Overview

NextNRG was incorporated in March 2019 and is headquartered in Miami, Florida. The company operates a mobile fueling service that allows customers to have fuel delivered directly to their vehicles, construction sites, generators, and reserve tanks without the need to visit a gas station.

Critical Accounting Policies and Estimates

NextNRG’s consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP). The company’s critical accounting policies and estimates include:

• Principles of Consolidation: NextNRG consolidates entities where it has a controlling financial interest.
• Business Combinations, Asset Acquisitions, and Reverse Acquisitions: NextNRG accounts for acquisitions under the appropriate guidance, classifying transactions as business combinations or asset acquisitions.
• Use of Estimates and Assumptions: NextNRG makes significant estimates for items like allowance for doubtful accounts, inventory reserves, valuation of stock-based compensation, and impairment of intangible assets.
• Accounts Receivable: NextNRG records accounts receivable at net realizable value and establishes an allowance for doubtful accounts as needed.
• Inventory: NextNRG values inventory at the lower of cost or net realizable value using the FIFO method.
• Right of Use Assets and Lease Obligations: NextNRG accounts for operating leases on the balance sheet, recognizing right-of-use assets and lease liabilities.
• Revenue Recognition: NextNRG recognizes revenue from mobile fuel sales and memberships in accordance with ASC 606.
• Income Taxes: NextNRG accounts for income taxes using the asset and liability method and evaluates the realizability of deferred tax assets.
• Stock-Based Compensation: NextNRG accounts for stock-based compensation using the fair value-based method.

Results of Operations

NextNRG’s revenues increased significantly in 2025 compared to 2024, driven by an expanded customer base, new fleet partnerships, and enhanced technology and marketing. Cost of sales also increased, but gross profit improved due to disciplined pricing and operational efficiencies.

Operating expenses rose substantially, primarily due to higher depreciation and amortization, as well as an impairment loss. Other income and expenses deteriorated, with a significant increase in interest expense and a loss on debt extinguishment.

Overall, NextNRG reported a net loss of $88.2 million in 2025, compared to a net loss of $21.4 million in 2024. The company’s Adjusted EBITDA, a non-GAAP measure, improved from a loss of $8.9 million in 2024 to a loss of $17.1 million in 2025.

Liquidity and Capital Resources

NextNRG’s cash and cash equivalents decreased from $1.6 million at the end of 2024 to $384,140 at the end of 2025. The company used more cash in operating activities and received less cash from financing activities compared to the prior year.

NextNRG has historically relied on external financing, including equity issuances and debt, to fund its operations. The company’s current liquidity position and ongoing net losses raise substantial doubt about its ability to continue as a going concern. Management is pursuing strategies to enhance revenue, improve efficiency, and secure additional financing, but there is no assurance these efforts will be successful in the near term.

The company’s independent auditor has issued a going concern qualification, reflecting the material uncertainties surrounding NextNRG’s ability to continue as a profitable entity. Investors should be aware of the risks associated with the company’s current liquidity and capital structure.

Recent Developments

In late 2024 and early 2025, NextNRG entered into several promissory note agreements, including with related parties, to secure additional financing. The company also obtained shareholder approval for the potential issuance of shares related to these debt arrangements.

In February 2025, NextNRG completed the acquisition of NextNRG Holding Corp. (Next), making Next a wholly owned subsidiary of the company.