NEXTNRG, INC. 10-Q

Item 1. Financial Statements. NextNRG, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) March 31, 2025 December 31, 2024 Assets Current Assets Cash $ 2,116,932 $ 1,612,117 Accounts receivable - net 3,903,943 1,614,664 Inventory 221,113 126,400 Prepaids and other 718,226 42,509 Total Current Assets 6,960,214 3,395,690 Solar project rights 3,929,161 3,929,161 Deposit on future asset purchase - 2,035,283 Property and equipment - net 8,986,618 7,539,507 Intangible assets - net 4,941,667 5,053,332 Operating lease - right-of-use asset 658,424 61,151 Operating lease - right-of-use asset - related party 288,993 314,957 Operating lease - right-of-use asset 288,993 314,957 Deposits 262,041 49,041 Total Assets $ 26,027,118 $ 22,378,122 Liabilities and Stockholders’ Deficit Current Liabilities Accounts payable and accrued expenses $ 2,252,023 $ 1,721,528 Accounts payable and accrued expenses - related parties 2,237,667 1,546,451 Accounts payable and accrued expenses 2,237,667 1,546,451 Notes payable - net 15,127,655 20,276,979 Notes payable - related parties 10,934,594 10,773,000 Notes payable - net 10,934,594 10,773,000 Operating lease liability 177,169 69,128 Operating lease liability - related party 103,799 103,799 Operating lease liability 103,799 103,799 Dividends payable (common stock) 173,438 258,271 Total Current Liabilities 31,006,345 34,749,156 Long Term Liabilities Notes payable- net 68,133 151,907 Operating lease liability 477,707 - Operating lease liability - related party 187,066 212,094 Operating lease liability 187,066 212,094 Total Long Term Liabilities 732,906 364,001 Total Liabilities 31,739,251 35,113,157 Commitments and Contingencies - - Stockholders’ Deficit Preferred stock - $ 0.0001 par value; 5,000,000 shares authorized none issued and outstanding, respectively - - Convertible Preferred stock - Series A, $ 0.0001 par value; 513,000 shares designated 363,000 shares issued and outstanding, respectively 36 36 Convertible Preferred stock - Series B, $ 0.0001 par value; 150,000 shares designated 140,000 shares issued and outstanding, respectively - related party 14 14 Preferred stock value 14 14 Common stock - $ 0.0001 par value, 500,000,000 shares authorized 112,240,701 and 106,707,827 shares issued, respectively 112,240,701 and 106,707,827 shares outstanding, respectively 11,224 10,667 Additional paid-in capital 70,923,731 54,789,949 Accumulated deficit ( 76,496,673 ) ( 67,535,701 ) Stockholders’ Deficit ( 5,561,668 ) ( 12,735,035 ) Non-controlling interest ( 150,465 ) - Total Stockholders’ Deficit ( 5,712,133 ) ( 12,735,035 ) Total Liabilities and Stockholders’ Deficit $ 26,027,118 $ 22,378,122 The accompanying notes are an integral part of these consolidated financial statements. F- 1 NextNRG, Inc. and Subsidiaries Consolidated Statements of Operations (Unaudited) 2025 2024 For the Three Months Ended March 31, 2025 2024 Sales - net $ 16,272,673 $ 6,597,119 Costs and expenses Cost of sales 15,754,704 6,135,333 General and administrative expenses 5,538,505 1,928,955 Depreciation and amortization 733,336 392,987 Total costs and expenses 22,026,545 8,457,275 Loss from operations ( 5,753,872 ) ( 1,860,156 ) Other income (expense) Interest income - 69,285 Other income 139,270 63,800 Interest expense (including amortization of debt discount) ( 3,323,397 ) ( 948,181 ) Total other income (expense) - net ( 3,184,127 ) ( 815,096 ) Net loss including non-controlling interest $ ( 8,937,999 ) $ ( 2,675,252 ) Non-controlling interest ( 150,465 ) Non-controlling interest before preferred stock dividends ( 8,787,534 ) ( 2,675,252 ) Preferred stock dividend - payable on Series A convertible preferred stock - to be issued in common stock ($ 0.31 per share) ( 113,438 ) - Preferred stock dividend - payable on Series B convertible preferred stock - to be issued in common stock - related party ( 60,000 ) - Preferred stock dividend ( 60,000 ) - Net loss available to common stockholders $ ( 8,960,972 ) $ ( 2,675,252 ) Loss per share - basic and diluted $ ( 1.60 ) $ ( 1.48 ) Weighted average number of shares - basic and diluted 5,607,205 1,806,798 The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 2 NextNRG, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders’ Deficit For the Three Months Ended March 31, 2025 (Unaudited) Shares Amount Shares Amount Shares Amount Capital Deficit Interest Deficit Series A - Series B - Convertible Convertible Preferred Stock Preferred Stock - Related Party Common Stock Additional Paid-in Accumulated Non-Controlling Total Stockholders’ Shares Amount Shares Amount Shares Amount Capital Deficit Interest Deficit December 31, 2024 363,000 $ 36 140,000 $ 14 106,707,827 $ 10,667 $ 54,789,949 $ ( 67,535,701 ) $ - $ ( 12,735,035 ) Contributed Capital - - - - - - 571,215 - - 571,215 Stock based compensation - related parties - - - - - - 17,333 - - 17,333 Stock issued for cash - - - - 5,075,378 508 15,225,626 - - 15,226,134 Cash paid as direct offering cost - - - - - - ( 1,557,005 ) - - ( 1,557,005 ) Stock issued for services - - - - 410,774 42 1,468,349 - - 1,468,391 Stock issued as loan extension fee - - - - 41,437 4 149,996 - - 150,000 Issuance of common stock for Series A dividend shares payable - - - - 61,204 6 168,917 - - 168,923 Issuance of common stock for Series B dividend shares payable - - - - 32,372 3 89,345 - - 89,348 Series A - convertible preferred stock dividends - payable in common stock - - - - - - - ( 113,438 ) - ( 113,438 ) Series B - convertible preferred stock dividends - payable in common stock - - - - - - - ( 60,000 ) - ( 60,000 ) Par value true up adjustment - - - - - ( 1 ) 1 - - - Non-controlling interest - - - - - - - - ( 150,465 ) ( 150,465 ) Net loss - - - - - - - ( 8,787,534 ) - ( 8,787,534 ) March 31, 2025 363,000 $ 36 140,000 $ 14 112,240,701 $ 11,224 $ 70,923,731 $ ( 76,496,673 ) $ ( 150,465 ) $ ( 5,712,133 ) The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 3 NextNRG, Inc. and Subsidiaries Consolidated Statements of Changes in Stockholders’ Deficit For the Three Months Ended March 31, 2024 (Unaudited) Shares Amount Shares Amount Shares Amount Capital Deficit Interest Deficit Series A -Convertible Preferred Stock Series B - Convertible Preferred Stock - Related Party Common Stock Additional Paid-in Accumulated Non-Controlling Total Stockholders’ Shares Amount Shares Amount Shares Amount Capital Deficit Interest Deficit December 31, 2023 363,000 $ 36 140,000 $ 14 101,806,612 $ 10,217 $ 43,478,200 $ ( 45,858,717 ) $ - $ ( 2,370,250 ) Balance 363,000 $ 36 140,000 $ 14 101,806,612 $ 10,217 $ 43,478,200 $ ( 45,858,717 ) $ - $ ( 2,370,250 ) Contributed Capital - - - - - - 168,700 - - 168,700 Stock based compensation - related parties - - - - - - 147,334 - - 147,334 Stock issued for services - - - - 377 0 0 - - 0 Net loss - - - - - - - ( 2,675,252 ) - ( 2,675,252 ) March 31, 2024 363,000 $ 36 140,000 $ 14 101,806,989 $ 10,217 $ 43,794,234 $ ( 48,533,969 ) $ 0 $ ( 4,729,468 ) Balance 363,000 $ 36 140,000 $ 14 101,806,989 $ 10,217 $ 43,794,234 $ ( 48,533,969 ) $ 0 $ ( 4,729,468 ) The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 4 NextNRG, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) 2025 2024 For the Three Months Ended March 31, 2025 2024 Operating activities Net loss including non-controlling interest $ ( 8,937,999 ) $ ( 2,675,252 ) Adjustments to reconcile net loss to net cash used in operations Contributed capital 571,215 168,700 Depreciation and amortization 588,172 281,320 Amortization of intangible assets 111,665 111,667 Amortization of operating lease - right-of-use asset 97,377 57,852 Amortization of operating lease - right-of-use asset - related party 25,964 18,388 Amortization of debt discount 2,320,970 611,326 Bad debt expense 11,164 34,480 Stock issued in connection with loan extension fee 150,000 - Stock issued for services 1,468,391 - Stock issued for services - related parties 17,333 147,334 Loan forgiveness - other income ( 40,000 ) - Changes in operating assets and liabilities (Increase) decrease in Accounts Receivable ( 2,300,443 ) ( 381,639 ) Inventory ( 94,713 ) ( 19,906 ) Prepaids and other ( 675,717 ) ( 281,715 ) Deposits ( 213,000 ) - Increase (decrease) in Accounts payable and accrued expenses 1,141,710 548,242 Accounts payable and accrued expenses - related party 691,216 235,669 Operating lease liability ( 108,902 ) ( 48,780 ) Operating lease liability - related party ( 25,028 ) ( 17,430 ) Net cash used in operating activities ( 5,771,840 ) ( 1,378,444 ) Investing activities Purchase of equipment - ( 11,668 ) Cash paid in connection with acquisition of Stat-EI - ( 1,800,000 ) Net cash used in investing activities - ( 1,811,668 ) Financing activities Proceeds from notes payable 6,721,535 2,500,000 Proceeds from notes payable - related parties 361,594 1,365,000 Proceeds from common stock issued for cash 15,226,134 - Cash paid for direct offering costs - common stock ( 1,557,005 ) - Repayments on notes payable ( 14,275,603 ) ( 1,607,810 ) Repayments on advances payable - related party ( 200,000 ) - Net cash provided by financing activities 6,276,655 2,257,190 Net increase (decrease) in cash 504,815 ( 932,922 ) Cash - beginning of period 1,612,117 1,021,261 Cash - end of period $ 2,116,932 $ 88,339 Supplemental disclosure of cash flow information Cash paid for interest $ 373,457 $ 64,567 Cash paid for income tax $ - $ - Supplemental disclosure of non-cash investing and financing activities Reclassification of prior period deposit to purchase of vehicles (Yoshi) $ 2,035,283 $ - Right-of-use asset obtained in exchange for new operating lease liability - related party $ 694,650 $ - Debt discount (OID) in connection with the issuance of notes payable $ 2,413,365 $ 1,227,500 Series A and B - preferred stock dividends - payable in common stock $ 173,438 $ - Issuance of common stock for Series A dividend shares payable $ 168,923 $ - Issuance of common stock for Series B dividend shares payable – related party $ 89,348 $ - Series B - convertible preferred stock distribution - prior investment - related party $ 14 - Acquisition of Stat-EI assets $ - $ 3,700,000 The accompanying notes are an integral part of these unaudited consolidated financial statements. F- 5 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Note 1 - Organization and Nature of Operations Organization and Nature of Operations NextNRG, Inc. (formerly known as EzFill Holdings, Inc.) and its subsidiaries (“Next”, “NextNRG,” “we,” “our” or “the Company”), operates an on-demand mobile gas delivery service as well as beginning to provide services as a renewable energy company focused on developing and deploying wireless electric vehicle charging technology integrated with battery storage and solar energy solutions. Schedule of Organizational Structure Organizational Structure Company Name Incorporation Date State of Incorporation NextNRG Holding Corp. April 20, 2016 Nevada NextNRG, Inc. (f/k/a EzFill Holdings, Inc.) March 28, 2019 Delaware NextNRG, LLC (d/b/a NextNRG Ops, LLC) August 31, 2023 Delaware NextIngle Holdings, LLC * December 3, 2024 Delaware NextCharging, LLC January 21, 2025 Delaware EzFill Operations, LLC April 24, 2025 Nevada Neighborhood Fuel Holdings, LLC Inactive Inactive * The Company owns 50% of this entity, the remaining 50% is a component of our non-controlling interest. Common Control Merger (Related Party) Transaction Overview On August 10, 2023, the Company, the members (the “Members”) of NextNRG Holding Corp. (“NextNRG”) and Michael Farkas, an individual, as the representative of the members, entered into an Exchange Agreement (the “Exchange Agreement”), pursuant to which the Company agreed to acquire from the Members 100 % of the membership interests of NextNRG (the “Membership Interests”) in exchange for up to 40,000,00 shares of common stock. On September 25, 2024, the Company and the Shareholders’ Representative entered into the second amendment to the Second Amended and Restated Exchange Agreement (“Second Amendment Agreement”) to change the number of the Company’s common stock shares to be issued to the NextNRG Shareholders by the Company in exchange for 100 % of the shares of NextNRG to 100,000,000 shares of the Company’s common stock. F- 6 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The Second Amendment Agreement also provided that in the event NextNRG completes the acquisition of STAT-EI, Inc. (“SEI” or “STAT”), prior to the closing, then 50,000,000 shares will vest on the closing date, and the remaining 50,000,000 shares will be subject to vesting or forfeiture (such shares subject to vesting or forfeiture, the “Restricted Shares”). NextNRG completed the acquisition of SEI on January 19, 2024, and thus 50,000,000 vested on that closing date. The remaining 50,000,000 restricted shares are subject to vesting or forfeiture. 25,000,000 of the 50,000,000 restricted shares will vest, if at all, upon the Company commercially deploying the third solar, wireless electric vehicle charging, microgrid, and/or battery storage system (such systems as more specifically defined under the Exchange Agreement) and 25,000,000 of the 50,000,000 Restricted Shares will vest, if at all, upon the Company either reaching annual revenues exceeding $ 100 million, the Company completing projects with deployment costs greater than $ 100 million, or the Company completing a capital raise greater than $ 25 million. Prior to closing the Company (i) increased the number of its authorized shares of common stock from 50,000,000 to 500,000,000 , (ii) received stockholder approval, (iii) received third-party consents and (iv) ensured compliance with the rules and regulations of The Nasdaq Stock Market. Transaction Closing On February 13, 2025, as more fully described above, the Company executed a share exchange agreement with Next (an entity controlled by Michael Farkas (“Farkas”), an entity under common control. Pursuant to the terms of the agreement EZFL issued 100,000,000 shares of common stock in exchange for all of the issued and outstanding common stock of Next. Corporate Name Change The Company changed its name from EzFill Holdings, Inc. to NextNRG, Inc. Overview of NextNRG, Inc. NextNRG, founded by Farkas, is a renewable energy company focused on developing and deploying wireless electric vehicle charging technology integrated with battery storage and solar energy solutions. F- 7 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Common Control Determination The Company has determined that this transaction qualifies as a common control merger under the Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805-50-15-6, which defines control as the ability to direct management and policies by ownership, contractual arrangements, or other means. Key factors included in our assessment of common control are as follows: ● EZFL Control: ○ Farkas controlled more than 20% of EZFL prior to December 31, 2023, as the largest individual shareholder; ○ As the primary debt lender prior to and at the time of the merger, Farkas had the ability to influence critical financial decisions; ○ EZFL’s liquidity was significantly supported by NextNRG funding prior to and at the time of the merger, reflecting decisions and activities controlled by Farkas; and ○ On the date of merger, Farkas controlled approximately 70 % of EZFL. ● NextNRG Control: ○ Farkas concurrently exercised control over NextNRG prior to December 31, 2023. For further details, refer to the Form 8-K filed on February 18, 2025. Accounting Treatment As both EZFL and NextNRG shared common ownership at all times prior to, at the time of and subsequent to the merger date, this transaction is classified as a common control merger. At the date of acquisition, Farkas owned approximately 70 % of EZFL and 67 % of NextNRG. For the following discussion, see authoritative guidance throughout ASC 805-50, 260-10 and ASC 280: 1. Retention of Historical Carrying Amounts The acquired entity’s assets and liabilities are recorded at their historical carrying amounts. F- 8 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 2. Pooling-of-Interests Approach Identifies that transfers between entities under common control do not represent a change in ownership. In these transactions, the entity receiving net assets or exchanging shares is required to measure the assets and liabilities at their carrying amounts as recorded in the transferring entity’s separate financial statements (which reflect the historical cost basis established by the ultimate parent). Essentially, this guidance results in an accounting treatment similar to the pooling-of-interests method. 3. Retrospective Application to Financial Statements The historical financial statements are adjusted as if the merger had occurred at the beginning of the earliest period presented. By doing so, all periods in the financial statements are made comparable, reflecting the merger’s effects consistently. 4. Equity Adjustments Adjustments to Additional Paid-In Capital (APIC) and retained earnings are made to reconcile historical balances. Historical retained earnings (deficit) are combined and consolidated. 5. Earnings per Share ● Retroactive adjustments are required when a change in the capital structure occurs through a stock dividend, stock split, or reverse split. Common control transactions are typically accounted for on a carryover basis, the historical EPS is not retroactively adjusted for such stock issuances unless the transaction’s structure meets the criteria for a capital structure change (i.e. a stock dividend or split). ● Only vested shares are included in diluted EPS. 6. Goodwill and Intangible Assets In a common control merger, the Company will not recognize goodwill or intangible assets. 7. Segment Reporting The Company will assess its business operations and determine the requisite segments to recognize. All current and historical periods will be adjusted to reflect these allocations. The Company presents its consolidated financial statements with segments for mobile fueling services, energy infrastructure services, and technology solutions. F- 9 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Common Control Transactions and Equity Adjustments As noted above, on February 13, 2025, the Company executed a common control transaction as defined under ASC 805-50-15-6 through 15-9, Business Combinations – Related Issues. In accordance with ASC 805-50-30-5, the transaction was accounted for using the carryover basis of accounting, whereby the assets and liabilities of the transferred entity were recognized at their historical book values with no new goodwill or gain recognized. Although the common control transaction was effective as of February 13, 2025, certain historical intercompany capital transactions and equity issuances—such as investments in affiliates—were not fully eliminated or reclassified at the transaction date. These amounts continued to reside on the individual ledgers of the respective legal entities as equity instruments or investment balances. In accordance with ASC 805-50-45-2, transactions between entities under common control that are recognized at book value may result in adjustments to equity, typically reflected in Additional Paid-In Capital (“APIC”). In the future, the Company expects to record permanent equity reclassifications at the individual entity level to eliminate these historical intercompany equity balances. These adjustments will not be processed as temporary consolidation-level eliminations but will instead be reflected directly in APIC to present the economic substance of the transaction consistent with the principles of common control accounting. This approach ensures that the consolidated financial statements do not reflect duplicative equity or investment balances and avoids the continued need for recurring consolidation-level elimination entries. F- 10 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 These equity adjustments had no impact on the Company’s consolidated net income, cash flows, or total stockholders’ deficit. The Company may continue to evaluate and adjust legacy intercompany equity positions in future periods as part of its ongoing consolidation process. The line item “Common Control Adjustments” presented within the consolidated statement of changes in stockholders’ deficit represents reclassifications of historical intercompany equity balances resulting from prior transactions among entities under common control. These are adjustments recorded directly to APIC and do not reflect third-party capital transactions. Chief Executive Officer Transition At the time of closing, the Company accepted the resignation of Yehuda Levy as Interim Chief Executive Officer. The Board of Directors subsequently appointed Michael D. Farkas as Chief Executive Officer, Director, and Executive Chairman. Mr. Farkas, previously the Managing Member and CEO of NextNRG, is also the significant controlling stockholder of the Company’s issued and outstanding common stock. Chief Financial Officer Transition At the time of closing, the Company accepted the resignation of Michael Handleman as Chief Financial Officer and appointed Joel Kleiner as his successor. Further details regarding these officer transitions are available in the Form 8-K filed on February 18, 2025. F- 11 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all of the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of March 31, 2025 and the results of operations and cash flows for the periods presented. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the operating results for the full fiscal year or any future period. These unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 27, 2025. The December 31, 2024 consolidated balance sheet and the consolidated statements of operations, changes in stockholders’ equity, and cash flows for the three months ended March 31, 2024 have been retrospectively adjusted to reflect the impact of a common control merger completed on February 13, 2025. Management acknowledges its responsibility for the preparation of the accompanying unaudited consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its consolidated financial position and the consolidated results of its operations for the periods presented. F- 12 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Liquidity and Going Concern As reflected in the accompanying consolidated financial statements, for the three months ended March 31, 2025, the Company had: ● Net loss available to common stockholders of $ 8,960,972 ; and ● Net cash used in operations was $ 5,771,840 Additionally, at March 31, 2025, the Company had: ● Accumulated deficit of $ 76,496,673 ● Stockholders’ deficit of $ 5,561,668 ; and ● Working capital deficit of $ 24,046,131 The Company anticipates that it will need to raise additional capital immediately in order to continue to fund its operations. The Company has relied on related parties for the debt based funding of 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 financing will be available on terms which are favorable, or at all. If the Company is unable to raise additional funding to meet its working capital needs in the future, it will be forced to delay, reduce, or cease its operations. We manage liquidity risk by reviewing, on an ongoing basis, our sources of liquidity and capital requirements. The Company had cash on hand of $ 2,116,932 at March 31, 2025. The Company has historically incurred significant losses since inception and has not demonstrated an ability to generate sufficient revenues from the sales of its products and services to achieve profitable operations. In making this assessment we performed a comprehensive analysis of our current circumstances including: our financial position, our cash flows and cash usage forecasts for the twelve months ending March 31, 2026, and our current capital structure including equity-based instruments and our obligations and debts. F- 13 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 These factors create substantial doubt about the Company’s ability to continue as a going concern within the twelve-month period subsequent to the date that these financial statements are issued. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. Management’s strategic plans include the following: ● Expand into new and existing markets (commercial and residential); ● Obtain additional debt and/or equity based financing for growth; ● Collaborations with other operating businesses for strategic opportunities; and ● Acquire other businesses to enhance or complement our current business model while accelerating our growth. Note 2 - Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly owned subsidiaries. The Company consolidates entities where it has a controlling financial interest, as defined by ASC 810, “Consolidation”. In accordance with ASC 810-10, consolidation applies to: ● Entities with more than 50% voting interest, unless control is not with the Company; and ● Variable Interest Entities (VIEs), where the Company is the primary beneficiary, possessing both (i) power over significant activities and (ii) the obligation to absorb losses or receive benefits. All intercompany transactions and balances are eliminated in consolidation per ASC 810-10-45. The Company continuously evaluates its investments and relationships to assess consolidation requirements. F- 14 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Business Combinations, Asset Acquisitions, and Reverse Acquisitions The Company accounts for acquisitions in accordance with ASC 805, “Business Combinations,” and applicable SEC reporting requirements under Regulation S-X, Rule 3-05 and Regulation S-K, Items 101 and 303. Transactions qualifying as business combinations are accounted for under the acquisition method, while those classified as asset acquisitions follow the guidance in ASC 805-50. Additionally, the Company evaluates whether a transaction qualifies as a reverse acquisition under ASC 805-40 and applies the appropriate accounting and disclosure requirements. Business Combinations For transactions classified as business combinations, the Company: ● Recognizes and measures identifiable assets acquired, liabilities assumed, and noncontrolling interests at their fair values at the acquisition date (ASC 805-20-25-1). ● Records goodwill as the excess of the fair value of consideration transferred over the fair value of net assets acquired, including any previously held equity interests (ASC 805-30-30-1). ● Expenses acquisition-related costs as incurred, per ASC 805-10-25-23. ● Uses preliminary purchase price allocations, with adjustments permitted within the measurement period (not exceeding one year) per ASC 805-10-25-13. Adjustments beyond the measurement period are recorded in earnings. Significant judgments in fair value determinations include: ● Intangible asset valuations, based on estimates of future cash flows and discount rates. ● Useful life assessments, impacting amortization and financial results. ● Contingent consideration, which is remeasured at fair value through earnings per ASC 805-30-35-1. For SEC registrants, Regulation S-X, Rule 3-05 may require audited financial statements of the acquired business if the acquisition is significant. The determination of significance follows Rule 1-02(w) of Regulation S-X, which considers investment, asset, and income tests. F- 15 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Asset Acquisitions For transactions classified as asset acquisitions under ASC 805-50, the Company: ● Applies the “screen test” to determine whether substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or group of similar assets (ASC 805-10-55-3A). ● Allocates the purchase price using a cost accumulation model, assigning costs to acquired assets based on their relative fair values (ASC 805-50-30-3). ● Capitalizes direct acquisition costs as part of the asset’s cost, unlike business combinations where such costs are expensed (ASC 805-50-25-1). The classification between business combinations and asset acquisitions requires significant judgment, particularly when applying the screen test. Incorrect classification can materially impact: ● The recognition of goodwill (only in business combinations). ● The measurement and presentation of acquired assets and assumed liabilities. ● The Company’s financial position and results of operations. Reverse Acquisitions A reverse acquisition occurs when the entity that issues securities (the legal acquirer) is identified as the accounting acquiree, and the entity whose equity interests are acquired (the legal acquiree) is identified as the accounting acquirer under ASC 805-40, “Reverse Acquisitions.” Accounting for Reverse Acquisitions ● The legal acquiree (accounting acquirer) is treated as the continuing reporting entity, and its assets, liabilities, and operations are measured at historical cost. ● The legal acquirer (accounting acquiree) is recognized at fair value, similar to a business combination. ● No goodwill is recognized, as the transaction is considered a capital reorganization rather than an acquisition of a business per ASC 805-40-30-2. ● The equity structure (common stock and additional paid-in capital) is adjusted to reflect that of the legal acquirer, but the retained earnings balance is that of the accounting acquirer. F- 16 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Disclosure Requirements for Reverse Acquisitions Under SEC Regulation S-X, Rule 3-05, and Regulation S-K, Items 101 and 303, the Company must disclose: ● A detailed description of the transaction, including how control was obtained. ● A comparative analysis of financial statements before and after the acquisition. ● Pro forma financial information in accordance with Regulation S-X, Article 11, showing the impact of the transaction as if it had occurred at the beginning of the reporting period. ● Changes in governance, management, and operations post-acquisition. For SEC registrants, a reverse merger with a public shell company may also trigger “Super 8-K” reporting requirements under SEC Form 8-K, Item 2.01, requiring disclosure within four business days of the transaction closing. Regulatory and Financial Reporting Considerations For SEC registrants, acquisitions may trigger additional disclosure and reporting requirements: ● Regulation S-X, Rule 3-05: Requires separate financial statements of the acquired business if it meets significance thresholds under Rule 1-02(w). ● Regulation S-K, Item 101: Requires disclosure of the impact of material acquisitions on the Company’s business operations. ● Regulation S-K, Item 303: Mandates discussion of the impact of acquisitions on the Company’s financial condition and results of operations in Management’s Discussion and Analysis (MD&A). ● Regulation S-X, Article 11: Requires pro forma financial statements if the acquisition is significant. ● Form 8-K, Item 2.01: Immediate reporting requirements for material acquisitions, including reverse mergers. The Company continuously evaluates acquisitions, including reverse acquisitions, to ensure proper classification and compliance with ASC 805, SEC reporting requirements, and regulatory guidance. F- 17 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Segment Reporting The Company follows ASC 280, Segment Reporting, which requires public entities to report financial and descriptive information about their reportable operating segments. ASC 280-10-50-1 states that an operating segment is a component of a public entity that: ● Engages in business activities from which it may earn revenues and incur expenses; ● Has operating results that are regularly reviewed by the Chief Operating Decision Maker (“CODM,” which is our Chief Executive Officer) to make decisions about resource allocation and performance assessment; and ● Has discrete financial information available. Under ASC 280-10-50-5, a public entity is required to report separately only those operating segments that meet certain quantitative thresholds. However, as specified in ASC 280-10-50-11, if a company’s business activities are managed as a single operating segment and reviewed on a consolidated basis, the company may report as a single segment. The Company has determined that it operates as one reportable segment, as its CODM reviews the business as a whole rather than by distinct business components. Application of ASU 2023-07 – Segment Reporting In October 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which enhances segment disclosures by requiring public entities to disclose significant segment expenses that are regularly provided to the Chief Operating Decision Maker (CODM) and used in assessing segment performance and resource allocation. However, in accordance with ASC 280-10-50-31, these expanded disclosure requirements apply only to public entities with more than one reportable segment. Because the Company currently operates as a single reportable segment, it is not required to disaggregate and disclose individual segment expenses. Although ASC 280-10-50-32 permits entities to voluntarily provide additional segment-related information, such as disaggregated expense details, the Company has elected not to provide such voluntary disclosures, as its operations are managed and reviewed on a consolidated basis. Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the recognition of revenues and expenses during the reporting period. Actual results may differ from these estimates, and such differences could be material. F- 18 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 In accordance with ASC 250-10-50-4, changes in estimates are recorded in the period in which they become known and are accounted for prospectively. The Company bases its estimates on historical experience, industry trends, and other relevant factors, incorporating both quantitative and qualitative assessments that it believes are reasonable under the circumstances. Significant estimates for the three months ended March 31, 2025 and the year ended December 31, 2024, respectively, include: ● Allowance for doubtful accounts and other receivables ● Inventory reserves and classifications ● Valuation of loss contingencies ● Valuation of stock-based compensation ● Estimated useful lives of property and equipment ● Impairment of intangible assets ● Implicit interest rate in right-of-use operating leases ● Uncertain tax positions ● Valuation allowance on deferred tax assets Risks and Uncertainties The Company operates in a highly competitive industry that is subject to intense market dynamics, shifting consumer demand, and economic fluctuations. The Company’s operations are exposed to significant financial, operational, and strategic risks, including potential business disruptions, supply chain constraints, and liquidity challenges. In accordance with ASC 275, “Risks and Uncertainties,” the Company evaluates and discloses risks that could materially affect its financial condition, results of operations, and business outlook. Key factors contributing to variability in sales and earnings include: 1. Industry Cyclicality (ASC 275-10-50-6) – The Company’s financial performance is affected by industry trends, seasonality, and shifts in market demand. 2. Macroeconomic Conditions (ASC 275-10-50-8) – Economic downturns, inflationary pressures, interest rate changes, and geopolitical risks may impact consumer purchasing behavior and the Company’s revenue streams. 3. Pricing Volatility (ASC 275-10-50-4) – The cost and availability of raw materials, supply chain disruptions, and competitive pricing pressures can lead to fluctuations in gross margins and profitability. F- 19 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Given these uncertainties, the Company faces challenges in accurately forecasting financial performance and may experience material risks affecting liquidity, business continuity, and long-term strategic growth. The Company continuously assesses these risks and implements measures to mitigate their potential impact. Fair Value of Financial Instruments The Company accounts for financial instruments in accordance with ASC 820, Fair Value Measurements, which establishes a framework for measuring fair value and requires related disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the Company’s principal market or, if none exists, the most advantageous market for the asset or liability. Fair Value Hierarchy ASC 820 requires the use of observable inputs whenever available and establishes a three-tier hierarchy for measuring fair value: ● Level 1 – Quoted market prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities or inputs that are directly or indirectly observable. ● Level 3 – Unobservable inputs that require significant judgment, including management assumptions and estimates based on available market data. The classification of an asset or liability within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Level 3 valuations generally require more judgment and complexity, often involving a combination of cost, market, or income approaches, as well as assumptions about market conditions, pricing, and other factors. Fair Value Determination and Use of External Advisors The Company assesses the fair value of its financial instruments and, where appropriate, may engage external valuation specialists to assist in determining fair value. While management believes that recorded fair values are reasonable, they may not necessarily reflect net realizable values or future fair values. F- 20 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Financial Instruments Carried at Historical Cost The Company’s financial instruments—including cash, accounts receivable, accounts payable, and accrued expenses (including related party balances)—are recorded at historical cost. As of December 31, 2024 and 2023, respectively, the carrying amounts of these instruments approximated their fair values due to their short-term maturities. Fair Value Option Under ASC 825 ASC 825-10, Financial Instruments, permits entities to elect the fair value option for certain financial assets and liabilities. This election is made on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If elected, unrealized gains and losses are recognized in earnings at each reporting date. The Company has not elected the fair value option for any of its outstanding financial instruments. Cash and Cash Equivalents and Concentration of Credit Risk For purposes of the consolidated statements of cash flows, the Company considers all highly liquid instruments with a maturity of three months or less at the purchase date and money market accounts to be cash equivalents. At March 31, 2025 and December 31, 2024, respectively, the Company did not have any cash equivalents. The Company is exposed to credit risk on its cash and cash equivalents in the event of default by the financial institutions to the extent account balances exceed the amount insured by the FDIC, which is $ 250,000 . At March 31, 2025 and December 31, 2024, respectively, the Company did not experience any losses on cash balances in excess of FDIC insured limits. Investments The Company accounts for available-for-sale (AFS) debt securities in accordance with FASB ASC 320, Investments—Debt and Equity Securities. These securities are recorded at fair value, with unrealized gains and losses recognized as a component of other comprehensive income (OCI) unless deemed other-than-temporary, per ASC 320-10-35-1. F- 21 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Recognition of Gains, Losses, and Amortization ● Realized gains and losses, including impairments, are recorded in net income in accordance with ASC 320-10-35-25. ● Cost basis for sales is determined using the first-in, first-out (FIFO) method, per ASC 320-10-35-4. ● Premiums and discounts on AFS debt securities are amortized using the straight-line method over the security’s life, in accordance with ASC 320-10-35-10. Impairment Assessment The Company evaluates AFS debt securities for other-than-temporary impairment (OTTI) in accordance with ASC 320-10-35-33 to 35. The assessment considers: ● The extent and duration of declines in fair value below amortized cost, ● The financial condition and creditworthiness of the issuer, and ● The Company’s intent and ability to hold the security until recovery. If an OTTI is identified, the impairment loss is recognized in earnings as the difference between the amortized cost and the fair value of the security, per ASC 320-10-35-34. The new fair value becomes the adjusted cost basis, and subsequent recoveries are not recognized in earnings (ASC 320-10-35-35). During the three months ended March 31, 2025 and 2024, respectively, there were no impairments taken. Accounts Receivable The Company accounts for accounts receivable in accordance with FASB ASC 310, Receivables. Receivables are recorded at their net realizable value, which represents the amount management expects to collect from outstanding customer balances (ASC 310-10-35-7). The Company extends credit to customers based on an evaluation of their financial condition and other factors. The Company does not require collateral, and interest is not accrued on overdue accounts receivable (ASC 310-10-45-4). F- 22 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Allowance for Doubtful Accounts Management periodically assesses the collectability of accounts receivable and establishes an allowance for doubtful accounts as needed. The allowance is determined based on: ● A review of outstanding accounts, ● Historical collection experience, and ● Current economic conditions (ASC 310-10-35-9). Accounts deemed uncollectible are written off against the allowance when determined to be uncollectible (ASC 310-10-35-10). Applicability of ASC 326 (“CECL”) The Company has assessed the applicability of ASC 326, Financial Instruments—Credit Losses (CECL), which requires an expected credit loss model for financial assets measured at amortized cost. However, ASC 326 primarily applies to financial institutions and entities with long-term financing receivables. Since the Company’s accounts receivable are short-term trade receivables that do not meet the scope requirements of ASC 326-20-15-2, it continues to apply the incurred loss model under ASC 310 for estimating credit losses. The following is a summary of the Company’s accounts receivable at March 31, 2025 and December 31, 2024: Schedule of Accounts Receivable March 31, 2025 December 31, 2024 Accounts receivable $ 3,985,715 $ 1,696,436 Less: allowance for doubtful accounts 81,772 81,772 Accounts receivable - net $ 3,903,943 $ 1,614,664 For the three months ended March 31, 2025 and 2024, bad debt was as follows: Schedule of Bad Debt March 31, 2025 March 31, 2024 Bad debt expense $ 11,164 $ 34,480 Bad debt expense (recovery) is recorded as a component of general and administrative expenses in the accompanying consolidated statements of operations. F- 23 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Inventory The Company accounts for inventory in accordance with FASB ASC 330, Inventory. Inventory consists solely of fuel and is stated at the lower of cost or net realizable value (“LCNRV”) using the first-in, first-out (FIFO) method, as required by ASC 330-10-35-1. Inventory Valuation and Reserve Assessment Management assesses the recoverability of inventory each reporting period and establishes reserves for potential inventory write-downs when necessary. The Company evaluates factors such as: ● Market conditions affecting fuel prices, ● Net realizable value based on estimated selling price, and ● Inventory turnover trends (ASC 330-10-35-2). For the three months ended March 31, 2025 and 2024, respectively, the Company did no t record any provisions for inventory obsolescence or impairment. At March 31, 2025 and December 31, 2024, the Company had inventory of $ 221,113 and $ 126,400 , respectively. Concentrations The Company evaluates and discloses significant concentrations of risk in accordance with FASB ASC 275-10, Risks and Uncertainties. These risks may arise from customer concentrations, vendor reliance, geographic dependence, or other economic factors that could materially impact the Company’s financial position, results of operations, and cash flows. A concentration exists when a single customer, supplier, or market accounts for a significant portion (typically greater than 10%) of the Company’s total revenues, accounts receivable, or vendor purchases (ASC 275-10-50-16). Customer and Sales Concentrations The Company’s revenue stream may be dependent on a limited number of key customers. A loss of any significant customer, a decline in demand from such customers, or a deterioration in their financial condition could negatively impact the Company’s future revenues and profitability. F- 24 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Accounts Receivable Concentrations The Company extends credit to customers based on their financial strength, payment history, and other relevant factors. A significant concentration of accounts receivable from a limited number of customers could expose the Company to credit risk and potential collection issues. The Company regularly evaluates the creditworthiness of its customers and may require advance payments, letters of credit, or other credit enhancements to mitigate risks. Vendor and Supplier Concentrations The Company relies on a limited number of vendors for certain key materials or services. A disruption in supply, changes in pricing, or financial instability of a major supplier could materially impact the Company’s ability to procure necessary materials, leading to increased costs, delays in production, or operational disruptions. The Company continuously assesses vendor relationships and explores alternative suppliers when necessary to mitigate supply chain risks. Concentration Summary The following table presents customers and vendors that individually accounted for more than 10% of total sales, accounts receivable, or vendor purchases in the comparative periods presented: Schedule of Concentration of Risk Sales Three Months Ended March 31, Customer 2025 2024 A 43.09 % 0.00 % B 9.59 % 21.77 % C 3.87 % 10.91 % Total 56.54 % 32.68 % F- 25 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Accounts Receivable Three Months Ended March 31, Year Ended December 31, Customer 2025 2024 A 27.12 % 0.00 % B 21.68 % 37.56 % C 10.04 % 8.54 % Total 58.84 % 46.10 % Vendor Purchases Three Months Ended March 31, Vendor 2025 2024 A 51.57 % 0.00 % B 12.73 % 43.99 % C 22.77 % 42.07 % D 5.74 % 13.94 % Total 92.81 % 100.00 % Management’s Risk Mitigation Strategies To address these risks, the Company implements the following strategies: ● Diversification of Customer Base – Actively seeking new customers to reduce reliance on a small number of key accounts. ● Credit Risk Management – Regularly reviewing customer creditworthiness and adjusting credit terms as necessary. ● Supplier Contingency Planning – Identifying alternative vendors to mitigate the impact of potential supply chain disruptions. The Company continuously monitors these risks and adjusts its business strategies to reduce its exposure to customer, credit, and supplier risks, ensuring financial stability and operational continuity. Property and Equipment Property and equipment are recorded at cost, net of accumulated depreciation, in accordance with ASC 360, “Property, Plant, and Equipment.” Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. F- 26 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Repairs and maintenance expenditures that do not materially extend the useful life of an asset are expensed as incurred. Significant improvements or upgrades that increase the asset’s productivity, efficiency, or useful life are capitalized. Upon disposal or sale of property and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the statement of operations, in accordance with ASC 360-10-40-5. The Company evaluates the carrying value of property and equipment whenever events or changes in circumstances indicate that the asset may be impaired. If impairment indicators exist, the Company assesses recoverability based on the undiscounted future cash flows expected from the use and disposition of the asset. If the carrying amount exceeds the estimated recoverable amount, an impairment loss is recognized in accordance with ASC 360-10-35-17. Impairment of Long-lived Assets including Internal Use Capitalized Software Costs The Company evaluates the recoverability of long-lived assets, including identifiable intangible assets and internal-use capitalized software costs, in accordance with FASB ASC 360-10-35-15, Impairment or Disposal of Long-Lived Assets. An impairment review is triggered when events or circumstances indicate that the carrying value of an asset group may not be recoverable. Factors considered include, but are not limited to: ● Significant changes in expected performance compared to prior forecasts, ● Changes in asset utilization, including discontinued or modified use, ● Negative industry or economic trends that impact asset value, and ● Strategic shifts in the Company’s business operations (ASC 360-10-35-21). Impairment Assessment Process When impairment indicators exist, the Company performs a recoverability test by comparing the undiscounted future cash flows expected to be generated from the use and ultimate disposition of the asset group to its carrying amount (ASC 360-10-35-17). ● If the undiscounted cash flows exceed the carrying amount, no impairment is recognized. ● If the undiscounted cash flows are less than the carrying amount, an impairment loss is recognized, measured as the excess of the carrying amount over the fair value of the asset (ASC 360-10-35-18). F- 27 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Internal-Use Software Considerations For internal-use capitalized software, impairment is assessed under ASC 350-40-35, which requires evaluation when: ● A software project is abandoned or significantly modified, ● The software is no longer expected to provide substantive economic benefit, or ● The software is expected to be replaced by newer technology. Impairment Results For the three months ended March 31, 2025 and 2024, the Company did no t record any impairment losses. Original Issue Discounts and Other Debt Discounts The Company accounts for original issue discounts (OID) and other debt discounts in accordance with FASB ASC 835-30, Interest—Imputation of Interest. These discounts are recorded as a reduction of the carrying amount of the related debt and are amortized to interest expense over the term of the debt using the effective interest method, unless the straight-line method is materially similar (ASC 835-30-35-2). Original Issue Discounts (OID) For certain notes issued, the Company may provide the debt holder with an original issue discount (OID), which is recorded as a debt discount, reducing the face value of the note. The discount is amortized to interest expense over the term of the debt in the Consolidated Statements of Operations. Stock and Other Equity Issued with Debt The Company may issue common stock or other equity instruments in connection with debt issuance. When stock is issued, it is recorded at fair value and treated as a debt discount, reducing the carrying amount of the note. These discounts are amortized to interest expense over the life of the debt (ASC 470-20-25-2). The combined debt discounts, including OID and stock-related discounts, cannot exceed the face amount of the debt (ASU 2020-06). Debt Issuance Costs Debt issuance costs, including fees paid to lenders or third parties, are capitalized as a debt discount and amortized to interest expense over the life of the debt in accordance with ASC 835-30-45-1. These costs are presented as a direct deduction from the carrying amount of the debt liability rather than as a separate asset (ASC 835-30-45-3). F- 28 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Right of Use Assets and Lease Obligations The Company accounts for right-of-use (ROU) assets and lease liabilities in accordance with FASB ASC 842, Leases. These amounts reflect the present value of the Company’s estimated future minimum lease payments over the lease term, including any reasonably certain renewal options, discounted using a collateralized incremental borrowing rate (ASC 842-20-30-1). The Company classifies its leases as either operating or finance leases based on the criteria outlined in ASC 842-10-25-2. The Company’s leases primarily consist of operating leases, which are included as Right-of-Use Assets and Operating Lease Liabilities on the consolidated balance sheet. Short-Term Leases The Company has elected the short-term lease exemption allowed under ASC 842-20-25-2, whereby leases with a term of 12 months or less are not recorded on the balance sheet. Instead, lease payments are expensed on a straight-line basis over the lease term. Lease Term and Renewal Options In determining the lease term, the Company evaluates whether renewal options are reasonably certain to be exercised, as required by ASC 842-10-30-1. Factors considered include: ● The useful life of leasehold improvements relative to the lease term, ● The economic performance of the business at the leased location, ● The comparative cost of renewal rates versus market rates, and ● The presence of any significant economic penalties for non-renewal (ASC 842-10-55-26). If a renewal option is deemed reasonably certain to be exercised, the ROU asset and lease liability reflect those additional future lease payments. The Company’s operating leases contain renewal options with no residual value guarantees. Currently, management does not expect to exercise any renewal options, which are therefore excluded in the measurement of lease obligations. Discount Rate and Lease Liability Measurement Since the implicit rate in the leases is not readily determinable, the Company applies an incremental borrowing rate that represents the rate it would incur to borrow on a collateralized basis over a similar term and currency environment (ASC 842-20-30-3). F- 29 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Lease Impairment In accordance with ASC 360-10-35, the Company evaluates ROU assets for impairment indicators whenever events or changes in circumstances suggest the carrying amount may not be recoverable. No impairments of ROU assets were recognized for the three months ended March 31, 2025 and 2024, respectively. See Note 7 for details on third-party and related-party operating leases. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC 606, Revenue from Contracts with Customers, as amended by Accounting Standards Update (ASU) 2014-09. Under ASC 606, revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The Company generates revenue from mobile fuel sales, which can be purchased as a one-time transaction or through a monthly membership. Revenue from fuel sales is recognized at the time of delivery, and membership revenue is recognized at the end of each month, reflecting the satisfaction of the performance obligation over time within a one-month membership cycle. All revenues for the three months ended March 31, 2025 and 2024 were generated from EZFL. The Company follows the five-step revenue recognition model outlined in ASC 606-10-05-4: 1. Identify the Contract with a Customer A contract exists when the following criteria are met, per ASC 606-10-25-1: ● The contract creates enforceable rights and obligations between the Company and the customer. ● The contract has commercial substance (i.e., it affects the Company’s cash flows). ● The payment terms are identified, and the consideration is determinable. ● It is probable that the Company will collect the consideration in exchange for the goods or services transferred. Contracts for mobile fuel sales and memberships meet these criteria. Collectability is assessed based on historical customer payment trends and credit risk in accordance with ASC 606-10-25-5. F- 30 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 2. Identify the Performance Obligations in the Contract A performance obligation is a distinct good or service promised in the contract that is both capable of being distinct and distinct in the context of the contract, per ASC 606-10-25-19. The Company has determined that its contracts, based on sales type, contain two distinct performance obligations: ● Fuel Sales – The delivery of fuel to a customer, with revenue recognized at the point of delivery. ● Membership Fees – Monthly membership services, with revenue recognized over time within a one-month membership cycle, as the customer benefits from access to services throughout the period. These performance obligations are not bundled or combined, as each service is separately identifiable, in accordance with ASC 606-10-25-22. 3. Determine the Transaction Price The transaction price is the amount of consideration the Company expects to receive in exchange for transferring goods or services to the customer, per ASC 606-10-32-2. The Company’s transaction price considerations include: ● Fixed consideration – Prices are clearly stated and do not vary based on performance. ● No variable consideration – The Company does not formally offer refunds, rebates, or pricing incentives. During the three months ended March 31, 2025 and 2024, respectively, the Company granted insignificant discounts of less than 1% of total revenues. ● No financing component – Payments are made upon fuel delivery or at the end of the monthly membership cycle, per ASC 606-10-32-15. 4. Allocate the Transaction Price to Performance Obligations For contracts with a single performance obligation, the entire transaction price is allocated to that obligation, per ASC 606-10-32-40. If a contract included multiple performance obligations, the transaction price would be allocated based on relative standalone selling prices (“SSP”) as required by ASC 606-10-32-28. The standalone selling price is determined based on observable sales data. The Company’s fuel sales and memberships each have a distinct standalone selling price, eliminating the need for allocation adjustments. F- 31 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 5. Recognize Revenue When (or As) Performance Obligations Are Satisfied Revenue is recognized at the point in time when control over a product or service is transferred to the customer, in accordance with ASC 606-10-25-30. ● Fuel Sales: Control transfers at the time of fuel delivery, at which point revenue is recognized. ● Membership Fees: Revenue is recognized over time within a one-month cycle, as customers receive continuous access to fuel delivery services throughout the month. The Company does not recognize revenue based on customer invoicing dates; instead, it ensures revenue recognition aligns with the actual satisfaction of performance obligations per ASC 606-10-25-31. Principal vs. Agent Considerations In evaluating whether the Company acts as a principal or an agent in its fuel sales transactions, the Company applies the guidance in ASC 606-10-55-36 through 55-40. The Company has determined that it is the principal in these transactions based on the following factors: ● The Company controls the fuel before it is transferred to the customer. ● The Company has discretion in pricing, as it sets the selling price of fuel. ● The Company is responsible for fulfilling the obligation of delivering fuel to the customer. ● The Company is exposed to inventory risk, as it procures and holds fuel before sale. Based on these factors, the Company recognizes revenue on a gross basis, as it is the principal in fuel sales transactions in accordance with ASC 606-10-55-37A. Summary of Compliance with ASC 606 and ASU Updates Revenue Stream Performance Obligation Recognition Timing Consideration Type Fuel Sales Fuel Delivery At time of delivery Fixed price per gallon Membership Fees Monthly access to fuel services Over time (one-month cycle) Fixed monthly subscription F- 32 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Contract Liabilities (Deferred Revenue) Contract liabilities represent amounts received from customers before the satisfaction of performance obligations, which are subsequently recognized as revenue upon fulfillment. Under ASC 606-10-45-2, the Company discloses contract balances related to deferred revenue when applicable. Any prepayments received for fuel deliveries or memberships are classified as contract liabilities until revenue recognition criteria are met. As of March 31, 2025 and December 31, 2024, the Company had $ 0 deferred revenue. The following represents the Company’s disaggregation of revenues for the three months ended March 31, 2025 and 2024: Schedule of Disaggregation of Revenue Three Months Ended March 31, 2025 2024 Revenue % of Revenues Revenue % of Revenues Fuel sales $ 15,857,380 97.45 % $ 6,403,612 97.07 % Other 415,293 2.55 % 193,507 2.93 % Total Sales $ 16,272,673 100.00 % $ 6,597,119 100.00 % Cost of Sales Cost of sales consists of direct expenses incurred in the delivery of the Company’s products and services. These costs primarily include: ● Fuel Costs – The cost of procuring fuel for resale, including fluctuations in market pricing, supplier agreements, and transportation expenses. ● Driver Wages and Benefits – Compensation, payroll taxes, and employee benefits associated with the Company’s delivery personnel. Cost of sales is recognized in the same period as the related revenue in accordance with FASB ASC 705, Cost of Sales and Services. The Company regularly evaluates its cost structure to ensure efficient fuel procurement and operational cost management. F- 33 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Income Taxes The Company accounts for income taxes using the asset and liability method prescribed by FASB ASC 740, Income Taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial reporting and tax bases of assets and liabilities. These amounts are measured using enacted tax rates expected to apply in the periods when temporary differences reverse (ASC 740-10-30-8). The effect of a change in tax rates on deferred tax balances is recognized as income or expense in the period that includes the enactment date (ASC 740-10-45-4). Uncertain Tax Positions The Company evaluates uncertain tax positions in accordance with ASC 740-10-25, which requires that a tax position be recognized in the financial statements only if it is more likely than not (greater than 50% likelihood) to be sustained upon examination by tax authorities. As of March 31, 2025 and December 31, 2024, respectively, the Company had no uncertain tax positions that qualified for recognition or disclosure in the financial statements (ASC 740-10-50-15). The Company also recognizes interest and penalties related to uncertain tax positions in other expense in the consolidated statement of operations (ASC 740-10-45-25). No interest and penalties were recorded for the three months ended March 31, 2025 and 2024, respectively. Valuation of Deferred Tax Assets The Company’s deferred tax assets include certain future tax benefits, such as net operating losses (NOLs), tax credits, and deductible temporary differences. Under ASC 740-10-30-5, a valuation allowance is required if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. The Company reviews the realizability of deferred tax assets on a quarterly basis, or more frequently if circumstances warrant, considering both positive and negative evidence (ASC 740-10-30-16). F- 34 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Factors Considered in Valuation Allowance Assessment The Company evaluates multiple factors in determining whether a valuation allowance is necessary, including: ● Historical earnings trends (cumulative pre-tax income or losses in the most recent three-year period) ● Future financial projections, including expected taxable income based on long-term estimates of business performance and market conditions ● Statutory carryforward periods for net operating losses and other deferred tax assets ● Prudent and feasible tax planning strategies that could impact the realization of deferred tax assets ● Nature and predictability of temporary differences and the timing of their reversal ● Sensitivity of financial forecasts to external factors such as commodity prices, market demand, and operational risks While cumulative three-year losses are a strong indicator that a valuation allowance may be needed, ASC 740-10-30-23 states that a valuation allowance determination is not solely based on past losses—all available positive and negative evidence must be considered. Valuation Allowance Determination At March 31, 2025 and December 31, 2024, respectively, the Company recorded a full valuation allowance against its deferred tax assets, resulting in a net carrying amount of $ 0 . This determination was based on cumulative losses in recent years and the lack of sufficient positive evidence to support the realization of deferred tax assets in the near term (ASC 740-10-30-24). The Company will continue to evaluate its valuation allowance each reporting period and will recognize deferred tax assets in the future if sufficient positive evidence emerges to support their realization. Advertising Costs Advertising costs are expensed as incurred, in accordance with ASC 720-35, “Advertising Costs.” These costs are recognized as operating expenses in the period in which they are incurred and are classified within general and administrative expenses in the consolidated statements of operations. The Company does not capitalize direct-response advertising costs, as they do not meet the criteria for deferral under ASC 720-35-25-1. F- 35 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The Company recognized marketing and advertising costs during the three months ended March 31, 2025 and 2024, respectively as follows: Schedule of Marketing and Advertising Costs 3 months 3 months March 31, 2025 March 31, 2024 Total Sales and Marketing $ 65,186 $ 24,506 Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation,” using the fair value-based method. Under this guidance, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, typically the vesting period. ASC 718 establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. It also applies to transactions where an entity incurs liabilities based on the fair value of its equity instruments or liabilities that may be settled using equity instruments. In compliance with ASU 2018-07, the Company applies the fair value method for equity instruments granted to both employees and non-employees, aligning non-employee share-based payment accounting with that of employees. The fair value of stock-based compensation is determined as of the grant date or the measurement date (i.e., when the performance obligation is completed) and is recognized over the vesting period in accordance with ASC 718. The Company determines the fair value of stock options using the Black-Scholes option pricing model, considering the following key assumptions: ● Exercise price – The agreed-upon price at which the option can be exercised. ● Expected dividends – The anticipated dividend yield over the expected life of the option. ● Expected volatility – Based on historical stock price fluctuations. ● Risk-free interest rate – Derived from U.S. Treasury securities with similar maturities. ● Expected life of the option – Estimated based on historical exercise patterns and contractual terms. Additionally, the Company follows the guidance under ASU 2016-09, which introduced amendments to simplify certain accounting aspects of share-based compensation, including: ● The treatment of tax benefits and tax deficiencies in income tax reporting. ● The option to recognize forfeitures as they occur rather than estimating them upfront. ● Cash flow classification for certain tax-related transactions. The Company continues to evaluate and apply the latest Accounting Standards Updates (ASUs) and interpretive releases related to stock-based compensation to ensure compliance with evolving financial reporting requirements. F- 36 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Stock Warrants In connection with certain financing transactions (debt or equity), consulting arrangements, or strategic partnerships, the Company may issue warrants to purchase shares of its common stock. These standalone warrants are not puttable or mandatorily redeemable by the holder and are classified as equity instruments in accordance with ASC 480, “Distinguishing Liabilities from Equity.” The fair value of warrants issued for compensation purposes is measured using the Black-Scholes option pricing model, consistent with the guidance in ASC 718-10-30. However, if warrants meet the definition of derivative liabilities under ASC 815, “Derivatives and Hedging,” fair value is determined using a binomial pricing model or other appropriate valuation techniques, as required by ASC 815-40-15. Accounting Treatment of Warrants ● Warrants issued in conjunction with common stock issuance are initially recorded at fair value as a reduction in Additional Paid-In Capital (APIC), in accordance with ASC 815-40-25. ● Warrants issued for services are recorded at fair value and expensed over the requisite service period