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Debt | 9 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2024 | Dec. 31, 2023
Restructuring Cost and Reserve [Line Items] |  |
Debt | Note 5 – Debt The following represents a summary of the Company’s debt (notes payable – related parties, third party debt for notes payable (including those owed on vehicles), and line of credit, including key terms, and outstanding balances at September 30, 2024 and December 31, 2023, respectively. Notes Payable – Related Parties The following is a summary of the Company’s notes payable – related parties at September 30, 2024 and December 31, 2023: Summary of Notes Payable
Balance - December 31, 2022 |  | $ | - |
Face amount of note |  |  |  |
Advances |  |  | 5,267,500 |
Debt discount/issue costs |  |  | (1,608,900 | )
Amortization of debt discount/issue costs |  |  | 1,406,015 |
Repayments |  |  | (262,500 | )
Balance - December 31, 2023 |  |  | 4,802,115 |
Advances |  |  | 3,630,000 |
Debt discount/issue costs - original issue discount |  |  | (330,000 | )
Debt discount/issue costs - stock issuances |  |  | (2,020,387 | )
Amortization of debt discount/issue costs |  |  | 2,553,272 |
Default penalty interest expense |  |  | 4,317,500 |
Conversion of debt - preferred stock |  |  | (3,630,000 | )
Conversion of debt - common stock |  |  | (9,322,500 | )
Balance - September 30, 2024 |  | $ | - |
EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 The following is a detail of the Company’s notes payable – related parties at September 30, 2024 and December 31, 2023: Schedule of Detailed Company’s Notes Payable
Notes Payable - Related Parties
Note Holder |  | Issue Date |  | Maturity Date |  |  | Shares Issued with Debt |  |  |  |  |  | Interest Rate |  |  |  | Default Interest Rate |  |  |  | Default Conversion Rate |  |  | Collateral |  |  | September 30, 2024 |  |  |  | December 31, 2023 |
Note #1 |  | April 19, 2023 |  | July 17, 2024 |  |  | 100,000 |  |  | A, B |  |  | 10.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  | $ | - |  |  | $ | 1,500,000 |
Note #2 |  | September 22, 2023 |  | July 17, 2024 |  |  | 60,000 |  |  | A, B |  |  | 10.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 600,000 |
Note #3 |  | October 13, 2023 |  | July 17, 2024 |  |  | 176,000 |  |  | A, B |  |  | 0.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 320,000 |
Note #4 |  | July 5, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 440,000 |
Note #5 |  | August 2, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 440,000 |
Note #6 |  | August 23, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 110,000 |
Note #7 |  | August 30, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 165,000 |
Note #8 |  | September 6, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 220,000 |
Note #9 |  | September 13, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 110,000 |
Note #10 |  | November 3, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 165,000 |
Note #11 |  | November 21, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 220,000 |
Note #12 |  | December 4, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 220,000 |
Note #13 |  | December 13, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 165,000 |
Note #14 |  | December 18, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 110,000 |
Note #15 |  | December 20, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 55,000 |
Note #16 |  | December 27, 2023 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | 165,000 |
Note #17 |  | January 5, 2024 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #18 |  | January 16, 2024 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #19 |  | January 25, 2024 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #20 |  | February 7, 2024 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #21 |  | February 20, 2024 |  | August 16, 2024 |  |  | - |  |  |  |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #22 |  | February 28, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #23 |  | March 8, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #24 |  | March 15, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #25 |  | March 26, 2024 |  | August 16, 2024 |  |  | 13,889 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #26 |  | April 2, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #27 |  | April 8, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #28 |  | April 22, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #29 |  | May 8, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #30 |  | May 15, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #31 |  | May 20, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #32 |  | May 28, 2024 |  | August 16, 2024 |  |  | 13,889 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #33 |  | June 10, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #34 |  | June 28, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #35 |  | July 5, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #36 |  | July 10, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #37 |  | July 22, 2024 |  | August 16, 2024 |  |  | 20,800 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #38 |  | August 6, 2024 |  | August 16, 2024 |  |  | 53,500 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
Note #39 |  | August 14, 2024 |  | August 16, 2024 |  |  | 53,500 |  |  | C |  |  | 8.00 | % |  |  | 18.00 | % |  |  | 150.00 | % |  | All assets |  |  | - |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | - |  |  |  | 5,005,000 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Less: unamortized debt discount |  |  | - |  |  |  | 202,885 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | - |  |  | $ | 4,802,115 |
EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024
A | See discussion below regarding global amendment for Notes #1, #2 and #3.
B | See discussion below regarding the limitation on the issuance of this lender due to a 9.99% equity ownership blocker.
C | These shares of common stock (425,978) were issued with the underlying original issue discount notes and treated as additional debt discount.
Year Ended December 31, 2023 Note #1 – Note Payable – Related Party - Material Stockholder greater than 5% and related Loss on Debt Extinguishment During 2023, the Company originally executed a six-month (6) note payable with a face amount of $1,500,000, less an original issue discount of $150,000, along with an additional $140,000 in transaction related fees (total debt discount and issue costs of $290,000), resulting in net proceeds of $1,210,000. The $290,000 in debt discounts and issuance costs are being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. In connection with obtaining this debt, the Company also committed 100,000 shares of common stock to the lender as additional interest expense (commitment fee). Under the terms of the agreement, only 40,000 shares of common stock were required to be issued on the commitment date resulting in a fair value of $256,000 ($6.40/share), based upon the quoted closing price. The Company recorded this amount as a debt discount which was being amortized over the life of the note. Total debt discounts recorded aggregated $546,000. See Note 8. In October 2023 (the initial maturity date), the Company executed a loan extension with the lender to extend the due date from October 2023 to April 2024. At this time, the remaining 60,000 shares were issued to the lender. The Company evaluated the modification of terms under ASC 470-50, “Debt - Modification and Extinguishment”, and concluded that the extension of the maturity date resulted in significant and consequential changes to the economic substance of the debt and thus resulted in an extinguishment of the debt. Specifically, on the date of modification, the Company determined that the present value of the cash flows of the modified debt instrument was greater than 10% different from the present value of the remaining cash flows under the original debt instrument. For the year ended December 31, 2023, the Company recorded a loss on debt extinguishment of $291,000 as follows: Schedule of Loss on Debt Extinguishment
Fair value of debt and common stock on extinguishment date* |  | $ | 1,791,000 |
Fair value of debt subject to modification |  |  | 1,500,000 |
Loss on debt extinguishment - related party |  | $ | 291,000 |
* |  | The Company valued the issuance of the 60,000 commitment shares at $291,000, based upon the quoted closing trading price on the date of modification ($4.85/share).
Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid. The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. See May 9, 2024 loan date extension below. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. See discussion regarding debt conversion below on August 16, 2024. Note #2 – Note Payable – Related Party - Material Stockholder greater than 5% During 2023, the Company executed a six-month (6) note payable with a face amount of $600,000, less an original issue discount of $60,000, along with an additional $28,900 in transaction related fees (total debt discount and issue costs in cash of $88,900), resulting in net proceeds of $511,100. In connection with obtaining this note, the Company also issued 60,000 shares of common stock to the lender having a fair value of $406,500, based upon the quoted closing trading price ($6.78/share). EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 The issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $495,400 which is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. See Note 8. While the note was initially due in March 2024, the Company had the right to extend the note by an additional six-months (6) to September 2024. The note was not formally extended on its maturity date, however, the lender has not given notice on default. Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid. The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. See May 9, 2024 loan date extension below. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. See discussion regarding debt conversion below on August 16, 2024. Note #3 – Note Payable – Related Party - Material Stockholder greater than 5% In October 2023, the Company executed a three-month (3) note payable with a face amount of $320,000, less an original issue discount of $48,000, resulting in net proceeds of $272,000. In connection with obtaining this note, the Company was required to issue 104,000 shares of common stock to the lender having a fair value of $539,760, based upon the quoted closing trading price ($5.19/share). However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. These shares are classified as common stock issuable in the accompanying consolidated balance sheets. The future issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $320,000 which is being amortized over the life of the note to interest expense. The aggregate discounts calculated above exceeded the face amount of the note and therefore were limited to the face amount of the note totaling $320,000. Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid. The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. See May 9, 2024 loan date extension below. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 In January 2024, with respect to Notes #2 and #3 discussed above, as a result of extending the note maturity dates as amended to April 19, 2024, the Company was required to issue 72,000 shares of common stock. However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. The Company determined the fair value of these shares was $270,000 ($3.75/share), based upon the quoted closing trading price, and recorded additional interest expense during the nine months ended September 30, 2024. See discussion regarding debt conversion below on August 16, 2024. Extension of Notes #1, #2 and #3 On May 9, 2024, with respect to Notes #1, #2 and #3 discussed above, as a result of extending the note maturity dates as amended to July 17, 2024, the Company was required to issue 66,000 shares of common stock. However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. The Company determined the fair value of these shares was $407,550 ($6.18/share), based upon the quoted closing trading price, and recorded additional interest expense during the nine months ended September 30, 2024. Debt Conversion to Series A Preferred Stock 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, 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 the debt conversion, the balance due to this lender was $0. The fair value of the Series A, preferred stock and related loss on debt extinguishment at the conversion date was based on the as-converted basis, calculated as follows: Schedule Of Debt Extinguishment
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 |
See Note 8 regarding features of this class of securities. Common Stock Issuable – Notes #1, #2 and #3 In connection with the conversion of these notes on August 16, 2024, 242,000 shares of common stock previously issuable were issued. The net effect on stockholders equity was $0. Notes #4 - #39 - Notes Payable – Related Party - Material Stockholder greater than 20% Nine Months Ended September 30, 2024 The Company executed several two-month (2) notes payable with an aggregate face amount of $3,630,000, less original issue discounts of $330,000, resulting in net proceeds of $3,300,000. In connection with obtaining these notes, the Company was required to issue 425,978 shares of common stock to the lender having a fair value of $2,020,387, based upon the quoted closing trading price ($2.81 - $7.10/share). In total, the Company recorded debt discounts/issuance costs totaling $2,350,387, which amortized over the life of these notes to interest expense. These notes are initially due two-months (2) from their issuance dates. If the notes reach maturity and are still outstanding, the notes and related accrued interest will automatically renew for successive two-month (2) periods. These notes bear interest at 8% for the 1st nine-months (9), then 18% each month thereafter. The lender is required to issue in writing any event of default. If an event of default occurs, all outstanding principal and accrued interest will be multiplied by 150% and become immediately due. Additionally, if the Company raises $3,000,000 (debt or equity based), the entire outstanding principal and accrued interest are immediately due. Finally, in an event of default, the lender has the right to convert any or all of the outstanding principal and accrued interest into common stock equal to the greater of the average VWAP closing price over the ten (10) trading days ending on the date of conversion or $1.75 (the floor price). In the event such a conversion were to occur, which can only happen by default, the Company would evaluate the potential for recording derivative liabilities. This lender is considered a related party as it is controlled by Michael Farkas, who is a greater than 20% stockholder in the Company. EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 Debt Conversion to Common Stock On August 16, 2024, the Company converted all outstanding principal ($6,215,000) and accrued interest ($316,130) into 3,525,341 shares of common stock. At the time of conversion, the lender executed a 150% penalty interest feature. As a result, the Company increased its interest expense and related debt by $3,265,565 for a total of $9,796,696 of debt that was converted. As a result of the debt conversion, the balance due to this lender was $0. The fair value of the common stock at the conversion date was $2.76/share. Accordingly, there was no gain or loss on debt extinguishment. See Note 8 regarding features of this class of securities. Additionally, in connection with this debt conversion, all remaining unamortized debt discount was recorded as interest expense. Year Ended December 31, 2023 During the year ended December 31, 2023, the Company executed several two-month (2) notes payable with an aggregate face amount of $2,585,000, less original issue discounts of $235,000, resulting in net proceeds of $2,350,000. These notes are initially due two-months (2) from their issuance dates. If the notes reach maturity and are still outstanding, the notes and related accrued interest will automatically renew for successive two-month (2) periods. These notes bear interest at 8% for the 1st