validate its ride-sharers/co-commuters. The first step takes place when a user initially downloads the RidePair App and registers which includes individual verification, and proof of vehicle ownership by uploading a photo of the car’s registration or insurance. Only registered users will receive payments from RidePair.

 

Prior to a ridesharing event, the driver and the rider(s) must provide the required information on the app, including pickup location, destination, and the names of all users that will be sharing the ride. RidePair can also match drivers with riders: a user can put in an originating and terminating location, estimated time of travel, and whether they are a driver or passenger, and the app will find people to share the ride. Users have the ability to establish preferences for those with whom they will share rides (e.g., a user can specify that they only want people of the same gender). This is not done last minute but days if not weeks ahead of time.

 

The final validation takes place at the time of the rideshare, when all occupants get in the vehicle, log in to the app and indicate that the rideshare has begun. Using geolocation on the phones, RidePair guarantees that all of the users are at the pick-up location, are moving together in the same car and that they arrive at the final destination together. Upon arrival, the app notifies the driver and riders that they have arrived at their destination and will be credited with the appropriate miles.

 

 

 

 

 

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Competition

 

RidePair is not aware of any direct competition. There does not appear to be software applications for co-commuting in which the driver and passenger(s) are paid to commute – true ride sharing.

 

Companies such as Uber and Lyft have co-opted the term “ride share” but unlike RidePair, the ride share companies are essentially on-demand taxi services. The person taking the ride is paying for the ride and from a municipality point of view, these entities are putting more cars on the road as opposed to taking them off the road as RidePair does.

 

The other competition to RidePair is various efforts by municipalities to encourage co-commuting, car pooling and the use of public transportation. These programs include Park and Ride lots, and bulletin boards where people can be matched for carpooling. None of these programs pay both the driver and all riders in the car for co-commuting and getting the car off of the road.

 

Our potential competitors may have greater resources, better access to capital, longer histories, more intellectual property and lower cost operations.

 

They may secure better terms during the investment negotiation process, make strategic decisions more quickly than us and devote more capital to better performing investments than we do.

 

Our competitors may also enter into business combinations or alliances that strengthen their competitive positions.

 

Market opportunity

 

RidePair is pursuing an opportunity to launch its RidePair app that pays the users for co-commuting to work and leaving cars at home within Placer County California before rolling statewide in California and ultimately expanding to many other metropolitan areas. The initial market of Placer County and the expansion statewide is occurring in connection with anticipated grants from the California Air Resources Board. Ride Pair believes that many people will be interested in utilizing the app that will pay people to co-commute to work and that the end-user marketplace is nearly endless. As it secures the funding to make such payments, either through government entities that are trying to reduce the cars on the roads or through advertising, the Company believes that the market opportunity will grow dramatically.

 

Insufficient Capital

 

Currently, RidePair is confronted with the need to attract and retain a consistent investment source in order to grow our operations rapidly. RidePair is not funded properly, it will prevent us from rolling out our app to its initial markets in California and expand globally. Insufficient capital will also hinder the Company’s ability to market its app and directly affect new customer acquisition and thus profitability.

 

 

 

 

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Seasonality

 

We do not expect any seasonality in our business.

 

Employees

 

As of April 22, 2025, we had three (3) full time employees including our Chief Executive Officer and eight (8) part time employees inclusive of the Company’s Chief Financial Officer, Chief Technology Officer and its Chief Marketing Officer. Our employees are not represented by a union. We consider relations with our employees to be positive and productive.

 

Legal Proceedings

 

We may from time to time be involved in various claims and legal proceedings of a nature we believe are normal and incidental to temporary employee staffing business. These matters may include product liability, intellectual property, employment, personal injury cause by our employees, and other general claims. We will accrue for contingent liabilities when it is probable that a liability has been incurred and the amount can be reasonably estimated. We are not presently a party to any legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

 

Description of Property

 

Corporate Office

 

The Company’s office space is located at 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405. On October 10, 2023, the Company entered into a new office location under a 1-year lease beginning November 1, 2023. This new location is 701 square feet and carries a base monthly rent of $2,453.50. The lease auto – renews every year.

 

Our main corporate mailing address is 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405.

 

Intellectual Property

 

We believe that our intellectual property is essential to our business and affords us a competitive advantage in the markets in which we operate. Our intellectual property includes the content of our website, mobile applications, registered domain names, software code, firmware, hardware and hardware designs, registered and unregistered trademarks, trademark applications, copyrights, trade secrets, inventions (whether or not patentable), patents, and patent applications.

 

To protect our intellectual property, we rely on a combination of copyright, trademark, patent, and trade secret laws, contractual provisions, end-user policies, and disclosure restrictions. Upon discovery of potential infringement of our intellectual property, we assess and when necessary, take action to protect our rights as appropriate. We also enter into confidentiality agreements and invention assignment agreements with our employees and consultants and seek to control access to, and distribution of, our proprietary information in a commercially prudent manner.

 

 

 

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MANAGEMENT

 

The following table sets forth information regarding our executive officers, directors and significant employees, including their ages as of January 3, 2025:

 

Name   Age   Position
Deborah Kenney   48   Chief Executive Officer, President and Chairperson
Marilu Brassington   46   Chief Financial Officer
Peter J. D’Arruda   58   Chief Marketing Officer
Randy Ullrich   61   Chief Technical Officer

 

The principal occupations for each of our current executive officers and directors are as follows:

 

Deborah Kenney - Ms. Kenney is the Co-Founder, and visionary for the evolution of RidePair. She has been the full time Chief Executive Officer, President and Chairperson of RidePair since its founding in 2019. During Ms. Kenney's tenure at RidePair, a number of individuals have worked for the Company, primarily as outsourced programmers, working on the development of the app.  These developers were paid from proceeds of the Ridepair Programming, LLC loan. Ms. Kenney began her career in the financial industry at the age of 18, working in retail banking while attending California State University, Northridge. She became one of the youngest managers in the history of Cal Fed (acquired by Citibank). During that time, she developed close relationships with many of the banks’ high net worth clients and was promoted to Private Wealth Management. She moved to Vision Financial Markets, a clearing firm on the Chicago Board of Trade, where she received her Series 3 License and became a Commodity Broker and within a year was one of Vision’s top producers. In 2005, with the support of her clients, Ms. Kenney started her own financial advisory firm, Alpha Counsulting, LLC, where she has managed and raised tens of millions of dollars. In 2018, Ms. Kenney closed Alpha Consulting, LLC to start RidePair. Ms. Kenney was born and raised in Southern California and has been a lifelong commuter throughout all of California. She knows first-hand the problems of traffic congestion, parking, and the effects of emission on the local population. Her vision has led to countless advances in the technology developed at RidePair.

 

Marilu Brassington - Ms. Brassington has served as the part time Chief Financial Officer of RidePair Inc since October 2024. Prior to joining RidePair, she served as the Chief Financial Officer of other publicly traded companies. From 2023 through the present, she also serves as the Chief Financial Officer of Scepter Holdings, Inc. (otcpink:BRZL). In 2018, she started her own Financial Consulting Firm, Luceva, LLC, which as a single owner LLC where Ms. Brassington is the only employee. Ms. Brassington is employed for her various jobs including RidePair and Scepter through Luceva. From 2017 to 2022, she was the Chief Financial Officer of 12 ReTech, Inc. From 2013 through 2017, she served as Chief Financial Officer of Bitzio Inc. Prior to 2013, she served as the Chief Financial Officer of Givefun.com and consultant IAC. Ms. Brassington began her career as a Senior Financial Controller within the Investment Banking Group of Societe Generale and an audit supervisor at Deloitte & Touche. Ms. Brassington received a B.S. degree in accounting and finance in 2001 from the University of Miami and her Certified Public Accountant’s Exam in the same year.

 

Peter J. D’Arruda - Mr. D’Arruda has served as Chief Marketing Officer since 2021 and is a former two-time President of the IARFC (International Association of Registered Financial Consultants), an Investment Advisor, fiduciary, and has been in the financial arena for over 32 years. In 2008, he founded and still manages Capital Financial & Insurance, LLC to help his clients take the worry out of living in retirement. Known as “Coach Pete” to most of his clients and to the listeners of his radio show, he has developed a proprietary process that assists business owners become work optional. He has written or co-written 16 books to date. Two of his books have reached the best-sellers list on Amazon.  The most noteworthy book, Successonomics, is one that Coach Pete co-authored with Steve Forbes. His most recent book is “The Big Book on Retirement.” Coach Pete also owns and operates Broadcasting Experts, LLC, and his staff produces over 80 weekly radio shows and long form video & audio podcasts heard and seen nationwide. His national show, THE FINANCIAL SAFARI, can be heard at FinancialSafari.com. Pete has won 3 Emmys, 5 Quillys® and 10 Tellys, along with multiple EXPYS®. He is proud of each award. He is a graduate of The University of North Carolina. Mr. D’Arruda spends between 25% and 50% of his time on RidePair depending on the Company’s needs.

