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.

• Uses proprietary backend software for logistics, customer management, and route optimization, leveraging a fleet of nearly 40 trucks.

• Recently entered into an agreement to acquire NextNRG, a developmental stage company focused on AI/ML-powered renewable energy microgrids and wireless EV charging, with the acquisition closing concurrently with the IPO.

• Plans to expand product offerings to include wireless/touchless fueling for both internal combustion and electric vehicles.

• Entered a non-binding term sheet to acquire Yoshi’s mobile fueling assets for up to $2 million, subject to due diligence and closing conditions.

Financial performance and metrics

• For the six months ended June 30, 2024: revenue of $13.99M (up 23% YoY), net loss of $5.26M, and cash of $306,811.

• For the year ended December 31, 2023: revenue of $23.2M (up 54% YoY), net loss of $10.47M, and accumulated deficit of $45.3M.

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

• Operating expenses decreased 42% in 2023 due to reductions in payroll, marketing, and public company costs.

• Company has a history of operating losses, negative cash flows, and a going concern qualification from auditors.

Use of proceeds and capital allocation

• Net proceeds of approximately $13.3M (or $15.3M if over-allotment is exercised) expected, with $1M allocated for expansion and the remainder for general corporate purposes and working capital.

• Management retains broad discretion over use of proceeds.