Q4 2024 NextNRG Inc Earnings Call
Speaker Change: [music].
Operator: Good day and welcome to the Next Energy fourth quarter and full year 2024 financial call. All participants will be in a listen-only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero.
Good day and welcome to the next energy fourth quarter and full year 2024 financial call. All participants will be in a listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. Please.
Operator: Please note, this event is being recorded. You may submit questions throughout the event by clicking the word questions on your screen.
Please note. This event is being recorded you may submit questions throughout the event by clicking the word questions on your screen.
Operator: Questions will be addressed after the formal presentation has ended.
Speaker Change: Questions will be addressed after the formal presentation has ended I would now like to turn the conference over to Mr. Jeff Ramsden CEO of TCG Advisory. Please go ahead Sir.
Jeff Ramson: I would now like to turn the conference over to Mr. Jeff Ramson, CEO of PCG Advisory. Please go ahead. Thank you, Operator. Good afternoon, everyone, and thank you for joining us.
Speaker Change: Thank you operator, good afternoon, everyone and thank you for joining US with me today are Michael <unk>, Chief Executive Officer of next energy, Joe Klein, Our Chief Financial Officer, and Yehuda, leaving founder and manager of the legacy EZ feel business line served as CEO of easy fell in 2024.
Jeff Ramson: With me today are Michael Farkas, Chief Executive Officer of NextEnergy, Joel Kleiner, Chief Financial Officer, and Yehuda Levy, Founder and Manager of the Legacy EZ-Fill Business Line, who served as CEO of EZ-Fill in 2025. Before we begin, I'd like to remind everyone that today's call may contain forward-looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
Speaker Change: Before we begin I'd like to remind everyone that today's call may contain forward looking statements. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially.
Jeff Ramson: For a detailed discussion of these risks, please refer to our most recent filings with the SEC, including our Form 10-K for the year ended December 31st, 2024.
Speaker Change: For a detailed discussion of these risks please refer to our most recent filings with the SEC, including our Form 10-K for the year ended December 31 2024.
Michael Farkas: With that, I'll turn the call over to CEO Michael Farkas. Thank you and good afternoon everyone.
Speaker Change: That I will turn the call over to CEO Michael Farkas.
Michael Farkas: Thank you and good afternoon, everyone.
Michael Farkas: 2024 was a defining year for NextEnergy. It marked the beginning of a new era as we transitioned from EZ-Fill to a broader energy infrastructure platform under NextEnergy brand. We took bold steps to position the company at the intersection of AI, clean energy, and mobile fueling. Three sectors driving the future of sustainable infrastructure.
Michael Farkas: 2024 was a defining year for next energy and Mark the beginning of a new era as we transition from <unk> to a broader energy infrastructure platform under next energy brand.
Michael Farkas: Bold steps to position the company intersection of AI clean energy and mobile fueling.
Michael Farkas: Three sectors driving the future of sustainable infrastructure.
Michael Farkas: Let me walk you through a few key accomplishments from the year. We generated $27.8 million in revenue, up nearly 20% from 2023, driven by continued growth in our mobile fueling business. We improved operating efficiency, increasing gross margin despite inflationary pressures on fuel costs.
Michael Farkas: Let me walk you through a few key accomplishments for me here.
Michael Farkas: We generated $27 $8 million in revenue up nearly 20% from 2023.
Michael Farkas: By continuing to grow with and removal fueling business.
Michael Farkas: <unk> operating efficiency increase in gross margin despite inflationary pressures on fuel costs.
Michael Farkas: We made significant progress on our smart microgrid platform with approximately $750 million in planned deployments, including projects with municipalities, utilities, and tribal nations. The advanced testing are wirelessly recharging systems, which now include bi-directional, static, and dynamic charging capabilities, technology we believe will be market-defining. As AI, data centers, EV adoption, and green energy initiatives surge, outdated infrastructure is struggling to keep up. The need for smarter, site-specific, and scalable energy solutions has never been greater. Our platform delivers a comprehensive response to this shift. Utility system upgrades that leverage AI and machine learning to modernize traditional grid management and improve resiliency.
Michael Farkas: We made significant progress on our smart micro big platform with approximately $750 million in planned deployments, including projects with municipalities utilities and travel nations.
Michael Farkas: <unk> testing, our wireless EV charging systems, which now include bi directional static and dynamic charging capabilities technology, we believe will be market defining.
Michael Farkas: As AI data centers EV adoption, the green energy initiatives search our data infrastructure is struggling to keep up.
The need for smarter site specific scalable energy solutions has never been greater.
Michael Farkas: Our platform delivers a comprehensive response to this shift.
Michael Farkas: Utility system upgrades that leverage AI and machine learning to modernize traditional good management and improve resiliency.
Michael Farkas: smart microgrid control management systems for new flexible energy deployments, agnostic to the fuel source. wireless EV charging to support the next generation of commercial fleet electrification, and easy for mobile fueling for traditional combustion engine fleets of today, and a pathway to support their EV transition for tomorrow.
Michael Farkas: Smart and microbial control management systems for new flexible energy deployment.
Michael Farkas: Not stick to the fuel source.
Michael Farkas: Wireless charging to support the next generation of commercial fleet electrification.
Michael Farkas: And easy for a mobile fueling for traditional combustion engine fleet today.
Michael Farkas: Last week to support their transition to model our.
Michael Farkas: Our vision is clear. We are building an integrated ecosystem where AI-driven energy infrastructure microgrids, mobile fueling, and wireless EV charging. Together, these solutions create an integrated ecosystem meeting the demands of a rapidly electrifying data-driven world.
Michael Farkas: Our vision is clear we are building, an integrated ecosystem, where AI driven energy infrastructure micro grids.
Michael Farkas: Fueling and wireless EV charging.
Michael Farkas: Together these solutions, creating integrated ecosystem.
Michael Farkas: Mens rapidly electrifying data driven world.
Joel Kleiner: Let me now hand it off to our CFO, Joe Kleiner, for a deeper dive into our financial results. Thank you, Michael.
Michael Farkas: Now I'll hand, it off to our CFO, Joe Klein or for a deeper dive into our financial results.
Joe Klein: Thank you Michael.
Joel Kleiner: The fiscal year ended December 31, 2024. Total revenue was $27.8 million, compared to $23.2 million in 2023, an increase of 19.6%. Growth was driven by higher average selling prices and increased fuel volumes in our mobile fueling. Box of sales came in at $25.5 million. up from $21.9 million the year prior, resulting in an estimated gross profit of $2.3 million. Despite the increase of cost of sales, gross margin improved by 200 basis points. six percent to eight. Gallons delivered grew to 7.2 million from 5.6, a growth of 1.4 million gallons, or 25.
Joe Klein: For the fiscal year ended December 31, 2024.
Joe Klein: Total revenue was $27 8 million compared to $23 2 million in 2023, an increase of 19, 6% growth was driven by higher average selling prices and increased fuel volumes and on mobile is fuelling segments.
Joe Klein: Sales came in at $25 5 million.
Joe Klein: From $21 9 million a year prior resulting in an estimated gross profit of $22 3 million.
Joe Klein: Despite the increase of cost of sales gross margin improved by 200 basis points from 6% to 8%.
Joe Klein: Gallons delivered grew to 7.2 million from $5 six a growth of one 4 million gallons or 24%.
Joel Kleiner: Operating expenses were $9.6 million, slightly down from $9.9 million in 2020. This includes $8.5 million in G&A... $1.1 million in depreciation and a margin. Operating loss narrowed to $7.3 million from $8.5 million in 2020. However, we recorded $8.9 million in other expenses, including a $4.5 million charge related to a strategic default penalty. 0.9 million non-cash loss from the extinguishment of related party debt, and other finance-related expenses tied to the capital structure transition. These factors led to a loss of $16.2 million, or $4.66 per share, compared to $10.5 million, or $6.98 per share in 2020.
