What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-05-13 compared with 2021-11-10 · 74 added, 76 removed, 74 unchanged (67% of the section changed)

30 unchanged sentences

were incorporated under the laws of Delaware in March 2019.

We are in the business of operating mobile fueling trucks and are

headquartered in Miami, Florida.

EzFill provides its customers the ability to have fuel delivered to their vehicles (cars, boats,

trucks) without leaving their home or office and to construction sites, generators and reserve tanks.

mobile fueling solution gives our fleet, consumer and other customers the ability to fuel their vehicles with the touch of an

app or regularly scheduled service, and without the inconvenience of going to the gas station.

We are in the business of operating mobile fueling trucks and are headquartered

in Miami, Florida.

EzFill provides its customers the ability to have fuel delivered to their vehicles (cars, boats, trucks) without leaving

their home or office and to construction sites, generators and reserve tanks.

mobile fueling solution gives our fleet, consumer and other customers the ability to fuel their vehicles with the touch of an app or

regularly scheduled service, and without the inconvenience of going to the gas station.

consumer business was impacted significantly in 2020 by the COVID-19 pandemic and has largely returned in 2021 for residential fueling

1 unchanged sentence

of Operations

following table sets forth our results of operations for the three and nine months ended September 30, 2021 and 2020:

following table sets forth our results of operations for the three months ended March 30, 2022 and 2021:

Three Months Ended

Cost of sales

5 unchanged sentences

$ (1,348,155 )

$ (3,071,841 )

Financial Measures

10 unchanged sentences

underlying performance and distort comparability.

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, 2021 and 2020:

$ (2,373,604 )

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, 2022 and 2021:

Three Months Ended

$ (3,266,510 )

$ (1,348,155 )

Interest expense

Other income (expense)

Depreciation and amortization

2 unchanged sentences

$ (2,461,408 )

$ (3,160,504 )

$ (1,205,168 )

Gallons delivered

months ended September 30, 2021, compared to the three months ended September 30, 2020

generated revenues of $1,863,599 for the three months ended September 30, 2021, compared to $1,121,133 for the three months ended September

Average fuel margin per gallon

Months ended March 31, 2022 compared to the Three Months ended March 31, 2021

and Cost of Sales

generated revenues of $2,324,068 for the three months ended March 31, 2022, compared to $1,521,819 for the three months ended March 31,

2021, an increase of 818,249 or 54%.

This increase is primarily due to a 21% increase in gallons delivered as well as an increase

in the average price per gallon.

of sales was $1,825,739 for the three months ended September 30, 2021, resulting in a gross profit of $37,859, compared to $1,064,362

for the prior year.

The $761,378 or 72% increase in cost of sales is due to the increase in sales.

incurred operating expenses of $1,794,575 during the three months ended September 30, 2021, as compared to $641,945 during the prior

year, an increase of $1,152,630 or 180%.

This increase was primarily due to increases in payroll, technology spending and insurance.

and Amortization

increased in the current year as a result of the acquisition of a technology license.

Income (Expense)

income in the current year resulted from the forgiveness of a loan under the Paycheck Protection Program.

Interest expense increased

due to warrants and shares issued in connection with new debt as well as the early repayment of debt and the resulting write-off of unamortized

debt discounts.

sustained a net loss of $2,373,603 for the three months ended September 30, 2021, as compared to $724,184 for the prior year,

an increase of $1,649,420 or 228% as a result of the above.

months ended September 30, 2021 compared to the Nine months ended September 30, 2020

generated revenues of $5,236,016 for the nine months ended September 30, 2021, compared to $2,460,174 for the nine months ended September

This increase is due to a 9% increase in gallons delivered as well as an increase in the average

price per gallon.

of sales was $2,324,160 for the three months ended March 31, 2022, compared to $1,394,396 for the prior year.

The $928,432 or 67% increase

in cost of sales is due to the increase in sales as well as hiring of additional drivers.

incurred operating expenses of $2,948,000 during the three months ended March 31, 2022, as compared to $1,244,490 during the prior year,

an increase of $1,703,510 or 137%.

This increase is due to a 68% increase in gallons delivered as well as an increase in the

average price per gallon.

of sales was $5,057,628 for the nine months ended September 30, 2021, compared to $2,417,456 for the prior year.

The $2,640,173

or 109% increase in cost of sales is due to the increase in sales.

incurred operating expenses of $4,705,108 during the nine months ended September 30, 2021, as compared to $2,719,394 during the prior

year, an increase of $1,985,714 or 73%.

This increase was primarily due to increases in payroll, technology spending, insurance, truck

maintenance and marketing.

This net increase was primarily due to increases in payroll, marketing, insurance, technology and

public company expenses.

and Amortization

increased in the current year as a result of the acquisition of a technology license.

Depreciation increased in the current year as a

result of purchases of vehicles and delivery equipment.

Income (Expense)

income in the current year resulted from the forgiveness of a loan under the Paycheck Protection Program.

Interest expense increased

due to warrants and shares issued in connection with new debt as well as the early repayment of debt and the resulting write-off of unamortized

debt discounts.

sustained a net loss of $5,729,693 for the nine months ended September 30, 2021, as compared to $3,071,841 for the prior year, an increase

income in the current year resulted from interest income on investments.