nine-months (9), then 18% each month thereafter. The lender is required to issue in writing any event of default. If an event of default occurs, all outstanding principal and accrued interest will be multiplied by 150% and become immediately due. Additionally, if the Company raises $3,000,000 (debt or equity based), the entire outstanding principal and accrued interest are immediately due. Finally, in an event of default, the lender has the right to convert any or all of the outstanding principal and accrued interest into common stock equal to the greater of the average VWAP closing price over the ten (10) trading days ending on the date of conversion or $1.75 (the floor price). In the event such a conversion were to occur, which can only happen by default, the Company would evaluate the potential for recording derivative liabilities. At December 31, 2023, the Company was not in default on any of these notes and believed it was in compliance with all terms and conditions of the notes. This lender is considered a related party as it is controlled by Michael Farkas, who is a greater than 20% stockholder in the Company. Note Payable - Other Year Ended December 31, 2023 During 2023, an entity controlled by this majority stockholder (approximately 20% common stock ownership at that time) advanced unsecured working capital funds (net proceeds after original issue discount of $12,500 was $250,000) to the Company. In 2023, the note principal of $262,500 along with accrued interest of $13,125, aggregating $275,625 was repaid. Note Payable (non-vehicles) The following is a summary of the Company’s note payable (non-vehicles) at September 30, 2024 and December 31, 2023, respectively: Summary of Notes Payable
|  | Loan #1 |  |  | Loan #2 |  |  | Total |
Balance - December 31, 2022 |  | $ | - |  |  | $ | - |  |  | $ | - |
Face amount of note |  |  | 275,250 |  |  |  | - |  |  |  | 275,250 |
Debt discount |  |  | (25,250 | ) |  |  | - |  |  |  | (25,250 | )
Amortization of debt discount |  |  | 9,729 |  |  |  | - |  |  |  | 9,729 |
Repayments |  |  | (133,289 | ) |  |  | - |  |  |  | (133,289 | )
Balance - December 31, 2023 |  |  | 126,440 |  |  |  | - |  |  |  | 126,440 |
Face amount of note |  |  | - |  |  |  | 277,500 |  |  |  | 277,500 |
Debt discount |  |  | - |  |  |  | (27,500 | ) |  |  | (27,500 | )
Amortization of debt discount |  |  | 15,521 |  |  |  | 9,050 |  |  |  | 24,571 |
Repayments |  |  | (141,961 | ) |  |  | (93,281 | ) |  |  | (235,242 | )
Balance - September 30, 2024 |  | $ | - |  |  | $ | 165,769 |  |  | $ | 165,769 |
In April 2023, the Company executed a note payable with a face amount of $275,250. Under the terms of the agreement, the lender will withhold 8.9% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $275,250 (interest is $25,250). The $25,250 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. The Company received net proceeds of $250,000. In April 2024, the Company executed a note payable with a face amount of $277,500. Under the terms of the agreement, the lender will withhold 8.1% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $277,500 (interest is $27,500). The $27,500 is considered a debt issuance cost and will be amortized over the life of the note to interest expense. EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 This note represented the refinancing of the initial note from April 2023. Under the terms of the new agreement, the Company received net proceeds of $192,131, which is a result of the repayment of the outstanding balance of $57,869 on the date of refinancing (gross amount of note exclusive of interest was $250,000). On the date of refinancing, all previous outstanding unamortized debt discount associated with the initial advance (loan #1) will be expensed. The following is a detail of the Company’s note payable (non-vehicles) at September 30, 2024 and December 31, 2023, respectively: Schedule of Detailed Company’s Notes Payable
Note Payable
Issue Date |  | Maturity Date |  | Date Repaid |  | Collateral |  | September 30, 2024 |  |  | December 31, 2023 |
April 16, 2023 |  | December 12, 2024 |  | April 24, 2024 |  | All assets |  | $ | - |  |  | $ | 141,961 |
April 24, 2024 |  | October 21, 2025 |  | N/A |  | All assets |  |  | 184,219 |  |  |  | - |
|  |  |  |  |  | Less: unamortized debt discount |  |  | 18,450 |  |  |  | 15,521 |
|  |  |  |  |  |  |  | $ | 165,769 |  |  | $ | 126,440 |
Notes Payable - Vehicles The following is a summary of the Company’s notes payable for its vehicles at September 30, 2024 and December 31, 2023, respectively: Summary of Notes Payable
Balance - December 31, 2022 |  | $ | 2,009,896 |
Repayments |  |  | (836,618 | )
Balance - December 31, 2023 |  | $ | 1,173,278 |
Repayments |  |  | (613,713 | )
Balance - September 30, 2024 |  | $ | 559,565 |
The following is a detail of the Company’s notes payable for its vehicles at September 30, 2024 and December 31, 2023, respectively: Schedule of Detailed Company’s Notes Payable
Notes Payable - Vehicles
Issue Date |  | Maturity Date |  | Interest Rate |  |  | Default Interest Rate |  | Collateral |  | September 30, 2024 |  |  | December 31, 2023 |
January 15, 2021 |  | November 15, 2025 |  |  | 11.00 | % |  | N/A |  | This vehicle |  | $ | 17,964 |  |  | $ | 28,370 |
April 9, 2019 |  | February 17, 2024 |  |  | 4.90 | % |  | N/A |  | This vehicle |  |  | - |  |  |  | 1,873 |
December 15, 2021 |  | December 18, 2024 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 9,573 |  |  |  | 37,823 |
December 16, 2021 |  | December 18, 2024 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 9,371 |  |  |  | 37,023 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 12,743 |  |  |  | 40,911 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 12,743 |  |  |  | 40,911 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 12,743 |  |  |  | 40,911 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 12,743 |  |  |  | 40,911 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 15,567 |  |  |  | 43,046 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 15,567 |  |  |  | 43,046 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 15,890 |  |  |  | 43,944 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 15,566 |  |  |  | 43,045 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,235 |  |  |  | 50,157 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,235 |  |  |  | 50,157 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 23,235 |  |  |  | 51,157 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,547 |  |  |  | 50,862 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,573 |  |  |  | 50,925 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,573 |  |  |  | 50,925 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,573 |  |  |  | 50,925 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 22,573 |  |  |  | 50,925 |
August 4, 2022 |  | August 18, 2025 |  |  | 4.99 | % |  | N/A |  | This vehicle |  |  | 11,674 |  |  |  | 20,837 |
August 4, 2022 |  | August 18, 2025 |  |  | 4.99 | % |  | N/A |  | This vehicle |  |  | 11,675 |  |  |  | 20,838 |
November 1, 2021 |  | November 11, 2025 |  |  | 4.84 | % |  | N/A |  | This vehicle |  |  | 11,060 |  |  |  | 17,913 |
November 1, 2021 |  | November 11, 2025 |  |  | 0.00 | % |  | N/A |  | This vehicle |  |  | 11,256 |  |  |  | 18,572 |
November 1, 2021 |  | November 11, 2025 |  |  | 0.00 | % |  | N/A |  | This vehicle |  |  | 11,306 |  |  |  | 18,572 |
June 1, 2022 |  | May 23, 2026 |  |  | 0.90 | % |  | N/A |  | This vehicle |  |  | 16,613 |  |  |  | 24,035 |
June 1, 2022 |  | May 23, 2026 |  |  | 0.90 | % |  | N/A |  | This vehicle |  |  | 16,626 |  |  |  | 24,032 |
April 27, 2022 |  | May 10, 2027 |  |  | 9.05 | % |  | N/A |  | This vehicle |  |  | 86,289 |  |  |  | 107,047 |
April 27, 2022 |  | May 1, 2026 |  |  | 8.50 | % |  | N/A |  | This vehicle |  |  | 52,054 |  |  |  | 73,585 |
|  |  |  |  |  |  |  |  |  |  |  |  | 559,565 |  |  |  | 1,173,278 |
|  |  |  |  |  |  |  | Less: current portion |  |  | 213,706 |  |  |  | 819,788 |
|  |  |  |  |  |  |  | Long term portion |  | $ | 345,859 |  |  | $ | 353,490 |
EZFILL HOLDINGS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2024 Debt Maturities The following represents the maturities of the Company’s various debt arrangements as noted above for each of the five (5) succeeding years and thereafter as follows: Schedule of Maturities of Long Term Debt
For the Year Ended December 31, |  | Notes Payable |  |  | Vehicle Notes Payable |  |  | Total |
2024 (3 Months) |  | $ | - |  |  | $ | 206,094 |  |  | $ | 206,094 |
Remainder of year one |  | $ | - |  |  | $ | 206,094 |  |  | $ | 206,094 |
2025 |  |  | 165,769 |  |  |  | 279,162 |  |  |  | 444,931 |
2026 |  |  | - |  |  |  | 55,810 |  |  |  | 55,810 |
2027 |  |  | - |  |  |  | 18,499 |  |  |  | 18,499 |
2027 |  |  |  |  |  |  |  |  |  |  |  |
Total |  | $ | 165,769 |  |  | $ | 559,565 |  |  | $ | 725,334 |
Line of Credit Year Ended December 31, 2023 In 2021, the Company entered into a Securities-Based Line of Credit, Promissory Note, Security, Pledge and Guaranty Agreement (the “Line of Credit”) with City National Bank of Florida. The line of credit had an outstanding balance of $1,000,000 at December 31, 2022 and was repaid in 2023 for $1,008,813 (principal of $1,000,000 plus accrued interest of $8,813). To secure the repayment of the Credit Limit, the Bank had a first priority lien and continuing security interest in the securities held in the Company’s investment portfolio with the Bank. The Company liquidated its entire position in the investment portfolio in 2023. In connection with the repayment of the line of credit, no further advances had been made and the bank closed the line of credit. | Note 5 – Debt The following represents a summary of the Company’s debt (notes payable – related parties, third party debt for notes payable (including those owed on vehicles), and line of credit, including key terms, and outstanding balances at December 31, 2023 and 2022, respectively. Notes Payable – Related Parties The following is a summary of the Company’s notes payable – related parties at December 31, 2023 and 2022: Schedule of Notes Payable Related Parties
Balance - December 31, 2022 |  | $ | - |
Advances |  |  | 5,267,500 |
Debt discount/issue costs |  |  | (1,608,900 | )
Amortization of debt discount/issue costs |  |  | 1,406,015 |
Repayments |  |  | (262,500 | )
Balance - December 31, 2023 |  | $ | 4,802,115 |
EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 The following is a detail of the Company’s notes payable – related parties at December 31, 2023 and 2022: Schedule of Company’s Notes Payable Related Parties
Notes Payable - Related Parties
Note Holder |  | Issue Date |  | Maturity Date |  | Shares Issued with Debt |  |  | Interest Rate |  |  | Default Interest Rate |  |  | Collateral |  | December 31, 2023 |  |  | December 31, 2022 |
Note #1 |  | April 19, 2023 |  | April 19, 2024 |  |  | 100,000 |  |  |  | 10.00 | % |  |  | 18.00 | % |  | All assets |  | $ | 1,500,000 |  |  | $ | - |
Note #2 |  | September 22, 2023 |  | April 19, 2024 |  |  | 60,000 |  | A |  | 10.00 | % |  |  | 18.00 | % |  | All assets |  |  | 600,000 |  |  |  | - |
Note #3 |  | October 13, 2023 |  | April 19, 2024 |  |  | 104,000 |  | B |  | 0.00 | % |  |  | 18.00 | % |  | All assets |  |  | 320,000 |  |  |  | - |
Note #4 |  | July 5, 2023 |  | January 5, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 440,000 |  |  |  | - |
Note #5 |  | August 2, 2023 |  | February 2, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 440,000 |  |  |  | - |
Note #6 |  | August 23, 2023 |  | February 23, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 110,000 |  |  |  | - |
Note #7 |  | August 30, 2023 |  | February 29, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 165,000 |  |  |  | - |
Note #8 |  | September 6, 2023 |  | January 6, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 220,000 |  |  |  | - |
Note #9 |  | September 13, 2023 |  | January 13, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 110,000 |  |  |  | - |
Note #10 |  | November 3, 2023 |  | January 3, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 165,000 |  |  |  | - |
Note #11 |  | November 21, 2023 |  | January 21, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 220,000 |  |  |  | - |
Note #12 |  | December 4, 2023 |  | February 4, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 220,000 |  |  |  | - |
Note #13 |  | December 13, 2023 |  | February 13, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 165,000 |  |  |  | - |
Note #14 |  | December 18, 2023 |  | February 18, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 110,000 |  |  |  | - |
Note #15 |  | December 20, 2023 |  | February 20, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 55,000 |  |  |  | - |
Note #16 |  | December 27, 2023 |  | February 27, 2024 |  |  | - |  |  |  | 8.00 | % |  |  | 18.00 | % |  | All assets |  |  | 165,000 |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,005,000 |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  | Less: unamortized debt discount |  |  | 202,885 |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,802,115 |  |  | $ | - |
A | See discussion below regarding global amendment for Notes #2 and #3.
B | See discussion below regarding the limitation on the issuance of this lender due to a 9.99% equity ownership blocker.
Note #1 – Note Payable – Related Party - Material Stockholder greater than 5% and related Loss on Debt Extinguishment The Company originally executed a six-month (6) note payable with a face amount of $1,500,000, less an original issue discount of $150,000, along with an additional $140,000 in transaction related fees (total debt discount and issue costs of $290,000), resulting in net proceeds of $1,210,000. The $290,000 in debt discounts and issuance costs are being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 In connection with obtaining this debt, the Company also committed 100,000 shares of common stock to the lender as additional interest expense (commitment fee). Under the terms of the agreement, only 40,000 shares of common stock were required to be issued on the commitment date resulting in a fair value of $256,000 ($6.40/share), based upon the quoted closing price. The Company recorded this amount as a debt discount which is being amortized over the life of the note. Total discounts recorded aggregated $546,000. See Note 8. In October 2023 (the initial maturity date), the Company executed a loan extension with the lender to extend the due date from October 2023 to April 2024. At this time, the remaining 60,000 shares were issued to the lender. The Company evaluated the modification of terms under ASC 470-50, “Debt - Modification and Extinguishment”, and concluded that the extension of the maturity date resulted in significant and consequential changes to the economic substance of the debt and thus resulted in an extinguishment of the debt. Specifically, on the date of modification, the Company determined that the present value of the cash flows of the modified debt instrument was greater than 10% different from the present value of the remaining cash flows under the original debt instrument. As a result, the Company recorded a loss on debt extinguishment of $291,000 as follows: Schedule of Loss on Debt Extinguishment
Fair value of debt and common stock on extinguishment date* |  | $ | 1,791,000 |
Fair value of debt subject to modification |  |  | 1,500,000 |
Loss on debt extinguishment - related party |  | $ | 291,000 |
* |  | The Company valued the issuance of the 60,000 commitment shares at $291,000, based upon the quoted closing trading price on the date of modification ($4.85/share).
This note also contains a conversion feature only upon an event of default. The conversion feature is equal to the greater of (a) $3.85 and (b) the lower of (i) the average VWAP over the ten (10) trading day period preceding conversion. Additionally, the note contains an anti-dilution right in the form of a ratchet feature. If at the time of eligible conversion (only if Company is in default) common stock is sold or other debt is converted into common stock at a price lower than the defined conversion price under the terms of this note, the conversion price of this note will be reduced to the lower amount. The Company has determined that in the event of default, the note at that time will be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. At December 31, 2023, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. Note #2 – Note Payable – Related Party - Material Stockholder greater than 5% The Company executed a six-month (6) note payable with a face amount of $600,000, less an original issue discount of $60,000, along with an additional $28,900 in transaction related fees (total debt discount and issue costs in cash of $88,900), resulting in net proceeds of $511,100. In connection with obtaining this note, the Company also issued 60,000 shares of common stock to the lender having a fair value of $406,500, based upon the quoted closing trading price ($6.78/share). The issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $495,400 which is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. See Note 8. While the note is initially due in March 2024, the Company has the right to extend the note by an additional six-months (6) to September 2024. Subsequent to December 31, 2023, pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid. The Company has determined that in the event of default, the note at that time will be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 At December 31, 2023, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. Note #3 – Note Payable – Related Party - Material Stockholder greater than 5% In October 2023, the Company executed a three-month (3) note payable with a face amount of $320,000, less an original issue discount of $48,000, resulting in net proceeds of $272,000. In connection with obtaining this note, the Company was required to issue 104,000 shares of common stock to the lender having a fair value of $539,760, based upon the quoted closing trading price ($5.19/share). However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. These shares are classified as common stock issuable in the accompanying consolidated balance sheets. The future issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $320,000 which is being amortized over the life of the note to interest expense. The aggregate discounts calculated above exceeded the face amount of the note and therefore were limited to the face amount of the note totaling $320,000. Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid. The Company has determined that in the event of default, the note at that time will be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods. This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default. At December 31, 2023, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock. Subsequent to the year ended December 31, 2023, in January 2024, with respect to Notes #2 and #3 discussed above, as a result of extending the note maturity dates as amended to April 19, 2024, the Company is required to issue 72,000 shares of common stock. However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. These shares will be classified as common stock issuable. The Company determined the fair value of these shares to be $270,000 ($3.75/share), based upon the quoted closing trading price. These shares will be recorded as additional interest expense. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 Notes #4 - #16 - Notes Payable – Related Party - Material Stockholder greater than 20% During the year ended December 31, 2023, the Company executed several two-month (2) notes payable with an aggregate face amount of $2,585,000, less original issue discounts of $235,000, resulting in net proceeds of $2,350,000. These notes are initially due two-months (2) from their issuance dates. If the notes reach maturity and are still outstanding, the notes and related accrued interest will automatically renew for successive two-month (2) periods. These notes bear interest at 8% for the 1st nine-months (9), then 18% each month thereafter. The lender is required to issue in writing any event of default. If an event of default occurs, all outstanding principal and accrued interest will be multiplied by 150% and become immediately due. Additionally, if the Company raises $3,000,000 (debt or equity based), the entire outstanding principal and accrued interest are immediately due. Finally, in an event of default, the lender has the right to convert any or all of the outstanding principal and accrued interest into common stock equal to the greater of the average VWAP closing price over the ten (10) trading days ending on the date of conversion or $1.75 (the floor price). In the event such a conversion were to occur, which can only happen by default, the Company would evaluate the potential for recording derivative liabilities. At December 31, 2023, the Company is not in default on any of these notes and believes it is in compliance with all terms and conditions of the notes. This lender is considered a related party as it is controlled by Michael Farkas, an approximate 20% stockholder in the Company. Note Payable - Other During 2023, an entity controlled by this majority stockholder (approximately 20% common stock ownership) advanced unsecured working capital funds (net proceeds after original issue discount of $12,500 was $250,000) to the Company. In 2023, the note principal of $262,500 along with accrued interest of $13,125, aggregating $275,625 was repaid. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 Note Payable (non-vehicles) The following is a summary of the Company’s note payable (non-vehicles) at December 31, 2023 and 2022, respectively: Schedule of Notes Payable Non - Vehicles
Balance - December 31, 2022 |  | $ | - |
Face amount of note |  |  | 275,250 |
Debt discount |  |  | (25,250 | )
Amortization of debt discount |  |  | 9,729 |
Repayments |  |  | (133,289 | )
Balance - December 31, 2023 |  | $ | 126,440 |
The Company executed a note payable with a face amount of $275,250. Under the terms of the agreement, the lender will withhold 8.9% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $275,250 (interest is $25,250 or approximately 10% of the note amount). The $25,250 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. The Company received net proceeds of $250,000. The following is a detail of the Company’s note payable (non-vehicles) at December 31, 2023 and 2022, respectively:
| Notes Payable
| Issue Date |  | Maturity Date |  | Interest Rate |  | Default Interest Rate |  | Collateral |  | December 31, 2023 |  |  | December 31, 2022 |
| April 16, 2023 |  | December 12, 2024 |  | * |  | N/A |  | All assets |  | $ | 141,961 |  |  | $ | - |
