SEC Filing Summary
Issuer and period: The supplied filing is EzFill Holdings, Inc. (NASDAQ: EZFL), a Form 10-Q for the quarter ended June 30, 2023—not a filing identified as NEXTNRG, INC. Investors should verify the issuer and filing before relying on this summary. EzFill operated a Florida-based mobile fuel delivery business. Financial statements are unaudited.
Financial Performance
| Metric | Q2 2023 | Q2 2022 | Six months 2023 | Six months 2022 |
|---|---|---|---|---|
| Revenue | $6.13 million | $3.75 million | $11.36 million | $6.09 million |
| Gross profit (loss) | $484,370 | $(1,430) | $646,921 | $14,478 |
| Gross margin | 7.9% | approximately 0% | 5.7% | 0.2% |
| Operating loss | $(2.16) million | $(3.87) million | $(4.47) million | $(7.14) million |
| Net loss | $(2.47) million | $(3.87) million | $(4.82) million | $(7.14) million |
| Adjusted EBITDA (non-GAAP) | $(1.55) million | $(3.01) million | $(3.39) million | $(5.50) million |
- Q2 revenue increased 63% year over year; six-month revenue increased 86%. Management attributed growth principally to higher delivery volumes and fees. Gallons delivered rose 51% in Q2 and 53% for the six-month period. Average fuel margin per gallon was $0.60 in Q2 and $0.54 for six months, versus $0.52 and $0.50, respectively, in 2022.
- Operating expenses declined 30% in Q2 and 28% for six months, mainly from lower payroll, stock compensation, marketing, and public-company costs. Interest expense rose substantially, reflecting borrowing costs.
- Six-month operating cash outflow was $3.90 million, compared with $6.03 million in 2022. Investing activities provided $2.15 million, primarily from selling or maturing debt securities. Financing activities provided approximately $1.04 million.
Financial Position and Liquidity
- At June 30, cash was $1.36 million; current assets were $2.76 million and current liabilities $4.15 million, leaving a $1.39 million working-capital deficit. Stockholders’ equity was $1.80 million and accumulated deficit was $39.66 million.
- Total debt, including the $1.00 million bank line of credit, was approximately $4.00 million, excluding operating lease liabilities. Current liabilities included $1.17 million owed to a related party. Operating lease liabilities totaled $440,044.
- Cash declined from $2.07 million at year-end 2022. Cash plus debt securities declined from $4.19 million to $1.36 million as the company liquidated its remaining bond investments.
- The bank line was $1.00 million outstanding at a 6.50% rate and was payable on demand at the bank’s discretion. The company reported no demand for repayment as of June 30.
Material Changes, Outlook, and Risks
- Management stated that additional capital was needed immediately and that the company had relied on related-party funding. It concluded that substantial doubt existed about the company’s ability to continue as a going concern within the following twelve months. Failure to obtain financing could force the company to delay, reduce, or cease operations. No quantified revenue or earnings guidance was provided.
- In April 2023, the company entered into a $1.50 million related-party/lender note, due October 2023, with an 18% stated rate and substantial original-issue and other discounts or costs. The note is secured by all assets; 150,000 commitment-fee shares were contingently returnable if repaid at maturity. Separate post-quarter related-party advances of $440,000 each were disclosed for July and August, with $400,000 net proceeds per advance and extension/default provisions.
- Management’s stated strategic priorities included expansion into new markets, collaborations, and acquisitions. Customer and supplier concentration remains notable: two customers represented 33.54% of six-month sales, one customer represented 45.18% of receivables, and three vendors represented 98.71% of purchases.
- The company reported a dispute with Fuel Butler concerning a technology license; Fuel Butler purported to terminate the agreement, while EzFill disputed the claimed breach. EzFill had fully impaired the license in 2022. The filing reported no litigation matter requiring accrual or disclosure and no legal proceedings in Part II.
- After quarter-end, several directors and the CFO resigned; a new CFO and directors were appointed. Also after quarter-end, EzFill agreed to acquire all of Next Charging LLC in exchange for 100 million shares, subject to closing conditions including shareholder approval and an increase in authorized common shares from 50 million to 500 million. Most shares are subject to milestone-based vesting. This proposed transaction could materially alter the business and create significant dilution; it was not presented as completed in this filing.
- The company executed a 1-for-8 reverse stock split on April 27, 2023; share figures were retroactively restated. Management said disclosure controls were effective as of June 30, 2023.
Key Facts for Investors to Verify
- Confirm the issuer identity: the filing is for EzFill Holdings, Inc. (EZFL), while the request identifies NEXTNRG, INC.
- Check subsequent filings for liquidity, additional financing, debt repayment or extensions, and any change in the going-concern assessment.
- Verify whether the Next Charging exchange closed, its final terms, required approvals, and the resulting share count and dilution.
- Review the related-party note terms, demandable bank line, and the company’s ability to fund near-term operations.
- Assess whether revenue growth and improved fuel margins can translate into positive operating cash flow, given continuing losses and customer/vendor concentration.