Business Context and Reporting Period
Company: NEXTNRG, INC. (f/k/a EzFill Holdings, Inc.)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Overview: NextNRG operates two primary segments: Mobile Fuel Delivery (on-demand fuel services) and Energy Infrastructure (AI-driven smart microgrids, solar, battery storage, and wireless EV charging). The company is classified as a smaller reporting company and an emerging growth company.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2026 |
|---|---|---|---|
| Net Sales | $48,807,078 | $35,964,241 | $27,747,948 |
| Gross Profit | $3,667,348 | $2,087,785 | $1,955,638 |
| Gross Margin | 7.5% | 5.8% | 7.0% |
| Net Loss | $(17,391,194) | $(45,071,274) | $(6,624,702) |
| Net Loss Per Share (Basic/Diluted) | $(0.11) | $(0.39) | $(0.04) |
| Cash and Cash Equivalents (End of Period) | $883,696 | $2,652,838 | N/A |
| Working Capital Deficit | $(25,605,123) | N/A | N/A |
| Total Debt (Notes Payable) | $19,919,423 | N/A | N/A |
Note: Total Debt includes $9,270,696 in third-party notes and $10,648,727 in related-party notes payable.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 35.7% year-over-year for the six-month period, driven by expanded customer base, fleet partnerships, and higher average fuel prices.
- Reduced Net Loss: Net loss decreased significantly by 61.4% to $17.4 million, primarily due to a reduction in stock-based compensation expenses (from $25.5 million in 2025 to $9.3 million in 2026) and lower interest expense.
- Operating Expenses: General and administrative expenses decreased by 55% year-over-year, largely attributable to the reduction in stock-based compensation.
- Interest Expense: Interest expense (including amortization of debt discount) decreased by 56% to $3.36 million, reflecting the repayment of certain high-cost debt instruments.
- Stock Issuances: The company issued significant shares for services ($9.3 million value) and cash ($7.9 million proceeds) during the period.
Guidance, Outlook, Risks, and Contingencies
Going Concern and Liquidity
The filing explicitly states that substantial doubt exists regarding the Company's ability to continue as a going concern for the twelve months following the issuance date. The company has an accumulated deficit of $171.5 million and a working capital deficit of $25.6 million. Management anticipates the need to raise additional capital immediately to fund operations.
Legal Proceedings
- Next/Ingle v. GSPP: Litigation seeking approximately $4.1 million in damages regarding a solar project acquisition. The defendant's motion to dismiss was granted, and an amended complaint was filed; a new motion to dismiss is pending.
- Chi Squared Capital v. NextNRG: A complaint filed in July 2026 alleging breach of contract and failure to deliver conversion shares, seeking damages in excess of $2.0 million.
Subsequent Events
- Financing: Entered into a $2.0 million senior secured convertible note agreement in July 2026.
- CEO Employment: Executed a new employment agreement with CEO Michael D. Farkas involving significant equity compensation and performance bonuses.
- Stockholder Consent: Approved a reverse stock split (1-for-5 to 1-for-12) to regain Nasdaq compliance and authorized a new Series C preferred stock financing.
Investor Verification Checklist
- Liquidity Runway: Verify the sufficiency of the $883,696 cash balance against the $25.6 million working capital deficit and immediate debt obligations.
- Debt Covenants: Review terms of the $19.9 million in outstanding notes, particularly related-party debt and merchant cash advances, for default triggers and interest rates.
- Legal Exposure: Assess the potential financial impact of the pending $4.1 million and $2.0 million lawsuits.
- Dilution Risk: Evaluate the impact of the approved reverse stock split and the issuance of Series C preferred stock and CEO equity awards on existing shareholders.
- Revenue Concentration: Confirm the stability of the top customer, which accounted for 55.78% of sales in the six months ended June 30, 2026.