* | initially 6.5%, however, subject to change at each reporting period. |  | Less: unamortized debt discount |  |  | 15,521 |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  | $ | 126,440 |  |  | $ | - |
Notes Payable - Vehicles The following is a summary of the Company’s notes payable for its vehicles at December 31, 2023 and 2022, respectively: Schedule of Notes Payable for Vehicles
Balance - December 31, 2021 |  | $ | 476,313 |
Acquisition of vehicles in exchange for notes payable |  |  | 2,166,643 |
Repayments |  |  | (633,060 | )
Balance - December 31, 2022 |  |  | 2,009,896 |
Repayments |  |  | (836,618 | )
Balance - December 31, 2023 |  | $ | 1,173,278 |
EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 The following is a detail of the Company’s notes payable for its vehicles at December 31, 2023 and 2022, respectively: Schedule of the Company’s Notes Payable for Vehicles
Notes Payable - Vehicles
Issue Date |  | Maturity Date |  | Interest Rate |  |  | Default Interest Rate |  | Collateral |  | December 31, 2023 |  |  | December 31, 2022 |
January 15, 2021 |  | November 15, 2025 |  |  | 11.00 | % |  | N/A |  | This vehicle |  | $ | 28,370 |  |  | $ | 40,976 |
April 9, 2019 |  | December 12, 2023 |  |  | 7.44 | % |  | N/A |  | This vehicle |  |  | - |  |  |  | 8,174 |
April 9, 2019 |  | December 12, 2023 |  |  | 7.44 | % |  | N/A |  | This vehicle |  |  | - |  |  |  | 6,986 |
April 9, 2019 |  | February 17, 2024 |  |  | 4.90 | % |  | N/A |  | This vehicle |  |  | 1,873 |  |  |  | 10,670 |
December 15, 2021 |  | December 18, 2024 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 37,823 |  |  |  | 74,357 |
December 16, 2021 |  | December 18, 2024 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 37,023 |  |  |  | 72,784 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 40,911 |  |  |  | 83,505 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 40,911 |  |  |  | 83,505 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 40,911 |  |  |  | 83,505 |
January 11, 2022 |  | January 25, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 40,911 |  |  |  | 83,505 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 43,046 |  |  |  | 78,585 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 43,046 |  |  |  | 78,585 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 43,944 |  |  |  | 80,226 |
February 8, 2022 |  | February 10, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 43,045 |  |  |  | 78,585 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,157 |  |  |  | 86,271 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,157 |  |  |  | 86,271 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 51,157 |  |  |  | 86,270 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,862 |  |  |  | 87,481 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,925 |  |  |  | 87,594 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,925 |  |  |  | 87,594 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,925 |  |  |  | 87,594 |
April 5, 2022 |  | April 20, 2025 |  |  | 3.50 | % |  | N/A |  | This vehicle |  |  | 50,925 |  |  |  | 87,594 |
August 4, 2022 |  | August 18, 2025 |  |  | 4.99 | % |  | N/A |  | This vehicle |  |  | 20,837 |  |  |  | 32,536 |
August 4, 2022 |  | August 18, 2025 |  |  | 4.99 | % |  | N/A |  | This vehicle |  |  | 20,838 |  |  |  | 32,536 |
November 1, 2021 |  | November 11, 2025 |  |  | 4.84 | % |  | N/A |  | This vehicle |  |  | 17,913 |  |  |  | 26,578 |
November 1, 2021 |  | November 11, 2025 |  |  | 0.00 | % |  | N/A |  | This vehicle |  |  | 18,572 |  |  |  | 28,261 |
November 1, 2021 |  | November 11, 2025 |  |  | 0.00 | % |  | N/A |  | This vehicle |  |  | 18,572 |  |  |  | 28,261 |
June 1, 2022 |  | May 23, 2026 |  |  | 0.90 | % |  | N/A |  | This vehicle |  |  | 24,035 |  |  |  | 33,813 |
June 1, 2022 |  | May 23, 2026 |  |  | 0.90 | % |  | N/A |  | This vehicle |  |  | 24,032 |  |  |  | 33,813 |
April 27, 2022 |  | May 10, 2027 |  |  | 9.05 | % |  | N/A |  | This vehicle |  |  | 107,047 |  |  |  | 132,246 |
April 27, 2022 |  | May 1, 2026 |  |  | 8.50 | % |  | N/A |  | This vehicle |  |  | 73,585 |  |  |  | 101,237 |
|  |  |  |  |  |  |  |  |  |  |  |  | 1,173,278 |  |  |  | 2,009,896 |
|  |  |  |  |  |  |  |  |  | Less: current portion |  |  | 819,788 |  |  |  | 811,516 |
|  |  |  |  |  |  |  |  |  | Long term portion |  | $ | 353,490 |  |  | $ | 1,198,380 |
EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022 Debt Maturities The following represents the maturities of the Company’s various debt arrangements for each of the five (5) succeeding years and thereafter as follows: Schedule of Maturities of Long Term Debt
For the Year Ended December 31, |  | Notes Payable - Related Parties |  |  | Notes Payable |  |  | Vehicles |  |  | Total |
2024 |  | $ | 4,802,115 |  |  | $ | 126,440 |  |  | $ | 819,788 |  |  | $ | 5,748,343 |
Year one |  | $ | 4,802,115 |  |  | $ | 126,440 |  |  | $ | 819,788 |  |  | $ | 5,748,343 |
2025 |  |  | - |  |  |  | - |  |  |  | 282,212 |  |  |  | 282,212 |
Year two |  |  | - |  |  |  | - |  |  |  | 282,212 |  |  |  | 282,212 |
2026 |  |  | - |  |  |  | - |  |  |  | 55,827 |  |  |  | 55,827 |
Year three |  |  | - |  |  |  | - |  |  |  | 55,827 |  |  |  | 55,827 |
2027 |  |  | - |  |  |  | - |  |  |  | 15,451 |  |  |  | 15,451 |
Year four |  |  | - |  |  |  | - |  |  |  | 15,451 |  |  |  | 15,451 |
Total |  | $ | 4,802,115 |  |  | $ | 126,440 |  |  | $ | 1,173,278 |  |  | $ | 6,101,833 |
Line of Credit On December 10, 2021, the Company entered into a Securities-Based Line of Credit, Promissory Note, Security, Pledge and Guaranty Agreement (the “Line of Credit”) with City National Bank of Florida. Pursuant to the revolving Line of Credit, the Company may borrow up to the Credit Limit, determined from time to time in the sole discretion of the Bank. The Credit Limit was $0 and $3,000,000 at December 31, 2023 and 2022, respectively. Outstanding borrowings under the line of credit were $0 and $3,000,000 at December 31, 2023 and 2022, respectively. The line of credit was repaid in September 2023 for $1,008,813 (principal of $1,000,000 plus accrued interest of $8,813). To secure the repayment of the Credit Limit, the Bank had a first priority lien and continuing security interest in the securities held in the Company’s investment portfolio with the Bank. The Company liquidated its entire position in the investment portfolio during the second quarter of 2023. The amount outstanding under the Line of Credit bore interest equal to the Reference Rate plus the Spread (as defined in the Line of Credit) in effect each day. Interest was due and payable monthly in arrears. The interest rate on the Line of Credit was 5.75% at December 31, 2022. The Bank could, at any time, without notice, and at its sole discretion, demand the repayment of the outstanding line of credit. In connection with the repayment of the line of credit, no further advances had been made and the bank closed the line of credit. EZFILL HOLDING, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022
Next NRG Holding Corp [Member] |  |
Restructuring Cost and Reserve [Line Items] |  |
Debt | Note 7 – Debt The following represents a summary of the Company’s debt (notes payable – related party and notes payable), key terms and outstanding balances at September 30, 2024 and December 31, 2023, respectively: Schedule of Notes Payable Related Parties
|  | Notes Payable |  |  |  |  |  |  |
|  | Related Party |  |  | Notes Payable |  |  | Total |
Balance - December 31, 2022 |  | $ | 34,650 |  |  | $ | - |  |  | $ | 34,650 |
Proceeds |  |  | 3,835,000 |  |  |  | - |  |  |  | 3,835,000 |
Balance - December 31, 2023 |  |  | 3,869,650 |  |  |  | - |  |  |  | 3,869,650 |
Proceeds |  |  | 6,928,000 |  |  |  | 11,076,250 |  |  |  | 18,004,250 |
Repayments |  |  | (149,650 | ) |  |  | (4,444,219 | ) |  |  | (4,593,869 | )
Debt discount |  |  | - |  |  |  | (2,113,215 | ) |  |  | (2,113,215 | )
Amortization of debt discount |  |  | - |  |  |  | 1,210,625 |  |  |  | 1,210,625 |
Balance - September 30, 2024 |  | $ | 10,648,000 |  |  | $ | 5,729,442 |  |  | $ | 16,377,442 |
NEXTNRG HOLDING CORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (UNAUDITED) Notes Payable – Related Party The following is a detail of the Company’s notes payable – related party at September 30, 2024 and December 31, 2023, respectively: Schedule of Detailed Company’s Notes Payable
Notes Payable - Related Party
Note Holder |  | Issue Date |  | Maturity Date |  | Interest Rate |  |  | Default Interest Rate |  |  | Marketable Securities Received |  |  | Fair Value of Securities Received |  |  | Collateral |  |  | September 30, 2024 |  |  | December 31, 2023 |
Note #1 |  | January 1, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  | $ | 8,600 |
Note #2 |  | January 3, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 30 |
Note #3 |  | March 4, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 20 |
Note #4 |  | May 18, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 25 |
Note #5 |  | June 24, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 25 |
Note #6 |  | August 31, 2020 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 100 |
Note #7 |  | March 1, 2021 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 100 |
Note #8 |  | April 19, 2021 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 250 |
Note #9 |  | September 3, 2021 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 500 |
Note #10 |  | September 9, 2021 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 25,000 |
Note #11 |  | May 4, 2023 |  | August 31, 2024 |  |  | 10.00 | % |  |  | 0.00 | % |  |  | None | A |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 15,000 |
Note #12 |  | May 30, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | - |  |  |  | 100,000 |
Note #13 |  | June 7, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 100,000 |  |  |  | 100,000 |
Note #14 |  | June 29, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 10,000 |  |  |  | 10,000 |
Note #15 |  | July 3, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 250,000 |  |  |  | 250,000 |
Note #16 |  | July 5, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 200,000 |  |  |  | 200,000 |
Note #17 |  | July 27, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 100,000 |  |  |  | 100,000 |
Note #18 |  | August 2, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 100,000 |  |  |  | 100,000 |
Note #19 |  | August 8, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 80,000 |  |  |  | 80,000 |
Note #20 |  | August 15, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 200,000 |  |  |  | 200,000 |
Note #21 |  | August 23, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 150,000 |  |  |  | 150,000 |
Note #22 |  | August 30, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 170,000 |  |  |  | 170,000 |
Note #23 |  | September 6, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 250,000 |  |  |  | 250,000 |
Note #24 |  | September 8, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 1,000,000 |  |  |  | 1,000,000 |
Note #25 |  | September 13, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 100,000 |  |  |  | 100,000 |
Note #26 |  | September 22, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 75,000 |  |  |  | 75,000 |
Note #27 |  | October 30, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 10,000 |  |  |  | 10,000 |
Note #28 |  | November 2, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 50,000 |  |  |  | 50,000 |
Note #29 |  | November 3, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 150,000 |  |  |  | 150,000 |
Note #30 |  | November 8, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 250,000 |  |  |  | 250,000 |
Note #31 |  | November 15, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 75,000 |  |  |  | 75,000 |
Note #32 |  | November 21, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 200,000 |  |  |  | 200,000 |
Note #33 |  | December 5, 2023 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None | B |  |  | - |  |  | Unsecured |  |  |  | 200,000 |  |  |  | 200,000 |
Note #34 |  | February 21, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 45,000 |  |  |  | - |
Note #35 |  | February 28, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 100,360 |  |  | Unsecured |  |  |  | 300,000 |  |  |  | - |
Note #36 |  | March 4, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 50,000 |  |  |  | - |
Note #37 |  | March 7, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 100,000 |  |  |  | - |
Note #38 |  | March 8, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 95,680 |  |  | Unsecured |  |  |  | 185,000 |  |  |  | - |
Note #39 |  | March 14, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #40 |  | March 15, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 91,520 |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #41 |  | March 25, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #42 |  | March 26, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 13,889 | C |  |  | 58,333 |  |  | Unsecured |  |  |  | 100,000 |  |  |  | - |
Note #43 |  | March 27, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 135,000 |  |  |  | - |
Note #45 |  | April 2, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 108,680 |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #46 |  | April 4, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 135,000 |  |  |  | - |
Note #47 |  | April 8, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 132,080 |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #48 |  | April 11, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 145,000 |  |  |  | - |
Note #49 |  | April 18, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #50 |  | April 22, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 120,640 |  |  | Unsecured |  |  |  | 175,000 |  |  |  | - |
Note #51 |  | April 25, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 115,000 |  |  |  | - |
Note #52 |  | May 2, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 200,000 |  |  |  | - |
Note #53 |  | May 8, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 147,680 |  |  | Unsecured |  |  |  | 300,000 |  |  |  | - |
Note #54 |  | May 15, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 130,520 |  |  | Unsecured |  |  |  | 300,000 |  |  |  | - |
Note #55 |  | May 20, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 130,000 |  |  | Unsecured |  |  |  | 175,000 |  |  |  | - |
Note #56 |  | May 23, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 175,000 |  |  |  | - |