Interest expense decreased due to the repayment of pre-IPO debt.

sustained a net loss of $3,266,510 for the three months ended March 31, 2022, as compared to $1,348,155 for the prior year, an increase

of $1,918,355 or 142% as a result of the above.

1 unchanged sentence

Flow Activities

of September 30, 2021, we had an accumulated deficit of $(13,685,693).

We have incurred net losses since inception and have funded

operations primarily through sales of our common stock and issuance of notes payable, including to related parties.

As of September 30,

2021, we had $20,650,989 in cash as compared to December 31, 2020, when we had $882,870 in cash.

cash used in operating activities was $(3,412,763) for the nine months ended September 30, 2021, which was made up primarily by

the net loss and partially offset by an increase in stock-based compensation of $1,211,543, warrants and shares to lenders of

$248,011, and depreciation and amortization of $589,663.

Net cash used in operating activities was $(816,057) during the prior

year, which was made up primarily by the net loss and partially offset by depreciation and amortization of $324,235, stock-based compensation

of $1,471,508, and loss on settlement of $300,000.

the nine months ended September 30, 2021 and 2020, we used $813,283 and $87,661, respectively, for the acquisition of fixed assets.

amount for 2021 includes deposits on 33 fuel trucks purchased during the quarter.

generated $23,994,165 of cash flows from financing activities during the nine months ended September 30, 2021, including

$28,750,000 less related expense of $(3,500,426) from the Initial Public Offering, $2,650,000 from new debt borrowings and $115,000

from issuance of stock, less $4,020,409 for the repayment of debt.

During the same period of the prior year, we generated $1,260,812

from financing activities, $174,673 from new debt and $1,307,209 from the sale of shares, less $221,070 for the repayment of debt.

inception to September 30, 2021, we have funded our activities through capital contributions from issuances of notes payable and the

sale of securities pursuant to the exemption provided by Regulation D, by sale of securities to accredited investors.

As of March 31, 2022, we had $13,874,666

in cash as compared to December 31, 2021, when we had $16,924,146 in cash and investments.

Net cash used in operating activities was $2,329,978

for the three months ended March 31, 2022, which was made up primarily by the net loss and offset by non-cash adjustments for a

net amount of $936,532.

Net cash used in operating activities was $905,579 during the prior year, which was made up primarily

by the net loss and partially offset by non-cash adjustments for a net amount of $442,576.

During the three months ended March 31, 2022 and

2021, we used $1,271,548 and $23,841, respectively, for the acquisition of fixed assets, primarily trucks used for delivery

of fuel to our customers.

During the three months ended March 31, 2022, we acquired the mobile fueling assets of Full Service

generated $933,283 of cash flows from financing activities during the three months ended March 31, 2022, including $152,500

borrowings under our bank line of credit and $893,928 in new loans for truck purchases, less principal repayments of $113,145.

We generated $227,376 of cash flows from financing activities during the three months ended March 31, 2021, including $300,000 in related

party loans, less principal repayments of $22,624.

From inception to March 31,

2022, we have funded our activities through capital contributions from issuances of notes payable and the sale of securities either

pursuant to the exemption provided by Regulation D, by sale of securities to accredited investors or pursuant to a registration

statement filed with the Securities and Exchange Commission.

Company has sustained a net loss since inception and does not have sufficient revenues and income to fully fund the operations.

result, the Company has relied on loans from stockholders and others as well as stock sales to fund its activities to date.

months ended September 30, 2021, the Company had a net loss of $5,729,693.

At September 30, 2021, the Company had an accumulated deficit

of $13,685,693 and a working capital surplus of $19,513,450.

The Company anticipates that it will continue to incur losses

in future periods until the Company is successful in significantly increasing its revenues, if ever.

However, the Company has mitigated

the previously reported going concern issue by raising approximately $25,250,000 in net proceeds from its Initial Public Offering.

For the quarter

ended March 31, 2022, the Company had a net loss of $3,266,510.

At March 31, 2022, the Company had an accumulated deficit of $20,605,906

and a working capital surplus of $12,747,827.

The Company anticipates that it will continue to generate operating losses and use cash

in operations through the foreseeable future.

September 2021, the Company completed its Initial Public Offering and raised $25,250,000 in net proceeds after deducting the underwriting

discount and offering expenses.

The Company expects that its cash on hand will fund its operations for approximately 12-14 months

after the issuance date of these financial statements.

However, since inception, the Company’s operations have primarily been funded

through proceeds received in equity and debt financings.

The Company anticipates that it will need to raise additional capital in order

to fund its operations.

There is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all.

There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its initiatives or attain

profitable operations.

The Company’s operating needs include the planned costs to operate its business, including amounts required

to fund working capital and capital expenditures.

The Company’s future capital requirements and the adequacy of its available funds

will depend on many factors, including the Company’s ability to successfully expand to new markets, competition, and the need to

enter into collaborations with other companies or acquire other companies to enhance or complement its product and service offerings.

There can be no assurances that, in the event that we require additional financing, such financing will be available on terms which are

favorable to us, or at all.

If we are unable to raise additional funding to meet our working capital needs in the future, we will be

forced to delay, reduce or cease our operations.

Sheet Arrangements

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis