NEXTNRG, INC. — Filing Summary
Filing identity: The supplied 10-Q is filed by EzFill Holdings, Inc. (NASDAQ: EZFL), not by a registrant named NextNRG, Inc. It discusses a proposed acquisition of NextNRG Holding Corp. and the related financing. Period ended March 31, 2024; filed May 14, 2024. Financial statements are unaudited.
Business context and reporting period
EzFill provides on-demand mobile fuel delivery in Florida. It reports one operating segment and U.S.-only revenue. Fuel sales represented 97.1% of Q1 2024 revenue; other revenue was 2.9%.
Key financial metrics
| Metric | Q1 2024 / March 31, 2024 | Q1 2023 / December 31, 2023 |
|---|---|---|
| Revenue | $6.60 million | $5.23 million |
| Gross profit / margin | $461,784 / 7.0% | $162,551 / 3.1% |
| Operating loss | $1.30 million | $2.31 million |
| Net loss | $1.90 million | $2.35 million |
| Adjusted EBITDA (non-GAAP) | $(1.16) million | $(1.83) million |
| Cash used in operating activities | $1.14 million | $2.51 million |
| Cash | $48,613 | $226,985 |
| Total assets | $5.85 million | $5.72 million |
| Total liabilities | $9.16 million | $7.62 million |
| Total debt, net, including vehicle debt | $7.26 million | — |
| Working capital deficit | $6.34 million | — |
| Stockholders’ deficit | $3.31 million | $1.91 million |
Q1 2024 delivered 1.66 million gallons, up 26%, with average fuel margin per gallon of $0.59 versus $0.47. Interest expense was $659,153 versus $49,749; cash interest paid was $64,567. The filing attributes the increase in reported interest expense primarily to related-party borrowing; the cash-flow statement also reports $535,182 of debt-discount amortization.
Material changes versus prior comparable period
- Revenue rose 26% year over year, primarily from increased gallons delivered and related fees, including volume in existing and new markets.
- Cost of sales increased 21%, less than revenue growth; management cited higher fuel sales, added drivers, delivery fees, and improved driver efficiency. Gross margin expanded to 7.0% from 3.1%.
- Operating expenses declined 32% to $1.49 million, mainly due to lower payroll, stock compensation, marketing, and public-company expenses.
- Operating loss narrowed, but net loss improvement was limited by a sharp increase in interest expense.
- Operating cash use improved year over year, but cash fell by $178,372 during the quarter. Related-party notes payable, net, increased to $6.24 million from $4.80 million.
Outlook, risks, contingencies, and unusual items
- Going concern: Management says substantial doubt exists about the company’s ability to continue as a going concern for the 12 months after issuance. It expects to need additional capital immediately; absent financing, it may have to delay, reduce, or cease operations. The statements include no adjustments for a potential failure to continue as a going concern.
- Financing and debt: The company relies on related parties for funding. Many related-party notes are short-term, secured by all assets, and carry stated rates of 8% with default rates of 18%; certain notes have cross-default, conversion, or financing-trigger repayment provisions. The filing says the company was not in default at March 31. On May 9, 2024, maturities of three related-party notes were extended to July 17, 2024, with 165,000 additional shares required.
- Nasdaq listing: The company received a delisting determination after failing to meet the $2.5 million stockholders’ equity requirement by the February 20, 2024 deadline. It appealed; a hearing occurred May 2, 2024. The filing provides no final outcome and says there is no assurance the company will regain compliance.
- Proposed NextNRG transaction: The exchange agreement remained unclosed as of March 31 and the financial-statement issuance date. It contemplates up to 100 million shares in staged issuances, a change in control and reverse acquisition, and customary closing conditions, including shareholder approval, increasing authorized common shares, third-party consents, Nasdaq compliance, and recording assignment of a patent. The filing gives no assurance of completion.
- Concentration and operating risks: Two customers accounted for 32.7% of Q1 sales; one customer represented 44.3% of receivables. Three vendors represented all reported vendor purchases. Management cites competition, consumer demand, economic conditions, and fuel-price volatility.
- Other disclosures: No litigation requiring accrual or disclosure was reported. No formal financial guidance was provided. Management reported disclosure controls effective at a reasonable-assurance level and no material quarterly change in internal control over financial reporting.
Most important facts for investors to verify
- Confirm the filing issuer and security: this 10-Q is EzFill Holdings, Inc. (EZFL); NextNRG appears as the proposed acquisition target.
- Track cash runway, new financing, and whether the company can meet near-term obligations given $48,613 cash and a $6.34 million working-capital deficit.
- Review related-party debt balances, extensions, share consideration, default provisions, and any subsequent financing or repayment.
- Check the outcome of the Nasdaq appeal and whether the company regained the required stockholders’ equity compliance.
- Monitor closing conditions, share issuance and dilution, and completion status of the proposed NextNRG transaction.
- Assess customer and supplier concentration, collections of receivables, and whether improved fuel margins and lower operating expenses persist.