 

Randy Ullrich - Mr. Ullrich has served as Chief Technical Officer of RidePair since October 2023 and is also the founder and Chief Executive Officer of RapDevPro, Inc., which he began in 2009. He brings over 30 years of software, web-applications, and mobile-applications leadership to RidePair, with deep experience in agile methodologies and building and guiding lean, high-performance technology teams. Having worked in a variety of industries (including military, healthcare, automotive, financial services, and media & entertainment) at both early-stage and mature companies – including two successful M&A exits – Mr. Ullrich brings high-level management skills and a variety of experience to RidePair. Prior to RidePair, Mr. Ullrich held executive roles at San Diego software companies, including as C.T.O. of a data-sharing company, as well as the Chief Executive Officer of a 100-person boutique software consultancy (sold to NextLeft). Mr. Ullrich started his career as a software engineer, before moving on to a stint at Accenture in Silicon Valley after earning his M.B.A. Mr Ullrich spends approximately 20 hours per week supporting RidePair.

 

 

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None of our executive officers and board directors has been involved in any of the following proceedings during the past ten (10) years:

 

1. any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

 

2. any conviction in a criminal proceeding or being subject to a pending criminal proceedings (excluding traffic violations and other minor offenses);

 

3. being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or

 

4. being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

 

Family Relationships

 

There are no family relationships between any of our officers and directors.

 

Involvement in Certain Legal Proceedings.

 

None of the following events have occurred during the past five years and which are material to an evaluation of the ability or integrity of any director or executive officer: (1) A petition under the federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing; or (2) Such person was convicted in a criminal proceeding (excluding traffic violations and other minor offenses).

 

Board Composition

 

Our Board of Directors currently consists of two members. Each director of the Company serves until the next annual meeting of stockholders and until his successor is elected and duly qualified, or until his earlier death, resignation or removal. Our board is authorized to appoint persons to the offices of Chairman of the Board of Directors, President, Chief Executive Officer, one or more vice presidents, a Treasurer or Chief Financial Officer and a Secretary and such other offices as may be determined by the board.

 

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

 

Board Leadership Structure and Risk Oversight

 

The Board of Directors oversees our business and considers the risks associated with our business strategy and decisions. The board currently implements its risk oversight function as a whole. Each of the board committees, when and if established, will also provide risk oversight in respect of its areas of concentration and reports material risks to the board for further consideration.

 

Code of Business Conduct and Ethics

 

The Company has adopted a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. The code of business conduct and ethics is posted on our website at: https://ridepair.io.

 

 

 

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EXECUTIVE COMPENSATION

 

The following table sets forth the cash compensation (including cash bonuses) paid or accrued, and equity awards granted, by RidePair for the years ended September 30, 2024 and 2023, to our Chief Executive Officer, Chief Financial Officer, Chief Marketing Officer and Chief Technical Officer.

 

Name &

Principal

Position

  Year   Paid or Accrued Salary   Bonus  

Stock

Awards

 

Option

Awards

 

Non-equity

Incentive Plan

Compensation

 

Change in

Pension Value

and Non-

Qualified

Deferred

Compensation

Earnings

 

All other

Compensation

  Totals  
Deborah Kenney (1)   2024   $ 360,000   $   $   $   $   $   $   $ 360,000  
Chief Executive Officer   2023   $ 360,000   $   $   $   $   $   $   $ 360,000  
                                                       
Marilu Brassington (2)   2024   $   $   $   $   $   $   $   $  
Chief Financial Officer   2023   $   $   $   $   $   $   $   $  
                                                       
Peter J. D’Arruda (3)   2024   $     1,000,000           1,000,000  
Chief Marketing Officer   2023   $     500,000           500,000  
                                                       
Randy Ullrich (4)   2024   $  102,000               102,000  
Chief Technical Officer   2023   $                

 

Notes:

 

  (1) Ms. Kenney has served as the Company’s President and Chairman since November 2018. Ms. Kenney entered into an employment agreement to become the Company’s Chief Executive Officer on October 1, 2022.
  (2) Ms. Brassington has served as the Company’s part-time Chief Financial Officer since November 2024. As of the date of this filing, Ms. Brassington has not entered into an Employment Agreement with the Company. Ms. Brassington is paid $5,000/month increasing to $10,000/month during the second calendar quarter of 2025.
  (3) Mr. D’Arruda has served as the Company’s Chief Marketing Officer since November 2018. Mr. D’Arruda received a stock grant of 1 million shares per year. The shares were valued at $1.00 and $0.50 per share for 2024 and 2023, respectively. In addition, Mr D’Arruda has a convertible note for $800,000 with the Company that can only be converted at the earlier of i) the sale of the company or ii) 10 years from the date of the note. These shares are not calculated as part of executive compensation.
  (4) Mr. Ullrich has served as the Company’s Chief Technical Officer since October 2023. Mr. Ullrich’s firm was paid for software development. The total amount paid to his firm was included as salary although his firm employs approximately five programmers on RidePair’s behalf. Mr. Ullrich was granted 2.5 million shares on October 1, 2024. The shares vest as 500,000 shares per year for each of the next 5 years with initial vesting on October 1, 2025. As theses shares were granted after September 30, 2024, they were not included within the table.

 

Director’s Compensation

 

RidePair has not paid and does not presently propose to pay cash compensation to any director for acting in such capacity. No restricted shares were awarded for services during the years ended September 30, 2024 and 2023.

 

 

 

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Employment Agreements

 

Deborah Kenney Employment Agreement

 

On October 1, 2022, the Board and Ms. Kenney entered into an employment agreement (the “Agreement”) for a one-year term, subject to one-year renewals. Pursuant to the Agreement, Ms. Kenney receives an initial base salary of $360,000 per year, subject to an increase. Ms. Kenney is eligible to participate in our performance-based cash incentive bonus program. Ms. Kenney is eligible to receive a bonus of two percent (2%) of all financings and sales contracts introduced to the Company by Executive, not to exceed $10,000,000 during the life of the contract. Bonuses will be determined and paid within thirty days of each calendar year during the Term.

 

In addition, the Agreement provides for certain payments and benefits in the event of a termination of Ms. Kenney’s employment under specific circumstances. If, during the term of the Agreement, her employment is terminated by us other than for “cause,” or she resigns for “good reason,” she would be entitled to continuation of her base salary at the rate in effect immediately prior to the termination date for the greater of (x) the time remaining in the current term (i.e. the initial term or a subsequent term) or (y) 60 days following the termination date (the “Severance Period”). The Company will continue to pay for Mr. Ms. Kenney’s health and dental coverage for the shorter of (x) the severance period or (y) the maximum period permissible under COBRA. In addition, she would receive 100% of the maximum amount of his annual bonus for the calendar year in which the termination occurs, paid generally at the same time as other executives receive their bonuses.

 

Under the Agreement, “Cause” means generally that Ms. Kenney (i) committed any act of fraud, embezzlement, or any other willful misconduct that is demonstrably and materially injurious to the Company, or (ii)  violated any material written Company policy or rules of the Company (provided such policies and rules must be commercially reasonable) and such violation is not cured by Executive within 30 days following written notice thereof to Executive, or (iii) refused to follow the reasonable written directions given by the Board or its designee or breached any material covenant or obligation under this Agreement or any other written agreement with the Company and such refusal or breach is not cured by Executive withing 30 days following written notice thereof to Executive.

 

“Good Reason” means generally the material breach by the Company of the Agreement; (a) any reduction in Executive’s Base Salary; (b) a material reduction in Executive’s authority, duties or responsibilities, including without limitation, removing Executive as Chief Financial Officer; (c) relocation by the Company of Executive’s work site to a facility or location more than 15 miles from the Executive’s current principal work site for the Company; (d) imposition of a requirement that Executive report to anyone other than a Company officer or employee rather than directly to the Board; or (e) a material breach by the Company of any of its obligations under this Agreement or any other written agreement or covenant with Executive.

 

Stock Option Plan and other Employee Benefits Plans

 

The Company does not maintain a Stock Option Plan or other Employee Benefit Plans.

 

Overview of Compensation Program

 

We currently do not maintain a Compensation Committee of the Board of Directors. Until a formal committee is established, our entire Board of Directors has responsibility for establishing, implementing and continually monitoring adherence with the Company’s compensation philosophy. The Board of Directors ensures that the total compensation paid to the executives is fair, reasonable, and competitive.

 

Role of Executive Officers in Compensation Decisions

 

The Board of Directors makes all compensation decisions for, and approves recommendations regarding equity awards to, the executive officers and directors of the Company.

 

 

 

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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

 

Statement of Policy

 

We have adopted a related-party transactions policy under which our executive officers, directors, nominees for election as a director, beneficial owners of more than 5% of any class of our Common Stock, and any members of the immediate family of any of the foregoing persons are not permitted to enter into a related-party transaction with us without the consent of our audit committee. If the related party is, or is associated with, a member of our audit committee, the transaction must be reviewed and approved by another independent body of our Board of Directors, such as our governance committee. Any request for us to enter into a transaction with a related party in which the amount involved exceeds $120,000 and such party would have a direct or indirect interest must first be presented to our audit committee for review, consideration and approval. If advance approval of a related-party transaction was not feasible or was not obtained, the related-party transaction must be submitted to the audit committee as soon as reasonably practicable, at which time the audit committee shall consider whether to ratify and continue, amend and ratify, or terminate or rescind such related-party transaction. All of the transactions described above were reviewed and considered by, and were entered into with the approval of, or ratification by, our Board of Directors.

