| Summary of Significant Accounting Policies | Note
2 - Summary of Significant Accounting Policies Principles
of Consolidation These
consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly
owned subsidiaries. All intercompany transactions and balances have been eliminated. Business
Combinations The
Company accounts for business acquisitions using the acquisition method of accounting, in accordance with which assets acquired and liabilities
assumed are recorded at their respective fair values at the acquisition date. The
fair value of the consideration paid, including contingent consideration, is assigned to the assets acquired and liabilities assumed
based on their respective fair values. Goodwill represents the excess of the purchase price over the estimated fair values of the assets
acquired and liabilities assumed. Significant
judgments are used in determining fair values of assets acquired and liabilities assumed, as well as intangibles. Fair value and useful
life determinations are based on, among other factors, estimates of future expected cash flows, and appropriate discount rates used in
computing present values. These judgments may materially impact the estimates used in allocating acquisition date fair values to assets
acquired and liabilities assumed, as well as the Company’s current and future operating results. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Actual
results may vary from these estimates which may result in adjustments to goodwill and acquisition date fair values of assets and liabilities
during a measurement period or upon a final determination of asset and liability fair values, whichever occurs first. Adjustments to
fair values of assets and liabilities made after the end of the measurement period are recorded within the Company’s operating
results. See
Note 9 regarding acquisition and related impairment during the year ended December 31, 2022. Business
Segments and Concentrations The
Company uses the “management approach” to identify its reportable segments. The management approach requires companies to
report segment financial information consistent with information used by management for making operating decisions and assessing performance
as the basis for identifying the Company’s reportable segments. The Company manages its business as one reportable segment. Customers
in the United States accounted for 100% of our revenues. We do not have any property or equipment outside of the United States. Use
of Estimates Preparing
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues
and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material. Significant
estimates during the nine months ended September 30, 2023 and 2022, 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 related to property and equipment, implicit interest rate in right-of-use operating leases, uncertain tax positions, and
the valuation allowance on deferred tax assets. Risks
and Uncertainties The
Company operates in an industry that is subject to intense competition and changes in consumer demand. The Company’s operations
are subject to significant risk and uncertainties including financial and operational risks including the potential risk of business
failure. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) The
Company has experienced, and in the future may experience, variability in sales and earnings. The factors expected to contribute to this
variability include, among others, (i) the cyclical nature of the industry, (ii) general economic conditions in the various local markets
in which the Company competes, including a potential general downturn in the economy, and (iii) the volatility of prices in connection
with the Company’s distribution of the product. These factors, among others, make it difficult to project the Company’s operating
results on a consistent basis. Fair
Value of Financial Instruments The
Company accounts for financial instruments under Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements The
Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring
basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement.
The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining
fair value. The
three tiers are defined as follows:
● Level
1 – Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;
● Level
2 – Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace
for identical or similar assets and liabilities; and
● Level
3 – Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. See
Investments below regarding classification as Level 1 for our Corporate Bonds (all investments were fully liquidated during 2023). EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) The
determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations
often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation
methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the
asset or liability valued and the valuation method used. Such assumptions could include estimates of prices, earnings, costs, actions
of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors
to assist us in determining fair value, as appropriate. Although the Company believes that the recorded fair value of our financial instruments
is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The
Company’s financial instruments, including cash, accounts receivable, accounts payable and accrued expenses, and accounts payable
and accrued expenses – related party, are carried at historical cost. At September 30, 2023 and December 31, 2022, respectively,
the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments. ASC
825-10 “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
September 30, 2023 and December 31, 2022, 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
September 30, 2023 and December 31, 2022, respectively, the Company did not experience any losses on cash balances in excess of FDIC
insured limits. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Investments Available-for-sale
debt securities are recorded at fair value with the net unrealized gains and losses (that are deemed to be temporary) reported as a component
of other comprehensive income (loss). Realized
gains and losses and charges for other-than-temporary impairments are included in determining net income, with related purchase costs
based on the first-in, first-out method. Premiums
or discounts on debt are amortized straight line over the term. The
Company evaluates its available-for-sale-investments for possible other-than-temporary impairments by reviewing factors such as the extent
to which, and length of time, an investment’s fair value has been below the Company’s cost basis, the issuer’s financial
condition, and the Company’s ability and intent to hold the investment for sufficient time for its market value to recover. For
