Business Context and Reporting Period
Company: NEXTNRG, INC. (formerly EzFill Holdings, Inc.)
Filing Type: Form 10-Q (Unaudited)
Period Ended: March 31, 2025
Business Overview: NextNRG operates an on-demand mobile fuel delivery service and is expanding into renewable energy, specifically wireless electric vehicle (EV) charging, battery storage, and solar solutions. The company recently completed a common control merger with NextNRG Holding Corp. on February 13, 2025, and changed its corporate name.
Key Financial Metrics
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net Revenue | $16,272,673 | $6,597,119 |
| Cost of Sales | $15,754,704 | $6,135,333 |
| Gross Profit | $517,969 | $461,786 |
| Operating Loss | $(5,753,872) | $(1,860,156) |
| Net Loss (including non-controlling interest) | $(8,937,999) | $(2,675,252) |
| Net Loss per Share (Basic & Diluted) | $(1.60) | $(1.48) |
| Cash and Cash Equivalents (End of Period) | $2,116,932 | $88,339 |
| Working Capital Deficit | $(24,046,131) | N/A |
| Total Debt (Notes Payable) | $15,265,381 | $20,428,886 |
Note: Total Debt includes current and long-term notes payable. Related party notes payable totaled $10,934,594 as of March 31, 2025.
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 147% year-over-year, driven by a significant rise in gallons delivered (up 183%) and an increase in average fuel margin per gallon ($0.71 vs. $0.65). Growth was attributed to expanded customer bases and fleet partnerships.
- Expense Surge: Operating expenses increased significantly, primarily due to a 250% rise in interest expense (including amortization of debt discounts) to $3.32 million. General and administrative expenses also rose to $5.54 million, reflecting stock-based compensation and operational scaling.
- Debt Restructuring: The company engaged in significant debt refinancing and extinguishment activities. Several merchant cash advance (MCA) loans were repaid or converted to equity (Series A Preferred Stock), resulting in a loss on debt extinguishment.
- Capital Raise: In February 2025, the company completed a public offering of 5,000,000 shares plus over-allotment, raising approximately $15.2 million in gross proceeds.
- Asset Acquisition: A deposit of $2.04 million for future asset purchases (vehicles) made in 2024 was reclassified to Property and Equipment in Q1 2025 upon closing.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern Warning: The filing explicitly states substantial doubt about the company's ability to continue as a going concern for the next 12 months. This is due to recurring net losses, an accumulated deficit of $76.5 million, and a working capital deficit of $24.0 million.
- Liquidity Strategy: Management plans to raise additional capital immediately through debt or equity financing to fund operations. The company relies heavily on related-party debt funding.
- Unusual Items:
- Common Control Merger: The February 2025 merger with NextNRG Holding Corp. was accounted for as a common control transaction, resulting in retrospective adjustments to financial statements.
- Related Party Transactions: Significant debt and lease obligations exist with the CEO and other related parties. The CEO personally guaranteed several new financing agreements.
- Stock Issuances: Large volumes of stock were issued for services ($1.47 million value), loan extension fees, and to settle preferred stock dividends.
- Outlook: The company aims to expand into new markets and deploy wireless EV charging technology. However, future capital requirements depend on market expansion success and the ability to secure financing on commercially acceptable terms.
Investor Verification Checklist
- Debt Covenants and Guarantees: Verify the terms of the new related-party notes and merchant cash advances, specifically the personal guarantees provided by the CEO and the high interest rates/fees associated with them.
- Cash Burn Rate: Assess the sustainability of the current cash position ($2.1 million) against the reported operating cash burn of $5.8 million for the quarter.
- Revenue Concentration: Review the concentration of sales, as one customer accounted for 43.09% of sales in Q1 2025, creating significant dependency risk.
- Equity Dilution: Monitor the impact of ongoing stock issuances for services, dividends, and potential future capital raises on existing shareholders.
- Going Concern Mitigation: Evaluate the specific plans and progress regarding the "immediate" capital raise required to avoid operational cessation.