 

Transactions

 

On October 11, 2021, the Company entered into a Master Revolving Note (the “Note”) with Ridepair Programming, LLC (the “Holder”). Under the terms of the Note, the Holder may advance the Company the sum of up to One Million Five Hundred Thousand Dollars ($1,500,000). Interest shall not be payable on the unpaid principal balance until maturity, whether by acceleration or otherwise or upon the occurrence of an Event of Default, as later defined, at a per annum rate equal to Ten Percent (10.0%), and after that at a rate equal to the Default Rate of 15%. The Note is secured by three million (3,000,000) shares of the Company’s Common Stock. As of the date of this filing, the Holder has advanced a total of $1,029,004 to the Company. Peter D’Arruda, the Company’s Chief Marketing Officer, is the Manager of the Holder.

 

On October 01, 2024, Randy Ullrich, the Company’s Chief Technical Officer, was granted 2.5 million shares of common stock. The shares vest as 500,000 shares per year for 5 years with initial vesting on October 1, 2025.

 

 

 

 

 

 

 

 

 

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PRINCIPAL STOCKHOLDERS

 

The following table sets forth the beneficial ownership of our Common Stock as of April 22, 2025 by:

 

  · each shareholder known by us to beneficially own more than 5% of our outstanding Common Stock;
  · each of our directors;
  · each of our named executive officers; and
  · all of our directors and executive officers as a group.

 

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally provide that a person is the beneficial owner of securities if such person has or shares the power to vote or direct the voting of securities, or to dispose or direct the disposition of securities. A security holder is also deemed to be, as of any date, the beneficial owner of all securities that such security holder has the right to acquire within 60 days after such date through (i) the exercise of any option or warrant, (ii) the conversion of a security, (iii) the power to revoke a trust, discretionary account or similar arrangement, or (iv) the automatic termination of a trust, discretionary account or similar arrangement. Except as disclosed in the footnotes to this table and subject to applicable community property laws, we believe that each person identified in the table has sole voting and investment power over all of the shares shown opposite such person’s name.

 

Common Stock

 

Percentage ownership in the following table is based on 36,714,525 shares of Common Stock outstanding as of April 22, 2025.

 

   

Common Stock

Beneficially

    Percentage of Common Stock     Voting     Percentage of Voting Shares  
Name of Beneficial Owner (1)   Owned     (2)     Shares     (3)  
5% Stockholders                                
Alpha Consulting Group (4)     15,000,000       40.86%       15,000,000       40.86%  
AKNM Irrevocable Trust (5)     15,000,000       40.86%       15,000,000       40.86%  
                                 
Current Executive Officers and Directors                                
Deborah Kenney (6)     15,000,000       40.86%       15,000,000       40.86%  
Marilu Brassington (7)           0.00%       –        0.00%  
Peter J. D’Arruda (8)     4,800,000       13.07%       4,800,000       13.07%  
Randy Ullrich (9)           0.00%       –        0.00%  
                                 
Total Executive Officers and Directors     19,800,000       53.93%       19,800,000       53.93%  

 

(1) Beneficial Ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of common stock subject to options, warrants, or convertible debt currently exercisable or convertible, or exercisable or convertible within 60 days of April 22, 2025 are deemed outstanding for computing percentage of the person holding such option or warrant but are not deemed outstanding for computing the percentage of any person. Percentages are based on a total of shares of common stock outstanding April 22, 2025, and the shares issuable upon exercise of options, warrants exercisable, and debt convertible on or within 60 days of April 22, 2025.
   
(2) The number of common shares outstanding used in computing the percentages is 36,714,525 and includes all shares of Series A Preferred Stock converted into common stock on a 10:1 ratio.
   
(3) The number of Voting Shares used in computing the Percentage of Voting Shares is 36,714,525. Please see “Description of Securities” for further information.
   
(4) Included within Alpha Consulting Group’s ownership is 1,500,000 shares of the Company’s Series A Preferred Stock that converts into the Company’s common stock on a 10:1 ratio. The address for Alpha Consulting Group is 19448 Laroda Lane, Santa Clarita, CA 91350 and its control person is Deborah Kenney, the Company’s President.
   
(5) Included within AKNM Irrevocable Trust’s ownership is 1,500,000 shares of the Company’s Series A Preferred Stock that converts into the Company’s common stock on a 10:1 ratio. The address for AKNM Irrevocable Trust is 18200 Von Karmen, Suite 800, Irvine, CA 92612 and its control person is Pablo Penaloza.
   
(6) Included within Ms. Kenney’s ownership is 1,500,000 shares of Series A Preferred Stock, that converts into the Company’s common stock on a 10:1 ratio, held in the name of Alpha Consulting Group. The address for Ms. Kenney is 19448 Laroda Lane, Santa Clarita, CA 92612. Ms. Kenney is the control person for Alpha Consulting Group. The shares held by Alpha Consulting are also listed as beneficially owned by Ms. Kenney.
   
(7) The address for Ms. Brassington is 2816 Ladbrook Way, Thousand Oaks, CA 91361.
   
(8) Included within Mr. D’Arruda’s ownership is 4,800,000 shares of common stock. The address for Mr. D’Arruda is 124 Poppleford Place, Cary, NC 27518. Mr. D’Arruda has a convertible note with the Company for $1,029,004 that converts at $0.50 per share. As the loan can only be converted upon the sale of the Company or 10 years from the issuance of the Note, these shares are not included in the shares beneficially owned by Mr. D’Arruda.
   
(9) The address for Mr. Ullrich is 983 Marisa Lane, Encinitas, CA 92024. Mr. Ullrich has been granted 2.5 million shares on October 1, 2024. The shares vest as 500,000 shares per year for each of the next five years. As the initial vesting occurs on October 1, 2025, these shares are not included in the shares beneficially owned by Mr. Ullrich.

 

 

 40 

 

 

Series A Preferred Stock

 

Percentage ownership in the following table is based on 3,000,000 shares of Series A Preferred Stock outstanding as of April 22, 2025.

 

   Series A
Preferred Stock
   Percentage of
Series A
         
Name of Beneficial Owner (1)  Beneficially
Owned
   Preferred
Stock
   Voting
Shares (1)
   Percentage of Voting Shares (2) 
5% Stockholders                    
Alpha Consulting Group    1,500,000    50.00%    30,000,000    44.97% 
AKNM Irrevocable Trust    1,500,000    50.00%    30,000,000    44.97% 
                     
Total   3,000,000    100.00%    60,000,000    89.94% 

 

(1) Each share of Series A Preferred Stock is entitled to 20 votes for matters brought before shareholders requiring a vote.
   
(2) The number of Voting Shares used in computing the Percentage of Voting Shares is 66,714,525, which includes 6,714,525 shares of common stock outstanding each with one vote and 3,000,000 shares of Series A Preferred Stock outstanding each with 20 votes per share. Please see “Description of Securities” for further information.

 

 

 

 

 

 

 

 

 

 

 

 41 

 

 

SECURITIES OFFERED

 

This is the public offering of securities of RidePair Inc., a Delaware corporation. We are offering 20,000 shares of our Series B 10% Convertible Preferred Stock, par value $0.0001 (the “Series B Preferred Stock”), at an offering price of $1,000.00 per share (the “Offered Shares”) by the Company.

 

 

DESCRIPTION OF SECURITIES

 

Securities Being Offered

 

The following is a summary of the rights of our capital stock as provided in our articles of incorporation and bylaws. For more detailed information, please see our articles of incorporation and bylaws, which have been filed as exhibits to the Offering Statement of which this Offering Circular is a part.

 

General

 

Market capital structure:

 

Current Capitalization

 

Security   Par Value     Authorized     Outstanding     Voting Rights  
Common Stock     0.0001       300,000,000       6,714,525       1:1  
Series A Preferred Stock     0.0001       3,000,000       3,000,000       20.1  
Series B Preferred Stock     0.0001       30,000       0       none  

 

Capitalization After the Offering

 

Security   Par Value     Authorized     Outstanding     Voting Rights  
Common Stock     0.0001       300,000,000       6,714,525       1:1  
Series A Preferred Stock     0.0001       3,000,000       3,000,000       20.1  
Series B Preferred Stock (1)     0.0001       30,000       22,000       none  

 

(1)Assumes that all Offered Shares of the Company’s Series B Preferred Stock are sold in the offering and that the one year of dividend payments in-kind have been made.

 

Capitalization After Conversions

 

Security   Par Value     Authorized     Outstanding     Voting Rights  
Common Stock     0.0001       300,000,000       45,514,525       1:1  
Series A Preferred Stock (1)     0.0001       3,000,000       0       20.1  
Series B Preferred Stock (2)     0.0001       30,000       0       none  

 

  (1) Assumes that all shares of the Company’s Series A Preferred Stock have been converted into Common Stock on a 10:1 basis.
  (2) Assumes that all Offered Shares of the Company’s Series B Preferred Stock have been converted into Common Stock and that all shares of the Company’s Series B Preferred Stock, issued for in-kind dividend payments, have been converted into Common Stock on a 400:1 basis

 

 

 42 

 

 

Preferred stock

 

The Company is authorized to issue 10,000,000 shares of Preferred stock, par value $.0001.

 

Series A Preferred Stock

 

The Company has filed a Certificate of Designations with the Secretary of State of the State of Delaware. The series of preferred stock shall be designated as the Corporation’s Series A Convertible Preferred Stock (the “Series A Preferred Stock”) providing that the rights, preferences, privileges and restrictions granted to and imposed on the Preferred Stock of the Company are as follows:

 

(a) Designation, Amount and Par Value. This series of Preferred Stock shall be designated as "Series A Convertible Preferred Stock" and the number of shares of such series shall be 3,000,000 shares.

 

(b) Voting. Each Series A Convertible Preferred Share will entitle the holder thereof to twenty (20) votes on all matters submitted to a vote of the shareholders of the Corporation. Except as otherwise provided herein or in any other Certificate of Designation creating a series of Preferred Shares or by law, the holders of Series A Convertible Preferred Shares and the holders of Common Shares and any other capital shares of the Corporation having general voting rights shall vote together as one class on all matters submitted to a vote of the shareholders of the Corporation.

 

(c) Dividends. The holders of outstanding Series A Convertible Preferred Stock shall only be entitled to receive dividends upon declaration by the Board of Directors of a dividend payable on the Corporation's Common Stock whereupon the holders of the Series A Convertible Preferred Stock shall receive a dividend on the number of shares of Common Stock in to which each share of Series A Convertible Preferred Stock is convertible.

 

(d) Conversion. Subject to the provisions of this subdivision (6), the holder of record of any share or shares of Series A Convertible Preferred Stock shall have the right, at their individual option, at any time and from time to time, to convert one (1) share of Series A Convertible Preferred Stock into ten (10) fully paid and nonassessable shares of Common Stock of the Company.

 

As of September 30, 2024 and 2023, the Company had 3,000,000 and 3,000,000 shares of Series A Preferred Stock outstanding, respectively.

 

Series B Preferred Stock

 

Prior to the completion of the offering of Series B 10% Convertible Preferred Stock (the “Series B Preferred Stock”), the Company will file a Certificate of Designations with the Secretary of State of the State of Delaware. The Series B Preferred Stock will have the rights, preferences, privileges and restrictions granted to and imposed on the Series B Preferred Stock as follows:

 

(a) Designation, Amount and Par Value. The Series B Preferred Stock will be designated as Series B 10% Convertible Preferred Stock and the number of shares so designated shall be 30,000. Each share of Series B Preferred Stock shall have a par value of $0.0001 per share and a stated value of $1,000 per share.

 

(b) Voting. The Holders of shares of Series B Preferred Stock shall not be entitled to vote with the holders of Common Stock on any matters submitted to a vote of stockholders of the Company, except as otherwise provided by law or with respect to certain customary negative covenants, such as amending the organizational documents of the Company in a matter negative to the holders of Series B Preferred Stock, increasing the authorized shares of preferred stock, or creating senior preferred stock with respect to dividends or distributions on liquidation.

 

(c) Dividends. The Series B Preferred Stock will accrue dividends at a cumulative rate of 10% per year, based on a 360 day year, consisting of twelve (12) equal thirty (30) day months. Dividend payments will be made on January 15, April 15, July 15th, and October 15th of each year. Notwithstanding, the first dividend payment will be made on January 15, 2026 and will be made in Series B Preferred Stock to the extent that such payments result in a whole number of shares of Series B Preferred Stock, with the remainder to be paid in cash. For every dividend payment thereafter, it will be paid in cash. The final dividend payment will be due on January 15, 2030.

 

The Company will allocate 10% of the proceeds of the Regulation A Offering into an escrow account as a contingency to make the payments to the holders of the Preferred Stock during the second year after they have been issued. The Company believes that it will have sufficient operating profits to make a cash payment of dividends for the second year of payments. In the event that it does not have enough profits, it will use the capital in the escrow as a return on capital as opposed to a dividend and the Preferred stockholders will be made aware that they are not receiving net profits, and that they should not assume that the source of these distributions are net profits. If dividends are paid from operating profits, then the Company will move the escrowed capital to its operating account and use the capital for general working capital.

 

 

 43 

 

 

Example of first year dividend payment: If a Preferred Stockholder invested $1,000 in the January 2025 Offering and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $75. No fractional shares of the Preferred Stock may be issued, thus the Company shall pay the Preferred Stockholder a cash payment of $75.

 

Second Example of first year dividend payment: If a Preferred Stockholder invested $15,000 in the January 2025 Offering and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $1,125. The Company would issue the Preferred Stockholder one share (1) of the Preferred Stock and pay a cash dividend of $125.

 

(d) Conversion.

 

(i) Conversion at Option of Holder - Each one (1) share of Series B Preferred Stock shall be convertible into shares of Common Stock by the holder, based on the stated value ($1,000) divided by a conversion price of $2.50, subject to adjustment for stock splits, dividends, pro rata distributions, and fundamental transactions..

 

(ii) Conversion at the Option of the Company – in case of an acquisition of the Company at an aggregate price per share more than $2.50 per share of Common Stock, or in the event that the shares of Common Stock are publicly tradeable at a price equal to or greater than $4.00 per share, the Company shall have the right to force the Holders to convert the Series B Preferred Stock into Common Stock at the same conversion price. On January 15, 2030, any Series B Preferred Stock that is outstanding, shall be automatically converted into Common stock at the same conversion price, provided that all dividends have been paid through December 31, 2029. 

 

(c) Adjustments. In the event of a fundamental transaction, as described in the Certificate of Designations for the Series B Preferred Stock, and generally including any reorganization, recapitalization or reclassification of our common stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding common stock, the Series B Preferred Stock holders will be entitled to receive upon conversion of their shares into Common Stock, the kind and amount of securities, cash or other property that the holders would have received had they converted their Series B Preferred Stock immediately prior to such fundamental transaction. Any successor to us or surviving entity shall assume the obligations under the Series B Preferred Stock.

 

As of September 30, 2024 and 2023, the Company had 0 and 0 shares of Series B Preferred Stock outstanding, respectively.

 

Common Stock

 

The Company is authorized to issue 300,000,000 shares of Common Stock, par value $.0001.

 

The Delaware Statues provides that the holders of the Common Stock shall have one vote per share. In addition, except as otherwise required by law, as provided in this Articles of Incorporation, and as otherwise provided in the resolution or resolutions, if any, adopted by the Board with respect to any series of the Preferred Stock, on any matter presented to the holders of Common Stock and Preferred Stock for their action or consideration at any meeting of stockholders of the Company (or by written consent of stockholders in lieu of meeting), the holders thereof shall vote together as a single class.

 

Holders of the Common Stock will have no preemptive or conversion rights or other subscription rights. The Bylaws of the Company provide that the holders of Common Stock shall not have a right to cumulative voting. The rights, preferences, and privileges of the holders of the Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the Company may designate and issue in the future. Additionally, the Bylaws may be amended by the Company’s stockholders or the Board of Directors.

 

As of September 30, 2024 and 2023, the Company had 6,484,525 and 4,631,675 shares of Common Stock outstanding, respectively.

 

 

 44 

 

 

Warrants

 

As of the date of this filing, the Company has no warrants issued nor outstanding. The Company’s previously issued November 2019 Warrant was either exercised or has expired. Please see NOTE 11 – STOCKHOLDERS’ DEFICIT for further information.

 

Delaware Anti-Takeover Law

 

Certain provisions of our charter documents and Delaware law could have an anti-takeover effect and could delay, discourage or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might otherwise result in a premium being paid over the market price of our common stock.

 

Our certificate of incorporation and by-laws contain provisions that could have the effect of delaying or preventing changes in control or changes in our management without the consent of our board of directors, including, among other things:

 

· no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;
   
· the ability of our board of directors to issue shares of preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;
   
· the exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of our board of directors or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board of directors;
   
· a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders;
   
· the requirement that a special meeting of stockholders may be called only by a majority vote of our board of directors or by stockholders holding shares of our common stock representing in the aggregate a majority of votes then outstanding, which could delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors;
   
· the ability of our board of directors, by majority vote, to amend our by-laws, which may allow our board of directors to take additional actions to prevent a hostile acquisition and inhibit the ability of an acquirer to amend our by-laws to facilitate a hostile acquisition; and
   
· advance notice procedures with which stockholders must comply to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders’ meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of us.

 

Delaware Anti-Takeover Statute

 

We are also subject to certain anti-takeover provisions under the General Corporation Law of the State of Delaware, or the DGCL. Under Section 203 of the DGCL, a corporation may not, in general, engage in a business combination with any holder of 15% or more of its capital stock unless the holder has held the stock for three years or (i) our board of directors approves the transaction prior to the stockholder acquiring the 15% ownership position, (ii) upon consummation of the transaction that resulted in the stockholder acquiring the 15% ownership position, the stockholder owns at least 85% of the outstanding voting stock (excluding shares owned by directors or officers and shares owned by certain employee stock plans) or (iii) the transaction is approved by the board of directors and by the stockholders at an annual or special meeting by a vote of 66 2/3% of the outstanding voting stock (excluding shares held or controlled by the interested stockholder). These provisions in our certificate of incorporation and by-laws and under Delaware law could discourage potential takeover attempts.

 

 

 

 45 

 

 

DIVIDEND POLICY

 

Dividends

 

The Company has not declared or paid a cash dividend to stockholders since it was organized and does not intend to pay dividends in the foreseeable future, except for the dividends payable on the Series B 10% Convertible Preferred Stock (“Series B Preferred Stock”) issued in this offering. The board of directors presently intends to retain any earnings to finance our operations and does not expect to authorize cash dividends in the foreseeable future. Any other payment of cash dividends in the future will depend upon the Company’s earnings, capital requirements and other factors.

