Q1 2025 NextNRG Inc Earnings Call

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Operator: Good day and welcome to the NextEnergy First Quarter 2025 Financial Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker Change: Good day and welcome to the next energy first quarter 2025 financial call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero. Please.

Operator: Please note this event is being recorded.

Speaker Change: Please note this event is being recorded.

Jeff Ramson: I would now like to turn the conference over to Jeff Ramson, CEO of PCG Advisory. Please go ahead. Thank you, operator.

Speaker Change: I'd now like to turn the conference over to Jeff Remsen C. E O of P. C. G Advisory. Please go ahead.

Michael: Thank you operator, good morning, everyone and thank you for joining US today with me are Michael <unk> CEO of next energy and Joel Kleiner CFO.

Michael Farkas: Good morning, everyone. And thank you for joining us today.

Michael Farkas: With me are Michael Farkas, CEO of Next Energy and Joel Kleiner, CFO. Before we begin, please note that today's call may contain forward-looking statements based on current... Subject to risks and uncertainties and actual results may differ.

Before we begin please note that today's call may contain forward looking statements based on current expectations and assumptions. These.

Michael: These are subject to risks and uncertainties and actual results may differ materially for more complete discussion. Please refer to our Form 10-Q for the quarter.

Michael Farkas: For more complete discussion, please refer to our Form 10-2. quarter ended March 31st, 2025 filed.

Michael: We ended March 31, 2025 filed with the SEC.

Michael Farkas: that I'll turn the call over to CEO Michael Thank you, Jeff. Good morning, everyone. The first quarter of 2025 was nothing short of transformational for Next Energy, a true inflection point in our journey. We are not just scaling, we are surging forward with momentum that reflects the strength of our vision, and the power of execution. Revenue soared to $16.3 million in Q1 2025, marking a remarkable 146% increase year over year. This explosive growth was fueled by the expansion of our mobile fueling operations and a series of bold, strategic acquisitions that are already delivering outsized returns.

Michael: Is that I will turn the call over to CEO Michael <unk>.

Michael: Thank you Jeff good morning, everyone.

Speaker Change: The first quarter of 2025 was nothing short of transformational for Nextera energy.

Speaker Change: True inflection point in our journey.

Speaker Change: We're not just scaling we are surging forward with momentum that reflects the strength of our vision and the power of execution.

Speaker Change: Revenue shortage of $16 $3 million in Q1, 2025, walking a remarkable 146% increase year over year.

Speaker Change: This exclusive growth was fueled by the expansion of our mobile fueling operations and a series of bold strategic acquisitions that are already delivering outsized returns.

Michael Farkas: On the operational front, our delivery volumes rose to over 4.7 million gallons up from 1.7 million gallons in Q1 2024, a staggering 183% increase. This leap underscores the seamless integration of the Shell and Yoshi fleet assets, along with the onboarding of major national accounts, including the world's largest e-commerce company, a partnership that speaks volumes about the caliber of our capabilities.

Speaker Change: On the operational front, our delivery volumes rose to over $4 7 million gallons up from $1 7 million gallons in Q1 2024.

Speaker Change: 183% increase.

This leap underscores the seamless integration of the shell and Yoshi fleet assets, along with the Onboarding of major national accounts, including the world's largest E Commerce company a partnership that speaks volumes about the caliber of our capabilities.

Michael Farkas: Excuse me. Demand of our fueling solutions is not just growing, it's accelerating. To meet it, we've expanded to multiple new states, extending our footprint across the nation. Meanwhile, our technology pipeline is gaining serious transaction. From smart microgrid developments to cutting-edge wireless EV charging, we are leading the digital and physical infrastructure for a distributed, intelligent, and sustainable energy future. Next energy is not just growing. We are defining the future of energy, one gallon, one watt, and one breakthrough at a time.

Excuse me.

<unk> of our fueling solutions is not just growing it's accelerating to immediate we've expanded into multiple new states extending our footprint across the nation.

Meanwhile, our technology pipeline is gaining serious transaction for <unk>.

Speaker Change: Michael Good developments cutting edge wireless EV charging we are leading with digital and physical infrastructure for a distributed intelligence and sustainable energy future.

Speaker Change: <unk> energy is not just growing.

Speaker Change: We are defining the future of energy one gallon, one watt and one breakthrough at a time now I will hand, it over to our CFO Joel corner for a deeper look at our financials.

Joel Kleiner: Now I'll hand it over to our CFO Joel Kleiner for a deeper look at our financials. Thank you, Michael. The first quarter of 2025 was a defining chapter in Next Energy's growth story. For the first three months ended March 31st. Next Energy generated $16.3 million in revenue, a 146% increase from $6.6 million in Q1 2021. Powerful performance was driven by a triple force of increased sleep volume, strategic pricing initiatives, and rapid geographic. Cost of sales rose to $15.8 million, up from $6.1 million the previous year, resulting in gross profit of approximately $517,000. While gross margins narrowed due to strategic spending on fleet scaling and other expansion costs, initiatives like volume-based discounting and delivery optimization position us for improved margins in the quarters ahead.