Joe Klein: Operating expenses were $9 6 million slightly down from $9 9 million in 2023.
Joe Klein: This includes $8 5 million and G&A expenses, and $1 1 million and depreciation and amortization.
Joe Klein: Operating loss narrowed to $7 3 million from $8 5 million in 2023.
Joe Klein: Right.
Joe Klein: Sorry, $8 9 million and other expenses, including a $4 5 million charge related to a strategic default penalty interest and 0.9 million noncash loss.
Joe Klein: Englishman of related party debt and other finance related expenses tied to the capital structure transition.
Joe Klein: These factors led to a loss of $16 2 million or $466 per share.
Joe Klein: Parents of $10 $5 million or $6 $98 per share in 2023.
Joel Kleiner: While the net loss increased, it's important to note that much of this was driven by one time non-operational.
Joe Klein: While the net loss increase it's important to note that much of this was driven by one time non operational expenses.
Joel Kleiner: In the beginning of this year, Nice Energy's mobile fueling solution expanded into an additional five states through the acquisition of Shell Oil. more than doubling our operational capacity. This January marked the initiation of fuel deliveries to the world's leading e-commerce company under a substantial long-term agreement. Additionally, we're experiencing consistent revenue growth across our key markets and fleet accounts nationwide. As of February 2025, year-to-date, we approximately delivered more than 2.8 million gallons compared to 1.1 million gallons in that same period in 2020. That translates to growth in revenues of 10.1 million compared to 4.2 million.
Joe Klein: At the beginning of this year nice energy mobile is fuelling solution expanded into an additional five states due to the acquisition of shell oil sneak more than doubling our operational capacity. This January.
Joe Klein: Initiation of fuel deliveries to the world's leading E Commerce company under a substantial long term agreements. Additionally, we're experiencing consistent revenue growth across our key markets and key accounts nationwide.
Joe Klein: As February 2025 as of February 2025 year to date, we approximately delivered more than $2 8 million gallons compared to $1 1 million gallons in that same period in 2024 that frankly, the growth in revenues of $10 1 million compared to $4 2 million.
Joel Kleiner: On a go-forward basis, we are focused on achieving operating leverage as we expand into SaaS licensing and smart microgrid deployments, which we expect to carry significantly higher margins than fuel. We're actively evaluating different financing options and strategic partnerships to support our 2025.
Joe Klein: On a go forward basis.
Joe Klein: Focus on achieving operating leverage as we expand into SaaS licensing.
Joe Klein: And smart might've been deployments, which we expect to carry significantly higher margins than fuel distribution.
Joe Klein: We're actively evaluating different financing options and strategic partnerships to support our 2025 growth plan.
Michael Farkas: Back to you, Mike.
Michael Farkas: Back to you Michael.
Michael Farkas: Thank you, Joel. We believe 2025 will be a breakout year for NextEnergy. We're laser-focused on number one, executing our first utility-scale smart microgrid deployment in northern Florida. Two, launching wireless EV charging pilots with strategic partners and municipalities. Three, expanding our mobile fueling network, both organically and through acquisitions. And four, generating new recurring revenue through licensing and SaaS agreements for AI-driven microgrid technology. We are transforming from a last mile fuel company into a comprehensive energy technology company.
Michael Farkas: Thank you Joel.
Michael Farkas: We believe 2025 will be a breakout year for next energy, we're laser focused on number one.
Michael Farkas: <unk>, our first utility scale smart Michael good deployment in northern Florida to launching wireless charging pilots with strategic partners and municipalities.
Michael Farkas: Three expanding our mobile fueling network, both organically and through acquisitions.
Michael Farkas: For generating new recurring revenue through licensing and SaaS agreements for AI driven Michael good technology.
Michael Farkas: We're transforming from a last mile fuel company into a comprehensive energy technology company.
Michael Farkas: Thank you to our shareholders, our employees, and our partners for believing in this mission.
Michael Farkas: Thank you to our shareholders our employees and our partners for believing in this mission.