or immediately upon issuance if no service period exists, as per ASC 718-10-25. ● Warrants classified as liabilities due to settlement features or pricing adjustments are remeasured at fair value each reporting period, with changes recognized in earnings, following ASC 815-40-35. Basic and Diluted Earnings (Loss) per Share and Reverse Stock Split The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings Per Share.” The calculation of basic EPS follows the two-class method and is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding, including certain other shares committed to be issued. Basic Earnings Per Share (EPS) Basic EPS is calculated using the two-class method, as prescribed by ASC 260-10-45-60, and is computed as follows: ● Net earnings available to common shareholders represent net earnings to common shareholders, adjusted for the allocation of earnings to participating securities. ● Losses are not allocated to participating securities in accordance with ASC 260-10-45-61. ● The denominator includes common shares outstanding and certain other shares committed to be issued, such as restricted stock and restricted stock units (“RSUs”), for which no future service is required. F- 37 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Diluted Earnings Per Share (EPS) Diluted EPS is calculated under both the two-class method and the treasury stock method, and the more dilutive result is reported, as required by ASC 260-10-45-45. ● Diluted EPS is computed by taking the sum of: ○ Net earnings available to common shareholders ○ Dividends on preferred shares ○ Dividends on dilutive mandatorily redeemable convertible preferred shares ○ Divided by the weighted average number of common shares outstanding and certain other shares committed to be issued, plus all dilutive common stock equivalents during the period, such as: ■ Stock options ■ Warrants ■ Convertible preferred stock ■ Convertible debt ● Preferred shares and unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) qualify as participating securities under the two-class method, per ASC 260-10-45-62. Net Loss Per Share Considerations In computing net loss per share, unvested shares of common stock are excluded from the denominator, as required by ASC 260-10-45-48. Participating Securities & Share-Based Compensation Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively. Therefore: ● Before the requisite service is rendered for the right to retain the award, these instruments meet the definition of a participating security under ASC 260-10-45-59. ● RSUs granted under an executive compensation plan, however, are not considered participating securities because the rights to dividend equivalents are forfeitable (ASC 718-10-25). F- 38 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The following potentially dilutive equity securities outstanding for the three months ended March 31, 2025 and 2024, were as follows: Schedule of Dilutive Equity Securities Outstanding March 31, 2025 March 31, 2024 Series A, preferred stock 1,644,022 - Series B, preferred stock 724,638 - Series A, preferred stock - dividends 41,101 - Series B, preferred stock - dividends 21,739 - Warrants (vested) 287,114 81,452 Total common stock equivalents 2,718,613 81,452 Series A and B, preferred shares as well as the related dividends on each class of Series A and B, preferred shares are convertible into common stock. See Note 8. Warrants included as common stock equivalents represent those that are fully vested and exercisable. See Note 8. Based on the potential common stock equivalents noted above at March 31, 2025, the Company has sufficient authorized shares of common stock ( 500,000,000 ) to settle any potential exercises of common stock equivalents. On July 25, 2024, the Company’s Board of Directors authorized a 1:2.5 reverse stock split . As a result, all share and per share amounts have been retroactively restated to the earliest period presented in the accompanying consolidated financial statements. Related Parties The Company defines related parties in accordance with ASC 850, “Related Party Disclosures,” and SEC Regulation S-X, Rule 4-08(k). Related parties include entities and individuals that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties include, but are not limited to: ● Principal owners of the Company. ● Members of management (including directors, executive officers, and key employees). ● Immediate family members of principal owners and members of management. ● Entities affiliated with principal owners or management through direct or indirect ownership. ● Entities with which the Company has significant transactions, where one party has the ability to exercise control or significant influence over the management or operating policies of the other. F- 39 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 A party is considered related if it has the ability to control or significantly influence the management or operating policies of the Company in a manner that could prevent either party from fully pursuing its own separate economic interests. The Company discloses all material related party transactions, including: ● The nature of the relationship between the parties. ● A description of the transaction(s), including terms and amounts involved. ● Any amounts due to or from related parties as of the reporting date. ● Any other elements necessary for a clear understanding of the transactions’ effects on the financial statements. Disclosures are made in accordance with ASC 850-10-50-1 through 50-6 and SEC Regulation S-X, Rule 4-08(k), which requires registrants to disclose material related party transactions and their effects on the financial position and results of operations. ● See Note 1, which discusses the common control merger between Next and EZFL, on February 13, 2025 ● See Note 4 for accrued liabilities – related parties. ● See Notes 5 and 12 for a discussion of related party debt. ● See Note 7 regarding right-of-use operating lease with the Company’s Chief Technology Officer. ● See Note 8 for a discussion of equity transactions with certain officers and directors. Related Party Agreement with Company owned by Avishai Vaknin In 2023, the Company entered into a services agreement with an affiliate of the Company’s Chief Technology Officer. Services include overseeing all matters relating to the Company’s technology. The Company will pay $ 10,000 USD per month and cover other pre-approved expenses. The initial term of the agreement is for one year. All amounts have been paid. F- 40 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 In connection with this agreement, the Company issued 130,000 shares of common stock. At December 31, 2024 and 2023, 104,000 and 104,000 shares have vested, respectively. The remaining 26,000 shares will vest in April 2025 ( 13,000 shares) and April 2026 ( 13,000 shares), respectively. See Note 8 for related vesting of shares and corresponding expense recognition. Recent Accounting Standards ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, which enhances disclosure requirements for reportable segments by: ● Requiring enhanced disclosures of significant segment expenses. ● Aligning segment reporting requirements with information regularly reviewed by management. The Company adopted ASU 2023-07 on January 1, 2024. The adoption did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Standards Not Yet Adopted ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, which enhances income tax disclosure requirements by: ● Standardizing and disaggregating rate reconciliation categories. ● Requiring disclosure of income taxes paid by jurisdiction. This ASU is effective for annual periods beginning after December 15, 2024, and may be applied on a prospective or retrospective basis. Early adoption is permitted. The Company is currently assessing the impact of ASU 2023-09 on its income tax disclosures and reporting requirements. ASU 2024-03 – Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses In November 2024, the FASB issued Accounting Standard Update No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). This standard requires additional disclosures of certain expenses, including purchases of inventory, employee compensation, depreciation, intangible asset amortization, and other specific expense categories. This standard also requires disclosure of the total amount of selling expenses and the Company’s definition of selling expenses. This update is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We are evaluating the impact this update will have on our annual disclosures; however, it will not impact our financial condition, results of operations, or cash flows. Other Accounting Standards Updates The FASB has issued various technical corrections and industry-specific updates that are not expected to have a material impact on the Company’s consolidated financial position, results of operations, or cash flows. F- 41 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Reclassifications Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year presentation, including the common control merger. These reclassifications had no impact on the Company’s consolidated results of operations, stockholders’ equity, or cash flows. Note 3 – Property and Equipment Property and equipment consisted of the following: Schedule of Property and Equipment Estimated Useful March 31, 2025 December 31, 2024 Lives (Years) Vehicles $ 12,462,941 * $ 10,427,658 5 Equipment 304,192 304,192 5 Office furniture 129,475 129,475 5 Office equipment 9,471 9,471 5 Property and equipment, gross 12,906,079 10,870,796 Accumulated depreciation ( 3,919,461 ) ( 3,331,289 ) Total property and equipment - net $ 8,986,618 $ 7,539,507 Asset Purchase – Vehicles - Shell * In 2024, the Company executed an asset purchase agreement with Shell Retail and Convenience Operations, d/b/a Shell TapUp and d/b/a Instafuel (“Shell”) to purchase 73 vehicles ($ 5,139,877 ) and above ground storage tanks ($ 80,000 ) as part of a growth and expansion plan for a total purchase price of $ 5,219,877 . The Company began its Shell related operations in January 2025, and at that time placed these assets into service. These vehicles have a useful life of five ( 5 ) years. See Note 7 regarding related right-of-use operating leases which the Company also had access to office space and parking lots in January 2025. F- 42 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Deposit on Future Asset Purchase - Yoshi In 2024, the Company executed an asset purchase agreement with Yoshi, Inc. In connection with this transaction, the Company acquired various vehicles as part of a growth and expansion plan. The Company has access to and utilizes these vehicles for mobile fueling as part of its ongoing operations. Since the transaction did not close until February 2025, the payments made/due as of December 31, 2024, have been classified as a component of deposit on future asset purchase totaling $ 2,035,283 . In 2025, this amount was reclassified to vehicles. See Note 9. Depreciation and amortization expense for the three months ended March 31, 2025 and 2024, was $ 588,172 and $ 281,320 , respectively. Depreciation and amortization are included as a component of general and administrative expenses in the accompanying consolidated statements of operations. Impairment losses of property and equipment are included as a component of general and administrative expenses in the accompanying consolidated statements of operations. Note 4 – Accounts Payable and Accrued Liabilities including Related Parties Accounts payable and accrued liabilities were as follows at March 31, 2025 and December 31, 2024 respectively: Schedule of Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities March 31, 2025 December 31, 2024 Accounts payable $ 2,134,151 $ 878,475 Accrued salaries 23,664 57,141 Accrued expenses - other 94,205 785,911 Total accounts payable and accrued liabilities $ 2,252,020 $ 1,721,527 March 31, 2025 December 31, 2024 Accounts payable and accrued liabilities - related parties $ 73,250 $ 73,250 Accrued guarantee fee - Chief Executive Officer 212,247 - Accrued interest payable - related parties 1,952,170 1,473,201 Total accounts payable and accrued liabilities - related parties $ 2,237,667 $ 1,546,451 F- 43 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Guarantee Arrangement – Chief Executive Officer On March 25, 2025, the Company entered into an agreement with its Chief Executive Officer. Under this agreement, in exchange for personally guaranteeing certain Company debt transactions, the Chief Executive Officer will receive a fee equal to 3 % of the guaranteed debt. This fee will be repaid when the funds are received. For the three months ended March 31, 2025 and the year ended December 31, 2024, the Company accrued $ 212,247 and $ 0 , respectively. Note 5 – Debt The following represents a summary of the Company’s debt (notes payable – related parties and third party debt for notes payable (including those owed on vehicles, including key terms, and outstanding balances at March 31, 2025 and December 31, 2024, respectively. Notes Payable – Related Parties The following is a summary of the Company’s notes payable – related parties at March 31, 2025 and December 31, 2024: Summary of Notes Payable Balance - December 31, 2023 3,869,650 Advances 7,593,000 Repayments ( 689,650 ) Balance - December 31, 2024 10,773,000 Advances 361,594 Repayments ( 200,000 ) Balance - March 31, 2025 $ 10,934,594 The following is a detail of the Company’s advances payable – related parties terms and history of each advance at March 31, 2025 and December 31, 2024: Schedule of Advances Payable Related Parties Debt Holder Issue Date Maturity Date Interest Rate Collateral March 31, 2025 December 31, 2024 Chief Executive Officer/>50% control person Various Due on demand 10 % - 18 % Unsecured $ 10,934,594 $ 10,773,000 F- 44 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Notes Payable The following represents the terms of the Company’s notes payable March 31, 2025 and December 31, 2024, respectively: Schedule of Terms of Notes Payable Issue Date Interest Rate Collateral Related Party Refinance Date Maturity Date Conversion Date Repayment Date Loan #1 June 16, 2023 0 % Unsecured No April 24, 2024 April 24, 2024 N/A N/A Loan #2 April 24, 2024 0 % Unsecured No N/A October 21, 2025 N/A N/A Loan #3 December 2, 2024 0 % Unsecured No N/A December 31, 2025 N/A N/A Loan #4 December 3, 2024 0 % Unsecured No N/A December 31, 2025 N/A N/A Loan #5 December 26, 2024 0 % Unsecured No N/A March 26, 2025 N/A March 26, 2025 Loan #6 December 27, 2024 0 % Unsecured No N/A June 27, 2025 N/A N/A Loan #7 March 24, 2025 0 % Unsecured No N/A September 24, 2025 N/A N/A Loan #8 December 27, 2024 0 % Unsecured No N/A June 27, 2025 N/A N/A Loan #9 March 24, 2025 0 % Unsecured No N/A September 24, 2025 N/A N/A Loan #10 December 30, 2024 0 % Unsecured No N/A June 30, 2025 N/A N/A Loan #11 January 15, 2025 0 % Unsecured No N/A April 15, 2025 N/A N/A Loan #12 March 31, 2025 0 % Unsecured No N/A April 30, 2025 N/A N/A Loan #13 March 28, 2025 0 % Unsecured No N/A September 4, 2025 N/A N/A Loan #14 January 19, 2024 0 % Unsecured No N/A August 19, 2024 N/A August 19, 2024 Loan #15 August 16, 2024 0 % Unsecured No November 26, 2024 February 26, 2025 N/A N/A Loan #16 November 26, 2024 0 % Unsecured No N/A June 10, 2025 N/A N/A Loan #17 December 16, 2024 0 % Unsecured No N/A May 12, 2025 N/A N/A Loan #18 January 19, 2024 0 % Unsecured No N/A August 19, 2024 N/A August 19, 2024 Loan #19 August 16, 2024 0 % Unsecured No November 26, 2024 February 26, 2025 N/A N/A Loan #20 November 24, 2024 0 % Unsecured No N/A June 10, 2025 N/A N/A Loan #21 2023 0 % Unsecured No N/A 2024 August 16, 2024 N/A Loan #22 October 2, 2024 0 % Unsecured No N/A April 2, 2026 N/A February 25, 2025 Loan #23 October 2, 2024 0 % Unsecured No N/A April 2, 2026 N/A February 25, 2025 Loan #24 October 2, 2024 0 % Unsecured No N/A April 2, 2026 N/A February 25, 2025 Loan #25 October 2, 2024 0 % Unsecured No N/A April 2, 2026 N/A February 25, 2025 Loan #26 October 2, 2024 0 % Unsecured No N/A April 2, 2026 N/A February 25, 2025 Loan #27 January 19, 2024 0 % Unsecured No N/A April 18, 2024 N/A October 7, 2024 Loan #28 December 24, 2024 0 % Unsecured No N/A March 31, 2025 N/A N/A Loan #29 Various 0 % - 11 % Underlying vehicle No N/A Various N/A Various F- 45 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Schedule of Notes Payable December 31, 2024 Face amount of note Debt discount Amortization of debt discount Conversion to common stock Repayments March 31, 2025 Three Months Ended March 31, 2025 December 31, 2024 Face amount of note Debt discount Amortization of debt discount Conversion to common stock Repayments March 31, 2025 Loan #2 129,311 - - 4,525 - ( 43,080 ) 90,756 Loan #3 600,000 - - - - ( 600,000 ) - Loan #4 250,000 - - - - ( 50,000 ) 200,000 Loan #5 2,097,288 - - 402,712 - ( 2,500,000 ) - Loan #6 977,658 - - 342,342 - ( 1,320,000 ) - Loan #7 - 3,217,700 ( 986,735 ) 26,743 - - 2,257,708 Loan #8 977,692 - - 342,308 - ( 1,320,000 ) - Loan #9 - 3,217,700 ( 986,735 ) 26,743 - - 2,257,708 Loan #10 485,962 - - 174,038 - ( 660,000 ) - Loan #11 - 1,000,000 ( 60,000 ) 60,000 - ( 1,000,000 ) - Loan #12 - 1,000,000 ( 165,000 ) - - - 835,000 Loan #13 - 699,500 ( 214,895 ) - - - 484,605 Loan #16 1,404,644 - - 339,430 - ( 129,358 ) 1,614,716 Loan #17 628,703 - - 172,212 - ( 182,000 ) 618,915 Loan #20 1,409,321 - - 346,371 - ( 119,000 ) 1,636,692 Loan #22 737,468 - - 12,532 - ( 750,000 ) - Loan #23 983,291 - - 16,709 - ( 1,000,000 ) - Loan #24 2,458,227 - - 41,773 - ( 2,500,000 ) - Loan #25 737,468 - - 12,532 - ( 750,000 ) - Loan #26 1,200,000 - - - - ( 1,200,000 ) - Loan #28 5,000,100 - - - - - 5,000,100 Loan #29 351,753 - - - - ( 152,165 ) 199,588 Total $ 20,428,886 $ 9,134,900 $ ( 2,413,365 ) $ 2,320,970 $ - $ ( 14,275,603 ) $ 15,195,788 F- 46 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 December 31, 2023 Face amount of note Debt discount Amortization of debt discount Conversion to common stock Repayments December 31, 2024 Year Ended December 31, 2024 December 31, 2023 Face amount of note Debt discount Amortization of debt discount Conversion to common stock Repayments December 31, 2024 Loan #1 126,440 - - 15,521 - ( 141,961 ) $ - Loan #2 - 277,500 ( 27,500 ) 13,575 - ( 134,264 ) 129,311 Loan #3 - 600,000 - - - - 600,000 Loan #4 - 250,000 - - - - 250,000 Loan #5 - 2,500,000 ( 440,000 ) 37,288 - - 2,097,288 Loan #6 - 1,320,000 ( 350,035 ) 7,693 - - 977,658 Loan #8 - 1,320,000 ( 350,000 ) 7,692 - - 977,692 Loan #10 - 660,000 ( 175,000 ) 962 - - 485,962 Loan #14 - 2,236,500 ( 736,500 ) 736,500 - ( 2,236,500 ) - Loan #15 - 1,824,375 ( 574,375 ) 574,375 - ( 1,824,375 ) - Loan #16 - 2,502,000 ( 792,000 ) 141,429 - ( 446,785 ) 1,404,644 Loan #17 - 881,280 ( 281,280 ) 28,703 - - 628,703 Loan #18 - 1,491,000 ( 491,000 ) 491,000 - ( 1,491,000 ) - Loan #19 - 1,824,375 ( 574,375 ) 574,375 - ( 1,824,375 ) - Loan #20 - 2,518,200 ( 808,200 ) 144,321 - ( 445,000 ) 1,409,321 Loan #21 2,251,237 - - 168,763 ( 2,420,000 ) - - Loan #22 - 750,000 ( 15,000 ) 2,468 - - 737,468 Loan #23 - 1,000,000 ( 20,000 ) 3,291 - - 983,291 Loan #24 - 2,500,000 ( 50,000 ) 8,227 - - 2,458,227 Loan #25 - 750,000 ( 15,000 ) 2,468 - - 737,468 Loan #26 - 1,200,000 - - - - 1,200,000 Loan #27 - 3,700,000 - - - ( 3,700,000 ) - Loan #28 - 5,000,100 - - - - 5,000,100 Loan #29 1,173,278 - - - - ( 821,525 ) 351,753 Total $ 3,550,955 $ 35,105,330 $ ( 5,700,265 ) $ 2,958,651 $ ( 2,420,000 ) $ ( 13,065,785 ) $ 20,428,886 Loans #1, #2, #6–#18, and #20 represent merchant cash advance (“MCA”) agreements entered into by the Company. Under these arrangements, the Company receives a specified gross advance amount, net of origination fees, discounts, and other transaction costs, in exchange for a fixed repayment obligation that typically exceeds the net funds received. Repayment terms generally range from 21 to 78 weeks and are structured as daily or weekly fixed remittances. The Company accounts for these arrangements as debt in accordance with ASC 470, recognizing the full repayment obligation as a liability, with related issuance costs amortized over the term of the loan. F- 47 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 To manage liquidity and meet near-term obligations, the Company has, in several instances, refinanced existing MCA loans by entering into new MCA agreements with the same or alternative lenders. These refinancing arrangements often involve: ● Using the proceeds of a new advance to pay off the remaining balance of a prior loan, including any unpaid fees or penalties; ● Rolling multiple MCA balances into a single new obligation; or ● Structuring overlapping repayment terms, which may temporarily reduce daily outflows but increase aggregate repayment obligations. While refinancing may provide short-term liquidity relief, it often results in higher cumulative borrowing costs due to upfront fees and the compounding effect of new obligations. These refinancings are typically executed close to the maturity of the original MCA or earlier if cash flow pressures arise. The Company utilizes MCA financing primarily to support working capital and general operations. Given the short-term nature, fee structure, and recurring refinancing activity, these MCA obligations are classified as short-term debt. The Company continuously evaluates its funding options to manage cash flow and covenant compliance under these agreements. Loans #3 and #4 In November 2024, the Company executed an asset purchase agreement with Yoshi, Inc. In connection with this transaction, the Company acquired various vehicles as part of a growth and expansion plan. The Company has access to and utilizes these vehicles for mobile fueling as part of its ongoing operations. Since the transaction did not close until February 2025, the payments made/due as of December 31, 2024, have been classified as a component of deposit on future asset purchase totaling $ 2,035,283 . In 2025, this amount was reclassified to property and equipment. As part of the consideration due to the seller, the Company was required to pay $ 1,250,000 , plus an additional $ 250,000 , between six (6) and nine (9) months from the transaction date. As of December 31, 2024, the Company had paid $ 650,000 , however an additional $ 850,000 remained due and outstanding as a condition for closing the asset purchase. In February 2025, an additional $ 650,000 was paid. At the date of these consolidated financial statements, and pursuant to the repayment terms, the balance of $ 200,000 remains and is due between by August 2025. F- 48 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Loan #5 In December 2024, the Company executed a two-month (2) loan for $ 2,500,000 . The Company was required to pay transaction fees of $ 440,000 . The Company received the entire $ 2,500,000 as proceeds, rather than the transaction fees being netted from the closing. These fees totaling $ 440,000 were recorded both as an original discount and accrued expenses. In the event of default, the note would accrue interest at 21 %. In February 2025, the Company obtained an additional 30-day extension, with a new maturity date occurring in March 2025, in exchange for $ 200,000 . The loan was repaid in March 2025. Loan #21 During the years ended December 31, 2023 and 2024, the Company entered into an amended three unsecured promissory notes totaling $ 2,420,000 (see below for Notes #1, #2 and #3) with a former related party at the time of the transaction . These notes were initially issued with original issue discounts and additional common stock issuances classified as debt discounts totaling $ 1,361,400 . Of the total debt discounts recognized, $ 1,192,637 was amortized to interest expense in 2023, the remaining balance of $ 168,763 was amortized to interest expense in 2024. Initial Issuance Terms ● Note #1: Issued in April 2023 with a face value of $ 1,500,000 , net proceeds of $ 1,210,000 after $ 290,000 in discounts and transaction fees. The Company committed to issue 100,000 shares of common stock as additional interest, of which 40,000 were issued at inception ($ 256,000 ) and 60,000 if an extension would be needed. The extension was granted in October 2023 and the Company recognized additional interest expense of $ 291,000 . The Company recognized total debt discounts of $ 546,000 . Upon amendment of terms, the Company evaluated the changes under ASC 470-50-40, Debt Modifications and Extinguishments , and determined the modification constituted a substantial change, resulting in a loss on debt extinguishment of $ 291,000 . ● Note #2: Issued in July 2023 with a face value of $ 600,000 , net proceeds of $ 511,100 after $ 88,900 in cash discounts and fees. The Company also issued 60,000 shares of common stock ($ 406,500 ), resulting in total debt discounts and issuance costs of $ 495,400 amortized to interest expense over the life of the note. ● Note #3: Issued in October 2023 with a face value of $ 320,000 and net proceeds of $ 272,000 after an original issue discount of $ 48,000 . The Company agreed to issue 104,000 shares of common stock valued at $ 539,760 ; however, due to the 9.99 % ownership blocker provision, these shares were classified as common stock issuable in the consolidated balance sheets. Total debt discount was limited to $ 320,000 in accordance with ASC 835-30-25-2 which limits discounts to the face amount of the instrument. F- 49 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Global Amendment and Default Conversion Features On January 17, 2024, the Company and the Lender executed a global amendment to the terms of Notes #1, #2, and #3: ● In the event of default, the Lender may convert the unpaid principal into shares of the Company’s common stock at the greater of (i) $ 3.08 and (ii) the lower of the 10-day average VWAP or a floor price of $ 1.75 . ● A cross-default clause was included such that default on any of the three notes would constitute a default across all related instruments. ● The Company evaluated the amended conversion feature and determined that in the event of default, the instruments may contain an embedded derivative requiring bifurcation and fair value recognition under ASC 815, Derivatives and Hedging . The Company determined that there was no event of default. Given the floor price, the Company determined no derivative liability would exist, and no derivative liabilities were required to be recorded. Extension-Related Stock Issuances ● In January 2024, the Company was obligated to issue 72,000 common shares (valued at $ 270,000 , $ 3.75 /share) as consideration for extending the maturities of Notes #2 and #3 to April 19, 2024. ● On May 9, 2024, the Company further extended all three notes to July 17, 2024, resulting in an obligation to issue an additional 66,000 shares (valued at $ 407,550 , $ 6.18 /share). ● In total, the Company had an obligation to issue 138,000 shares of common stock with a fair value of $ 677,500 . ● Due to the 9.99 % equity cap, these shares were not immediately issued and were recognized as additional interest expense. Conversion to Series A Preferred Stock On August 16, 2024, the Company and the Lender agreed to convert all remaining obligations under Notes #1, #2, and #3 into equity. The total principal converted was $ 2,420,000 . The Lender exercised a 150 % penalty interest feature, increasing the total debt conversion amount to $ 3,630,000 . F- 50 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The Company issued 363,000 shares of Series A Preferred Stock with a stated value of $ 10 per share. The fair value of the preferred stock was determined based on its as-converted value into common stock as follows: Schedule of Debt Extinguishment Valuation inputs Market price per share of common stock - on date of issuance $ 2.76 Discount to market price on date of issuance 80 % Conversion price per share $ 2.21 Series A, preferred stock - stated value per share $ 10.00 Conversion price per share $ 2.21 Number of shares of common stock - for each share of Series A, preferred stock held 4.53 Series A, preferred shares issued 363,000 Number of shares of common stock - for each share of Series A, preferred stock held 4.53 Equivalent common shares 1,644,022 Market price per share of common stock - on date of issuance $ 2.76 As converted valuation of Series A, preferred stock $ 4,537,500 Debt converted in exchange for Series A, preferred stock 3,630,000 Loss on debt extinguishment - related party $ 907,500 The Company accounted for the conversion as an extinguishment of debt under ASC 470-50, and the difference between the fair value of the equity issued and the carrying amount of the debt was recorded as a loss on debt extinguishment. Common Stock Issuable – 242,000 Shares In connection with the initial debt issuances and amendments discussed above, the Company had previously classified 242,000 common shares as common stock issuable due to the 9.99 % ownership blocker. Upon conversion of all outstanding debt on August 16, 2024, these shares were formally issued to the Lender. Since the shares had already been reflected in equity, there was no incremental impact to stockholders’ deficit upon issuance. F- 51 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Loans #22-#26 In October 2024, the Company entered into five unsecured, non-interest-bearing notes with an aggregate principal amount of $ 5,000,000 and a contractual term of eighteen ( 18 ) months. The notes were issued with an original issue discount (“OID”) of $ 100,000 , resulting in net cash proceeds of $ 4,900,000 at inception. Although the notes had a stated maturity in 2026 , the Company repaid the full $ 5,000,000 principal amount in February 2025, prior to maturity. The remaining unamortized debt discount of $ 83,547 was amortized on an accelerated basis as interest expense through the repayment date. Loan #27 In January 2024, the Company acquired 100 % of the equity interests in STAT in exchange for $ 5,500,000 . STAT has patented technology that will be used in the Company’s expected future operations. Prior to the acquisition, the operations of STAT were insignificant. In 2023, the Company paid a deposit of $ 250,000 towards this acquisition. In 2024, the Company paid an additional $ 1,550,000 for total cash consideration paid of $ 1,800,000 at closing. The balance of $ 3,700,000 was financed through a note payable. This note bears interest at 7 %, is unsecured was due in May 2024 (“initial maturity date”). The Company also has the option to extend the due date to July 2024 for no additional consideration or change in terms (See Note 10). Subsequent to the initial maturity date, the lender has agreed to extend the due date of the note multiple times, for payments of $ 130,000 , respectively. Each of these payments was recorded as interest expense. In October 2024, without any additional extension payments required, the Company repaid the note plus accrued interest totaling $ 3,826,112 . An additional $ 59,800 of accrued interest was forgiven by the lender and recorded as other income in the accompanying consolidated statements of operations during the year ended December 31, 20024. F- 52 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Loan #28 In December 2024, the Company executed a loan for $ 5,000,100 with the 50 % owner of NextIngle Holdings, LLC. The loan is due March 31, 2025. The Company is currently negotiating an extension of the due date. Notes Payable – Vehicles (Loan # 29) The following is a summary of the Company’s notes payable for its vehicles at March 31, 2025 and December 31, 2024, respectively: Summary of Notes Payable - Vehicles Balance - December 31, 2023 $ 1,173,278 Repayments ( 821,525 ) Balance - December 31, 2024 351,753 Beginning balance 351,753 Repayments ( 152,165 ) Balance - March 31, 2025 $ 199,588 Ending balance $ 199,588 The following is a detail of the Company’s notes payable for its vehicles at March 31, 2025 and December 31, 2024, respectively: Schedule of Detailed Company’s Notes Payable Notes Payable - Vehicles Issue Date Maturity Date Interest Rate Default Interest Rate Collateral March 31, 2025 December 31, 2024 January 15, 2021 November 15, 2025 11.00 % N/A This vehicle $ 10,589 $ 14,352 January 11, 2022 January 25, 2025 3.50 % N/A This vehicle - 3,201 January 11, 2022 January 25, 2025 3.50 % N/A This vehicle - 3,216 January 11, 2022 January 25, 2025 3.50 % N/A This vehicle - 3,216 January 11, 2022 January 25, 2025 3.50 % N/A This vehicle - 3,216 February 8, 2022 February 10, 2025 3.50 % N/A This vehicle - 6,247 February 8, 2022 February 10, 2025 3.50 % N/A This vehicle - 6,248 February 8, 2022 February 10, 2025 3.50 % N/A This vehicle - 6,377 February 8, 2022 February 10, 2025 3.50 % N/A This vehicle - 6,247 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,262 12,792 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,262 12,792 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 4,262 13,792 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,296 12,960 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,285 12,987 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,401 12,987 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,285 12,987 April 5, 2022 April 20, 2025 3.50 % N/A This vehicle 3,399 12,986 August 4, 2022 August 18, 2025 4.99 % N/A This vehicle 5,370 8,541 August 4, 2022 August 18, 2025 4.99 % N/A This vehicle 5,371 8,542 November 1, 2021 November 11, 2025 4.84 % N/A This vehicle 6,405 8,761 November 1, 2021 November 11, 2025 0.00 % N/A This vehicle 6,412 8,884 November 1, 2021 November 11, 2025 0.00 % N/A This vehicle 6,462 8,884 June 1, 2022 May 23, 2026 0.90 % N/A This vehicle 11,669 14,137 June 1, 2022 May 23, 2026 0.90 % N/A This vehicle 11,669 14,150 April 27, 2022 May 10, 2027 9.05 % N/A This vehicle 71,650 79,052 April 27, 2022 May 1, 2026 8.50 % N/A This vehicle 36,539 44,199 199,588 351,753 Less: current portion 131,455 199,846 Long term portion $ 68,133 $ 151,907 F- 53 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Debt Maturities The following represents future maturities of the Company’s various debt arrangements as follows: Schedule of Maturities of Long Term Debt For the Year Ended December 31, Vehicle Notes Payable 2025 (9 months) 130,187 2026 54,514 2027 14,887 Total $ 199,588 Note 6 – Fair Value of Financial Instruments The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. This determination requires significant judgments to be made. The Company did not have any assets or liabilities measured at fair value on a recurring basis at March 31, 2025 and December 31, 2024, respectively. Note 7 – Commitments and Contingencies Operating Leases The Company accounts for leases in accordance with ASC 842: Leases, which requires lessees to apply the right-of-use (ROU) model by recognizing a right-of-use asset and a lease liability for all leases with terms exceeding 12 months. Lease classification determines the pattern of expense recognition in the consolidated statement of operations: ● Operating leases: Recognized on a straight-line basis as lease expense over the lease term. ● Finance leases: Recognized with amortization of the ROU asset and interest expense on the lease liability. Lessors classify leases as sales-type, direct financing, or operating leases based on whether they transfer risks, rewards, and control of the asset (ASC 842-10-25-2): ● If all risks, rewards, and control transfer, the lease is treated as a sale (sales-type lease). ● If risks and rewards transfer but control does not, the lease is classified as financing. ● If neither risks, rewards, nor control transfer, it is classified as an operating lease. F- 54 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Lease Recognition and Measurement The Company evaluates whether an arrangement contains a lease at inception and recognizes the lease in the financial statements upon lease commencement (the date the underlying asset is available for use). ROU assets represent the Company’s right to use an asset over the lease term, while lease liabilities reflect the present value of future lease payments. At lease commencement: ● ROU assets and lease liabilities are initially measured at the present value of lease payments. ● The Company primarily uses its incremental borrowing rate (IBR) to determine the present value of lease payments, except when an implicit rate is readily determinable (ASC 842-20-30-3). ● The IBR is based on market data, adjusted for credit risk and lease term. Practical Expedients and Lease Components The Company applies certain practical expedients to simplify lease accounting: ● Lease and non-lease components are combined for classification and measurement, except for direct sales-type leases and production equipment embedded in supply agreements (ASC 842-10-15-37). ● Short-term leases (12 months or less, without purchase or renewal options) are not recorded on the balance sheet (ASC 842-20-25-2). Lease Term and Expense Recognition ● Lease liabilities include options to extend or terminate when reasonably certain of exercise (ASC 842-10-55-26). ● Operating lease expense is recognized on a straight-line basis over the lease term and reported under general and administrative expenses. ● Variable lease payments based on an index/rate are initially measured using the rate at lease commencement, with differences expensed as incurred (ASC 842-10-30-5). Company Lease Commitments As of March 31, 2025 and December 31, 2024, the Company had no finance leases under ASC 842. F- 55 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 On December 3, 2021, the Company entered into a lease agreement for 5,778 square feet of office space, commencing January 1, 2022. ● Lease term: 39 months ● Total monthly payment: $ 21,773 (including base rent, estimated operating expenses, and sales tax) ● Base rent: $ 14,743 (subject to a 3% annual increase); abated in months 1, 13, and 25 ● Initial ROU asset recognized: $ 735,197 (non-cash asset addition) In connection with the Shell asset purchase of trucks, and the commencement of related operations in January 2025, the Company executed fan additional our (4) operating leases greater than one year for office space and parking lots. These leases were as follows: Schedule of Operating Lease ROU Asset/Liability A Lease Location Start Date End Date Recognized Day 1 Monthly Payments Houston February 1, 2025 November 30, 2028 $ 175,928 $ 4,321 San Antonio January 17, 2025 August 31, 2027 173,647 $ 5,500 Dallas January 9, 2025 October 14, 2028 176,100 $ 4,372 Austin January 17, 2025 January 3, 2029 168,975 $ 3,975 $ 694,650 A - these monthly payments are subject to annual increases of approximately 2 % - 3 %. F- 56 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The tables below present information regarding the Company’s operating lease assets and liabilities at March 31, 2025 and December 31, 2024, respectively: Schedule of Operating Lease Assets and Liabilities March 31, 2025 December 31, 2024 Assets Operating lease - right-of-use asset - non-current $ 658,424 $ 61,151 Liabilities Operating lease liability $ 654,876 $ 69,128 Weighted-average remaining lease term (years) 3.35 0.25 Weighted-average discount rate 8 % 5 % The components of lease expense were as follows: Schedule of Components of Lease Expense March 31, 2025 March 31, 2024 Operating lease costs Amortization of right-of-use operating lease asset $ 36,226 $ 57,852 Lease liability expense in connection with obligation repayment 10,409 3,592 Total operating lease costs $ 46,635 $ 61,444 Supplemental cash flow information related to operating leases was as follows: Operating cash outflows from operating lease (obligation payment) $ 50,183 $ 52,373 Right-of-use asset obtained in exchange for new operating lease liability $ 694,650 $ - F- 57 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Future minimum lease payments under non-cancellable leases for the years ended December 31, were as follows: Schedule of Future Minimum Payments Under Non-Cancellable Leases 2025 (9 Months) $ 165,604 2026 228,353 2027 209,381 2028 142,217 Total undiscounted cash flows 745,555 Less: amount representing interest ( 90,679 ) Present value of operating lease liability 654,876 Less: current portion of operating lease liability 177,169 Long-term operating lease liability $ 477,707 Operating Leases – Related Party On August 1, 2023, the Company entered into a 48-month lease agreement for 1,200 square feet of office space owned by the Company’s Chief Technology Officer (CTO). ● Total Monthly Payment: $ 6,955 (inclusive of base rent, estimated operating expenses, and sales tax). ● Annual Increase: The lease is subject to a 3% annual escalation. ● Initial Right-of-Use (ROU) Asset: The Company recognized a non-cash ROU asset addition of $ 316,557 in accordance with ASC 842: Leases. Right-of-Use Asset - Lease Termination – Related Party On October 1, 2024, the existing lease was terminated with no additional consideration paid for early termination. Additionally, no penalties were incurred. For financial accounting purposes, the transaction was insignificant. New Right-of-Use Asset – Related Party On October 1, 2024, the Company signed a lease for 3,500 square feet of office space owned by the Company’s Chief Technology Officer. The lease term is 36 months, and the total monthly payment is $ 10,300 , including base rent, estimated operating expenses and sales tax. The lease is subject to a 3 % annual increase. An initial Right of Use (“ROU”) asset of $ 340,368 will be recognized as a non-cash asset addition. F- 58 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The tables below present information regarding the Company’s operating lease assets and liabilities at March 31, 2025 and December 31, 2024, respectively: Schedule of Operating Lease Assets and Liabilities March 31, 2025 December 31, 2024 Assets Operating lease - right-of-use asset - non-current $ 288,993 $ 314,957 Liabilities Operating lease liability $ 290,865 $ 315,893 Weighted-average remaining lease term (years) 2.50 2.75 Weighted-average discount rate 5 % 5 % The components of lease expense were as follows: Schedule of Components of Lease Expense March 31, 2025 March 31, 2024 Operating lease costs Amortization of right-of-use operating lease asset $ 25,964 $ 18,388 Lease liability expense in connection with obligation repayment 5,872 3,434 Total operating lease costs $ 31,836 $ 21,822 Supplemental cash flow information related to operating leases was as follows: Operating cash outflows from operating lease (obligation payment) $ 30,900 $ 20,865 Right-of-use asset obtained in exchange for new operating lease liability $ 340,368 $ - F- 59 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Future minimum lease payments under non-cancellable leases for the years ended December 31, were as follows: Schedule of Future Minimum Payments Under Non-Cancellable Leases 2025 (9 months) $ 93,627 2026 128,263 2027 98,345 Total undiscounted cash flows 320,235 Less: amount representing interest ( 29,370 ) Present value of operating lease liability 290,865 Less: current portion of operating lease liability 103,799 Long-term operating lease liability $ 187,066 Contingencies – Legal Matters The Company is subject to litigation claims arising in the ordinary course of business. The Company records litigation accruals for legal matters which are both probable and estimable and for related legal costs as incurred. The Company does not reduce these liabilities for potential insurance or third-party recoveries. As of March 31, 2025 and December 31, 2024, the Company is not aware of any litigation, pending litigation, or other transactions that require accrual or disclosure. Note 8 – Stockholders’ Deficit Change in Authorized Shares On June 14, 2024, the Company’s Board of Directors approved an increase in authorized common stock from 50,000,000 to 500,000,000 shares. This increase was made to: ● Support current and future equity financings, ● Facilitate conversions of preferred stock into common stock, ● Enable future stock-based compensation plans, and ● Provide flexibility for potential mergers, acquisitions, and other corporate transactions. As of March 31, 2025, the Company had four (4) classes of stock, detailed as follows: F- 60 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Preferred Stock The Company’s undesignated preferred stock provides flexibility for future corporate financing and strategic transactions. ● Authorized Shares: 5,000,000 ● Issued & Outstanding: None ● Par Value: $ 0.0001 per share ● Voting Rights: None ● Ranking: Senior to all other classes of stock, including Series A and Series B Preferred Stock, unless otherwise designated ● Dividends: None , unless declared by the Board of Directors ● Liquidation Preference: None ● Redemption Rights: None ● Conversion Rights: None The Board of Directors has the authority to issue preferred stock in one or more series and determine the rights, privileges, and restrictions of each series without further stockholder approval. Convertible Preferred Stock – Series A On August 16, 2024, the Company designated and issued Series A Convertible Preferred Stock as part of a debt-to-equity conversion. ● Authorized Shares: 513,000 ● Issued & Outstanding: 363,000 shares as of March 31, 2025 and December 31, 2024, respectively ● Par Value: $ 0.0001 per share ● Stated Value: $ 10 per share ● Conversion Terms: ○ Fixed conversion rate: 4.53 shares of common stock per Series A Preferred Stock ○ Conversion price: ■ Calculated as $10 per share ÷ 80% of the minimum trading price at issuance ($2.21 per share) ■ Results in a fixed number of common shares per preferred share ○ Total equivalent common shares at March 31, 2025 and December 31, 2024 were 1,644,022 , respectively ○ No variable number of shares are required for settlement F- 61 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 ● Dividend Provisions: ○ Rate: 10% per year (2.5% per quarter), accrued and payable in common stock ○ Calculation: ■ Shares issued × Stated value × Dividend percentage ÷ Fixed conversion price ($2.21/share) ○ No potential dilution beyond the fixed conversion amount ● Voting Rights: Equal to the number of converted common shares ● Liquidation Preference: None ● Redemption Rights: None ● Derivative Liability Assessment: ○ Evaluated under ASC 815 (“Derivatives and Hedging”) ○ The Series A Convertible Preferred Stock does not meet the definition of a derivative liability since its conversion feature is fixed and does not require a variable number of settlement shares. Convertible Preferred Stock – Series B On October 1, 2024, the Company designated and issued Series B Convertible Preferred Stock as part of a structured financing transaction. ● Authorized Shares: 150,000 ● Issued & Outstanding: 140,000 shares as of March 31, 2025 and December 31, 2024, respectively ● Par Value: $ 0.0001 per share ● Stated Value: $ 10 per share ● Conversion Terms: ○ Fixed conversion rate: 5.18 shares of common stock per Series B Preferred Stock ○ Conversion price: ■ Calculated as $10 per share ÷ 70% of the minimum trading price at issuance ($1.93 per share) ■ Results in a fixed number of common shares per preferred share ○ Total equivalent common shares at March 31, 2025 and December 31, 2024 were 724,638 , respectively ○ No variable number of shares are required for settlement ● Dividend Provisions: ○ Rate: 12% per year (3% per quarter), accrued and payable in common stock ○ Calculation: ■ Shares issued × Stated value × Dividend percentage ÷ Fixed conversion price ($1.93/share) ○ No potential dilution beyond the fixed conversion amount F- 62 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 ● Voting Rights: Equal to the number of converted common shares ● Liquidation Preference: None ● Redemption Rights: None ● Derivative Liability Assessment: ○ Evaluated under ASC 815 ○ The Series B Convertible Preferred Stock does not meet the definition of a derivative liability due to its fixed conversion price. Common Stock ● Authorized Shares: 500,000,000 ● Issued & Outstanding*: ○ 8,377,673 shares as of March 31, 2025 ○ 2,756,508 shares as of December 31, 2024 ● Par Value: $ 0.0001 per share ● Voting Rights: 1 vote per share ● Dividends: None *In connection with the common control merger, any shares issued to NextNRG Holding Corp., an entity under common control, are excluded from the total shares outstanding. This is because, under U.S. GAAP, a company cannot recognize an investment in itself. Accordingly, these shares are treated as constructively retired or held by the Company as treasury stock equivalent and are not considered outstanding for earnings per share or equity reporting purposes. Under ASC 810-10-45-1 and ASC 505-10-45-2, equity interests held by a parent, subsidiary, or an entity under common control in the reporting entity must be eliminated in consolidation. Similarly, shares held by entities consolidated into or controlled by the Company are treated as not outstanding, since they represent an indirect investment in the Company’s own equity. Securities and Incentive Plans The Company maintains stock-based compensation plans under which stock options, restricted stock, and other equity awards are granted to employees, directors, and consultants. Equity Transactions for the Three Months Ended March 31, 2025 Stock Issued for Cash and Warrants – Public Offering On February 18, 2025, the Company sold 5,000,000 shares of common stock for gross proceeds of $ 15,000,000 ($ 3 /share). In connection with this offering, the Company paid direct offering costs of $ 1,538,914 , resulting in net proceeds of $ 13,461,086 . F- 63 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The proceeds from the offering are expected to be used for: ● Expanding operations and infrastructure; ● Repaying outstanding debt; and ● Funding general corporate purposes, including working capital requirements Additionally, the Company granted the underwriter the option to purchase up to 750,000 additional over-allotment shares of common stock at $ 3 /share, for a period of 45 days (through March 3, 2025). In connection with this option, the Company issued an additional 75,378 shares of common stock for gross proceeds of $ 226,134 ($ 3 /share). In connection with this offering, the Company paid direct offering costs of $ 18,091 , resulting in net proceeds of $ 208,043 . The underwriter was also issued 250,000 warrants for services rendered in connection with the offering, which will be accounted for as a direct offering cost. These warrants are exercisable at $ 3.75 /share. These warrants are exercisable beginning 6 months after the grant date and for an additional 4 ½ years through February 13, 2030. Stock Issued for Services The Company issued 410,774 shares of common stock to consultants for services rendered, having a fair value of $ 1,468,391 ($ 2.72 - $ 3.90 /share), based upon the quoted closing trading price. Stock Issued as Loan Extension Fee In connection with the extension of loan #5, the Company was required to pay a fee of $ 150,000 in common stock. The Company issued 41,437 shares of common stock ($ 3.62 /share) and recorded additional interest expense. Series B Convertible Preferred Stock – Distribution – Related Party On February 13, 2025, immediately prior to the consummation of the common control merger, the Company effectuated a non-cash distribution of 1,400,000 shares of Series B Convertible Preferred Stock to its Chief Executive Officer, a related party. The transaction was executed in fulfillment of a previously established arrangement between the CEO and NextNRG LLC, a wholly owned subsidiary of the Company and former holder of the Series B shares. Under this arrangement, the CEO had advanced personal funds to NextNRG LLC to facilitate the original acquisition of the shares on behalf of the Company. As the transfer settled an internal