NEW YORK, Oct. 25, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of HyreCar, Inc. ("HyreCar" or the "Company") (NASDAQ: HYRE). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether HyreCar and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On August 10, 2021, after the market had closed, HyreCar issued a press release announcing deeply disappointing results for the quarterly period ended June 30, 2021 ("Q2 2021"), including net losses of $9.3 million compared to losses of $3.8 million in the same period the prior year. Furthermore, the Company's adjusted EBITDA loss for Q2 2021 was $7.1 million (four times higher than the $1.7 million adjusted EBITDA loss experienced in the second quarter of 2020) and its gross profit for Q2 2021 was just $0.8 million (less than one third the Company's gross profit in the second quarter of 2020), with a gross profit margin of just 24%. Contemporaneously with the release, HyreCar filed with the U.S. Securities and Exchange Commission a Form 10-Q which disclosed that the Company had incurred skyrocketing costs of revenue during the quarter primarily as a result of significantly higher insurance claims incidence—including claims before March 31, 2021 "in excess of the reserves." On an earnings call, when asked whether HyreCar was actually on track to achieve 45% to 50% gross margins in the near term as previously represented, the Company's Chief Financial Officer essentially withdrew this goal, calling it a "shoot for the sky" aim and stating that "shooting for margin upwards of 40%" was more realistic.
On this news, HyreCar's stock price fell $9.27 per share, or 48.5%, to close at $9.85 per share on August 11, 2021.
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