Business Context and Reporting Period
Company: NEXTNRG, INC. (formerly EzFill Holdings, Inc.)
Reporting Period: Fiscal Year Ended December 31, 2024
Business Overview: NextNRG operates an on-demand mobile fuel delivery service (EzFill) and is transitioning into a renewable energy company focused on AI-driven smart microgrids, battery storage, and wireless EV charging. The company recently completed a common control merger with NextNRG Holding Corp. on February 13, 2025, changing its name and strategic focus.
Listing Status: Nasdaq Capital Market (Symbol: NXXT). The company regained compliance with Nasdaq listing rules regarding annual meetings in January 2025 after a temporary deficiency.
Key Financial Metrics (Year Ended Dec 31, 2024)
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $27,770,279 | $23,216,423 |
| Cost of Sales | $25,467,415 | $21,845,574 |
| Gross Profit | $2,302,864 | $1,370,849 |
| Operating Loss | $(7,282,119) | $(8,533,560) |
| Net Loss | $(16,189,008) | $(10,471,889) |
| Adjusted EBITDA | $5,315,782 | $6,013,755 |
| Cash and Equivalents (End of Period) | $438,299 | $226,985 |
| Working Capital Deficit | $(7,416,533) | $(5,210,669) |
| Total Debt (Notes Payable) | $8,024,263 | $6,921,615 |
Note: Total Debt includes current and long-term notes payable (related party and third-party) net of discounts.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 19.6% to $27.8 million, driven by a 24% increase in gallons delivered and higher average fuel prices. Gross margin per gallon improved from $0.65 to $0.71.
- Net Loss Expansion: Net loss increased 54.6% to $16.2 million. This was primarily driven by a surge in interest expense ($8.2 million vs. $1.7 million in 2023), which included $4.5 million in default penalty interest and $2.6 million in amortization of debt discounts.
- Debt Restructuring: The company converted approximately $13.4 million of related-party debt into equity (Series A Preferred Stock and Common Stock) during 2024, triggering significant non-cash interest expenses and a $907,500 loss on debt extinguishment.
- Operating Expenses: Operating expenses decreased 3.3% to $8.5 million due to cost management initiatives, despite increased stock-based compensation.
Guidance, Outlook, Risks, and Unusual Items
Guidance and Outlook
The company does not provide specific forward-looking financial guidance. Management anticipates needing additional capital immediately to fund operations beyond June 30, 2025. Strategic plans include expanding mobile fueling markets, deploying smart microgrids on tribal lands and commercial properties, and commercializing wireless EV charging technology.
Material Risks and Contingencies
- Going Concern: The independent auditor has issued a "Going Concern" opinion. The company has a working capital deficit of $7.4 million and an accumulated deficit of $61.8 million. There is substantial doubt about the company's ability to continue as a going concern without additional financing.
- Liquidity: Cash on hand ($438k) is insufficient to meet operational requirements and debt obligations for the next 12 months. The company relies heavily on related-party debt and equity financings.
- Debt Covenants and Penalties: Many debt instruments contain aggressive default provisions, including 150% penalty multipliers and conversion rights at floor prices. The company incurred significant penalty interest in 2024 due to defaults on related-party notes.
- Concentration Risk: Two customers accounted for nearly 30% of 2024 revenue. Two vendors accounted for nearly 99% of fuel purchases.
Unusual Items
- Default Penalty Interest: $4.5 million recorded in 2024 due to contractual defaults on related-party notes prior to conversion.
- Common Control Merger: A merger with NextNRG Holding Corp. closed on February 13, 2025, resulting in a name change and a shift in business strategy toward renewable energy infrastructure.
Key Facts for Investor Verification
- Capital Adequacy: Verify the status of the February 2025 public offering (5M shares at $3.00) and whether proceeds were sufficient to repay the $2.5M Gad International note and other short-term obligations.
- Debt Conversion Terms: Review the specific conversion prices and floor prices ($0.70 - $1.75) on outstanding convertible notes to assess potential future dilution if the company defaults again.
- Related Party Transactions: Confirm the extent of ongoing reliance on Michael Farkas (CEO/Controlling Shareholder) for debt financing and the terms of the common control merger.
- Asset Acquisitions: Verify the integration and operational status of assets acquired from Yoshi, Inc. and Shell (73 trucks) which were purchased late in 2024/early 2025.
- Nasdaq Compliance: Monitor the company's ability to maintain Nasdaq listing standards, particularly regarding stockholders' equity and minimum bid price, given the recent history of delisting threats.