capital funding obligation and involved no exchange of cash or services at the time of distribution, the transaction was accounted for as a capital contribution by a related party in accordance with ASC 505-10, Equity – Overall , and ASC 850-10, Related Party Disclosures . No gain or loss was recognized, and the Series B shares were recorded at par value, with the offset credited to additional paid-in capital. F- 64 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The CEO meets the definition of a related party under ASC 850-10-20, which includes executive officers and entities under their control. Furthermore, in accordance with SAB Topic 5.G and Regulation S-X Rule 4-08(k), the Company has disclosed this transaction due to the material nature of the capital stock transfer and its occurrence with a related party. This distribution did not impact the determination of net income (loss) available to common stockholders and was excluded from the calculation of earnings per share in accordance with ASC 260-10-45-59, as the issuance represented a capital transaction rather than an income or expense-generating event. Series A and B – Preferred Stock Dividends Payable in Common Stock In accordance with the terms of the Company’s Series A and B, Preferred stock, the Company is required to accrue dividends on a quarterly basis. Similar to the Series A and B, convertible preferred stock, dividends are accrued using a fixed conversion price. There are no other provisions that could result in a variable number of shares required for settlement in the future. Additionally, the Company has considered relevant accounting guidance, and has determined that there are no provisions related to its dividends that would require derivative liability treatment. At December 31, 2024, the Company had accrued dividends totaling $ 258,271 . In 2025, the Company issued 93,576 shares of common stock to settle the outstanding dividends due. F- 65 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The following is a summary of the Company’s dividends: Schedule of Dividends Payable Series A - Convertible Preferred Stock Series B - Convertible Preferred Stock Total Dividends Payable Shares issued and outstanding 363,000 140,000 Stated value per share $ 10 $ 10 Dividend rate (10%/12%) 10 % 12 % Dividend shares due per year 363,000 168,000 Market price - at issuance date 2.76 2.76 Minimum price - 70%/80% discount to market price 80 % 70 % Conversion price 2.21 1.93 Dividend shares due per quarter 41,101 21,739 62,840 Equivalent common shares - per year 164,402 86,957 251,359 The following represents the Company’s Series A and B convertible preferred stock quantity of shares due at March 31, 2025 and December 31, 2024: Schedule of Series A and B Convertible Preferred Stock Dividends Payable Series A - Convertible Preferred Stock Series B - Convertible Preferred Stock Total Dividends Payable December 31, 2024 61,204 32,372 93,576 Dividends payable, shares 61,204 32,372 93,576 Accrued dividends payable - Series A/B 41,101 21,739 62,840 Accrued dividends payable - Series A/B, shares 41,101 21,739 62,840 Payment of accrued dividends as common stock ( 61,204 ) ( 32,372 ) ( 93,576 ) Payment of accrued dividends as common stock, shares ( 61,204 ) ( 32,372 ) ( 93,576 ) March 31, 2025 41,101 21,739 62,840 Dividends payable, shares 41,101 21,739 62,840 The following represents the Company’s Series A and B convertible preferred stock valuation due at March 31, 2025 and December 31, 2024: Series A - Convertible Preferred Stock Series B - Convertible Preferred Stock Total Dividends Payable December 31, 2024 $ 168,923 $ 89,348 $ 258,271 Dividends payable $ 168,923 $ 89,348 $ 258,271 Accrued dividends payable - Series A/B 113,438 60,000 173,438 Payment of accrued dividends as common stock ( 168,923 ) ( 89,348 ) ( 258,271 ) March 31, 2025 $ 113,438 $ 60,000 $ 173,438 Dividends payable $ 113,438 $ 60,000 $ 173,438 F- 66 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Equity Transactions for the Years Ended December 31, 2024 Vesting of Board Director Common Stock Grants – Related Parties The Company issued 88,336 shares of common stock (par value of $ 9 ) in connection with the vesting of shares previously granted in 2023 to various board directors. The effect of issuing these shares had no net effect of stockholder’s deficit as the share issuance was reflected at par value. The Company recorded $ 251,334 of expense in 2024, related to the vesting of these shares in 2024. The Company issued 136,484 shares of common stock to various board directors for services rendered in 2024, having a fair value of $ 520,000 ($ 3.81 /share), based upon the quoted closing trading price. Total share based payments with board directors were $ 771,334 . Also, see Note 7 for the expense recorded in 2024 of $ 34,666 related to the vesting of shares for the Company’s Chief Technology Officer. Total share based payments (including vesting of prior period awards) with board directors and officers for the year ended December 31, 2024 totaled $ 806,000 . Stock Issued for Services The Company issued 212,730 shares of common stock to consultants for services rendered, having a fair value of $ 725,640 ($ 0.0001 - $ 3.52 /share), based upon the quoted closing trading price. Stock Issued to Settle Accounts Payable The Company issued 2,703 shares of common stock to a vendor for services rendered, having a fair value of $ 10,000 ($ 3.70 /share), based upon the quoted closing price. Series A, Preferred Stock Issued in Debt Conversion On August 16, 2024, the Company converted all outstanding principal ($ 2,420,000 ) and accrued interest ($ 0 ) into 363,000 share of Series A, Preferred Stock, $ 10 /share stated value. At the time of conversion, the lender executed a 150 % penalty interest feature. As a result, and just prior to conversion, the Company increased its interest expense and related debt by $ 1,210,000 for a total of $ 3,630,000 of debt that was converted. As a result of this debt conversion, the balance due to this lender was $ 0 . See Note 5 regarding debt conversion and related loss on debt extinguishment. F- 67 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Restricted Stock and Related Vesting A summary of the Company’s nonvested shares (due to service time based restrictions) as of March 31, 2025 and December 31, 2024, is presented below: Schedule of Company Nonvested Shares Weighted Average Number of Gant Date Non-Vested Shares Shares Fair Value Balance - December 31, 2023 114,336 6.40 Granted - - Vested ( 88,336 ) 5.15 Cancelled/Forfeited - - Balance - December 31, 2024 26,000 $ 6.40 Granted - Vested - Cancelled/Forfeited - Balance - March 31, 2025 26,000 $ 6.40 The Company has issued various equity grants to board directors, officers, consultants and employees. These grants typically contain a vesting period of one to three years and require services to be performed in order to vest in the shares granted. The Company determines the fair value of the equity grant on the issuance date based upon the quoted closing trading price. These amounts are then recognized as compensation expense over the requisite service period and are recorded as a component of general and administrative expenses in the accompanying consolidated statements of operations. The Company recognizes forfeitures of restricted shares as they occur rather than estimating a forfeiture rate. Any unvested share based compensation is reversed on the date of forfeiture, which is typically due to service termination. At March 31, 2025, unrecognized stock compensation expense related to restricted stock was $ 27,733 , which will be recognized over a weighted-average period of one 1 year. During the three months ended March 31, 2025 and 2024, the Company recognized compensation expense of $ 17,333 and $ 147,334 , related to the vesting of these shares. F- 68 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Warrants Warrant activity for the three months ended March 31, 2025 and December 31, 2024 are summarized as follows: Schedule of Stock Warrant Activity Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Warrants Warrants Price Term (Years) Value Outstanding - December 31, 2023 81,452 $ 10.36 1.22 $ 36,030 Vested and Exercisable - December 31, 2023 81,452 $ 10.36 1.22 $ 36,030 Unvested and non-exercisable - December 31, 2023 - $ - - $ - Granted - Exercised - Cancelled/Forfeited ( 35,107 ) $ 17.28 Outstanding - December 31, 2024 46,345 $ 5.12 0.65 $ 9,156 Vested and Exercisable - December 31, 2024 46,345 $ 5.12 0.65 $ 9,156 Unvested and non-exercisable - December 31, 2024 - $ - - $ - Granted 250,000 $ 3.75 Exercised - Cancelled/Forfeited ( 9,230 ) $ 3.01 Outstanding - March 31, 2025 287,115 $ 3.99 4.33 $ - Vested and Exercisable - March 31, 2025 287,115 $ 3.99 4.33 $ - Unvested and non-exercisable - March 31, 2025 - $ - - $ - Note 9 – Asset Purchase Agreement Yoshi, Inc. In 2024, the Company executed an asset purchase agreement with Yoshi, Inc. In connection with this transaction, the Company acquired various vehicles as part of a growth and expansion plan. The Company has access to and utilizes these vehicles for mobile fueling as part of its ongoing operations. Since the transaction did not close until February 2025, the payments made/due as of December 31, 2024, were classified as a component of deposit on future asset purchase totaling $ 2,035,283 . F- 69 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Consideration for this asset purchase consisted of the following: 1 Cash - $ 1,250,000 ; 2 Common Stock – 201,613 shares of common stock; having a fair value of $ 535,283 ($ 2.66 /share), based upon the quoted closing price; and 3 Note Payable - $ 250,000 1 At December 31, 2024, the Company had paid $ 650,000 . The balance of $ 600,000 was paid in February 2025. 2 All shares were issued as of December 31, 2024 3 At December 31, 2024, the $ 250,000 had not yet been paid. In February 2025, an additional $ 50,000 was repaid, leaving a remaining balance of $ 200,000 . Note 10 – Intangible Assets Year Ended December 31, 2024 Acquisition of Stat-EI, Inc. (Business Combination) In January 2024, the Company acquired 100 % of the equity interests in STAT in exchange for $ 5,500,000 . STAT has patented technology that will be used in the Company’s expected future operations. Prior to the acquisition, the operations of STAT were insignificant. In 2023, the Company paid a deposit of $ 250,000 towards this acquisition. In 2024, the Company paid an additional $ 1,550,000 for total cash consideration paid of $ 1,800,000 at closing. The balance of $ 3,700,000 was financed through a note payable. This note bears interest at 7 %, is unsecured was due in May 2024 (“initial maturity date”). The Company also has the option to extend the due date to July 2024 for no additional consideration or change in terms. Subsequent to the initial maturity date, the lender has agreed to extend the due date of the note multiple times, for payments of $ 130,000 , respectively. Each of these payments was recorded as interest expense. In October 2024, without any additional extension payments required, the Company repaid the note plus accrued interest totaling $ 3,826,112 . An additional $ 59,800 of accrued interest was forgiven by the lender and recorded as other income in the accompanying consolidated statements of operations during the year ended December 31, 20024. The Company has accounted for this transaction as a business combination. F- 70 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 The table below summarizes the estimated fair value of the assets acquired and liabilities assumed: Schedule of Estimated Fair Value of Assets Acquired and Liabilities Consideration Cash $ 1,800,000 Note payable 3,700,000 Fair value of consideration transferred $ 5,500,000 Recognized amounts of identifiable assets acquired and liabilities assumed: License agreements $ 4,900,000 Trademarks/Tradenames 600,000 Total assets acquired 5,500,000 Total identifiable net assets 5,500,000 Goodwill $ - The valuation of the intangible assets acquired was based upon an independent third party valuation specialist. At the time of acquisition, STAT had no revenues and historical losses from operations, it was deemed an immaterial acquisition and no additional financial reporting was required. See Note 5 for discussion of these intangible assets acquired from STAT in exchange for debt. Intangibles consisted of the following at March 31, 2025 and December 31, 2024, respectively: Schedule of Intangible Assets Estimated Useful Type March 31, 2025 December 31, 2024 Lives (Years) License agreements $ 4,900,000 $ 4,900,000 15 Tradenames/trademarks 600,000 600,000 5 Intangibles - gross 600,000 600,000 5 Less: accumulated amortization ( 558,333 ) ( 446,668 ) Intangibles - net $ 4,941,667 $ 5,053,332 F- 71 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Amortization expense for the three months ended March 31, 2025 and 2024 was $ 111,665 and $ 111,667 , respectively. There were no impairment losses for the three months ended March 31, 2025 and 2024, respectively. Estimated amortization expense for each of the five (5) succeeding years and thereafter is as follows: Schedule of Estimated Amortization Expense For the Years Ended December 31: 2025 (9 Months) $ 335,000 2026 446,667 2027 446,667 2028 446,667 2029 326,666 Thereafter 2,940,000 Total $ 4,941,667 Note 11 – Acquisition of Membership Interests in GSPP JEA Ingle FL, LLC – Accounted for as an Asset Acquisition – Solar Project Rights In 2024, a disbursement of $ 3,929,161 was made by Next/Ingle Holdings LLC, a subsidiary of NextNRG Holding Corp, to acquire 100 % of the membership interests in GSPP JEA Ingle FL, LLC, a project company controlled by GSPP Holdco III, LLC. GSPP JEA Ingle FL, LLC holds the rights to a utility-scale solar energy project located in Bryceville, Florida. The purchase price consisted of a $ 3,600,000 acquisition fee and reimbursement for previously incurred capitalized development costs of $ 329,161 for a total payment of $ 3,929,161 . These reimbursed costs included expenses related to securing a real estate option, engineering studies, and interconnection due diligence with the local utility. To facilitate the acquisition, NextNRG Holding Corp formed Next/Ingle Holdings LLC, in which it holds a 50% ownership interest, with the remaining 50% owned by Cohen Global Energy, LLC. Notwithstanding the split of ownership, NextNRG retains unilateral governing control over the entity, as outlined in the executed operating agreement. Next/Ingle Holdings LLC is a controlled holding company which has been consolidated into the Company, and shows a non-controlling interest for the 50% not owned. F- 72 NEXTNRG, INC. AND SUBSIDIARIES (FORMERLY KNOWN AS EZFILL HOLDINGS, INC.) NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2025 Next/Ingle Holdings LLC obtained a $ 5,000,100 loan from this third party to fund the acquisition (See Note 5). GSPP JEA Ingle FL, LLC had no employees, revenue-generating activities, or ongoing operations prior to the acquisition. Its only asset is the set of rights related to the Bryceville solar energy project, which is still in development. At the time of the transaction, the project was not yet operational; development activities were limited to permitting, feasibility analysis, and utility coordination. Given the absence of a workforce, no substantive processes, and no outputs, GSPP JEA Ingle FL, LLC does not meet the definition of a business under ASC 805-10-20. Instead, the transaction qualifies as an asset acquisition, with the solar project representing a single identifiable asset under development. Post-Acquisition Structure: ● NextNRG Holding Corp Formed Next/Ingle Holdings LLC ( 50 % owned by NextNRG, 50 % owned by Cohen Global Energy, LLC) Retains unilateral control over Next/Ingle Holdings LLC via operating agreement (this entity is consolidated with the Company and reflects a non-controlling interest for the 50 % not owned) ● Next/Ingle Holdings LLC Acquired 100 % of GSPP JEA Ingle FL, LLC from GSPP Holdco III, LLC Funded acquisition via $ 5,000,100 loan from Cohen Global ● GSPP JEA Ingle FL, LLC Holds rights to the Bryceville, FL solar project ● National Solar Continues as third-party developer supporting project execution Note 12 - Subsequent Events Subsequent to March 31, 2025, the Company had the following transactions: Notes Payable – Related Parties The Company executed multiple notes payable with its Chief Executive Officer. The notes have a face amount of $ 936,000 less original issue discounts of $ 108,000 , resulting in net proceeds of $ 828,000 . These notes bear interest at 12 % and are due at the earlier of (i) one-year (1) or (ii) the date the Company completes a capital raise of at least $ 4,000,000 . Right-of-Use Lease The Company executed a three-year (3) right-of-use operating lease in connection with its Oklahoma City location for an office and parking spaces. The Day 1 asset and liability was $ 99,482 . Stock Issued for Services The Company issued 5,645,882 shares of common stock to consultants for services rendered. Stock Options Granted The Company granted 3,979,000 five 5 year options to employees and consultants. The exercise price is $ 2.60 /share. The options vest over a period of four ( 4 ) years. F- 73