Operator: Operator, let's now open the line for questions. Thank you. We will now begin the question and answer session. You may submit questions throughout the event by clicking the word questions on your screen.
Speaker Change: Operator, let's now open the line for questions.
Speaker Change: Yeah.
Michael Farkas: Thank you.
Michael Farkas: We will now begin the question and answer session.
Michael Farkas: You may submit questions throughout the event by clicking the word questions on your screen and at this time I'll pass it back to management to answer any questions.
Operator: And at this time, I'll pass it back to management to answer any questions. Thank you.
Michael Farkas: Okay.
Michael Farkas: So while we're waiting to see if anything else comes in, I've got a couple of questions that were emailed in. OK. So you talk about a 20% year-over-year revenue increase. Can you talk a bit more about what drove that increase? Expanded client base. In 2024, we were growing our business just by going out there and cultivating new relationships. And as you can see, what happened in early 2025, we were able to acquire Shell Oil's fleet of trucks. We entered a bunch of other states. We also acquired another business, Yoshi's mobile fueling business. So whatever growth rate we saw in 2024 is nothing compared to what we're now seeing in 2025.
Michael Farkas: Thank you so well, while we're waiting to see if anything else comes in and I've got a couple of questions that were emailed in Michael.
Michael Farkas: Okay.
Speaker Change: So you talked about a 20% year over year revenue increase can you talk a bit more about what drove that increase.
Speaker Change: Expanded our client base.
Speaker Change: In 2024.
Speaker Change: Our business just by going out there and.
Speaker Change: Cultivating new relationships.
Speaker Change: And as you can see what happened in early 2025, and we were able to acquire shell oil's a fleet of trucks.
Speaker Change: We entered a bunch of other states. We also acquired another business, you'll choose mobile fueling business.
Speaker Change: So whatever growth rate, we saw in 'twenty four.
Speaker Change: Nothing compared to what we're now seeing in 2025 as we posted.
Michael Farkas: As we posted even just a couple of days ago, the amazing growth that we had in February of 2025 versus even January, which was a longer month, and we killed it compared to February of 2024. We're going to see consistent growth. We're expanding. And even some of the newer customers that we were able to bring on, they're bringing us even more business. They're happy with how we're taking care of them. And we're seeing a really nice upward trend in our fueling business.
Speaker Change: Just a couple of days ago, the amazing growth that we had in February 2025 versus even January which was a longer month.
Speaker Change: And we.
Speaker Change: So that compared.
Speaker Change: February of 'twenty, 'twenty, four and we're going to see consistent growth we're expanding.
Speaker Change: And even some of the newer customers that we were able to bring on they're bringing us even more business. They are happy with how we're taking care of them and we're seeing a really nice upward trend.
Speaker Change: Fueling business.
Speaker Change: Okay. Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Michael Farkas: Another one I've got here is, when do you expect to recognize revenue from the smart microgrid project? We're actually expecting to see some of that here over this year. It's very interesting the way we deploy these projects. We do own and operate these facilities. We have partners typically in deploying them. We have landowners that we lease the property from. We have those that we sell the energy to under long-term contracts.
Speaker Change: Another one I've got here is when do you expect to recognize revenue from smart micro grid projects.
Speaker Change: We're actually expecting to see some of that here. This year, it's very interesting the way we.
Deploy these projects, we do own and operate these facilities, we have partners typically and deploying them with landowners.
Speaker Change: We leased the property from.
Speaker Change: We have schools that we sell the energy to under long term contracts or we're expecting to see.
Michael Farkas: So we're expecting to see our first project breaking ground in 2025. And because we add technology to the equation, because we add project management, we're actually able to take money off the table while we're in the construction phase of the project. So there's one component of it where we procure equipment, hardware, provide project management, our technology, and we're able to monetize that in the project phase. And then once the project is deployed and operational, we then have a revenue stream that's derived from those assets. The northern Florida projects are roughly about 35 years of clearly defined revenues.
Speaker Change: Our first project breaking ground in 2025, and because we add.