Note #57 |  | May 28, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 13,889 | C |  |  | 84,374 |  |  | Unsecured |  |  |  | 300,000 |  |  |  | - |
Note #58 |  | June 5, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 180,000 |  |  |  | - |
Note #59 |  | June 10, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 104,520 |  |  | Unsecured |  |  |  | 280,000 |  |  |  | - |
Note #60 |  | June 13, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 50,000 |  |  |  | - |
Note #61 |  | June 20, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  | - |  |  | Unsecured |  |  |  | 283,000 |  |  |  | - |
Note #62 |  | June 27, 2024 |  | August 31, 2024 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 99,839 |  |  | Unsecured |  |  |  | 150,000 |  |  |  | - |
Note #63 |  | July 5, 2024 |  | July 5, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 122,200 |  |  | Unsecured |  |  |  | 300,000 |  |  |  |  |
Note #64 |  | July 10, 2024 |  | July 10, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 96,200 |  |  | Unsecured |  |  |  | 150,000 |  |  |  |  |
Note #65 |  | July 11, 2024 |  | July 11, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  |  |  |  | Unsecured |  |  |  | 175,000 |  |  |  |  |
Note #66 |  | July 18, 2024 |  | July 18, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 20,800 | C |  |  | 97,760 |  |  | Unsecured |  |  |  | 440,000 |  |  |  |  |
Note #67 |  | July 25, 2024 |  | July 25, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  |  |  |  | Unsecured |  |  |  | 185,000 |  |  |  |  |
Note #68 |  | August 1, 2024 |  | August 1, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 53,500 | C |  |  | 150,068 |  |  | Unsecured |  |  |  | 300,000 |  |  |  |  |
Note #69 |  | August 19, 2024 |  | August 19, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | 53,500 | C |  |  | 155,150 |  |  | Unsecured |  |  |  | 265,000 |  |  |  |  |
Note #70 |  | August 26, 2024 |  | August 26, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  |  |  |  | Unsecured |  |  |  | 35,000 |  |  |  |  |
Note #71 |  | September 23, 2024 |  | September 23, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  |  |  |  | Unsecured |  |  |  | 150,000 |  |  |  |  |
Note #72 |  | September 26, 2024 |  | September 26, 2025 |  |  | 18.00 | % |  |  | 0.00 | % |  |  | None |  |  |  |  |  |  | Unsecured |  |  |  | 150,000 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | 425,978 |  |  | $ | 2,025,604 |  |  |  |  |  | $ | 10,648,000 |  |  | $ | 3,869,650 |
A |  | – These notes have a stated interest rate of 4-5%. The Company has recorded an additional 5-6% of imputed interest (10% in total) to reflect the market rate for this type of debt.
B |  | – Prior to January 1, 2024, these notes had a stated interest rate of 4%-5%. The Company had recorded an additional 5%-6% of imputed interest (10% total) to reflect the market rate for this type of debt. Effective January 1, 2024, these notes were amended to reflect an interest rate of 18%, as a result, the Company no longer imputes interest on these notes. There were no other changes to the terms of these notes.
C |  | - These shares have been recorded at fair value on the consolidated balance sheets. These represent shares held in EZFL (marketable securities – related party – see note 3) in connection with advances made to EZFL.
During the nine months ended September 30, 2024 and the year ended December 31, 2023, the Company received advances of $6,928,000 and $2,150,000, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded imputed interest expense of $742 and $0, respectively. See Note 8. During the nine months ended September 30, 2024 and the year ended December 31, 2023, the Company promissory notes totaling $149,650 and $0, respectively. NEXTNRG HOLDING CORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (UNAUDITED) Notes Payable The following is a detail of the Company’s notes payable at September 30, 2024 and December 31, 2023, respectively: Schedule of Company’s Notes Payable
Notes Payable
Note Holder |  | Issue Date |  | Maturity Date |  | Interest Rate |  | Default Interest Rate |  |  | Collateral |  |  | September 30, 2024 |  |  | December 31, 2023 |
Note #1 |  | January 19, 2024 |  | May 24, 2024 |  |  |  |  | 0.00 | % |  | Unsecured | A |  | $ | 3,700,000 |  |  | $ | - |
Note #2 |  | January 19, 2024 |  | August 19, 2024 |  | Included in repayments |  |  | 0.00 | % |  | All assets | B |  |  | - |  |  |  | - |
Note #3 |  | January 19, 2024 |  | August 19, 2024 |  | Included in repayments |  |  | 0.00 | % |  | All assets | C |  |  | - |  |  |  | - |
Note #4 |  | August 16, 2024 |  | February 28, 2025 |  | Included in repayments |  |  | 0.00 | % |  | All assets | D |  |  | 1,433,438 |  |  |  |  |
Note #5 |  | August 16, 2024 |  | February 28, 2025 |  | Included in repayments |  |  | 0.00 | % |  | All assets | D |  |  | 1,498,594 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,632,031 |  |  |  | - |
|  |  |  |  |  |  |  |  | Less: unamortized debt discount |  |  |  | 902,590 |  |  |  | - |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 5,729,442 |  |  | $ | - |
A |  | - Represents amount of consideration owed in connection with the purchase of STAT. See Notes 1 and 6.
B |  | – The Company executed a note payable (merchant cash advance) with a face amount of $1,491,000 and received net proceeds of $1,000,000. The $491,000 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. Under the terms of the agreement, the lender will be repaid all principal and accrued interest of $53,250 per week over a term of 28 weeks. This merchant cash advances were fully paid as of September 30, 2024.
C |  | – The Company executed a note payable (merchant cash advance) with a face amount of $2,236,500 and received net proceeds of $1,500,000. The $736,500 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. Under the terms of the agreement, the lender will be repaid all principal and accrued interest of $79,875 per week over a term of 28 weeks. This merchant cash advances were fully paid as of September 30, 2024.
D |  | – The Company executed two (2) note payable (merchant cash advance) each with a face amount of $1,824,375 and received net proceeds of $1,250,000. The $491,000 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. Under the terms of the agreement, the lender will be repaid all principal and accrued interest of $62,500 per week over a term of 28 weeks.
NEXTNRG HOLDING CORP AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (UNAUDITED) | Note 5 – Notes Payable – Related Party Debt During the year ended December 31, 2023 and 2022, our Chief Executive Officer advanced $3,835,000 and $34,650, respectively for working capital. These notes are unsecured and due on demand. The notes bear interest ranging from 4-5%, with an additional 5-6% of imputed interest (9%-11% in total). At December 31, 2023 and 2022, the balance due was $3,869,650 and $34,650, respectively. Imputed interest expense for the years ended December 31, 2023 and 2022 was $74,559 and $1,732, respectively. Total interest expense for the years ended December 31, 2023 and 2022 was $123,855 and $3,463, respectively. NextNRG Holding Corp. and Subsidiary Notes to Consolidated Financial Statements For the Years Ended December 31, 2023 and 2022

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