EzFill (EZFL)

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EzFill (EZFL) - 2022 Q2 - Earnings Call Transcript
2022-08-14 07:41
EZFill Holdings Inc. (NASDAQ:EZFL) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants John McNamara – Investor Relations Mike McConnell – Chief Executive Officer Arthur Levine – Chief Financial Officer Conference Call Participants Tate Sullivan – Maxim Group Operator Good day, everyone, and welcome to today's EzFill Holdings Second Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the ask questions during the question-and ...
EzFill (EZFL) - 2022 Q2 - Quarterly Report
2022-08-11 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40809 EZFILL HOLDINGS INC. | --- | --- | |--------------------------------------------------|----------------------------------- ...
EZFill Holdings (EZFL) Investor Presentation - Slideshow
2022-05-26 18:10
| --- | --- | |-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | DISCLAIMER This presentation contains "forward-looking statements." Forward-looking statements reflect our current view about future events. When used in this presentation, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward-looking statements. Such statements, include, but are n ...
EzFill (EZFL) - 2022 Q1 - Quarterly Report
2022-05-13 20:07
PART I - FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20Financial%20Statements) EzFill Holdings, Inc.'s unaudited condensed consolidated financial statements and notes for Q1 2022 and 2021 are presented [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present the company's financial position as of March 31, 2022, and December 31, 2021 Condensed Consolidated Balance Sheets | Metric | March 31, 2022 ($) | December 31, 2021 ($) | | :-------------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $10,571,774 | $13,561,266 | | Total Current Assets | $14,379,399 | $17,257,032 | | Total Assets | $22,039,756 | $22,924,118 | | Total Current Liabilities | $1,631,572 | $758,236 | | Total Liabilities | $2,964,420 | $1,055,672 | | Total Stockholders' Equity | $19,075,335 | $21,868,446 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations detail revenues, costs, and net loss for Q1 2022 and 2021 Condensed Consolidated Statements of Operations | Metric | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $2,340,068 | $1,521,819 | | Cost of sales | $2,324,160 | $1,394,396 | | Operating expenses | $2,948,001 | $1,244,490 | | Operating loss | $(3,269,757) | $(1,235,811) | | Net loss | $(3,266,510) | $(1,348,155) | | Basic and diluted net loss per share | $(0.12) | $(0.08) | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20%28Deficit%29) This statement outlines changes in stockholders' equity from December 31, 2021, to March 31, 2022 Condensed Consolidated Statements of Stockholders' Equity (Deficit) | Metric | December 31, 2021 ($) | March 31, 2022 ($) | | :-------------------------- | :---------------- | :--------------- | | Common stock amount | $2,624 | $2,631 | | Additional Paid-in Capital | $39,210,291 | $39,730,969 | | Accumulated Deficit | $(17,339,396) | $(20,605,906) | | Accumulated Other Comprehensive Loss | $(5,073) | $(52,359) | | Total Stockholders' Equity | $21,868,446 | $19,075,335 | - Stock-based compensation for the three months ended March 31, 2022, was **$470,685**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement summarizes cash generated and used by activities for Q1 2022 and 2021 Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(2,329,978) | $(905,579) | | Net cash used in investing activities | $(1,592,798) | $(23,841) | | Net cash provided by financing activities | $933,283 | $227,376 | | Net change in cash and cash equivalents | $(2,989,493) | $(652,044) | | Cash and cash equivalents at end of period | $10,571,774 | $230,826 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for the condensed consolidated financial statements, covering policies, liquidity, and transactions [(1) Nature of Organization and Summary of Significant Accounting Policies](index=8&type=section&id=%281%29%20Nature%20of%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note describes EzFill's mobile gas delivery business and outlines key accounting policies, including estimates and concentrations - EzFill Holdings, Inc. operates an on-demand mobile gas delivery service in South Florida[20](index=20&type=chunk)[83](index=83&type=chunk) Cash and Cash Equivalents | Metric | March 31, 2022 ($) | December 31, 2021 ($) | | :-------------------------- | :------------- | :---------------- | | Cash and cash equivalents | $10,571,774 | $13,561,266 | - For the three months ended March 31, 2022 and 2021, one customer accounted for approximately **49%** and **55% of revenue**, respectively, and the company purchases substantially all of its fuel from one vendor[28](index=28&type=chunk)[30](index=30&type=chunk) [(2) Liquidity](index=11&type=section&id=%282%29%20Liquidity) This note addresses liquidity, highlighting accumulated deficit, operating losses, and future capital needs Liquidity Metrics | Metric | March 31, 2022 ($) | | :------------------ | :------------- | | Net loss (Q1 2022) | $(3,266,510) | | Accumulated deficit | $(20,605,906) | | Working capital surplus | $12,747,827 | - The company expects its cash on hand to fund operations for approximately **12-14 months** after the issuance date of these financial statements[39](index=39&type=chunk) - The company anticipates needing to raise additional capital to fund operations, with no assurance such funding will be available on favorable terms or at all[39](index=39&type=chunk) [(3) Related Party Transactions](index=11&type=section&id=%283%29%20Related%20Party%20Transactions) This note details related party transactions, including executive stock compensation, a consulting agreement, and a technology license - During Q1 2022, the company issued **160,219 shares of restricted stock** and **396,511 stock options** to executives, resulting in **$475,000 in stock compensation expense** over the vesting period[40](index=40&type=chunk) - The company has a consulting agreement with Balance Labs, Inc., led by a former company president who beneficially owns approximately **26%** of the company's common stock[41](index=41&type=chunk) - A technology license agreement exists with Fuel Butler LLC, **20% owned by a company executive**[42](index=42&type=chunk) [(4) Fixed Assets](index=12&type=section&id=%284%29%20Fixed%20Assets) This note provides a breakdown of fixed assets, including vehicles and construction in process, and depreciation expense Fixed Assets Breakdown | Fixed Asset Category | March 31, 2022 ($) | December 31, 2021 ($) | | :-------------------------- | :------------- | :---------------- | | Vehicles | $2,545,647 | $975,377 | | Vehicle construction in process | $1,153,256 | $1,394,355 | | Total fixed assets, net | $3,610,638 | $2,286,320 | | Depreciation expense (Q1) | $100,230 | $28,760 | [(5) Intangible Assets](index=12&type=section&id=%285%29%20Intangible%20Assets) This note details intangible assets, including goodwill and a technology license, with accumulated and future amortization Intangible Assets Breakdown | Intangible Asset Category | March 31, 2022 ($) | December 31, 2021 ($) | | :-------------------------------- | :------------- | :---------------- | | Goodwill | $146,838 | $109,983 | | Technology license | $2,950,000 | $2,950,000 | | Total other intangible assets, net | $3,151,288 | $3,207,327 | | Amortization expense (Q1) | $237,434 | $89,984 | - The company entered into a Technology License Agreement on April 7, 2021, involving common stock issuance, potential future shares/options, and **50% sharing of pre-revenue costs and net revenue** with the licensor[45](index=45&type=chunk) Future Amortization Schedule | Year | Future Amortization ($) | | :-------------------------- | :------------------ | | 2022 (April to December) | $681,724 | | 2023 | $834,205 | | 2024 | $747,659 | | 2025 | $633,941 | | 2026 | $246,507 | | 2027 | $7,252 | | TOTAL | $3,151,288 | [(6) Accounts Payable and Accrued Liabilities](index=13&type=section&id=%286%29%20Accounts%20Payable%20and%20Accrued%20Liabilities) This note presents the composition of accounts payable and accrued liabilities as of March 31, 2022, and December 31, 2021 Accounts Payable and Accrued Liabilities | Liability Category | March 31, 2022 ($) | December 31, 2021 ($) | | :--------------------------------------- | :------------- | :---------------- | | Accounts payable | $735,261 | $491,598 | | Accrued payroll | $100,991 | $82,080 | | Total Accounts Payable and Accrued Liabilities | $836,252 | $579,365 | [(7) Debt](index=13&type=section&id=%287%29%20Debt) This note details the company's debt instruments, including a revolving line of credit, vehicle loans, and notes payable - The company has a revolving Line of Credit with City National Bank of Florida, with outstanding borrowings of **$152,500** at March 31, 2022, and an interest rate of **1.75%**[50](index=50&type=chunk) - Vehicle loans have interest rates ranging from **3.5% to 7.4%**, with approximately **$1.3 million** remaining available under a commercial line of credit for vehicle financing[51](index=51&type=chunk) Debt Maturities Schedule | Year | Debt Maturities ($) | | :-------------------------- | :-------------- | | 2022 (April to December) | $314,108 | | 2023 | $429,261 | | 2024 | $421,551 | | 2025 | $92,170 | | Total | $1,257,090 | [(8) Shareholders Equity](index=14&type=section&id=%288%29%20Shareholders%20Equity) This note details common stock, restricted stock, stock options, and warrants, including grants and compensation expense - As of March 31, 2022, **26,312,131 shares of common stock** were issued and outstanding[9](index=9&type=chunk) Restricted Stock Activity | Restricted Stock Activity | Shares | Weighted Average Grant Date Fair Value ($) | | :-------------------------------- | :----- | :------------------------------------- | | Outstanding at December 31, 2021 | 317,586 | 3.27 | | Granted (Q1 2022) | 182,539 | 1.30 | | Vested (Q1 2022) | (32,321) | 1.72 | | Forfeited (Q1 2022) | (7,500) | 2.93 | | Outstanding at March 31, 2022 | 460,304 | 3.36 | - During Q1 2022, **522,462 stock options** were granted to executives with an exercise price of **$1.26** and an **8-year term**, vesting **1/3 per year over three years**[64](index=64&type=chunk) [(9) Commitments and Contingencies](index=17&type=section&id=%289%29%20Commitments%20and%20Contingencies) This note addresses litigation status and details lease commitments for office space, including future payments - As of March 31, 2022, the company is not aware of any litigation requiring accrual or disclosure under GAAP[68](index=68&type=chunk) - The company signed a **39-month lease** for office space effective January 1, 2022, with a total monthly payment of **$21,773**, recognizing an initial Right of Use (ROU) asset of **$735,197**[69](index=69&type=chunk) Future Minimum Lease Payments (Undiscounted) | Year | Future Minimum Lease Payments (Undiscounted) ($) | | :-------------------------- | :------------------------------------------- | | 2022 (April 1 to December 31) | $195,961 | | 2023 | $251,403 | | 2024 | $256,414 | | 2025 | $69,421 | | Total undiscounted operating leases payments | $773,199 | | Present Value of Operating Lease Liabilities | $718,578 | [(10) Income Taxes](index=17&type=section&id=%2810%29%20Income%20Taxes) This note reports zero income tax expense for Q1 2022 and 2021 due to net loss, with no uncertain tax positions - Tax expense for the three months ended March 31, 2022, and 2021, was **$0** due to a net loss[71](index=71&type=chunk) - There are no uncertain tax positions requiring recognition in the consolidated financial statements[72](index=72&type=chunk) [(11) Acquisition](index=18&type=section&id=%2811%29%20Acquisition) This note details the acquisition of Full Service Fueling, including purchase price allocation and pro forma impact - On March 11, 2022, the company acquired substantially all assets of Full Service Fueling for **$321,250 cash** and **40,323 common shares valued at $50,000**[74](index=74&type=chunk)[76](index=76&type=chunk) Purchase Price Allocation for Full Service Fueling Acquisition | Purchase Price Allocation | Amount ($) | | :-------------------------- | :----- | | Vehicles | $153,000 | | Customer list | $66,413 | | Loading rack license | $58,857 | | Other identifiable intangibles | $56,124 | | Goodwill | $36,856 | | Total | $371,250 | - The acquired business contributed approximately **$13,000 of revenue** and a **$3,000 net loss** from the acquisition date to March 31, 2022[77](index=77&type=chunk) [(12) Subsequent Events](index=18&type=section&id=%2812%29%20Subsequent%20Events) The company evaluates subsequent events but has not disclosed any material events after the balance sheet date - The company evaluates subsequent events but no material events are disclosed[79](index=79&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition, operating results, liquidity, and cash flows for Q1 2022, including non-GAAP reconciliation - As of March 31, 2022, the company had **$13,874,666 in cash and investments**[96](index=96&type=chunk) - The company expects its cash on hand to fund operations for approximately **12-14 months** after the issuance date of these financial statements[103](index=103&type=chunk) - The company anticipates needing to raise additional capital to fund operations, with no assurance