EzFill Holdings Inc
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
NXXT$2.30-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001493152-24-019322
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032234
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 53 current paragraphs.
29 unchanged; 13 reworded; 7 added; 44 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Depreciation decreased from $277,608 to $264,368, ($13,240), in the current three months ended June 30, 2024 as compared to June 30, 2023.
Current report
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
Current report
Revenues
Current report
Operating Expenses
Current report
Depreciation and Amortization
Current report
Depreciation decreased from $550,695 to $540,891, ($9,804), in the current six months ended June 30, 2024 as compared to June 30, 2023.
Current report
Other Income (Expense)
Removed paragraphs (44)
Previous report
Depreciation increased from $273,087 to $276,522 ($3,435), in the current three months ended March 31, 2024 as compared to March 31, 2023, as a result of the increase in the fleet of delivery vehicles.
Previous report
Critical Accounting Policies and Estimates
Previous report
Management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which were prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The preparation of these consolidated financial statements requires us to make estimates and assumptions for the reported amounts of assets, liabilities, revenue, and expenses. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions, and those differences may be material.
Previous report
While our significant accounting policies are more fully described inNote 2—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements included inItem 8, Financial Statements and Supplementary Data of this Annual Report on Form 10-K, we believe the following discussion addresses our most critical accounting policies, which are those that are most important to our financial condition and results of operations and which require our most difficult, subjective and complex judgments.
Previous report
Use of Estimates and Assumptions
Previous report
Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material.
Previous report
Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and other assumptions, which include both quantitative and qualitative assessments that it believes to be reasonable under the circumstances.
Previous report
Significant estimates include, allowance for doubtful accounts and other receivables, inventory reserves and classifications, valuation of loss contingencies, valuation of stock-based compensation, estimated useful lives related to property and equipment, impairment of intangible assets, implicit interest rate in right-of-use operating leases, uncertain tax positions, and the valuation allowance on deferred tax assets.
Previous report
Accounts Receivable
Previous report
Accounts receivable are stated at the amount management expects to collect from outstanding customer balances. Credit is extended to customers based on an evaluation of their financial condition and other factors. Interest is not accrued on overdue accounts receivable. The Company does not require collateral.
Previous report
Management periodically assesses the Company’s accounts receivable and, if necessary, establishes an allowance for estimated uncollectible amounts. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. Accounts determined to be uncollectible are charged to operations when that determination is made.
Previous report
Inventory
Previous report
Inventory consists solely of fuel. Inventory is stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method of inventory valuation. Management assesses the recoverability of its inventory and establishes reserves on a quarterly basis.
Previous report
Revenue Recognition
Previous report
The Company generates its revenue from mobile fuel sales, either as a one-time purchase, or through a monthly membership. Revenue is recognized at the time of delivery and includes a delivery fee for each delivery or a subscription fee on a monthly basis for memberships.
Previous report
Under Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606) “Revenue from Contracts with Customers”, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives, discounts, rebates, and amounts collected on behalf of third parties.
Previous report
A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account under Topic 606. The Company’s contracts with its customers do not include multiple performance obligations. The Company recognizes revenue when a performance obligation is satisfied by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services.
Previous report
The following represents the analysis management has considered in determining its revenue recognition policy:
Previous report
Identify the contract with a customer
Previous report
A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer.
Previous report
Identify the performance obligations in the contract
Previous report
Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.
Previous report
Determine the transaction price
Previous report
The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.
Previous report
None of the Company’s contracts contain a significant financing component.
Previous report
Allocate the transaction price to performance obligations in the contract
Previous report
If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately.
Previous report
If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.
Previous report
The Company’s contracts have a distinct single performance obligation and there are no contracts with variable consideration.
Previous report
Recognize revenue when or as the Company satisfies a performance obligation
Previous report
Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised service to a customer.
Previous report
The following reflects additional discussion regarding our revenue recognition policies for each of our material revenue streams. For each revenue stream we do not offer any returns, refunds or warranties, and no arrangements are cancellable. Additionally, all contract consideration is fixed and determinable at the initiation of the contract.
Previous report
Currently, the Company only has two separate and distinct single performance obligations in its contractual arrangements.
Previous report
First, the Company generally recognizes membership revenues at the end of each month after services have been rendered. There are no prepaid membership revenues.
Previous report
Second, the Company recognizes fuel sales each month after delivery has occurred.
Previous report
Contract Liabilities (Deferred Revenue)
Previous report
Contract liabilities represent deposits made by customers before the satisfaction of performance obligation and recognition of revenue. Upon completion of the performance obligation(s) that the Company has with the customer based on the terms of the contract, the liability for the customer deposit is relieved and revenue is recognized.
Previous report
Recent Accounting Standards
Previous report
Changes to accounting principles are established by the FASB in the form of Accounting Standards Updates (“ASU’s”) to the FASB’s Codification. We consider the applicability and impact of all ASU’s on our consolidated financial position, results of operations, stockholders’ equity, cash flows, or presentation thereof. Management has evaluated all recent accounting pronouncements issued through the date these financial statements were available to be issued and found no recent accounting pronouncements issued, but not yet effective accounting pronouncements, when adopted, will have a material impact on the consolidated financial statements of the Company.
Previous report
In March 2022, the Financial Accounting Standards Board (the “FASB”) issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”), which eliminates the accounting guidance on troubled debt restructurings (“TDRs”) for creditors in ASC 310, Receivables (Topic 310), and requires entities to provide disclosures about current period gross write-offs by year of origination. Also, ASU 2022-02 updates the requirements related to accounting for credit losses under ASC 326, Financial Instruments – Credit Losses (Topic 326), and adds enhanced disclosures for creditors with respect to loan refinancings and restructurings for borrowers experiencing financial difficulty.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (13)
Previous wording
The following table sets forth our results of operations for the three months ended March 31, 2024 and 2023:
Current wording
The following table sets forth our results of operations for the three and six months ended June 30, 2024 and 2023:
Previous wording
The following is a reconciliation of net loss to the non-GAAP financial measure referred to as Adjusted EBITDA for the three months ended March 31, 2024 and 2023:
Current wording
The following is a reconciliation of net loss to the non-GAAP financial measure referred to as Adjusted EBITDA for the three and six months ended June 30, 2024 and 2023:
Previous wording
We generated revenues of $6,597,119 for the three months ended March 31, 2024, compared to $5,231,334 for the prior year, an increase of $1,365,785 or 26%. This increase is primarily due to a 26% increase in gallons delivered and an increase in related fees. The additional gallons were in existing as well as newly developed markets.
Current wording
We generated revenues of $7,398,278 for the three months ended June 30, 2024, compared to $6,130,661 for the prior year, an increase of $1,267,617 or 21%. This increase is primarily due to a 16% increase in gallons delivered and an increase in related fees. The additional gallons were in existing as well as newly developed markets.
Previous wording
Cost of sales was $6,135,335 for the three months ended March 31, 2024, compared to $5,068,783 for the prior year. The $1,066,552 or 21% increase in cost of sales is due to the increase in fuel sales as well as the hiring of additional drivers, primarily in new markets. Our gross profit improved year over year due to higher fuel revenues as well as increased delivery fees and driver efficiency.
Current wording
Cost of sales was $6,847,450 for the three months ended June 30, 2024, compared to $5,646,291 for the prior year. The $1,201,159 or 21% increase in cost of sales is due to the increase in fuel sales as well as the hiring of additional drivers, primarily in new markets. Our gross profit improved year over year due to higher fuel revenues as well as increased delivery fees and driver efficiency.
Previous wording
We incurred operating expenses of $1,489,031 during the three months ended March 31, 2024, compared to $2,196,646 during the prior year, a decrease of $707,615 or 32%. This decrease was primarily due to decreases in payroll, stock based compensation, marketing and public company expenses.
Current wording
We incurred operating expenses of $1,805,734 during the three months ended June 30, 2024, compared to $2,369,026 during the prior year, a decrease of $563,292 or 24%. This decrease was primarily due to decreases in payroll, stock based compensation, marketing and public company expenses.
Previous wording
Interest expense increased from $49,749 to $659,153 ($609,404) in the current three months ended March 31, 2024 as compared to March 31, 2023 in the current year due to increased borrowing from related parties during the three months ending March 31, 2024.
Current wording
Interest expense increased from $12,819 to $1,902,409 ($1,889,590) in the current three months ended June 30, 2024 as compared to June 30, 2024 due to increased borrowing from related parties during the three months ending June 30, 2024.
Previous wording
As of March 31, 2024, we had approximately $48,613 in cash compared to approximately $504,581 at March 31, 2023.
Current wording
As of June 30, 2024, we had approximately $306,811 in cash compared to approximately $226,985 at December 31, 2023.
Previous wording
Net cash used in operating activities was $1,140,148 for the three months ended March 31, 2024, which was made up primarily by the net loss of $1,899,122 and offset by non-cash adjustments for a net amount of $758,974. Net cash used in operating activities was $2,513,417 during the three months ended March 31, 2023, which was made up primarily by the net loss of $2,348,771 and offset by non-cash adjustments for a net amount of $164,646.
Current wording
Net cash used in operating activities was $2,095,470 for the six months ended June 30, 2024, which was made up primarily by the net loss of $5,260,355 and offset by non-cash adjustments for a net amount of $3,164,885. Net cash used in operating activities was $3,898,772 during the six months ended June 30, 2023, which was made up primarily by the net loss of $4,817,582 and offset by non-cash adjustments for a net amount of $918,810.
Previous wording
During the three months ended March 31, 2024 net cash used by investing activities was $11,667. The cash used was to purchase equipment. Net cash provided by investing activities during the prior year was $1,150,928 resulting from the proceeds as part of the sale of marketable debt securities.
Current wording
During the six months ended June 30, 2024 net cash used by investing activities was $28,817. The cash used was to purchase equipment of $11,667 and advances to related party of $17,150. Net cash provided by investing activities during the prior year was $2,130,116 resulting from the proceeds as part of the sale of marketable debt securities, net of $19,498 in purchases of equipment.
Previous wording
We generated $973,443 of cash flows from financing activities during the three months ended March 31, 2024, including a $1,250,000 loan from a related party (an approximate 20% shareholder of the Company), less principal repayments of $276,557. We used $199,723 of cash flows from financing activities during the three months ended March 31, 2023, primarily for the repayments of notes payable of $199,723, we also received $25,308 of proceeds for the issuance of stock from the ATM and recorded related expenses of $25,308.
Current wording
We generated $2,204,113 of cash flows from financing activities during the six months ended June 30, 2024, including a $2,550,000 loan from a related party (an approximate 20% shareholder of the Company), proceeds from notes payable of $250,000 less principal repayments of $595,887. We generated $1,041,698 of cash flows from financing activities during the six months ended June 30, 2023, including a $1,710,000 loan from a related party (an approximate 20% shareholder of the Company), net of the repayments of loans payable from a related party of $405,802 and repayments of notes payable of $262,500, we also received $25,308 of proceeds for the issuance of stock from the ATM and recorded related expenses of $25,308.
Previous wording
The Company has sustained net losses since inception and does not have sufficient revenues and income to fully fund its operations. As a result, the Company has relied on equity and debt financings to fund its activities to date. For the three months ended March 31, 2024, the Company had a net loss of $1,899,122. At March 31, 2024, the Company had an accumulated deficit of $47,216,172. The Company anticipates that it will continue to generate operating losses and use cash in operations through the foreseeable future.
Current wording
The Company has sustained net losses since inception and does not have sufficient revenues and income to fully fund its operations. As a result, the Company has relied on equity and debt financings to fund its activities to date. For the six months ended June 30, 2024, the Company had a net loss of $5,260,355. At June 30, 2024, the Company had an accumulated deficit of $50,577,405. The Company anticipates that it will continue to generate operating losses and use cash in operations through the foreseeable future.
Previous wording
As reflected in the accompanying consolidated financial statements, for the three months ended March 31, 2024, the Company had:
Current wording
As reflected in the accompanying consolidated financial statements, for the six months ended June 30, 2024, the Company had:
Previous wording
We manage liquidity risk by reviewing, on an ongoing basis, our sources of liquidity and capital requirements. The Company had cash on hand of $48,613 at March 31, 2024.
Current wording
We manage liquidity risk by reviewing, on an ongoing basis, our sources of liquidity and capital requirements. The Company had cash on hand of $306,811 at June 30, 2024.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
We generated revenues of $13,995,397 for the six months ended June 30, 2024, compared to $11,361,995 for the prior year, an increase of 2,633,402 or 23%. This increase is primarily due to a 21% increase in gallons delivered and an increase in related fees. The additional gallons were in existing as well as newly developed markets.
Current report — wording carried from elsewhere
Cost of sales was $12,982,785 for the six months ended June 30, 2024, compared to $10,715,074 for the prior year. The $2,267,711 or 21% increase in cost of sales is mainly due to the increase in fuel sales as well as the hiring of additional drivers, primarily in new markets. Our gross profit improved year over year due to higher fuel revenues as well as increased delivery fees and driver efficiency.
Current report — wording carried from elsewhere
We incurred operating expenses of $3,294,764 during the six months ended June 30, 2024, as compared to $4,565,672 during the prior year, a decrease of $1,270,908 or 25%. This decrease was primarily due to decreases in payroll, stock based compensation, marketing and public company expenses.
Current report — wording carried from elsewhere
Interest expense increased from $27,160 to $2,561,562 ($2,534,402) in the current six months ended June 30, 2024 as compared to June 30, 2023 due to increased borrowing from related parties during the six months ending June 30, 2024.