What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-12 compared with 2022-05-13 · 69 added, 56 removed, 92 unchanged (58% of the section changed)

39 unchanged sentences

of Operations

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

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

Three Months Ended

Six Months Ended

Cost of sales

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$ (2,006,602 )

$ (7,139,180 )

$ (3,356,090 )

Financial Measures

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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 months ended

March 31, 2022 and 2021:

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, 2022 and 2021:

Three Months Ended

Six Months Ended

$ (3,872,670 )

$ (2,006,602 )

Other income (expense)

$ (7,139,180 )

$ (3,356,090 )

Interest expense

Depreciation and amortization

2 unchanged sentences

$ (3,005,630 )

$ (1,242,554 )

$ (5,468,762 )

$ (1,943,492 )

Gallons delivered

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

months ended June 30, 2022, compared to the three months ended June 30, 2021

generated revenues of $3,754,431 for the three months ended June 30, 2022, compared to $1,850,598 for the prior year, an increase of

$1,903,833 or 103%.

This increase is primarily due to a 30% 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 additional gallons were in existing as well as new markets.

The higher average fuel margin per gallon reflects

the addition of new fleet customers at significantly higher average margins.

of sales was $3,755,861 for the three months ended June 30, 2022, compared to $1,836,161 for the prior year.

The $1,919,700 or 105% 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,

in cost of sales is due to the increase in sales as well as the hiring of additional drivers, primarily in new markets.

incurred operating expenses of $3,406,263 during the three months ended June 30, 2022, compared to $1,666,042 during the prior year,

an increase of $1,740,221 or 104%.

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

public company expenses.

This increase was primarily due to increases in payroll, insurance, marketing 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.

increased in the current year as a result of the increase in the fleet of delivery vehicles.

Income (Expense)

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.

expense decreased in the current year due to the early repayment in September 2021 of pre-IPO debt.

months ended June 30, 2022 compared to the six months ended June 30, 2021

generated revenues of $6,094,499 for the six months ended June 30, 2022, compared to $3,372,417 for the prior year, an increase of

2,722,082 or 81%.

This increase is due to a 19% increase in gallons delivered as well as an increase in the average price per

The higher average fuel margin per gallon reflects the addition of new fleet customers at significantly higher average margins.

of sales was $6,080,021 for the six months ended June 30, 2022, compared to $3,231,889 for the prior year.

The $2,848,132 or 88% increase

in cost of sales is mainly due to the increase in sales, as well as the hiring of additional drivers, primarily in new markets.

incurred operating expenses of $6,354,262 during the six months ended June 30, 2022, as compared to $2,910,533 during the prior year,

an increase of $3,443,729 or 118%.

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

company expenses.

and Amortization

increased in the current year as a result of the increase in the fleet of delivery vehicles.

Amortization increased in the current year

as a result of the acquisition of a technology license.

Income (Expense)

expense decreased in the current year due to the early repayment in September 2021 of pre-IPO debt.

and Capital Resources

Flow Activities

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.

of June 30, 2022, we had approximately $10.2 million in cash and investments compared to approximately $16.9 million at December 31,

cash used in operating activities was $6,028,287 for the six months ended June 30, 2022, which was made up primarily by the net loss

of $7,139,180 and offset by non-cash adjustments for a net amount of $1,110,893.

Net cash used in operating activities was $2,149,473

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.

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.

during the prior year, which was made up primarily by the net loss of $3,356,090 and offset by non-cash adjustments for a net amount

of $1,206,617.

the six months ended June 30, 2022 and 2021, we used $3,020,706 and $67,315, respectively, for the acquisition of fixed assets, primarily

trucks used for delivery of fuel to our customers.

During the six months ended June 30, 2022, we acquired the mobile fueling assets of

Full Service Fueling.

generated $2,702,152 of cash flows from financing activities during the six months ended June 30, 2022, including $850,000 borrowings

under our bank line of credit and $2,118,840 in new loans for truck purchases, less principal repayments of $266,688.

We generated $1,964,995

of cash flows from financing activities during the six months ended June 30, 2021, including $115,000 from sale of shares and $1,900,000

in loans, less principal repayments of $24,174.

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

result, the Company has relied on equity and debt financings to fund its activities to date.

For the quarter ended June 30, 2022, the

Company had a net loss of $3,872,670.

At June 30, 2022, the Company had an accumulated deficit of $24,478,576.

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

The Company anticipates that it will need to raise additional capital in the next 4-6 months in order

to fund its operations.

7 unchanged sentences

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.

There can be no assurances that 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