 

Series B Preferred Stock Dividend Policy

 

For the first year outstanding, dividends shall be paid through a combination of the issuance of additional shares of Preferred Stock (“in-kind”) and cash for any fractional dividend. For every year afterwards, dividends will be paid in cash. Payments for the first-year dividend shall be made on January 15, 2026. All dividend payments going forward shall be made on January 15th, April 15th, July 15th and October 15th beginning on April 15, 2026.

 

The Company will allocate 10% of the proceeds from this Offering into an escrow account as a contingency to make the payments to the holders of the Series B Preferred Stock during the second year after they have been issued. The Company believes that it will have sufficient operating profits to make a cash payment of dividends for the second year of payments. In the event that it does not have enough profits, it will use the capital in escrow as a return on capital as opposed to a dividend and the Preferred stockholders will be made informed through the dividend statements accompanying dividends and with their tax statements that they are not receiving net profits, and that they should not assume that the source of these distributions are net profits. If dividends are paid from operating profits, then the Company will move the escrowed capital to its operating account and use the capital for general working capital.

 

Example of first year dividend payment: If a Preferred Stockholder invested $1,000 in the January 2025 Offering and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $75. No fractional shares of the Preferred Stock may be issued, thus the Company shall pay the Preferred Stockholder a cash payment of $75.

 

Second Example of first year dividend payment: If a Preferred Stockholder invested $15,000 in the January 2025 Offering and purchased the offered shares 9 months prior to the dividend payment date of January 15, 2026, they would be due a dividend in the amount of $1,125. The Company would issue the Preferred Stockholder one share (1) of the Preferred Stock and pay a cash dividend of $125.

 

Transfer Agent

 

The Company is acting as its own transfer agent at the time of this filing.

 

 

 

 

 46 

 

 

 

SHARES ELIGIBLE FOR FUTURE SALE

 

There is no market for our Common Stock. Future sales of substantial amounts of our Common Stock, or securities or other instruments convertible into our Common Stock, in the public or private market, or the perception that such sales may occur, could adversely affect the potential future market price of our Common Stock prevailing from time to time. Furthermore, because there will be limits on the number of shares available for resale shortly after this Offering due to contractual and legal restrictions described below, there may be resales of substantial amounts of our Common Stock, once and if our Common Stock begins trading on a quoted exchange, in the public market after those restrictions lapse. This could adversely affect the market price of our Common Stock prevailing at that time.

 

Rule 144

 

In general, a person who has beneficially owned restricted shares of our Common Stock for at least twelve months, in the event we are a reporting company under Regulation A, or at least six months, in the event we have been a reporting company under the Exchange Act for at least 90 days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the 90 days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

 

  · 1% of the number of shares of our Common Stock then outstanding; or
     
  · the average weekly trading volume of our Common Stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

 

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

 

 

 

 

 

 

 

 47 

 

 

LEGAL MATTERS

 

Certain legal matters with respect to the shares of common stock offered hereby will be passed upon by the Silvestre Law Group, P.C. whose address is 2629 Townsgate Rd., Suite 215, Westlake Village, CA 91362. Telephone: (881) 597-7552.

 

 

EXPERTS

 

The financial statements of RidePair Inc. for the years ended September 30, 2024 and 2023, included in the offering statement which this prospectus forms a part, have been prepared by management and have not been reviewed by an independent registered public accounting firm.

 

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a Regulation A Offering Statement on Form 1-A under the Securities Act with respect to the shares of common stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the common stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Securities Exchange Act of 1934. You may read and copy this information at the SEC’s Public Reference Room, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

 

 

 

 

 

 

 

 48 

 

 

RIDEPAIR INC.

 

FINANCIAL STATEMENTS

 

FOR THE YEARS ENDED SEPTEMBER 30, 2024 AND 2023

 

TABLE OF CONTENTS

 

 

  Page
   
Financial Statements  
   
Condensed Balance Sheets at September 30, 2024 and 2023 (Unaudited) F-2
Condensed Statements of Operations for the years ended September 30, 2024 and 2023 (Unaudited) F-3
Condensed Statements of Changes in Stockholders’ Deficit for the years ended September 30, 2024 and 2023 (Unaudited) F-4
Condensed Statements of Cash Flows for the years ended September 30, 2024 and 2023 (Unaudited) F-5
   
Notes to the Condensed Financial Statements F-6 - F-19

 

 

 

 

 

 

 

 

 

 

 

 

 

 F-1 

 

 

RIDEPAIR INC.

CONDENSED BALANCE SHEETS

 

   September 30,
2024
   September 30,
2023
 
   (Unaudited)   (Unaudited) 
ASSETS        
Current Assets:          
Cash  $27,952   $322,112 
Accounts receivable        
Total Current Assets   27,952    322,112 
           
Software development   443,200    10,000 
TOTAL ASSETS  $471,152   $332,112 
           
LIABILITIES AND STOCKHOLDERS' DEFICIT          
Current Liabilities:          
Accounts payable and accrued liabilities  $717,000   $543,690 
Credit Card Payable   17,854    6,477 
Convertible notes payable, short-term including accrued interest       55,000 
Total Current Liabilities   734,854    605,167 
           
Long term business loans   35,796     
Related party payable (deferred compensation)   717,780    376,780 
Related party loan including accrued interest   1,206,469    897,982 
Total Long - Term Liabilities   1,960,045    1,274,762 
           
Total Liabilities  $2,694,899   $1,879,929 
           
Stockholders' Deficit:          
Preferred stock; 10,000,000 shares authorized, $0.0001 par value:          
Series A Preferred Stock; 3,000,000 authorized, par value $0.0001, as of September 30, 2024 and September 30, 2023, there are 3,000,000 and 3,000,000 shares outstanding, respectively   300    300 
Common stock: 300,000,000 authorized, $0.0001 par value, as of September 30, 2024 and September 30, 2023, there are 6,484,525 and 4,631,675 shares outstanding, respectively   648    463 
Additional paid-in capital   1,284,557    1,028,752 
Accumulated deficit   (3,509,252)   (2,577,332)
Total Stockholders' Deficit   (2,223,747)   (1,547,817)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT  $471,152   $332,112 

 

 

The accompanying notes are an integral part of these condensed financial statements

 

 

 

 F-2 

 

 

RIDEPAIR INC.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

For the years ended September 30, 2024 and 2023

 

    Years Ended
September 30,
 
    2024     2023  
             
Revenues   $     $  
Cost of revenue            
Gross Profit            
                 
Operating Expenses                
General and administrative     97,447       41,552  
Professional fees     605,363       1,061,292  
Amortization     110,800        
Total Operating Expenses     813,610       1,102,844  
                 
Loss from operations     (813,610 )     (1,102,844 )
                 
Other Expense                
Other income (expense)     94       28  
Interest expense     (118,404 )     (34,465 )
Net Other Expense     (118,310 )     (34,437 )
                 
Net Loss   $ (931,920 )   $ (1,137,281 )
                 
Net Loss Per Common Share: Basic and Diluted   $ (0.20 )   $ (0.32 )
                 
Weighted Average Number of Common Shares Outstanding: Basic and Diluted     4,631,675       3,587,510  

 

 

The accompanying notes are an integral part of these condensed financial statements

 

 

 

 F-3 

 

 

RIDEPAIR INC.

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDER’S DEFICIT

(UNAUDITED)

For the years ended September 30, 2024 and 2023

 

   Series Preferred Stock   Common Stock   Additional       Total 
   Number of Shares   Amount   Number of Shares   Amount   Paid-in
Capital
   Accumulated Deficit   Stockholder’s Deficit 
Balance September 30, 2022   3,000,000   $300    3,316,325   $332   $968,413   $(1,440,052)  $(471,007)
Common stock issued for conversion of warrants           110,000    111    54,989        55,000 
Common shares issued for stock compensation           1,200,000    120            120 
Common shares issued for convertible notes including accrued interest           5,350    1    5,349        5,350 
Net loss for the twelve months ended September 30, 2023                       (1,137,281)   (1,137,281)
Balance September 30, 2023   3,000,000   $300    4,631,675   $463   $1,028,752   $(2,577,332)  $(1,547,817)
                                    
Balance - September 30, 2023   3,000,000   $300    4,631,675   $463   $1,028,752   $(2,577,332)  $(1,547,817)
Common stock issued for conversion of warrants           394,000    39    196,961        197,000 
Common shares issued for stock compensation           1,400,000    140            140 
Common shares issued for convertible notes including accrued interest           58,850    6    58,844        58,850 
Net loss for the twelve months ended September 30, 2024                       (931,920)   (931,920)
Balance - September 30, 2024   3,000,000   $300    6,484,525   $648   $1,284,557   $(3,509,252)  $(2,223,747)

 

 

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

 

 

 

 F-4 

 

 

RIDEPAIR INC.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the years ended September 30, 2024 and 2023

 

   For the Years Ended
September 30,
 
   2024   2023 
         
OPERATING ACTIVITIES:          
           
Net loss  $(931,920)  $(1,137,281)
Adjustments to reconcile net loss to net cash provided by operating activities:          
Stock based compensation   61,990    5,370 
Amortization of software development   110,800     
Accrued interest   108,486    33,768 
Long term business loans   35,796     
Related party payable - deferred compensation   341,000    66,780 
Related party loan   200,000    654,155 
Accounts payable and accrued liabilities   129,687    545,166 
Net Cash Provided by Operating Activities   55,840    167,958 
           
