EzFill Holdings, Inc. — Q1 2022 Form 10-Q
Period ended: March 31, 2022. The filing identifies the registrant as EzFill Holdings, Inc. (NASDAQ: EZFL), an on-demand mobile fuel-delivery business operating in South Florida—not NEXTNRG, INC. The period presented is the three months ended March 31, 2022, compared with Q1 2021.
Financial performance
| Metric | Q1 2022 | Q1 2021 | Change / context |
|---|---|---|---|
| Revenue | $2.340 million | $1.522 million | Up 54% |
| Cost of sales | $2.324 million | $1.394 million | Up 67% |
| Gross profit / margin | $15,908 / 0.7% | $127,423 / 8.4% | Margin compressed materially |
| Operating expenses | $2.948 million | $1.244 million | Up 137% |
| Operating loss | $(3.270) million | $(1.236) million | Loss widened |
| Net loss | $(3.267) million | $(1.348) million | Loss widened 142%; diluted and basic loss per share was $(0.12) vs. $(0.08) |
| Adjusted EBITDA | $(2.461) million | $(0.700) million | Non-GAAP measure as defined by the company |
Management attributed revenue growth to 9% more gallons delivered and a higher average price per gallon. Gallons delivered were 591,505 versus 543,062; average fuel margin per gallon was $0.47 versus $0.36. Higher driver, payroll, marketing, insurance, technology, public-company, vehicle and amortization costs contributed to increased expenses.
Cash flow, liquidity and debt
- Cash and cash equivalents were $10.572 million at March 31, 2022, down from $13.561 million at year-end. Cash plus debt securities was $13.875 million, versus $16.924 million at year-end.
- Operating cash use was $2.330 million; investing cash use was $1.593 million, including $1.272 million for fixed assets and $321,250 cash paid for the Full Service Fueling acquisition. Financing provided $933,283. Cash declined by $2.989 million during the quarter.
- Working capital surplus was $12.748 million. Total assets were $22.040 million and total liabilities were $2.964 million.
- Borrowings comprised $152,500 under a securities-backed bank line and $1.257 million of loans payable; the latter included current and long-term portions. Vehicle loans carried stated rates of 3.5%–7.4%. The bank line rate was 1.75% and is secured by investment securities; the bank may demand repayment at its discretion. Approximately $1.3 million remained available under a separate vehicle-financing facility, subject to its terms.
- Operating lease liabilities totaled $718,578. No income tax expense was recorded. The company reported no material off-balance-sheet arrangements.
Material changes, outlook and risks
- On March 11, 2022, EzFill acquired substantially all assets of Full Service Fueling for $321,250 cash and 40,323 shares valued at $50,000. The purchase allocation included vehicles, identifiable intangibles and $36,856 goodwill. The acquired business contributed approximately $13,000 revenue and $3,000 net loss after acquisition.
- The company reported that it expects continued operating losses and cash use for the foreseeable future, and estimated existing cash would fund operations for approximately 12–14 months from issuance of the financial statements. It anticipates needing additional capital; availability and terms are uncertain, and a failure to raise funds could require delaying, reducing or ceasing operations. No specific revenue or earnings guidance was provided.
- Customer and supplier concentration is significant: one customer represented approximately 49% of Q1 revenue, and substantially all fuel was purchased from one vendor.
- Management cited the continuing recovery of office-park demand after COVID-19 disruptions. It also identified expansion, competition and capital requirements as factors affecting future funding needs.
- The filing reported no litigation requiring accrual or disclosure and no material change in internal control over financial reporting. Management concluded disclosure controls were effective at a reasonable-assurance level.
- Q1 stock-based compensation was $470,685. The company reported a $47,286 unrealized loss on available-for-sale corporate bonds in other comprehensive loss.
Important facts for investors to verify
- Confirm entity and ticker: the supplied filing is for EzFill Holdings, Inc. (EZFL), despite the request metadata naming NEXTNRG, INC.
- Reconcile revenue disclosure: the financial statements report Q1 2022 revenue of $2,340,068, while the MD&A narrative states $2,324,068; the stated increase of $818,249 agrees with the financial-statement amount.
- Assess cash runway and potential financing needs against the reported quarterly operating cash use, planned capital spending and management’s 12–14-month estimate.
- Monitor gross-margin deterioration, customer concentration, reliance on a principal fuel supplier, and the demandable securities-backed credit line.
- Review acquisition integration, vehicle investment and the company’s ability to scale revenue without further widening losses.