Business Context and Reporting Period
Company: NEXTNRG, INC. (f/k/a EzFill Holdings, Inc.)
Filing Type: Form 10-Q (Unaudited)
Period Ended: March 31, 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 recently completed a common control merger with Next Holding Corp. in February 2025.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Sales | $21,059,130 | $16,272,673 |
| Gross Margin | $1,711,710 (8.1%) | $517,969 (3.2%) |
| Operating Loss | $(10,093,843) | $(5,753,872) |
| Net Loss (including NCI) | $(10,766,492) | $(8,937,999) |
| Net Loss to Common Stockholders | $(10,880,521) | $(8,960,972) |
| Cash and Equivalents | $208,048 | $2,116,932 |
| Working Capital Deficit | $(25,004,379) | Not Disclosed |
| Total Debt (Notes Payable) | $21,573,795 | Not Disclosed |
| Stockholders' Deficit | $(22,048,064) | $(5,712,133) |
Note: Total Debt includes $10,079,201 in third-party notes and $11,494,594 in related-party notes.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 29.4% year-over-year, driven by expanded customer base, fleet partnerships, and higher average price per gallon.
- Expense Surge: General and administrative expenses rose 93.8% to $10.7 million, primarily due to $7.86 million in stock-based compensation for services rendered.
- Interest Expense Reduction: Interest expense decreased 79.5% to $680,596, attributed to debt conversions to equity and lower outstanding balances on certain instruments.
- Liquidity Decline: Cash on hand decreased by approximately 90% to $208,048, reflecting net cash used in operating activities of $2.15 million.
- Equity Structure: Series A convertible preferred stock was fully converted to common stock during the quarter. The company issued 8.1 million shares for services and 3.2 million shares for debt conversion.
Outlook, Risks, and Contingencies
Going Concern Warning
Management has expressed substantial doubt about the company's ability to continue as a going concern for the twelve months following the filing date. The company has an accumulated deficit of $164.7 million and a working capital deficit of $25.0 million. Immediate additional capital is required to fund operations.
Legal Proceedings
- GSPP Litigation: Subsidiaries are suing Green Street Power Partners for approximately $4.1 million regarding a solar project acquisition, alleging fraud and breach of contract. A motion to dismiss is pending.
- Cohen Global Energy Litigation: Cohen Global Energy is suing the company and CEO Michael D. Farkas regarding a $5 million promissory note currently in default. The company asserts defenses including alleged criminal usury.
Subsequent Events (Post-March 31, 2026)
The company secured several high-cost debt instruments in April 2026, including:
- Leviston Resources: $1.72M convertible note (10% interest, 150% default penalty).
- Cashera: $750k term loan with an effective APR of ~173%.
- Venture Debt: $1M loan with an effective APR of ~203%.
- Agile Hudson & FirstFire: Two $275k secured notes with 10% guaranteed interest charges.
Investor Verification Checklist
- Liquidity Runway: Verify the sufficiency of the $208k cash balance against the immediate debt service obligations from the April 2026 financings.
- Debt Covenants: Review the specific default triggers and penalty clauses (e.g., 150% balance increase) in the new Leviston and Cashera agreements.
- Related Party Transactions: Assess the terms of the $11.5M in related-party debt and the $7.9M stock issuance for services to ensure arm's-length valuation.
- Legal Exposure: Monitor the status of the $4.1M lawsuit against GSPP and the default litigation from Cohen Global Energy.
- Dilution Risk: Evaluate the impact of the 670k+ shares issued in April 2026 and the potential conversion of outstanding warrants and preferred stock.