of favorable terms or availability[103](index=103&type=chunk) [Overview](index=19&type=section&id=Overview) EzFill's core business is mobile fueling in South Florida, with consumer business recovering but office park fueling lagging - EzFill operates mobile fueling trucks, providing on-demand fuel delivery to vehicles at homes, offices, construction sites, and for generators/reserve tanks[83](index=83&type=chunk) - The consumer business largely recovered in 2021 for residential fueling, but office park fueling is still recovering to pre-pandemic levels[84](index=84&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) This section summarizes key financial results for Q1 2022 and 2021, showing increases in revenues, costs, and net loss Comparative Summary of Operations | Metric | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenues | $2,340,068 | $1,521,819 | | Cost of sales | $2,324,160 | $1,394,396 | | Operating expenses | $2,948,001 | $1,244,490 | | Operating loss | $(3,269,757) | $(1,235,811) | | Net loss | $(3,266,510) | $(1,348,155) | [Non-GAAP Financial Measures](index=20&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Adjusted EBITDA as a non-GAAP measure and provides its reconciliation to net loss - Adjusted EBITDA is a non-GAAP measure excluding net interest expense, taxes, depreciation, amortization, and stock compensation expense[87](index=87&type=chunk) Adjusted EBITDA Reconciliation | Metric | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | $(3,266,510) | $(1,348,155) | | Depreciation and amortization | $337,664 | $118,744 | | Stock compensation | $470,685 | $417,462 | | Adjusted EBITDA | $(2,461,408) | $(699,605) | | Gallons delivered (Gallons) | 591,505 | 543,062 | | Average fuel margin per gallon ($/Gallon) | $0.47 | $0.36 | [Revenues and Cost of Sales](index=20&type=section&id=Revenues%20and%20Cost%20of%20Sales) Revenues increased by **54%** due to higher gallons and price, while cost of sales increased by **67%** due to sales and driver hires - Revenues increased by **$818,249 (54%)** to **$2,324,068** for Q1 2022, driven by a **9% increase in gallons delivered** and higher average price per gallon[89](index=89&type=chunk) - Cost of sales increased by **$928,432 (67%)** to **$2,324,160** for Q1 2022, primarily due to increased sales and hiring of additional drivers[90](index=90&type=chunk) [Operating Expenses](index=20&type=section&id=Operating%20Expenses) Operating expenses surged by **137%** to **$2,948,000** in Q1 2022, driven by payroll, marketing, insurance, and technology - Operating expenses increased by **$1,703,510 (137%)** to **$2,948,000** for Q1 2022[91](index=91&type=chunk) - The primary drivers for the increase in operating expenses were increases in payroll, marketing, insurance, technology, and public company expenses[91](index=91&type=chunk) [Depreciation and Amortization](index=21&type=section&id=Depreciation%20and%20Amortization) Depreciation and amortization expenses increased in Q1 2022 due to a technology license acquisition and vehicle purchases - Amortization increased due to the acquisition of a technology license[93](index=93&type=chunk) - Depreciation increased due to purchases of vehicles and delivery equipment[93](index=93&type=chunk) [Other Income (Expense)](index=21&type=section&id=Other%20Income%20%28Expense%29) Other income in Q1 2022 resulted from interest income, while interest expense decreased due to pre-IPO debt repayment - Other income in Q1 2022 resulted from interest income on investments[94](index=94&type=chunk) - Interest expense decreased due to the repayment of pre-IPO debt[94](index=94&type=chunk) [Net Losses](index=21&type=section&id=Net%20Losses) The company's net loss significantly increased by **142%** to **$3,266,510** for Q1 2022 - Net loss increased by **$1,918,355 (142%)** to **$3,266,510** for Q1 2022[95](index=95&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses cash position, cash flow activities, and reliance on equity and debt financings, anticipating future capital needs [Cash Flow Activities](index=21&type=section&id=Cash%20Flow%20Activities) This sub-section summarizes net cash changes from operating, investing, and financing activities Cash Flow Activities Summary | Cash Flow Activity | Three Months Ended March 31, 2022 ($) | Three Months Ended March 31, 2021 ($) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(2,329,978) | $(905,579) | | Net cash used in investing activities | $(1,592,798) | $(23,841) | | Net cash provided by financing activities | $933,283 | $227,376 | [Operating Activities](index=21&type=section&id=Operating%20Activities) Net cash used in operating activities significantly increased in Q1 2022, primarily due to the net loss - Net cash used in operating activities was **$2,329,978** for Q1 2022, primarily due to the net loss[97](index=97&type=chunk) [Investing Activities](index=21&type=section&id=Investing%20Activities) Cash used in investing activities increased substantially in Q1 2022 due to fixed asset and Full Service Fueling acquisitions - Cash used for acquisition of fixed assets (primarily trucks) was **$1,271,548** for Q1 2022, compared to **$23,841** in Q1 2021[98](index=98&type=chunk) - The company acquired the mobile fueling assets of Full Service Fueling during Q1 2022[98](index=98&type=chunk) [Financing Activities](index=21&type=section&id=Financing%20Activities) Cash flows from financing activities increased in Q1 2022 from line of credit borrowings and new truck loans - Cash flows from financing activities were **$933,283** for Q1 2022, including **$152,500** from bank line of credit borrowings and **$893,928** from new truck purchase loans[99](index=99&type=chunk) [Sources of Capital](index=21&type=section&id=Sources%20of%20Capital) The company funds operations through equity and debt, including **$25.25 million** IPO proceeds, and anticipates needing additional capital - The company has funded activities through capital contributions from notes payable and the sale of securities[100](index=100&type=chunk) - The September 2021 IPO raised **$25,250,000** in net proceeds[103](index=103&type=chunk) - The company anticipates needing to raise additional capital to fund operations and expansion, with no assurance of favorable terms or availability[103](index=103&type=chunk) [Off-Balance Sheet Arrangements](index=22&type=section&id=Off-Balance%20Sheet%20Arrangements) The company reports no off-balance sheet arrangements as defined by Regulation S-K Item 303(a)(4) - The company does not have any off-balance sheet arrangements[104](index=104&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies - Disclosure about market risk is not required for smaller reporting companies[105](index=105&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of disclosure controls and procedures and reports on internal control changes [Evaluation of Disclosure Controls and Procedures](index=22&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2022 - Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of March 31, 2022[107](index=107&type=chunk) [Changes in Internal Control Over Financial Reporting](index=22&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) The company reported no material changes in internal control over financial reporting during the most recent fiscal quarter - There has been no material change in internal control over financial reporting during the most recent fiscal quarter[108](index=108&type=chunk) PART II - OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings to disclose - No legal proceedings are reported[111](index=111&type=chunk) [ITEM 1A. RISK FACTORS](index=23&type=section&id=Item%201A.