Business Context and Reporting Period
Company: NEXTNRG, INC. (formerly EzFill Holdings, Inc.)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2025
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 recently completed a common control merger with NextNRG Holding Corp. on February 13, 2025, and changed its name from EzFill Holdings, Inc.
Key Financial Metrics (Six Months Ended June 30, 2025)
| Metric | Amount (USD) |
|---|---|
| Net Revenue | $35,964,241 |
| Cost of Sales | $33,876,456 |
| Gross Profit | $2,087,785 |
| Operating Expenses (G&A) | $37,318,273 |
| Operating Loss | $(36,519,576) |
| Net Loss | $(45,071,274) |
| Net Loss Available to Common Stockholders | $(45,235,176) |
| Cash and Cash Equivalents (End of Period) | $2,652,838 |
| Total Assets | $25,521,063 |
| Total Liabilities | $39,348,065 |
| Stockholders' Deficit | $(13,827,002) |
| Working Capital Deficit | $(29,827,283) |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 157% to $35.96 million from $13.99 million in the prior year period, driven by expanded customer base, fleet partnerships, and higher fuel volumes.
- Expense Surge: Operating expenses increased 695% to $37.32 million. This was primarily driven by a one-time stock-based compensation expense of approximately $25.5 million issued to employees and consultants.
- Net Loss Expansion: Net loss increased to $45.07 million from $8.29 million, largely due to the non-cash stock-based compensation and increased interest expense from debt amortization and default penalties.
- Balance Sheet: Total liabilities increased to $39.35 million, with significant related-party notes payable ($12.32 million) and third-party notes payable ($15.49 million). Cash increased to $2.65 million from $1.61 million at year-end 2024.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: The filing explicitly states substantial doubt about the Company's ability to continue as a going concern for the next 12 months. The company has an accumulated deficit of $112.77 million and a working capital deficit of $29.83 million. Immediate additional capital is required to fund operations.
- Unusual Items:
- Stock-Based Compensation: $25.5 million in stock-based compensation was recognized in the six months ended June 30, 2025, significantly impacting the net loss.
- Loss on Settlement: A loss of $1.13 million was recorded on the settlement of accounts payable and the purchase of vehicles from Yoshi, Inc.
- Debt Extinguishment: Significant losses were recorded on debt extinguishment related to the conversion of debt to Series A preferred stock.
- Related Party Transactions: The company relies heavily on related parties for debt funding. The CEO personally guaranteed several debt agreements. A common control merger with NextNRG Holding Corp. was completed in February 2025.
- Controls and Procedures: Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, citing a lack of sufficient accounting personnel to segregate duties.
Investor Verification Checklist
- Liquidity Runway: Verify the company's ability to secure immediate financing given the $29.8 million working capital deficit and "substantial doubt" going concern warning.
- Stock-Based Compensation: Assess the sustainability of operations without the $25.5 million non-cash expense and the dilution impact of future equity issuances.
- Debt Structure: Review the terms of related-party debt and merchant cash advances (MCAs), noting high interest rates, default penalties, and personal guarantees by the CEO.
- Revenue Concentration: Note that 76.93% of sales for the six months ended June 30, 2025, came from just three customers (Customer A: 47.80%, Customer B: 20.79%, Customer C: 8.34%).
- Internal Controls: Monitor progress on hiring accounting staff to remediate the ineffective disclosure controls and procedures.