Accounts Receivable and Inventory - Accounts receivable increased to $2,807,406 as of September 30, 2025, compared to $1,696,436 as of December 31, 2024, reflecting a growth of 65.6%[108] - The allowance for doubtful accounts decreased to $69,181 from $81,772, indicating improved credit quality[108] - Inventory rose to $340,018 at September 30, 2025, up from $126,400 at December 31, 2024, representing a 168.5% increase[112] - Bad debt expense for the nine months ended September 30, 2025, was $(5,654), a significant improvement compared to $50,581 for the same period in 2024[108] - The company did not record any provisions for inventory obsolescence or impairment for the nine months ended September 30, 2025, and 2024[111] Revenue and Sales - For the nine months ended September 30, 2025, the Company reported total sales of $58,824,282, a significant increase from $20,977,860 in the same period of 2024, representing a growth of approximately 179%[163] - Fuel sales accounted for $56,758,393, or 96.49% of total revenues in the nine months ended September 30, 2025, compared to $20,249,066, or 96.53% in 2024[163] - Customer A accounted for 48.85% of total sales for the nine months ended September 30, 2025, significantly impacting revenue concentration[118] - Revenue from fuel sales is recognized at the time of delivery, while membership revenue is recognized at the end of each month, reflecting a one-month membership cycle[145] Expenses and Costs - Total Sales and Marketing expenses for the nine months ended September 30, 2025, were $300,181, compared to $168,068 for the same period in 2024, representing an increase of approximately 78.5%[178] - Depreciation and amortization expense for the nine months ended September 30, 2025, was $1,826,259, compared to $1,173,269 for the same period in 2024, indicating an increase of approximately 55.7%[212] - The Company recognized marketing and advertising costs during the nine months ended September 30, 2025, which were classified within general and administrative expenses[178] Assets and Liabilities - The total property and equipment, net as of September 30, 2025, was $2,481,963, down from $7,539,507 as of December 31, 2024[208] - As of September 30, 2025, total accounts payable and accrued liabilities increased to $4,806,220 from $1,721,527 as of December 31, 2024, representing a growth of approximately 179%[217] - The total accounts payable and accrued liabilities to related parties rose to $3,292,100 as of September 30, 2025, compared to $1,546,451 as of December 31, 2024, marking an increase of approximately 113%[217] Debt and Financing - The company has multiple unsecured loans with a 0% interest rate, with various maturity dates extending into 2027[222] - The company executed an asset purchase agreement with Shell for 73 vehicles and storage tanks, totaling $5,219,877, as part of its growth and expansion plan[209] - The company reported a repayment obligation that typically exceeds the net funds received under MCA agreements[224] - The company executed a loan for $5,000,100 in December 2024, due March 31, 2025, and is currently negotiating an extension[246] Stock and Equity - The Company increased its authorized common stock from 50,000,000 to 500,000,000 shares on June 14, 2024, to support future equity financings[279] - The Company has four classes of stock, including undesignated preferred stock, which provides flexibility for future corporate financing[280] - The Company recognized stock-based compensation costs over the requisite service period, typically the vesting period, in accordance with ASC 718[179] Lease Agreements - The operating lease - ROU asset - non-current increased to $3,426,961 as of September 30, 2025, compared to $61,151 in 2024[268] - Total operating lease costs for the nine months ended September 30, 2025, were $295,555, an increase from $184,333 in the same period of 2024[268] - The present value of operating lease liability as of September 30, 2025, is $239,481, with a long-term operating lease liability of $126,427[276] Legal and Compliance - As of September 30, 2025, the Company is not aware of any pending litigation or transactions requiring accrual or disclosure[278] - The Company records litigation accruals for legal matters that are probable and estimable, without reducing liabilities for potential recoveries[277]
EzFill (EZFL) - 2025 Q3 - Quarterly Report