%20Risk%20Factors) Risk factor disclosures are not required for smaller reporting companies - Risk factor disclosures are not required for smaller reporting companies[112](index=112&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms no unregistered equity sales or repurchases and details IPO net proceeds usage - No equity securities were sold in unregistered transactions during the period, and no shares were repurchased[113](index=113&type=chunk) [Use of Proceeds](index=23&type=section&id=Use%20of%20Proceeds) The company received **$25.3 million** net IPO proceeds, used **$11.4 million**, and invested unused funds in income instruments - The IPO in September 2021 generated approximately **$25.3 million** in net proceeds[114](index=114&type=chunk) - As of March 31, 2022, approximately **$11.4 million** of the IPO net proceeds have been used[115](index=115&type=chunk) - Unused IPO proceeds are invested in fixed, non-speculative income instruments and money market funds[115](index=115&type=chunk) [ITEM 6. EXHIBITS](index=24&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including agreements and documents - The report includes exhibits such as the Underwriting Agreement, Asset Purchase and Fuel Supply Agreement, Amended and Restated Certificate of Incorporation, Bylaws, various Promissory Notes, and Employment Offer Letters[123](index=123&type=chunk)[124](index=124&type=chunk) SIGNATURES [SIGNATURES](index=26&type=section&id=SIGNATURES) This section contains the official signatures of the CEO and CFO, certifying the Quarterly Report on Form 10-Q - The report is signed by Michael McConnell, Chief Executive Officer and Director, and Arthur Levine, Chief Financial Officer[128](index=128&type=chunk)
EzFill (EZFL) - 2022 Q1 - Earnings Call Transcript
2022-05-13 17:02
EZFill Holdings Inc. (NASDAQ:EZFL) Q1 2022 Results Earnings Conference Call May 12, 2022 5:00 PM ET Company Participants Kathleen Heaney - KCSA Strategic Communications Mike McConnell - CEO Arthur Levine - CFO Conference Call Participants Tate Sullivan - Maxim Group Operator Good afternoon, everyone. Welcome to today's Conference Call to review the First Quarter ending March 31, 2022, for EZFill Holdings, Inc. At this all participants are in a listen-only mode. A brief question-and-answer session will follo ...
EzFill (EZFL) - 2021 Q4 - Annual Report
2022-03-09 21:58
[PART I](index=5&type=section&id=PART%20I) [Business](index=5&type=section&id=Item%201.%20Business) EzFill Holdings, Inc. offers app-based mobile fuel delivery in South Florida across consumer, commercial, and specialty vehicle segments, aiming to disrupt traditional fueling - EzFill operates an **on-demand mobile fuel delivery service** in South Florida through an app-based platform, combining on-demand fills and subscription services[18](index=18&type=chunk) - The company's business is structured into **three main verticals** to target high-demand use cases: Consumers (at home/work), Commercial (fleets), and Specialty (boats, construction sites)[19](index=19&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The business model aims to solve key pain points of traditional gas stations, including inconvenience, fleet driver expenses and fraud, high real estate costs, and safety/security concerns[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[29](index=29&type=chunk) - EzFill's growth strategy involves expanding its **geographic footprint**, targeting **new markets** along the east coast both organically and through acquisitions, and forming **strategic partnerships** with major oil companies and businesses across various industries[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) - The company entered into a **Technology License Agreement** with **Fuel Butler LLC** in April 2021 to license proprietary technology expected to enable expansion into high-density areas and parking structures[63](index=63&type=chunk)[64](index=64&type=chunk) - As of February 28, 2022, the company had **42 full-time employees** and a fleet of **24 Mobile Fueling Trucks**[35](index=35&type=chunk)[80](index=80&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business and stock ownership risks, including operational hazards, a history of net losses, customer concentration, and potential stock price volatility - The COVID-19 pandemic has **adversely impacted operations** by reducing driving habits and the need for gasoline, particularly affecting car fills at office parks, though this was partially offset by increased sales to large delivery fleets at lower margins[85](index=85&type=chunk) - The company has a history of net losses, reporting a **net loss of $9.4 million** for 2021 and an **accumulated deficit of $17.3 million**; it anticipates continued operating losses and will need to raise additional capital in the future[93](index=93&type=chunk)[94](index=94&type=chunk) - EzFill is **highly dependent on one large customer**, which accounted for **57% of its revenue** for the year ended December 31, 2021; the loss of this customer would materially impact future revenues[112](index=112&type=chunk)[113](index=113&type=chunk) - The company currently purchases almost all of its fuel from a **single supplier, MacMillan Oil Company, LLC**, without a written agreement, posing a risk of supply interruption[110](index=110&type=chunk) - Competition in the fuel delivery industry is a risk, as there are **low barriers to entry**; the company also competes with **alternative energy sources** like electricity for vehicles[104](index=104&type=chunk) - Two beneficial owners control **approximately 50%** of the company's outstanding common stock as of February 28, 2022, which may limit the influence of other shareholders[118](index=118&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - None[133](index=133&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) EzFill leases its primary office space in Aventura, Florida, for approximately $21,800 per month, and utilizes additional space at its fuel supplier's location - The company leases office space at 2999 NE 191 Street, Aventura, FL 33180, for **approximately $21,800 per month**[134](index=134&type=chunk) - Additional office space and truck parking are available at its fuel supplier's location in Hialeah, FL, and at various Palmdale Oil Company locations in Florida following a transaction announced in March 2022[134](index=134&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company states that it is not aware of any material, existing, or pending legal proceedings against it - The company reports **no material existing or pending legal proceedings**[135](index=135&type=chunk) [Mine Safety Disclosures](index=21&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[136](index=136&type=chunk) [PART II](index=22&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) EzFill's common stock began trading on Nasdaq in September 2021, and the company has never paid dividends, intending to retain future earnings for business development, having raised approximately $25.25 million net from its IPO - The company's common stock trades on the **Nasdaq Capital Markets** under the symbol **"EZFL"**, commencing on **September 15, 2021**[139](index=139&type=chunk) - The company has a policy of **retaining earnings** for operations and does **not anticipate paying dividends** in the foreseeable future[140](index=140&type=chunk) - The company's IPO in September 2021 generated aggregate **gross proceeds of approximately $28.75 million**, with **net proceeds of about $25.25 million** after expenses[141](index=141&type=chunk) - As of December 31, 2021, **approximately $8.3 million** of the net proceeds from the IPO had been used[142](index=142&type=chunk) [Selected Financial Data](index=22&type=section&id=Item%206.%20Selected%20Financial%20Data) As a "Smaller Reporting Company," EzFill is not required to provide this information - Disclosure for this item is **not required** as the company qualifies as a **"Smaller Reporting Company"**[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) For 2021, revenues increased by 102% to $7.2 million, but net loss widened to $9.4 million due to a 24% rise in operating expenses, while liquidity significantly improved to $16.9 million post-IPO Results of Operations (2021 vs. 2020) | Metric | Year Ended 2021 | Year Ended 2020 | | :--- | :--- | :--- | | Revenues | $7,233,957 | $3,586,244 | | Cost of sales | $7,027,274 | $3,544,072 | | Operating loss | ($8,769,085) | ($6,932,668) | | Net loss | ($9,383,397) | ($7,254,006) | - Revenues for 2021 increased by **$3.6 million (102%)** compared to 2020, attributed to a **53% increase** in gallons delivered and a higher average price per gallon[158](index=158&type=chunk) - Operating expenses increased by **$1.6 million (24%)** in 2021, primarily due to increases in payroll, sales and marketing, insurance, technology, and public company expenses, although this was partially offset by a decrease in stock compensation expense[161](index=161&type=chunk) - Net loss increased by **$2.1 million (29%)** to **$9.4 million** in 2021 from $7.3 million in 2020[164](index=164&type=chunk) - As of December 31, 2021, the company had **$16.9 million** in cash and investments, a significant increase from **$0.9 million** at the end of 2020, primarily due to the IPO proceeds[165](index=165&type=chunk) - The company expects its cash on hand to fund operations for **at least 12 months** following the issuance of the financial statements but anticipates needing to **raise additional capital** in the future[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "Smaller Reporting Company," EzFill is not required to provide this information - Disclosure for this item is **not required** as the company qualifies as a **"Smaller Reporting Company"**[173](index=173&type=chunk) [Financial Statements and Supplementary Data](index=28&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2021 and 2020, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, cash flows, and detailed notes [Consolidated Financial Statements](index=28&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets grew from $2.8 million to $22.9 million, liabilities decreased to $1.1 million, and equity shifted to $21.9 million, with revenue growth of 102% but increased net loss and significant cash from financing activities Consolidated Balance Sheet Highlights (As of Dec 31) | Account | 2021 | 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $13,561,266 | $882,870 | | Total Current Assets | $17,257,032 | $1,277,643 | | Total Assets | $22,924,118 | $2,806,752 | | **Liabilities & Equity** | | | | Total Current Liabilities | $758,236 | $3,737,472 | | Total Liabilities | $1,055,672 | $4,288,496 | | Total Stockholders' Equity (Deficit) | $21,868,446 | ($1,481,744) | Consolidated Statement of Operations Highlights (Year Ended Dec 31) | Account | 2021 | 2020 | | :--- | :--- | :--- | | Revenues | $7,233,957 | $3,586,244 | | Operating Loss | ($8,769,085) | ($6,932,668) | | Net Loss | ($9,383,397) | ($7,254,006) | | Net Loss Per Share | ($0.46) | ($0.72) | Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31) | Account | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($6,306,759) | ($1,607,669) | | Net cash used in investing activities | ($5,385,308) | ($24,075) | | Net cash provided by financing activities | $24,370,464 | $2,482,523 | [Notes to Consolidated Financial Statements](index=34&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the $25.25 million net IPO proceeds, significant customer concentration (58% of 2021 revenue), a technology license agreement, post-IPO debt repayment, and equity incentive plan details - The company completed its IPO in September 2021, issuing **7,187,500 shares** for **net proceeds of approximately $25,250,000**[202](index=202&type=chunk) - The company has a **significant customer concentration**, with one customer representing **58% of revenue in 2021** and **38% in 2020**[208](index=208&type=chunk) - A **Technology License Agreement** was entered into on **April 7, 2021**, for which the company issued shares and granted options; the company will share **50% of net revenue** from the technology with the licensor until it exercises an acquisition option[242](index=242&type=chunk) - **All company debt**, except for vehicle loans, was **repaid in September 2021** following the IPO[255](index=255&type=chunk) - The company's 2020 Equity Incentive Plan has **1,913,243 shares** of common stock reserved for issuance[261](index=261&type=chunk) - In February 2020, the company acquired certain assets from Neighborhood Fuel, Inc. for a purchase price of **$750,000** in common stock and the assumption of vehicle financing obligations[283](index=283&type=chunk)[284](index=284&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=50&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants on accounting principles, financial disclosure, or auditing scope during the last two fiscal years - There were **no disagreements** with accountants on accounting and financial disclosure during the two most recent fiscal years[293](index=293&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2021 - Management concluded that the company's disclosure controls and procedures were **effective as of December 31, 2021**[295](index=295&type=chunk) - Management assessed the effectiveness of internal control over financial reporting using the COSO 2013 framework and concluded that it was **effective as of December 31, 2021**[296](index=296&type=chunk) - **No changes** in internal controls over financial reporting occurred during the year ended December 31, 2021, that have materially affected, or are reasonably likely to materially affect, these controls[299](index=299&type=chunk) [Other Information](index=51&type=section&id=Item%209B.%20Other%20Information) There is no other information to report for this item - None[300](index=300&type=chunk) [PART III](index=51&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=51&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2022 Proxy Statement - Information is **incorporated by reference** from the 2022 Proxy Statement[302](index=302&type=chunk) [Executive Compensation](index=51&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2022 Proxy Statement - Information is **incorporated by reference** from the 2022 Proxy Statement[303](index=303&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=51&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's 2022 Proxy Statement - Information is **incorporated by reference** from the 2022 Proxy Statement[304](index=304&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=51&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2022 Proxy Statement - Information is **incorporated by reference** from the 2022 Proxy Statement[305](index=305&type=chunk) [Principal Accounting Fees and Services](index=51&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2022 Proxy Statement - Information is **incorporated by reference** from the 2022 Proxy Statement[306](index=306&type=chunk) [PART IV](index=52&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists financial statements filed under Item 8 and provides a comprehensive list of all exhibits filed with the Form 10-K, including key agreements and corporate documents - This section references the **financial statements listed under Item 8** and provides a **list of exhibits** filed with the report[309](index=309&type=chunk)[310](index=310&type=chunk)
EzFill (EZFL) - 2021 Q4 - Earnings Call Transcript
2022-03-04 04:15
EZFill Holdings Inc. (NASDAQ:EZFL) Q4 2021 Results Conference Call March 3, 2022 5:00 PM ET Company Participants Kathleen Heaney - KCSA Strategic Communications Mike McConnell - CEO Arthur Levine - CFO Conference Call Participants Keith Gil - Terry & Co Operator Good afternoon, everyone. Welcome to today's conference call to review the Financial Results for Fourth Quarter and Full Year ending December 31, 2021 for EzFill Holdings Inc. At this time, all participants are in a listen only mode. A brief questio ...
EzFill (EZFL) - 2021 Q3 - Quarterly Report
2021-11-10 17:57
[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, financial position changes, and specific transactions for the periods ended September 30, 2021, and December 31, 2020 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights: | Metric | September 30, 2021 | December 31, 2020 | | :----------------------------- | :----------------- | :------------------ | | Cash | $20,650,989 | $882,870 | | Total Current Assets | $20,961,216 | $1,277,643 | | Total Assets | $25,663,945 | $2,806,752 | | Total Current Liabilities | $1,447,766 | $3,737,472 | | Total Liabilities | $1,521,254 | $4,288,496 | | Total Stockholders' Equity (Deficit) | $24,142,691 | $(1,481,744) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (Three Months Ended September 30): | Metric | 2021 | 2020 | Change ($) | Change (%) | | :----------------------------- | :------------ | :------------ | :------------ | :--------- | | Revenues | $1,863,599 | $1,121,133 | $742,466 | 66% | | Cost of Sales | $1,825,739 | $1,064,362 | $761,378 | 72% | | Operating Expenses | $1,794,575 | $641,945 | $1,152,630 | 180% | | Net Loss | $(2,373,603) | $(724,184) | $(1,649,420) | 228% | | Basic and Diluted Net Loss Per Share | $(0.13) | $(0.08) | $(0.05) | 62.5% | Condensed Consolidated Statements of Operations (Nine Months Ended September 30): | Metric | 2021 | 2020 | Change ($) | Change (%) | | :----------------------------- | :------------ | :------------ | :------------ | :--------- | | Revenues | $5,236,016 | $2,460,174 | $2,775,842 | 113% | | Cost of Sales | $5,057,628 | $2,417,456 | $2,640,173 | 109% | | Operating Expenses | $4,705,108 | $2,719,394 | $1,985,714 | 73% | | Net Loss | $(5,729,693) | $(3,071,841) | $(2,657,853) | 87% | | Basic and Diluted Net Loss Per Share | $(0.33) | $(0.33) | $0.00 | 0% | [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity%20(Deficit)) Stockholders' Equity (Deficit) Evolution: | Metric | December 31, 2020 | September 30, 2021 | | :----------------------------- | :------------------ | :----------------- | | Common Stock Amount | $1,720 | $2,592 | | Additional Paid-in Capital | $6,472,536 | $37,825,792 | | Accumulated Deficit | $(7,956,000) | $(13,685,693) | | Total Stockholders' Equity (Deficit) | $(1,481,744) | $24,142,691 | - **Initial Public Offering** (net of expenses) contributed **$25,249,574** to stockholders' equity during the nine months ended September 30, 2021[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (Nine Months Ended September 30): | Activity | 2021 | 2020 | | :----------------------------- | :------------ | :------------ | | Net cash used in operating activities | $(3,412,763) | $(816,057) | | Net cash used in investing activities | $(813,283) | $(87,661) | | Net cash provided by financing activities | $23,994,165 | $1,260,812 | | Net change in cash and cash equivalents | $19,768,119 | $357,094 | | Cash and cash equivalents at end of period | $20,650,989 | $389,186 | - Proceeds from **Initial Public Offering** (**IPO**) were **$28,750,000**, with **IPO** expenses of **$(3,500,426)**, contributing **significantly** to financing activities in 2021[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [(1) Nature of