EzFill Holdings, Inc. — Form 10-Q summary
Reporting period: Quarter and six months ended June 30, 2022; filed August 12, 2022. The supplied filing identifies the registrant as EzFill Holdings, Inc. (NASDAQ: EZFL), not NEXTNRG, INC. Investors should verify that this is the intended filing.
Business and results
EzFill operates mobile fuel-delivery trucks, serving fleet, consumer, marine, and other customers. In March 2022, it acquired substantially all assets of Full Service Fueling, a mobile-fueling provider.
| Metric | Three months ended June 30, 2022 | Six months ended June 30, 2022 | Comparable 2021 periods |
|---|---|---|---|
| Revenue | $3.754 million | $6.094 million | $1.851 million; $3.372 million |
| Cost of sales | $3.756 million | $6.080 million | $1.836 million; $3.232 million |
| Operating loss | $(3.867) million | $(7.136) million | $(1.885) million; $(3.122) million |
| Net loss | $(3.873) million | $(7.139) million | $(2.007) million; $(3.356) million |
| Adjusted EBITDA (non-GAAP) | $(3.006) million | $(5.469) million | $(1.243) million; $(1.943) million |
Revenue grew 103% in Q2 and 81% in the first half year over year. Management attributed growth to more gallons delivered and higher average fuel prices/margins, including new fleet customers. Gallons delivered increased 30% in Q2 and 19% in the first half; average fuel margin was $0.49 per gallon versus $0.37 and $0.36, respectively. Despite growth, Q2 cost of sales slightly exceeded revenue; first-half gross profit was only about $14,000. Operating expenses rose 104% in Q2 and 118% in the first half, driven by payroll, insurance, marketing, technology, and public-company costs. Depreciation and amortization increased with fleet expansion and acquired/licensed intangibles.
Cash, liquidity, and debt
- Cash and cash equivalents were $7.395 million at June 30, 2022, down from $13.561 million at year-end 2021. Debt securities were $2.771 million, bringing reported cash plus investments to approximately $10.2 million.
- Six-month operating cash use was $6.028 million; investing cash use was $2.840 million, including $3.021 million of fixed-asset purchases, primarily delivery trucks, partly offset by investment maturities. Financing provided $2.702 million. Ending cash was $7.395 million versus $13.561 million at year-end.
- Current assets were $11.811 million and current liabilities $3.131 million. Total liabilities were $5.122 million; loans payable totaled approximately $2.328 million and revolving-line borrowings were $850,000. The securities-backed line’s rate was 3.00% at quarter-end and the bank may demand repayment at its discretion.
- The filing reports approximately $2.2 million remaining available under a $4.0 million vehicle-financing facility, subject to its terms. Net property and equipment was $5.129 million.
Changes, outlook, and risks
- Management said losses and operating cash use are expected to continue for the foreseeable future and that additional capital would be needed within 4–6 months. It cautioned that financing may not be available on acceptable terms, or at all; failure to raise funds could require delaying, reducing, or ceasing operations. No specific revenue or earnings guidance was provided.
- Operating expenses and capital investment increased substantially as the company expanded its fleet and markets. The Full Service Fueling acquisition consideration was $321,250 cash plus 40,323 shares valued at $50,000; the acquired business contributed approximately $55,000 revenue and $2,000 net loss after acquisition through June 30.
- Customer concentration remains material: one customer represented 38% of Q2 revenue and 42% of first-half revenue. Two vendors supply substantially all fuel. The company also disclosed related-party relationships involving consulting and technology licensing.
- Management reported disclosure controls effective at a reasonable-assurance level and no material quarterly change in internal control over financial reporting. The filing reported no legal proceedings requiring disclosure and no off-balance-sheet arrangements.
Important facts to verify
- Confirm that the EzFill Holdings filing is the intended filing for the NEXTNRG, INC. request.
- Review the company’s stated near-term financing need, cash runway, and borrowing availability, including the demand feature on the bank line.
- Assess whether revenue growth can translate into positive gross margin and reduced operating cash burn, given the expanding cost base.
- Evaluate customer and fuel-supplier concentration, acquisition performance, and related-party arrangements.
- Reconcile an apparent equity-statement inconsistency: the balance sheet reports accumulated deficit of $24.479 million, while the June 30 equity roll-forward shows $24.786 million; the reported six-month net loss and opening balance align with the balance-sheet amount.