INVESTING ACTIVITIES:          
           
Software development   (544,000)   (10,000)
Net Cash Used in Investing Activities   (544,000)   (10,000)
           
FINANCING ACTIVITIES:          
           
Proceeds from exercise of warrants   194,000    55,100 
Proceeds from issuance of convertible notes payable       55,000 
Net Cash Provided by Financing Activities   194,000    110,100 
           
Net decrease in cash   (294,160)   268,058 
Cash, beginning of period   322,112    54,054 
Cash, end of period  $27,952   $322,112 
           
Supplemental cash flow information:          
Cash paid for interest  $   $ 
Cash paid for taxes  $   $ 
           
Non-cash transactions:          
Issuance of convertible Notes Payable  $   $55,000 
Issuance of note payable in exchange for outstanding accounts payable  $55,000   $5,000 

 

 

The accompanying notes are an integral part of these condensed financial statements

 

 

 

 F-5 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Ridepair Inc. (hereinafter “RidePair”, the “Company”, “Our”, “We”, or “Us”) was incorporated under the laws of the State of Delaware on November 20, 2018 under the name of Bit Forge L.A. Inc. On August 20, 2020, the Company filed an Amended and Restated Certificate of Incorporation changing the name of the corporation to RidePair Inc. Our principal executive office is located at 2716 Ocean Park Blvd, Suite 1011, Santa Monica, CA 90405 and our telephone number is (818) 770-5933. Our website address is www.ridepair.io. The information contained on, or that can be accessed through, our website is not a part of this Registration Statement. We have included our website address in this Registration Statement solely as an inactive textual reference.

 

RidePair is a software company that has developed an app for coordinating, enabling and verifying ride sharing. This is not ride sharing such as Uber where the driver is essentially offering a taxi service, but true ride sharing in which everyone in the car is sharing the ride to go to a similar place – e.g. co-commuting to work with colleagues. Unlike taxi-like services which increase the number of cars on the road, true ride sharing has been shown to be one of the most effective means of reducing cars on the roads and thus reducing traffic, emissions and even reducing roadway maintenance.  The issue has been verifying the ride sharing or co-commuting is actually occurring, which issue is solved by the Ridepair app.

 

The app is currently in beta testing and is expected to be fully operational in the second calendar quarter of 2025.

 

NOTE 2 – GOING CONCERN

 

As of September 30, 2024, the Company has incurred losses totaling $3,509,252 since inception, has not yet generated revenue from its operations, and will require additional funds to maintain our operations. As of September 30, 2024 and September 30, 2023, the Company had a working capital deficit of $706,902 and $282,365, respectively.

 

The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they become due. The Company intends to finance operating costs over the next twelve months through continued financial support from its stockholders, the issuance of debt securities and private placements of common stock.

 

While the Company strongly believes that its capital resources will be sufficient in the near term, there is no assurance that the Company’s activities will generate sufficient revenues to sustain its operations without additional capital or, if additional capital is needed that such funds, if available, will be obtainable in terms of satisfactory to the Company.

 

The accompanying condensed financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Company’s ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

 

 

 

 

 F-6 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) as promulgated in the United States of America.

 

All figures are in U.S. Dollars.

 

The fiscal year end is September 30.

 

Reclassifications

 

Certain amounts in the prior period have been reclassified to conform to the current period presentation. These reclassifications have no material effect on the reported financial results

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these financial statements include, but are not limited to, stock-based compensation, derivate instruments, accounting for preferred stock, and the valuation of acquired assets and liabilities. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The Company had cash on hand of $27,952 and $322,112 as of September 30, 2024 and 2023, respectively. The Company had no cash equivalents as of September 30, 2024 and 2023.

 

 

 

 

 F-7 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

 

Revenue Recognition

 

Under Financial Accounting Standards Board (“FASB”) Topic 606, “Revenue from Contacts with Customers” (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenues when (or as) the Company satisfies a performance obligation.

 

The Company earns ancillary revenue including royalty payments and software licensing fees.

 

Accounts Receivable

 

The Company does not currently maintain reserves for potential credit losses on accounts receivable in accordance with ASC 326 Financial Instruments Credit Losses since the company is not yet selling it technology. Once the Company sells its technology, management will review the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. Reserves will be recorded primarily on a specific identification basis. As of September 30, 2024 and 2023, the Company did not have an allowance for doubtful accounts.

 

Inventories

 

The Company does not carry any inventory. If it did, inventories, the inventory would primarily be accounted for using the first-in-first-out (“FIFO”) method and are valued at the lower of cost or market value. Inventories on hand would be evaluated on an on-going basis to determine if any items are obsolete or in excess of future market needs. Items determined to be obsolete are reserved for. For the years ended September 30, 2024 and 2023, the Company did not carry any inventory, therefore there is no longer a reserve.

 

Long-Lived Assets

 

The Company periodically tests its long-lived assets for impairment when certain triggering events or changes in circumstances indicate that the carrying amount of the assets may be impaired. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. Fair value is an estimate using assumptions about future cash flows and may change significantly as time passes. The Company did not recognize any impairment charges for years ended September 30, 2024 and 2023 since there are no long-lived assets.

 

 

 

 F-8 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

 

Convertible Debt

 

When the Company issues convertible debt, it first evaluates the balance sheet classification of the convertible instrument in its entirety to determine whether the instrument should be classified as a liability under ASC 480, Distinguishing Liabilities from Equity, and second whether the conversion feature should be accounted for separately from the host instrument. A conversion feature of a convertible debt instrument or certain convertible preferred stock would be separated from the convertible instrument and classified as a derivative liability if the conversion feature, were it a standalone instrument, meets the definition of an “embedded derivative” in ASC 815, Derivatives and Hedging. Generally, characteristics that require derivative treatment include, among others, when the conversion feature is not indexed to the Company’s equity, as defined in ASC 815-40, or when it must be settled either in cash or by issuing stock that is readily convertible to cash. When a conversion feature meets the definition of an embedded derivative, it would be separated from the host instrument and classified as a derivative liability carried on the balance sheet at fair value, with any changes in its fair value recognized currently in the statements of operations.

 

Stock-Based Compensation

 

ASC 718, “Compensation - Stock Compensation”, prescribes accounting and reporting standards for all share-based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

The Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of ASC 505-50, “Equity - Based Payments to Non-Employees.” Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date.

 

Income Taxes

 

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax positions, as defined, seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of January 1, 2007 and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions. With limited exceptions, we remain subject to Internal Revenue Service (“IRS”) examination of our income tax returns filed within the last three (3) years, and to California Franchise Tax Board examination of our income tax returns filed within the last four (4) years. However, we have certain tax attribute carryforwards which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.

 

 

 

 F-9 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

 

At September 30, 2024 and 2023, the Company recognized a full valuation allowance against the recorded deferred tax assets.

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes.

 

Net Loss per Share

 

The Company follows ASC 260, “Earnings per Share” (“EPS”), which requires presentation of basic EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation. In the accompanying financial statements, basic earnings (loss) per share are computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period.

 

Diluted earnings per share reflect the potential dilution that could occur if securities were exercised or converted into common stock or other contracts to issue common stock resulting in the issuance of common stock that would then share in the Company’s earnings subject to anti-dilution limitations. In a period in which the Company has a net loss, all potentially dilutive securities are excluded from the computation of diluted shares outstanding as they would have an anti-dilutive impact.

 

For the years ended September 30, 2024, and 2023, potentially dilutive common shares consist of common stock issuable upon the conversion of convertible notes payable. All potentially dilutive securities related to these convertible notes payable were excluded from the computation of diluted weighted average number of shares of common stock outstanding as they would have had an anti-dilutive impact.

 

Comprehensive Income

 

ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. During the years ended September 30, 2024 and 2023, the Company’s did not have any component of comprehensive income.

 

Contingencies

 

The Company follows ASC 450-20, “Loss Contingencies” to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no loss contingencies as of September 30, 2024 and 2023.

 

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which supersedes existing guidance on accounting for leases in “Leases (Topic 840).” The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company evaluated the effects of adopting ASU 2016-02 on its financial statements and determined that there are no leases for evaluation.

 

 

 

 F-10 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

 

Recent Accounting Pronouncements

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU enhances the disclosures related to segment reporting for public entities. It requires entities to disclose significant segment expenses for each reportable segment, providing greater transparency in segment performance. The ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating how this ASU will impact its financial statements and disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU enhances the transparency and decision usefulness of income tax disclosures. It is designed to provide more detailed information about an entity’s income tax expenses, liabilities, and deferred tax items, potentially affecting how companies report and disclose their income tax-related information. The ASU is effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those fiscal years. The Company is currently evaluating how this ASU will impact its financial statements and disclosures.

 

Management does not believe any other recently issued, but not yet effective accounting pronouncements would have a material effect on our present or future financial statements.

 

NOTE 4 – ACCOUNTS RECEIVABLE

 

Accounts Receivable at September 30, 2024 and 2023 consist of the following:

 

   

September 30,

2024

   

September 30,

2024

 
                 
Accounts Receivable   $     $  

 

Accounts receivable balances are primarily made up of sales through the third-party vendor and paid within thirty days.

