NextNRG (NXXT) Registration Filing summary

Company overview and business model

• Operates an app-based, on-demand and subscription mobile fuel delivery service for consumer, commercial, and specialty markets, primarily in South Florida, with expansion plans across Florida and other states.

• Provides fuel delivery to vehicles at homes, workplaces, marinas, and job sites, leveraging a proprietary logistics platform and a fleet of branded trucks.

• Recently entered into an agreement to acquire NextNRG, a developer of AI/ML-powered renewable energy microgrids and wireless EV charging solutions, to diversify into clean energy and EV infrastructure.

• Announced an asset purchase agreement to acquire Yoshi’s mobile fueling assets for $2 million, expanding equipment and customer contracts.

Financial performance and metrics

• For the nine months ended September 30, 2024: revenue was $20.98M (up 20% YoY), net loss was $13.34M, and adjusted EBITDA was $(3.0)M.

• For the year ended December 31, 2023: revenue was $23.2M (up 54% YoY), net loss was $10.47M, and adjusted EBITDA was $(6.0)M.

• Gross profit improved year-over-year due to higher fuel revenues, increased delivery fees, and driver efficiency.

• As of September 30, 2024: cash was $828K, accumulated deficit was $58.7M, and stockholders’ equity was $3.56M.

• NextNRG, the acquisition target, had net income of $1.06M for the nine months ended September 30, 2024, but is in early-stage development and has a working capital deficit.

Use of proceeds and capital allocation

• Net proceeds of approximately $13.3M (or $15.3M if the over-allotment is exercised) are intended for business expansion and general corporate purposes, including working capital.

• $1M is earmarked for expansion, with the remainder for general corporate needs.

• Management retains broad discretion over the use of proceeds.