Financial Position - As of March 31, 2025, accounts receivable totaled $3,985,715, with a net amount of $3,903,943 after an allowance for doubtful accounts of $81,772[125]. - Inventory as of March 31, 2025, was valued at $221,113, an increase from $126,400 as of December 31, 2024[130]. - The company reported no deferred revenue as of March 31, 2025, and December 31, 2024, indicating all revenue was recognized upon delivery or over time[188]. - The Company reported total property and equipment of $8,986,618 as of March 31, 2025, an increase from $7,539,507 as of December 31, 2024, reflecting growth in assets[243]. - Total accounts payable and accrued liabilities increased to $2,252,020 as of March 31, 2025, up from $1,721,527 as of December 31, 2024[249]. - The total face amount of notes payable as of March 31, 2025, is $20,428,886, with a total debt discount of $(2,413,365) and total repayments of $(14,275,603) resulting in a net amount of $15,195,788[258]. Revenue Recognition - The company generated all revenues for the three months ended March 31, 2025, from mobile fuel sales, with revenue recognized at the time of delivery[170]. - Revenue from fuel sales is recognized at the time of delivery, while membership revenue is recognized at the end of each month, reflecting the satisfaction of performance obligations over time[169]. - Fuel sales accounted for $15,857,380, or 97.45% of total revenue in Q1 2025, compared to $6,403,612, or 97.07% in Q1 2024[189]. - The company recognizes revenue on a gross basis in fuel sales transactions, acting as the principal in these transactions[182]. Customer and Supplier Concentration - Customer A accounted for 43.09% of total sales for the three months ended March 31, 2025, compared to 0.00% in the same period of 2024, indicating a significant concentration risk[138]. - Total accounts receivable from major customers (A, B, and C) represented 58.84% of total accounts receivable as of March 31, 2025, up from 46.10% in 2024, highlighting increased reliance on a few key customers[140]. - Vendor A accounted for 51.57% of total vendor purchases for the three months ended March 31, 2025, compared to 0.00% in 2024, indicating a high dependency on a limited number of suppliers[141]. - The company actively seeks to diversify its customer base to reduce reliance on a small number of key accounts, which is part of its risk mitigation strategy[144]. Debt and Financing - The company has multiple loans with a 0% interest rate, indicating a strategy to minimize financing costs[258]. - The company has a significant amount of unsecured loans, totaling $20,428,886, which may impact its risk profile[258]. - The company entered into five unsecured, non-interest-bearing notes totaling $5,000,000 in October 2024, which were fully repaid in February 2025[283]. - The company executed a two-month loan for $2,500,000 in December 2024, incurring transaction fees of $440,000, and repaid the loan in March 2025[271]. - The company refinanced existing MCA loans to manage liquidity, which may lead to higher cumulative borrowing costs due to upfront fees and compounding effects[264]. Expenses and Costs - Marketing and advertising costs increased to $65,186 in Q1 2025 from $24,506 in Q1 2024, reflecting a rise of approximately 166.5%[207]. - Depreciation and amortization expense for Q1 2025 was $588,172, compared to $281,320 for Q1 2024, indicating a significant increase in asset utilization[248]. Risk Management - The company evaluates and discloses risks that could materially affect its financial condition, including industry cyclicality and macroeconomic conditions[102]. - The company has implemented credit risk management by regularly reviewing customer creditworthiness and adjusting credit terms as necessary[144]. - The company is responsible for fulfilling the obligation of delivering fuel to customers and is exposed to inventory risk due to fuel procurement[185]. Tax and Valuation - The company has recorded a full valuation allowance against its deferred tax assets, resulting in a net carrying amount of $0 as of March 31, 2025[201]. - The Company is assessing the impact of ASU 2023-09 on its income tax disclosures, which may enhance reporting requirements starting after December 15, 2024[236].
EzFill (EZFL) - 2025 Q1 - Quarterly Report