 

NOTE 5 – SOFTWARE DEVELOPMENT

 

Software development at September 30, 2024 and 2023 consists of the following:

 

  

September 30,

2024

  

September 30,

2023

 
Software development  $554,000   $10,000 
Less: accumulated amortization   (110,800)    
Total Software development  $443,200   $10,000 

 

The app is currently in beta testing and is expected to be fully operational in the second calendar quarter of 2025. The initial roll out of the app is expected to be in California.

 

 

 

 F-11 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 6 – ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 

Accounts payable, accrued liabilities and credit card payable at September 30, 2024 and 2023 consist of the following:

 

  

September 30,

2024

  

September 30,

2023

 
         
Accounts payable and accrued liabilities  $717,000   $543,690 
Total accounts payable and accrued liabilities  $717,000   $543,690 

 

The Company accounts payable is made up a deferred consulting fee to OCIFG and a payable to another consulting vendor. This payable bears no interest and is payable in cash. As of September 30, 2024 and 2023, the amount owed to OCIFG is $688,800 and $543,000, respectively. The other vendor was owed $28,200 and $0 as of September 30, 2024 and 2023, respectively.

 

 

NOTE 7 – CREDIT CARD PAYABLE

 

Credit card payable at September 30, 2024 and 2023 consist of the following:

 

  

September 30,

2024

  

September 30,

2023

 
         
Credit card payable  $17,854   $6,477 
Total credit card payable  $17,854   $6,477 

 

The Company has one credit card with a payable balance of $17,854 and $6,477 as of September 30, 2024 and 2023, respectively.

 

 

NOTE 8 – CONVERTIBLE NOTES PAYABLE – SHORT TERM

 

Convertible Notes payable at September 30, 2024 and 2023 consist of the following:

 

  

September 30,

2024

  

September 30,

2023

 
         
Convertible note payable – short term  $   $55,000 
Total convertible notes payable       55,000 
Add: accrued interest        
Total convertible notes payable – short term  $   $55,000 

 

The Company entered into three convertible note agreements bearing an interest rate of 7% with 2 private investors with a 12-month term. The notes ranked senior to all other obligations. The securities convert into common shares at a conversion price of $0.0001 any time prior to maturity.

 

One convertible note of $5,000 with accrued interest of $350 was converted on September 9, 2023 for 5,350 common shares.

 

Convertible note payable balances – short term was $55,000 for the twelve months ended September 30, 2023 and were fully converted as of September 30, 2023, respectively.

 

 

 F-12 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 9 – LONG TERM BUSINESS LOAN

 

Long term business loan at September 30, 2024 and 2023 consists of the following:

 

  

September 30,

2024

  

September 30,

2023

 
         
Long term business loan  $32,462   $ 
Accrued Interest   3,334     
Long term business loan  $35,796   $ 

 

The Company entered into a long-term business loan of $47,100 on February 28, 2024. The monthly payment is $2,434 and accrues interest of $471 per month.

 

The outstanding balance is $32,462 of principal and $3,334 of accrued interest as of September 30, 2024.

 

NOTE 10 – RELATED PARTY PAYABLE- DEFERRED COMPENSATION

 

Related party payable, deferred compensation, at September 30, 2024 and 2023 consists of the following:

 

  

September 30,

2024

  

September 30,

2023

 
         
Related party payable-deferred compensation  $717,780   $376,780 
Related party payable-deferred compensation  $717,780   $376,780 

 

The Company has one officer that has deferred their compensation. This officer accrued compensation of $30,000 per month for fiscal years 2023 and 2024. The outstanding balance as of September 30, 2024 and 2023 is $717,780 and $376,780, respectively.

 

 

 

 F-13 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 11 – RELATED PARTY LOAN

 

Related Party Loan at September 30, 2024 and 2023 consists of the following:

 

   

September 30,

2024

   

September 30,

2023

 
             
Related party loan   $ 1,029,004     $ 829,005  
Accrued interest     108,486       68,977  
Related party loan   $ 1,206,469     $ 897,982  

 

The Company has received a loan from Ridepair Programming, LLC bearing an interest of 10% per annum. As of September 30, 2024 and 2023, the outstanding principal balance is $1,029,004 and $829,005, respectively, and accrued interest of $108,486 and $68,977, respectively, for a total outstanding loan balance of $1,206,469 and $897,982, respectively.

 

NOTE 12 – STOCKHOLDERS’ DEFICIT

 

Authorized Capital Stock:

 

The Company’s authorized capital stock consists of (a) 300,000,000 shares of Common Stock, $0.0001 par value per share (“Common Stock”) and (b) 10,000,000 shares of Preferred Stock, $0.0001 par value per share (“Preferred Stock”).

 

Common Stock:

 

The Delaware Statues provides that the holders of the Common Stock shall have one vote per share. In addition, except as otherwise required by law, as provided in the Company’s articles of incorporation, as amended, the Company’s Bylaws and as otherwise provided in the resolution or resolutions, if any, adopted by the Board with respect to any series of the Preferred Stock, on any matter presented to the holders of Common Stock and Preferred Stock for their action or consideration at any meeting of stockholders of the Company (or by written consent of stockholders in lieu of meeting), the holders thereof shall vote together as a single class.

 

Holders of the Common Stock will have no preemptive or conversion rights or other subscription rights. The Bylaws of the Company provide that the holders of Common Stock shall not have a right to cumulative voting. The rights, preferences, and privileges of the holders of the Common Stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of preferred stock that the Company may designate and issue in the future. Additionally, the Bylaws may be amended by the Company’s stockholders or the Board of Directors.

 

As of September 30, 2024 and 2023, the Company had 6,484,525 and 4,631,675 shares of Common Stock outstanding, respectively.

 

 

 

 F-14 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 12 – STOCKHOLDERS’ DEFICIT (cont’d)

 

Preferred Stock:

 

The Company has filed a Certificate of Designations with the Secretary of State of the State of Delaware for the 3,000,000 shares of Series A Preferred Stock providing that the rights, preferences, privileges and restrictions granted to and imposed on the Preferred Stock of the Company are as follows: Series A preferred shares shall convert on a 10:1 basis with the common stock. Series A Preferred holders shall be entitled to twenty votes per Series A Preferred Share; and shall be senior to common stock.

 

As of September 30, 2024 and 2023, the Company had 3,000,000 and 3,000,000 shares of Series A Preferred Stock outstanding, respectively.

 

Issuances of Common Stock

 

During the quarter ended September 30, 2024, the Company issued 50,000 shares of common stock to Douglas R. Hansen who exercised their warrant to 1007 and purchased 50,000 shares at $.50 a share in cash.

 

During the quarter ended September 30, 2024, the Company issued 1,000,000 shares of common stock to Peter D’Arruda as a stock grant (Grant No. 2020.05) for professional services.

 

During the quarter ended September 30, 2024, the Company issued 9,000 shares of common stock to Syed Haque who exercised their warrant to 1046 and purchased 9,000 shares at $.50 a share in cash.

 

During the quarter ended June 30, 2024, the Company issued 200,000 shares of common stock to John Holehouse who exercised their warrant to 1036 and purchased 200,000 shares at $.50 a share in cash.

 

During the quarter ended June 30, 2024, the Company issued 25,000 shares of common stock to Emery Pelletier who exercised their warrant to 1004 and purchased 25,000 shares at $.50 a share in cash.

 

During the quarter ended June 30, 2024, the Company issued 300,000 shares of common stock to Peter D’Arruda Marketing stock compensation which was approved by the Board in August, 2023.

 

During the quarter ended June 30, 2024, the Company issued 26,750 shares of common stock to for convertible note issued to Mayo Woodward with a value of $25,000 plus accrued interest of $1,750.

 

During the quarter ended June 30, 2024, the Company issued 26,750 shares of common stock to for convertible note issued to Mayo Woodward with a value of $25,000 plus accrued interest of $1,750.

 

 

 

 F-15 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 12 – STOCKHOLDERS’ DEFICIT (cont’d)

 

During the quarter ended June 30, 2024, the Company issued 50,000 shares of common stock to Michael Bachmannn who exercised their warrant to 1024 and purchased 50,000 shares at $.50 a share in cash.

 

During the quarter ended March 31, 2024, the Company issued 100,000 shares of common stock to Paul Rogers as a stock grant (Grant No. 2020.06) for professional services.

 

During the quarter ended March 31, 2024, the Company issued 10,000 shares of common stock to Syed Haque who exercised their warrant to 1046 and purchased 10,000 shares at $.50 a share in cash.

 

During the quarter ended March 31, 2024, the Company issued 5,350 shares of common stock to for convertible note issued to Johnny C Anderson with a value of $5,000 plus accrued interest of $350.

 

During the quarter ended December 31, 2023, the Company issued 50,000 shares of common stock to Douglas R. Hansen who exercised their warrant to 1007 and purchased 50,000 shares at $.50 a share in cash.

 

During the quarter ended September 30, 2023, the Company issued 1,000,000 shares of common stock to Peter D’Arruda as a stock grant (Grant No. 2020.05) for professional services.

 

During the quarter ended September 30, 2023, the Company issued 5,350 shares of common stock to for convertible note issued to Gerhard Lopez with a value of $5,000 plus accrued interest of $350.

 

During the quarter ended June 30, 2023, the Company issued 50,000 shares of common stock to Douglas R. Hansen who exercised their warrant to 1007 and purchased 50,000 shares at $.50 a share in cash.