Joel Corner: Thank you Michael.

Joel Corner: The first quarter of 2025 was a defining chapter.

Energy growth story.

Joel Corner: First three months ended March 31st next energy generated $16 3 million in revenue, 146% increase from $6 6 million in Q1 2024.

Joel Corner: Powerful performance was driven by a triple force of increased sleep volume.

Joel Corner: Pricing initiatives and rapid geographic expansion.

Joel Corner: Awesome sales rose to $15 8 million from $6 1 million in the previous year.

Joel Corner: Hosting a gross profit of approximately $517000, while gross margins narrowed due to strategic spending on fleet scaling and other expansion cost initiatives like volume based discounting and delivery optimization position us for improved margins in the quarters ahead.

Joel Kleiner: Operating expenses totaled $6.3 million, the bulk of which, $5.5 million, was GNA, with an additional $733,000 in depreciation. This brought our loss from operation to 5.8 million up from 1.9 million in the same period.

Joel Corner: Operating expenses totaled $6 3 million, the bulk of which $5 5 million was G&A with an additional 733000 in depreciation and amortization.

Joel Corner: This brought our loss from operations of $5 8 million up from $1 9 million in the same period last year.

Joel Kleiner: a reflection of our aggressive investment in infrastructure. balance and innovation to support future. We also recorded $3.2 million in net and other net primarily driven by interest on that. This brought our net loss available to common shareholders to $8.9 million or $1.6 per share compared to $2.7 million or $1.48 per share, AQ-129. Despite these near-term losses, our balance sheet reflects growing close the quarter with $2.1 million in cash, a 31% increase from 1.6 a Accounts receivables also saw a significant growth, rising to 3.9 million, more than doubling from 1.6 million in Q1 2024, reflecting the strong sales momentum.

Joel Corner: A reflection of our aggressive investments in infrastructure balance and innovation to support future games. We also recorded $3 $2 million in net and other net expenses, primarily driven by interest on debt financing. This brought our net loss available to common shareholders to $8 9 million or $6.

Joel Corner: For sure compared to $2 $7 million or 148 per share in Q1, 'twenty 'twenty four.

Joel Corner: Despite these near term losses, our balance sheet.

Joel Corner: Flex growing strength and closed the quarter was $2 $1 million in cash a 31% increase from one six at year end accounts.

Joel Corner: Accounts receivables, but also saw significant growth rising to $3 9 million more than doubling from $1 6 million in Q1 2024, reflecting the strong sales momentum.

Joel Kleiner: Additionally, we successfully raised over $50 million in equity financing during the quarter, a strong vote of confidence in our strategy and a critical infusion of capital to fuel our goals nationally.

Joel Corner: Italy was successfully raised over $50 million in an equity financing during the quarter, a strong vote of confidence in our strategy and a critical infusion of capital to fuel our goals national expansion.

Michael Farkas: back to you. Thanks, Joe.

Speaker Change: Thank you Michael.

Michael Good: Thanks Joel.

Michael Farkas: As we look ahead, our focus is anchored in five bold growth initiatives that position Next Energy at the forefront of energy innovation. Number one, we're making significant progress on our first smart micro grid deployment in northern Florida, a major milestone in our vision to create resilient, intelligent energy systems that operate at the edge of the grid. In South Florida, we're developing a cutting edge wireless EV charging pilot featuring bidirectional capabilities, a glimpse into a future where vehicles aren't just consumers of energy, but active participants in the grid. Number three, our mobile tooling operations are accelerating at full throttle.

Speaker Change: As we look ahead, our focus is anchored in five bold growth initiatives that position next energy at the forefront of energy innovation.

Speaker Change: Number one we're making significant progress on our first smart microgrid deployment in northern Florida, and a major milestone in our vision to create resilient intelligent energy systems that operate at the edge.

Speaker Change: The grid in South, Florida, with developing a cutting edge wireless charging pilot between bi directional capabilities, a glimpse into a future where vehicles arent just consumers of energy with active participants in the grid number three on mobile fueling operations are accelerating at full throttle. We're now live in more than it does.

Michael Farkas: We're now live in more than a dozen major cities and expanding rapidly, delivering convenience and sustainability at scale. Number four, we're locking new revenue streams by activating SAS and licensing models tied to our proprietary energy infrastructure technologies. And five, we are finally finalizing a partnership with a seasoned industry financer in the sustainable energy sector.