Organization and Summary of Significant Accounting Policies](index=9&type=section&id=(1)%20Nature%20of%20Organization%20and%20Summary%20of%20Significant%20Accounting%20Policies) - EzFill Holdings, Inc. was incorporated on March 28, 2019, in Delaware and operates an on-demand mobile gas delivery service in South Florida[22](index=22&type=chunk) - In September 2021, the Company **issued** **7,187,500 shares** in its **Initial Public Offering** (**IPO**) at **$4.00 per share**, generating **net proceeds** of approximately **$25,250,000**[23](index=23&type=chunk) - The Company has **significant customer concentration**, with **one customer** accounting for **approximately 58% of revenue** for the nine months ended September 30, 2021, and **60% for the three months** ended September 30, 2021[30](index=30&type=chunk) - The Company purchases substantially all of its fuel from **one vendor**[31](index=31&type=chunk) [(2) Going concern](index=11&type=section&id=(2)%20Going%20concern) - The Company has sustained a **net loss** since inception and had an **accumulated deficit** of **$13,685,695** at September 30, 2021[39](index=39&type=chunk) - The Company **mitigated** its previously reported **going concern issue** by raising **approximately $25,250,000** in **net proceeds** from its **Initial Public Offering**[39](index=39&type=chunk) [(3) Related Party Transactions](index=11&type=section&id=(3)%20Related%20Party%20Transactions) - **Issued** **26,573 shares of common stock** to executives as a signing bonus during the nine months ended September 30, 2021, recording **$100,000 in stock-based compensation expense**[40](index=40&type=chunk) - Entered a consulting agreement with Balance Labs, Inc. (related party), involving stock issuance, a **$200,000 IPO payment**, and monthly fees[41](index=41&type=chunk) - The Company is party to a technology license agreement with Fuel Butler LLC, which is **20% owned** by a Company executive[42](index=42&type=chunk) - All related party debt was **repaid in September 2021**[43](index=43&type=chunk) [(4) Fixed Assets](index=11&type=section&id=(4)%20Fixed%20Assets) Fixed Assets, Net: | Metric | September 30, 2021 | December 31, 2020 | | :----------------------------- | :----------------- | :------------------ | | Equipment | $167,038 | $42,643 | | Vehicles | $538,562 | $529,742 | | Deposits on trucks | $663,803 | $0 | | Total fixed assets, net | $1,147,140 | $428,567 | - **Depreciation expense totaled** **$94,710** for the nine months ended September 30, 2021, compared to **$77,076** for the same period in 2020[44](index=44&type=chunk) [(5) Intangible Assets](index=12&type=section&id=(5)%20Intangible%20Assets) Intangible Assets, Net: | Metric | September 30, 2021 | December 31, 2020 | | :----------------------------- | :----------------- | :------------------ | | Goodwill | $109,983 | $109,983 | | Technology license | $2,950,000 | $0 | | Total other intangible assets, net | $3,445,606 | $990,559 | - On April 7, 2021, the Company entered into a Technology License Agreement, **issuing** **265,728 shares** upon signing and **332,160 shares** upon patent application filing[46](index=46&type=chunk) - **Amortization expense on intangible assets totaled** **$494,953** for the nine months ended September 30, 2021, compared to **$247,159** for the same period in 2020[47](index=47&type=chunk) [(6) Accounts Payable and Accrued Liabilities](index=12&type=section&id=(6)%20Accounts%20Payable%20and%20Accrued%20Liabilities) Accounts Payable and Accrued Liabilities: | Metric | September 30, 2021 | December 31, 2020 | | :----------------------------- | :----------------- | :------------------ | | Accounts payable | $344,733 | $215,599 | | Accrued payroll | $304,488 | $160,417 | | Total Accounts Payable and Accrued Liabilities | $655,335 | $488,405 | | Total Accounts Payable and Accrued Liabilities, Related Parties | $700,000 | $2,250,000 | [(7) Notes Payable](index=14&type=section&id=(7)%20Notes%20Payable) - The Company **issued** a **$1,000,000 note payable** in November 2020, bearing **1% monthly interest**, with extensions until August 2021[51](index=51&type=chunk) - **Issued** **$300,000 in promissory notes** to three related parties in March 2021, bearing **1% monthly interest**[52](index=52&type=chunk) - **Issued** a **$1,166,000 promissory note** in April 2021, bearing **8% annual interest**, and granted **400,000 stock warrants** to the lender[53](index=53&type=chunk) - **All debt, except for vehicle loans, was repaid** in September 2021 after the consummation of the Company's **IPO**[58](index=58&type=chunk) [(8) SBA PPP Loan](index=14&type=section&id=(8)%20SBA%20PPP%20Loan) - The Company received **$154,673 in loan proceeds** under the Paycheck Protection Program (PPP) on April 20, 2020[59](index=59&type=chunk) - **100% of the PPP loan**, totaling **$154,673** plus accrued interest, was **forgiven by the SBA** on September 17, 2021[60](index=60&type=chunk) [(9) Shareholders Equity](index=15&type=section&id=(9)%20Shareholders%20Equity) - Immediately prior to the **IPO** in September 2021, all **outstanding** common stock converted into **18,750,000 shares** following a **one-for-3.763243 reverse stock split**[64](index=64&type=chunk) - As of September 30, 2021, there were **175,384 stock options outstanding**, all **vested**, with exercise prices ranging from **$0.64** to **$2.26**[69](index=69&type=chunk) - Warrants to purchase up to **359,375 shares** were **issued** to **IPO** underwriters, **exercisable from March 14, 2022, to September 14, 2026**, at an exercise price of **$5.00 per share**[71](index=71&type=chunk) - Warrants for **106,291 shares** were **issued** to a lender, **exercisable** until September 14, 2024, at **$5.00 per share**, with **approximately $198,000 included in interest expense** for Q3 2021[71](index=71&type=chunk) [(10) Commitments and Contingencies](index=17&type=section&id=(10)%20Commitments%20and%20Contingencies) - The Company is **not aware of any litigation**, pending litigation, or other transactions that would require accrual or disclosure under GAAP as of September 30, 2021[73](index=73&type=chunk) - The Company's lease commitment for office space is **not material to the consolidated financial statements**[74](index=74&type=chunk) [(11) Income Taxes](index=17&type=section&id=(11)%20Income%20Taxes) - **Book income before taxes was negative**, resulting in **$0 tax expense** for the nine months ended September 30, 2021 and 2020[75](index=75&type=chunk) - There are **no uncertain tax positions** that would require recognition in the consolidated financial statements[76](index=76&type=chunk) [(12) Subsequent Events](index=17&type=section&id=(12)%20Subsequent%20Events) - Upon completion of the