impairments that are other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s
cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment
then becomes the new amortized cost basis of the investment, and it is not adjusted for subsequent recoveries in fair value. The
following is a summary of the unrealized gains, losses, and fair value by investment type at September 30, 2023 and December 31, 2022,
respectively: Schedule
of Unrealized Gains, Losses, and Fair Value
September 30, 2023 Amortized Cost Gross Unrealized Losses Fair Value
Corporate Bonds $ - $ - $ -
December 31, 2022 Amortized Cost Gross Unrealized Losses Fair Value
Corporate Bonds $ 2,164,672 $ (44,590 ) $ 2,120,082 Realized
losses, including amortization of bond premiums on these debt securities were $ 34,556 26,072 During
the year ended December 31, 2022, corporate bonds totaling $ 1,151,186 EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) All
remaining corporate bonds were liquidated in 2023, resulting in a non-cash gain on sale of debt securities of $ 44,590 At
December 31, 2022, all of our corporate bonds were considered a Level 1 asset as their pricing was identifiable through quote prices
in active markets for identical assets. Accounts
Receivable Accounts
receivable are stated at the amount management expects to collect from outstanding customer balances. Credit is extended to customers
based on an evaluation of their financial condition and other factors. Interest is not accrued on overdue accounts receivable. The Company
does not require collateral. Management
periodically assesses the Company’s accounts receivable and, if necessary, establishes an allowance for estimated uncollectible
amounts. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical
collection information and existing economic conditions. Accounts determined to be uncollectible are charged to operations when that
determination is made. The
following is a summary of the Company’s accounts receivable at September 30, 2023 and December 31, 2022: Schedule
of Accounts Receivable
September 30, 2023 December 31, 2022
Accounts receivable $ 1,407,905 $ 766,692
Less: allowance for doubtful accounts 81,772 -
Accounts receivable - net $ 1,326,133 $ 766,692 There
was bad debt expense of $ 1,086 2,040 There
was bad debt expense of $ 83,564 16,938 Bad
debt expense (recovery) is recorded as a component of general and administrative expenses in the accompanying consolidated statements
of operations. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Inventory Inventory
consists solely of fuel. Inventory is stated at the lower of cost or net realizable value using the first-in, first-out (“FIFO”)
method of inventory valuation. Management assesses the recoverability of its inventory and establishes reserves on a quarterly basis. There
were no At
September 30, 2023 and December 31, 2022, the Company had inventory of $ 183,271 151,248 Concentrations The
Company has the following concentrations related to its sales, accounts receivable and vendor purchases greater than 10% of the respective
totals: Schedule
of Concentration Of Risk Sales
Nine Months Ended September 30
Customer 2023 2022
A 21.83 % 7.68 %
B 12.27 % 16.41 %
C 0.00 % 36.76 %
Total 34.11 % 60.85 % Accounts
Receivable
Nine Months Ended Year Ended December 31,
Customer 2023 2022
A 38.80 % 47.48 %
Total 38.80 % 47.48 % EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Vendor
Purchases
Nine Months Ended September 30
Vendor 2023 2022
A 50.30 % 85.08 %
B 37.21 % 14.10 %
C 11.65 % 0.00 %
Total 99.16 % 99.18 % Impairment
of Long-lived Assets including Internal Use Capitalized Software Costs Management
evaluates the recoverability of the Company’s identifiable intangible assets and other long-lived assets when events or circumstances
indicate a potential impairment exists, in accordance with the provisions of ASC 360-10-35-15 “Impairment or Disposal of Long-Lived
Assets.” If
impairment is indicated based on a comparison of the assets’ carrying values and the undiscounted cash flows, the impairment to
be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. There
were no Property
and Equipment Property
and equipment is stated at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated
useful lives of the assets. Expenditures
for repair and maintenance which do not materially extend the useful lives of property and equipment are charged to operations. When
property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective
accounts with the resulting gain or loss reflected in operations. Management
reviews the carrying value of its property and equipment whenever events or changes in circumstances indicate that the carrying amount
of the asset may not be recoverable. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) There
were no Derivative
Liabilities The
Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, (“ASC 480”),
“ Distinguishing Liabilities from Equity” Upon
conversion or repayment of a debt instrument in exchange for shares of common stock, where the embedded conversion option has been bifurcated
and accounted for as a derivative liability (generally convertible debt and warrants), the Company records the shares of common stock
at fair value, relieves all related debt, derivative liabilities, and any remaining unamortized debt discounts, and where appropriate
recognizes a net gain or loss on debt extinguishment (debt based derivative liabilities). In connection with any extinguishments of equity
based derivative liabilities (typically warrants), the Company records an increase to additional paid-in capital for any remaining liability
balance extinguished.. Equity
instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities
at the fair value of the instrument on the reclassification date. At
September 30, 2023 and December 31, 2022, the Company had no Debt
Discount For
certain notes issued, the Company may provide the debt holder with an original issue discount. The original issue discount is recorded
as a debt discount, reducing the face amount of the note, and is amortized to interest expense over the life of the debt, in the Consolidated
Statements of Operations. Debt
Issue Cost Debt
issuance cost paid to lenders, or third parties are recorded as debt discounts and amortized to interest expense over the life of the
underlying debt instrument, in the Consolidated Statements of Operations. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Right
of Use Assets and Lease Obligations The
Right of Use Asset and Lease Liability reflect the present value of the Company’s estimated future minimum lease payments over
the lease term, which may include options that are reasonably assured of being exercised, discounted using a collateralized incremental
borrowing rate. Typically,
renewal options are considered reasonably assured of being exercised if the associated asset lives of the building or leasehold improvements
exceed that of the initial lease term, and the performance of the business remains strong. Therefore, the Right of Use Asset and Lease
Liability may include an assumption on renewal options that have not yet been exercised by the Company. The Company’s operating
leases contained renewal options that expire at various dates with no residual value guarantees. Future obligations relating to the exercise
of renewal options is included in the measurement if, based on the judgment of management, the renewal option is reasonably certain to
be exercised. Factors in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of
leasehold improvements, the value of the renewal rate compared to market rates, and the presence of factors that would cause a significant
economic penalty to the Company if the option is not exercised. Management reasonably plans to exercise all options, and as such, all
renewal options are included in the measurement of the right-of-use assets and operating lease liabilities. As
the rate implicit in leases are not readily determinable, the Company uses an incremental borrowing rate to calculate the lease liability
that represents an estimate of the interest rate the Company would incur to borrow on a collateralized basis over the term of a lease
within a particular currency environment. See Note 7. Revenue
Recognition The
Company generates its revenue from mobile fuel sales, either as a one-time purchase, or through a monthly membership. Revenue is recognized
at the time of delivery and includes a delivery fee for each delivery or a subscription fee on a monthly basis for memberships. Under
Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606) “Revenue from Contracts with Customers”, revenue
from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales
incentives, discounts, rebates, and amounts collected on behalf of third parties. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) A
performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account under
Topic 606. The Company’s contracts with its customers do not include multiple performance obligations. The Company recognizes revenue
when a performance obligation is satisfied by transferring control over a product or service to a customer. The amount of revenue recognized
reflects the consideration the Company expects to be entitled to in exchange for such products or services. The
following represents the analysis management has considered in determining its revenue recognition policy: Identify
the contract with a customer A
contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s
rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial
substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable
based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s
ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or,
in the case of a new customer, published credit and financial information pertaining to the customer. Identify
the performance obligations in the contract Performance
obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable
of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily
available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services
is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company
must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract.
If these criteria are not met the promised services are accounted for as a combined performance obligation. Currently, the Company only
has single performance obligations. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Determine
the transaction price The
transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services
to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration
that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending
on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment,
it is probable that a significant future reversal of cumulative revenue under the contract will not occur. None of the Company’s
contracts contain a significant financing component. Allocate
the transaction price to performance obligations in the contract If
the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation.
However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract
with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a
specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised
in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations
require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless
the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service
that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance
obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the
standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines
related to the performance obligations. The Company’s contracts have a distinct single performance obligation and there are no
contracts with variable consideration. Recognize
revenue when or as the Company satisfies a performance obligation The
Company satisfies performance obligations either over time or at a point in time. Revenue is recognized at the time the related performance
obligation is satisfied by transferring a promised service to a customer. The
following reflects additional discussion regarding our revenue recognition policies for each of our material revenue streams. For each
revenue stream we do not offer any returns, refunds or warranties, and no arrangements are cancellable. Additionally, all contract consideration
is fixed and determinable at the initiation of the contract. Performance obligations are satisfied when a delivery is completed or a
membership fee has been paid. Therefore, revenue is recognized at a point in time. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) For
each of our revenue streams we only have a single performance obligation. Contract
Liabilities (Deferred Revenue) Contract
liabilities represent deposits made by customers before the satisfaction of performance obligation and recognition of revenue. Upon completion
of the performance obligation(s) that the Company has with the customer based on the terms of the contract, the liability for the customer
deposit is relieved and revenue is recognized. At September 30, 2023 and December 31, 2022, the Company had deferred revenue of $ 0 0 The
following represents the Company’s disaggregation of revenues for the nine months ended September 30, 2023 and 2022: Schedule
of Disaggregation of Revenue
Nine Months Ended September 30,
2023 2022
Revenue % of Revenues Revenue % of Revenues
Fuel sales $ 17,129,808 97.74 % $ 10,075,711 98.92 %
Other 395,869 2.26 % 110,191 1.08 %
Total Sales $ 17,525,677 100.00 % $ 10,185,902 100.00 % Cost
of Sales Cost
of sales primarily include fuel costs and wages paid to our drivers. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Income
Taxes The
Company accounts for income tax using the asset and liability method prescribed by ASC 740, “Income Taxes”. The
Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes”. Using
that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position
will be sustained upon examination by the tax authorities. As of September 30, 2023 and December 31, 2022, respectively, the Company
had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. The
Company recognizes interest and penalties related to uncertain income tax positions in other expense. No For
the three and nine months ended September 30, 2023, the Company generated net losses. At September 30, 2023, the Company has an estimated
income tax liability of $ 0 Advertising
Costs Advertising
costs are expensed as incurred. Advertising costs are included as a component of general and administrative expense in the consolidated
statements of operations. The
Company recognized $ 20,020 488,288 The
Company recognized $ 68,740 1,072,089 EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Stock-Based
Compensation The
Company accounts for our stock-based compensation under ASC 718 “Compensation – Stock Compensation” The
Company uses the fair value method for equity instruments granted to non-employees and uses the Black-Scholes model for measuring the
fair value of options. The
fair value of stock-based compensation is determined as of the date of the grant or the date at which the performance of the services
is completed (measurement date) and is recognized over the vesting periods. When
determining fair value of stock-based compensation, the Company considers the following assumptions in the Black-Scholes model:
● Exercise
price,
● Expected
dividends,
● Expected
volatility,
● Risk-free
interest rate; and
● Expected
life of option Stock
Warrants In
connection with certain financing (debt or equity), consulting and collaboration arrangements, the Company may issue warrants to purchase
shares of its common stock. The outstanding warrants are standalone instruments that are not puttable or mandatorily redeemable by the
holder and are classified as equity awards. The Company measures the fair value of warrants issued for compensation using the Black-Scholes
option pricing model as of the measurement date. However, for warrants issued that meet the definition of a derivative liability, fair
value is determined based upon the use of a binomial pricing model. Warrants
issued in conjunction with the issuance of common stock are initially recorded at fair value as a reduction in additional paid-in capital
of the common stock issued. All other warrants (for services) are recorded at fair value and expensed over the requisite service period
or at the date of issuance if there is not a service period. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Basic
and Diluted Earnings (Loss) per Share and Reverse Stock Split Pursuant
to ASC 260-10-45, basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted average number of
shares of common stock outstanding for the periods presented. Diluted
earnings per share is computed by dividing net income by the weighted average number of shares of common stock, common stock equivalents
and potentially dilutive securities outstanding during the period. Potentially
dilutive common shares may consist of contingently issuable shares, common stock issuable upon the conversion of stock options and warrants
(using the treasury stock method), and convertible notes. These common stock equivalents may be dilutive in the future. In
the event of a net loss, diluted loss per share is the same as basic loss per share since the effect of the potential common stock equivalents
upon conversion would be anti-dilutive. The
following potentially dilutive equity securities outstanding as of September 30, 2023 and 2022 were as follows: Schedule
of Dilutive Equity Securities Outstanding
September 30, 2023 September 30, 2022
Stock options (vested) - 28,135
Warrants (vested) 203,629 203,629
Total common stock equivalents 203,629 231,764 Warrants
and stock options included as commons stock equivalents represent those that are fully vested and exercisable. See Note 9. See
Note 5 regarding the Company’s 150,000 Based
on the potential common stock equivalents noted above at September 30, 2023, the Company has sufficient authorized shares of common stock
( 50,000,000 On
April 27, 2023, the Company executed a 1-for-8 500,000,000 50,000,000 50,000,000 5,000,000 EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Related
Parties Parties
are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are
controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management,
members of the immediate families of principal owners of the Company and its management and other parties with which the Company may
deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one
of the transacting parties might be prevented from fully pursuing its own separate interests. Related
Party Agreement with Company owned by Daniel Arbour On
February 15, 2023, the Company entered into a consulting agreement (the “Consulting Agreement”) with Mountain Views Strategy
Ltd (“Mountain Views”). Daniel Arbour (who as set forth above became a member of the Board on February 10, 2023) is the principal
and founder of Mountain Views. Pursuant to the Consulting Agreement, Mountain Views agrees to provide services as an outsourced chief
revenue officer. Pursuant to the Consulting Agreement, the Company will pay Mountain Views $ 13,000 Effective
May 15, 2023, EzFill Holdings, Inc. (the “Company”) and Mountain Views Strategy Ltd. (“Mountain Views”) entered
into an amendment (the “Amendment to the Consulting Agreement”) to the consulting services agreement (the “Consulting
Agreement”). As previously reported on the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission
on February 16, 2023, Daniel Arbour, who became a member of the Company’s Board of Directors on February 10, 2023, is the principal
and founder of Mountain Views. The
Consulting Agreement was amended to revise the scope of services that will be provided and to bring the Consulting Fees to $ 5,000 See
Note 7. EZFILL
HOLDING, INC. AND SUBSIDIARY NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER
30, 2023 (UNAUDITED) Related
Party Agreement with Company owned by Avishai Vaknin On
April 19, 2023 (the Effective Date”), the Company entered into a services agreement (the “Services Agreement”) with
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