Speaker Change: Knowledge.
Speaker Change: Jim because we had project management, and we're actually able to take money off the table while we're.
Speaker Change: We're in the construction phase of the project.
Speaker Change: There's one component of it where we procure equipment hardware provide project management, our technology, and we're able to monetize that and the projects and then once the project is deployed and operational. We then have a revenue stream that's derived from those assets.
Speaker Change: For the northern Florida projects, there's roughly about 35 years of clearly defined revenues.
Michael Farkas: We know exactly what we're getting paid for 35 years.
Speaker Change: Exactly what we're getting paid for 35 years.
Speaker Change: Okay, great. Thank you.
Michael Farkas: Another question I've got is what's the current stage of your wireless EV charging tech and when do you expect commercial adoption? Great question. Again, it's really, you know, the industry taking up the technology, you know, so we're working along with that.
The other question I've got is what's the current stage of your wireless EV charging tech and when do you expect commercial adoption.
Speaker Change: Great question again, it's really a you know.
Speaker Change: The industry, taking up the technology.
Speaker Change: So we're working along with that.
Michael Farkas: You know, most people don't realize, but the Tesla cyber taxi that was previewed a couple months ago, there is no way to charge that car with a plug. There's only a way to wirelessly charge that vehicle. So you're going to start seeing more and more vehicles on the road.
Speaker Change: Most people don't realize but the Tesla cyber attacks.
Speaker Change: Previewed a couple months ago, there is no way to charge a car with a plug and theres only a way to wirelessly charge that vehicle.
Speaker Change: So you're going to start seeing more and more vehicles on the road. We are planning on deploying our first wireless charging we're already starting that project this year.
Michael Farkas: We are planning on deploying our first wireless charging road and starting that project this year. We're looking at a project down here in Southern Florida that will be the largest of its kind, deploying technology, bi-directional wireless charging that has not been deployed anywhere. It's something that we have patented technology on. So we should start seeing it, you know, in a pilot phase here during this year. And as the industry takes, you know, the technology and commercializes it, we'll be standing them, you know, side-by-side doing so.
Speaker Change: We're looking at a project down here in southern Florida that will be the largest of its kind deploying technology bidirectional wireless charging that has not been deployed anywhere it's something that we have the patented technology on so we should start seeing it.
Speaker Change: In a pilot phase here during this year and as an industry.
Speaker Change: The technology and commercialize it we'll be extending them side by side doing so.
Speaker Change: Got it.
Michael Farkas: The last question I have here. Will M&A be part of your strategy moving forward? Yes, everyone who knows me historically in my past, yes, a large part of growth in my plan is through M&A.
Speaker Change: Okay. The last question I have here is will M&A be part of your strategy moving forward.
Speaker Change: Yes, everyone, who knows me historically in my.
Speaker Change: Yes, a large part of growth.
Speaker Change: And my plan is through M&A as you can see in the tail part of last year, we bought the Yoshi assets and mobile fueling assets. In addition, we bought the shell truck asset the shell fleet of trucks.
Michael Farkas: As you could see in the tail part of last year, we bought the Yoshi assets, the mobile fueling assets. In addition, we bought the Shell truck asset, you know, the Shell fleet of trucks. So, yes, we are very inquisitive by nature and we plan on growing both organically as well as through M&A activity.
Speaker Change: So yes, we are very inquisitive by nature, and we plan on growing both organically as well as through M&A activity.
Michael Farkas: Those are the only questions I've got, Michael. Excellent. Thank you very much.
Michael: That's doses all of the questions I've got Michael So.
Speaker Change: Excellent.
Michael Farkas: It was a pleasure everybody. Looking forward to doing this quarterly and keeping our stakeholders up to date and really aware of exactly what we're working on. Thank you everybody.
Speaker Change: Thank you very much it was a pleasure everybody looking forward to doing this quarterly and keeping all our stakeholders up to date.
Speaker Change: We are aware of exactly what we're working on thank you everybody.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: