EzFill Holdings Inc

Previous wording

The following discussion and analysis summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2023 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Registration Statement on Form S-1 filed with the Securities and Exchange Commission, or SEC, on June 1, 2021, as amended, and declared effective on September 14, 2021. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us,” and “our” refer to EzFill Holdings, Inc.

Current wording

The following discussion and analysis summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2023 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Registration Statement on Form S-1 filed with the Securities and Exchange Commission, or SEC, on June 1, 2021, as amended, and declared effective on September 14, 2021. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “we,” “us,” and “our” refer to EzFill Holdings, Inc.

Previous 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:

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 nine months ended September 30, 2024 and 2023:

Previous 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.

Current wording

We generated revenues of $6,985,962 for the three months ended September 30, 2024, compared to $6,163,682 for the prior year, an increase of $822,280 or 13%. 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.

Previous 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.

Current wording

Cost of sales was $6,379,137 for the three months ended September 30, 2024, compared to $5,813,957 for the prior year. The $565,180 or 10% 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 $1,805,734 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.

Current wording

We incurred operating expenses of $1,950,288 during the three months ended September 30, 2024, compared to $1,684,340 during the prior year, an increase of $265,948 or 16%. This increase was primarily due to increases in payroll, stock based compensation, marketing and public company expenses.

Previous 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.

Current wording

Interest expense increased from $622,777 to $5,601,813 ($4,979,036) in the current three months ended September 30, 2024 as compared to September 30, 2024 due to increased borrowing from related parties during the three months ending September 30, 2024.

Previous wording

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 wording

We generated revenues of $20,977,860 for the nine months ended September 30, 2024, compared to $17,525,677 for the prior year, an increase of 3,452,183 or 20%. This increase is primarily due to a 23% 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 $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 wording

Cost of sales was $19,361,923 for the nine months ended September 30, 2024, compared to $16,529,030 for the prior year. The $2,832,893 or 17% 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.

Previous wording

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 wording

We incurred operating expenses of $5,245,052 during the nine months ended September 30, 2024, as compared to $6,250,013 during the prior year, a decrease of $1,004,961 or 16%. This decrease was primarily due to decreases in payroll, stock based compensation, marketing and public company expenses.

Previous wording

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.

Current wording

Interest expense increased from $966,374 to $8,163,375 ($7,197,001) in the current nine months ended September 30, 2024 as compared to September 30, 2023 due to increased borrowing from related parties during the nine months ending September 30, 2024.

Previous wording

As of June 30, 2024, we had approximately $306,811 in cash compared to approximately $226,985 at December 31, 2023.

Current wording

As of September 30, 2024, we had approximately $828,185 in cash compared to approximately $226,985 at December 31, 2023.

Previous 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.

Current wording

Net cash used in operating activities was $3,448,667 for the nine months ended September 30, 2024, which was made up primarily by the net loss of $13,339,363 and offset by non-cash adjustments for a net amount of $9,890,696. Net cash used in operating activities was $5,439,667 during the nine months ended September 30, 2023, which was made up primarily by the net loss of $7,044,320 and offset by non-cash adjustments for a net amount of $1,604,653.

Previous 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.

Current wording

During the nine months ended September 30, 2024 net cash used by investing activities was $55,704. The cash used was to purchase equipment of $38,554 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 $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.

Current wording

We generated $4,105,571 of cash flows from financing activities during the nine months ended September 30, 2024, including a $3,300,000 loan from a related party (an approximate 20% shareholder of the Company), proceeds from issuance of Series B – convertible preferred stock from a related party (an approximate 20% shareholder of the Company) of $1,400,000 and proceeds from notes payable of $250,000 less principal repayments of $844,429. We generated $1,628,490 of cash flows from financing activities during the nine months ended September 30, 2023, including a $3,321,000 loan from a related party (an approximate 20% shareholder of the Company) and proceeds from notes payable of $250,000, net of the repayments of loans payable from a related party of $262,500 and repayments of notes payable of $680,110 and repayments on line of credit of $1,000,000, 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 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.

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 nine months ended September 30, 2024, the Company had a net loss of $13,339,363. At September 30, 2024, the Company had an accumulated deficit of $58,741,247. 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 six months ended June 30, 2024, the Company had:

Current wording

As reflected in the accompanying consolidated financial statements, for the nine months ended September 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 $306,811 at June 30, 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 $828,185 at September 30, 2024.