 

During the quarter ended March 31, 2023, the Company issued 10,000 shares of common stock to Syed Haque who exercised their warrant to 1046 and purchased 10,000 shares at $.50 a share in cash.

 

During the quarter ended March 31, 2023, the Company issued 50,000 shares of common stock to Douglas R. Hansen who exercised their warrant to 1007 and purchased 50,000 shares at $.50 a share in cash.

 

During the quarter ended March 31, 2023, the Company issued 200,000 shares of common stock to Paul Rogers as a stock grant for professional services.

 

Issuance of Series A Preferred Stock

 

During the quarter ended December 31, 2019, the Company issued 1,500,000 shares of Series A Preferred Stock to Alpha Consulting Group for consulting services at $.10 a share. Each share converts to common stock at a 10:1 ratio and allows the holder to 20 votes for each share.

 

During the quarter ended December 31, 2019, the Company issued 1,500,000 shares of Series A Preferred Stock to AKNM Irrevocable Trust for consulting services at $.10 a share. Each share converts to common stock at a 10:1 ratio and allows the holder to 20 votes for each share.

 

 

 F-16 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 12 – STOCKHOLDERS’ DEFICIT (cont’d)

 

Warrants:

 

Warrants outstanding at September 30, 2024 and 2023:

 

  

September 30,

2024

  

September 30,

2023

 
         
November 2019 Warrant  $5,701,000   $6,095,000 
Total Outstanding  $5,701,000   $6,095,000 

 

In November 2019, the Company issued a fully transferable warrant (the “November 2019 Warrant”) to its President granting the Holder the right to purchase the Company’s common stock at an exercise price of $0.50. The November 2019 Warrant had a term of 5 years. During the year ended September 30, 2023, Holders exercised the November 2019 Warrant into 110,000 shares of common stock. During the year ended September 30, 2024, Holders exercised the November 2019 Warrant into 394,000 shares of common stock. Between October, 2024 and December 1, 2024, an additional 230,000 warrants were exercised for $115,000 in cash. Per the terms of the warrant, all warrants expire December 1, 2024 if not exercised.

 

NOTE 13 – COMMITMENTS

 

Lease Commitments

 

The Company determines if an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys to the Company the right to control the use of an explicitly or implicitly identified fixed asset for a period of time in exchange for consideration. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. Lease expense for variable lease components are recognized when the obligation is probable.

 

Operating lease right of use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company primarily leases buildings (real estate) which are classified as operating leases. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As an implicit interest rate is not readily determinable in the Company’s leases, the incremental borrowing rate is used based on the information available at commencement date in determining the present value of lease payments.

 

The lease term for all of the Company’s leases includes the non-cancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor. Options for lease renewals have been excluded from the lease term (and lease liability) for the majority of the Company’s leases as the reasonably certain threshold is not met.

 

Lease payments included in the measurement of the lease liability are comprised of fixed payments, variable payments that depend on index or rate, and amounts probable to be payable under the exercise of the Company option to purchase the underlying asset if reasonably certain.

 

Variable lease payments not dependent on a rate or index associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed as probable. Variable lease payments are presented as operating expenses in the Company’s income statement in the same line item as expense arising from fixed lease payments. As of September 30, 2024 and 2023, management determined that there were no variable lease costs.

 

 

 F-17 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 13 – COMMITMENTS (cont’d)

 

Operating Leases

 

On October 10, 2023, the Company entered into a new office location under a 1-year lease beginning November 1, 2023. This new location is 701 square feet and carries a base monthly rent of $2,453.50. The lease auto – renews every year.

 

The rent expense for the period from November 1, 2023 to September 30, 2024 was $23,215.

 

Litigation

 

There is no pending, threatened or actual legal proceedings in which the Company is a party.

 

NOTE 14 – INCOME TAXES

 

The actual income tax provision differs from the “expected” tax computed by applying the Federal corporate tax rate of 21% to the income before income taxes as follows:

 

   Year Ended September 30, 
   2024   2023 
“Expected” income tax benefit  $190,309    235,456 
State tax expense, net of Federal benefit        
Change in valuation allowance   (190,309)   (235,456)
Other        
Income tax provision  $   $ 

 

The change in the valuation allowance is due to the tax effect of increase in net operating losses due to our continued net losses.

 

The tax effects of temporary differences which give rise to significant portions of the deferred taxes are summarized as follows:

 

  

September 30,

2024

  

September 30,

2023

 
Deferred tax assets:          
Inventory reserves  $     
Allowances for bad debts and returns        
Accrued expenses        
Asset valuation reserves         
Net operating loss carryforwards-estimate   (2,327,379)   (1,421,838)
Total deferred tax assets   (2,327,379)   (1,421,838)
Valuation allowance   2,327,379    1,421,838)
          
Deferred tax liabilities:          
Deferred state taxes        
Total deferred tax liabilities        
           
Net deferred tax assets  $   $ 

 

As of September 30, 2024 and 2023, we had $2,327,379 and $1,421,148, respectively, in net operating loss carryforwards for federal and state income tax purposes. In assessing the realizability of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We consider the scheduled reversal of deferred tax assets, the level of historical taxable income and tax planning strategies in making the assessment of the realizability of deferred tax assets. We have identified the U.S. federal and California as our “major” tax jurisdiction. With limited exceptions, we remain subject to IRS examination of our income tax returns filed within the last three (3) years, and to California Franchise Tax Board examination of our income tax returns filed within the last four (4) years.

 

 

 F-18 

 

 

RIDEPAIR INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the years ended September 30, 2024 and 2023

 

 

NOTE 15 – SUBSEQUENT EVENTS

 

On October 1, 2024, Randy Ullrich, the Company’s Chief Technical Officer, was granted 2.5 million shares of common stock. The shares vest as 500,000 shares per year for 5 years with initial vesting on October 1, 2025.

 

During the quarter ended December 31, 2024, the Company issued 10,000 shares of common stock to Kenneth Yale who exercised their warrant to 1004 and purchased 10,000 shares at $.50 a share for $5,000 in cash.

 

During the quarter ended December 31, 2024, the Company issued 10,000 shares of common stock to Frank C. Cigrang who exercised their warrant to 1051 and purchased 10,000 shares at $.50 a share for $5,000 in cash.

 

During the quarter ended December 31, 2024, the Company issued 100,000 shares of common stock to Scott Krivis who exercised their warrant to 1072 and purchased 100,000 shares at $.50 a share for $50,000 in cash.

 

During the quarter ended December 31, 2024, the Company issued 100,000 shares of common stock to Antero Tarvudd who exercised their warrant to 1022 and purchased 100,000 shares at $.50 a share for $50,000 in cash.

 

During the quarter ended December 31, 2024, the Company issued 5,000 shares of common stock to Joe & Michele Henkelman who exercised their warrant to 1021 and purchased 5,000 shares at $.50 for $2,500 in cash.

 

During the quarter ended December 31, 2024, the Company issued 5,000 shares of common stock to Insurance & Retirement Solutions who exercised their warrant to 1013 and purchased 5,000 shares at $.50 a share for $2,500 in cash.

 

Effective December 1, 2024 all outstanding warrants expired if not already exercised. There were 1,169,000 warrants remaining that expired December 1, 2024. As a result, there are no longer any warrants outstanding effective December 1, 2024.

 

 

 

 

 

 

 

 

 F-19 

 

 

PART III — EXHIBITS

 

Index to Exhibits

 

Exhibit   Description
2.1   Certificate of Incorporation (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
2.2   Amended and Restated Certificate of Incorporation (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
2.3*   Amended and Restated Bylaws adopted April 22, 2025
     
2.4   Code of Business Conduct (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
2.5#   Series B 10% Convertible Preferred Stock Designation
     
3.1   Securities Purchase Agreement November 2022 (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
3.2   Convertible Promissory Note November 2022 (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
3.3   Common Stock Purchase Warrant Agreement (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
3.4   Convertible Promissory Note 2025 (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
3.5   Master Revolving Note between the Company and Ridepair Programming, LLC (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
3.6+   Employment Agreement between the Company and Deborah Kenney (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A dated January 13, 2025)
     
4.1   Form of Subscription Agreement (previously filed with the Securities and Exchange Commission with the Registrant’s Registration Statement on Form 1-A/A dated March 7, 2025)
     
11.1*   Consent of Silvestre Law Group, P.C. (included in the opinion filed as Exhibit 12.1)
     
12.1*   Legal Opinion of Silvestre Law Group, P.C.

 

+ Management contract or compensatory plan or arrangement.
* Filed herewith.
# To be filed by amendment.

  

 

 

 III-1 

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A/A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Santa Monica, State of California, on April 22, 2025.

 

 

(Exact name of issuer as specified in its charter):   RidePair Inc.  

 

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

 

By (Signature and Title):   /s/ Deborah Kenney  
    Deborah Kenney, Chief Executive Officer and President  

 

(Date): April 22, 2025

 

By (Signature and Title):   /s/ Marilu Brassington  
    Marilu Brassington, Chief Financial Officer  

 

(Date): April 22, 2025

 

SIGNATURES OF DIRECTORS:

 

/s/ Deborah Kenney   April 22, 2025  
Deborah Kenney, Chairman   Date  
       
/s/ Peter J. D’Arruda   April 22, 2025  
Peter J. D’Arruda, Director   Date  

 

 

 

 

 

 III-2