Company's **IPO**, **186,010 shares were due to the technology licensor** and were **issued on October 15, 2021**[77](index=77&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, condition, liquidity, and cash flows for the three and nine months ended September 30, 2021, compared to the prior year, highlighting key drivers of revenue growth, increased expenses, and the impact of the IPO on liquidity [Overview](index=18&type=section&id=Overview) - EzFill operates mobile fueling trucks, providing on-demand fuel delivery to vehicles, construction sites, generators, and reserve tanks in South Florida[81](index=81&type=chunk) - The consumer business was **significantly impacted by the COVID-19 pandemic** in 2020; **residential fueling has largely returned** in 2021, but **office park fueling is still recovering**[82](index=82&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Results of Operations (Three Months Ended September 30): | Metric | 2021 | 2020 | Change ($) | Change (%) | | :----------------------------- | :------------ | :------------ | :------------ | :--------- | | Revenues | $1,863,599 | $1,121,133 | $742,466 | 66% | | Cost of Sales | $1,825,739 | $1,064,362 | $761,378 | 72% | | Operating Expenses | $1,794,575 | $641,945 | $1,152,630 | 180% | | Net Loss | $(2,373,603) | $(724,184) | $(1,649,420) | 228% | | Adjusted EBITDA | $(1,217,013) | $(316,225) | $(900,788) | 285% | | Gallons delivered | 580,462 | 481,587 | 98,875 | 21% | Results of Operations (Nine Months Ended September 30): | Metric | 2021 | 2020 | Change ($) | Change (%) | | :----------------------------- | :------------ | :------------ | :------------ | :--------- | | Revenues | $5,236,016 | $2,460,174 | $2,775,842 | 113% | | Cost of Sales | $5,057,628 | $2,417,456 | $2,640,173 | 109% | | Operating Expenses | $4,705,108 | $2,719,394 | $1,985,714 | 73% | | Net Loss | $(5,729,693) | $(3,071,841) | $(2,657,853) | 87% | | Adjusted EBITDA | $(3,160,504) | $(1,205,168) | $(1,955,336) | 162% | | Gallons delivered | 1,731,289 | 1,032,932 | 698,357 | 68% | - **Amortization expense increased** in both periods due to the acquisition of a technology license[91](index=91&type=chunk)[98](index=98&type=chunk) - Other income in 2021 resulted from the **forgiveness of a loan** under the Paycheck Protection Program[92](index=92&type=chunk)[99](index=99&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) - Cash balance **increased significantly** to **$20,650,989** as of September 30, 2021, from **$882,870** at December 31, 2020[101](index=101&type=chunk) - **Net cash used in operating activities** was **$(3,412,763)** for the nine months ended September 30, 2021, primarily due to **net loss**[102](index=102&type=chunk) - **Net cash used in investing activities** was **$(813,283)** for the nine months ended September 30, 2021, including **deposits on 33 fuel trucks**[103](index=103&type=chunk) - **Net cash provided by financing activities** was **$23,994,165** for the nine months ended September 30, 2021, **largely from $25,250,000 net proceeds** from the **Initial Public Offering**[104](index=104&type=chunk) - The **IPO proceeds mitigated the previously reported going concern issue**, despite **continued net losses**[106](index=106&type=chunk) [Off-Balance Sheet Arrangements](index=22&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company does **not have any off-balance sheet arrangements** as defined in Regulation S-K Item 303(a)(4)[108](index=108&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required for smaller reporting companies - This disclosure is **not required for smaller reporting companies**[109](index=109&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2021, and reported no material changes to internal control over financial reporting during the quarter - The **Chief Executive Officer** and **Chief Financial Officer** concluded that the Company's **disclosure controls and procedures were effective** at the reasonable assurance level as of September 30, 2021[111](index=111&type=chunk) - There has been **no material change in the Company's internal control** over financial reporting during the most recent fiscal quarter[112](index=112&type=chunk) [PART II - OTHER INFORMATION](index=23&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The Company is **not aware of any litigation**, pending litigation, or other transactions that would require accrual or disclosure under GAAP[73](index=73&type=chunk)[115](index=115&type=chunk) [ITEM 1A. RISK FACTORS](index=23&type=section&id=Item%201A.%20Risk%20Factors) This section is not required for smaller reporting companies - This disclosure is **not required for smaller reporting companies**[116](index=116&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended September 30, 2021, the company issued various unregistered equity securities for acquisitions, bonuses, settlements, and services. The net proceeds from the IPO, approximately $25.25 million, are being used as described in the prospectus, with about $5.1 million used as of September 30, 2021 - On September 30, 2021, the Company **authorized the issuance of 93,750 shares** of common stock to Neighborhood Fuel, **valued at $375,000**[117](index=117&type=chunk) - On September 30, 2021, the Company **authorized the issuance of 150,000 shares** of common stock for accrued bonuses and settlements, **valued at $900,000**[118](index=118&type=chunk) - The **net proceeds** from the **IPO** were **approximately $25.25 million** after deducting underwriting discounts, commissions, and offering costs[121](index=121&type=chunk) - As of September 30, 2021, **approximately $5.1 million of the net proceeds** from the **IPO** have been **used**[122](index=122&type=chunk) [ITEM 6. EXHIBITS](index=25&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q, including underwriting agreements, corporate documents, promissory notes, and certifications - Exhibits include the **Underwriting Agreement**, **Amended and Restated Certificate of Incorporation**, **Bylaws**, **various Promissory Notes**, and **Certifications (31.1, 31.2, 32.1)**[130](index=130&type=chunk)[132](index=132&type=chunk) [SIGNATURES](index=27&type=section&id=SIGNATURES) [Signatures Details](index=27&type=section&id=SIGNATURES_DETAILS) The report was duly signed on November 10, 2021, by Michael McConnell, Chief Executive Officer and Director, and Arthur Levine, Chief Financial Officer - The report was **signed on November 10, 2021**[135](index=135&type=chunk) - Signed by **Michael McConnell**, **Chief Executive Officer** and Director (**Principal Executive Officer**)[136](index=136&type=chunk) - Signed by **Arthur Levine**, **Chief Financial Officer** (**Principal Financial Officer**)[136](index=136&type=chunk)