Speaker Change: Major cities and expanding rapidly delivering convenience and sustainability at scale.

Speaker Change: Number four we're locking new revenue streams by activating SaaS and licensing models tied to our proprietary energy infrastructure technologies and five were finally, finalizing a partnership with Athena industry financial and the sustainable energy sector and together, we will secure financing advance our technology and scale, our one gigawatt.

Michael Farkas: And together we will secure financing, advance our technology and scale our one gigawatts over one gigawatts of utility microgrid projects in our pipeline. We believe we are uniquely positioned at the nexus of mobile logistics, AI powered energy infrastructure, and clean transportation.

Speaker Change: Over one gigawatts of utility Microgrid projects in our pipeline.

Speaker Change: We believe we are uniquely positioned at the Nexus of mobile logistics AI powered energy infrastructure and clean transportation.

Michael Farkas: Thank you to our employees, partners and shareholders. Your belief in our mission powers everything we do.

Speaker Change: Thank you to our employees partners and shareholders.

Speaker Change: Our mission how is everything we do.

Unknown Executive: And at this time, we will now begin the question and answer session.

Speaker Change: And at this time, we will now begin the question and answer session.

Unknown Executive: Sorry, I was on mute.

Speaker Change: I'm, sorry, I was on mute.

Unknown Executive: I'm going to share questions that we received from investors. Michael, where are you with wireless charging?

Speaker Change: I'm going to share questions that we received from.

Speaker Change: And from investors.

Speaker Change: Where are you with wireless charging.

Michael Farkas: Great question. As mentioned in earlier, we are in the process of deploying and developing a prototype pilot in southern Florida, that for the first time anywhere on the planet is going to incorporate wireless charging and bidirectional capabilities. That's something that we have a patent on, and we're going to be deploying that technology. In addition, because of the needs of certain customers of ours, especially those that are heavily invested in warehouses, logistics, you know, delivery, and so on, you know, and through conversations with our biggest customer, we see that there's a major need of this technology, not just outside on the streets, but literally in these facilities, and not just for passenger vehicles, but for forklifts.

Speaker Change: Great question as I mentioned earlier, we are in the process of deploying and developing a.

Speaker Change: Prototype pilot installed.

Speaker Change: In southern Florida.

Speaker Change: It's the first time anywhere on the planet isn't incorporate.

Speaker Change: Wireless charging and bi directional capabilities, that's something that we have a patent on and we're going to be deploying the technology. In addition.

Speaker Change: Because of the needs of certain customers of ours, certainly those that are heavily invested in warehouses logistics.

Speaker Change: Delivery and so on.

Speaker Change: And through conversations with our biggest customer.

Speaker Change: See that Theres, a major need of this technology not just outside on the streets, but literally in these facilities and not just for passenger vehicles.

Michael Farkas: And robotics and all these types of equipment that are currently being used by these companies. and because of them not being able to be charged wirelessly and in motion, they need a substantial amount more of that equipment in order that once it's charging and offline, that they have other equipment operating.

Speaker Change: But for forklifts and robotics and all these types of equipment that are currently being used by these companies.

Speaker Change: And because of them not being able to be charge wirelessly and emotion they need a substantial amount more of that equipment in order that once its charging an offline that they have other equipment operating and through our technology <unk> equipment.

Michael Farkas: And through our technology, stern equipment these vendors will be able to reduce the amount of by a third and other equipment by a half and considerably change the entire footprint of these locations. So this technology that we have in the wireless charging side is not just for passenger vehicles and delivery vehicles, but it could really be used and I believe the biggest beneficiaries are it's going to be inside the buildings inside these manufacturing facilities inside these logistical centers. So we're very excited about being able to show our technology in that environment as well.

Speaker Change: These vendors will be able to reduce the amount of by a third and other equipment by a half.

Speaker Change: And considerably change the entire footprint of these locations. So this technology that we have in the wireless charging side is not just for passenger vehicles and delivery vehicles, but it can really be used and I believe the biggest beneficiaries.

Speaker Change: Side the building inside these manufacturing facilities inside these logistical centers. So we're very excited about being able to show our technology in that environment as well.

Michael Farkas: Another question I have here is, how do you view Next Energy's differentiation versus other mobile fueling or microgrid players in the market? Excellent question. I think when you understand our business, and you look at the easy fill component and you look at our smart microgrid technology, technologies, and you look at, you know, smart microgrid and you combine all of this together, you really realize that it's a solution that's necessary.

Speaker Change: Another question I have here is how do we how do you view next energy differentiation versus other mobile fueling or make them. Good players in the market.

Speaker Change: Excellent question I think when you understand our business.

Speaker Change: When you look at the easy fill component.

Speaker Change: And you look at our smart Microgrid technology technologies.

Speaker Change: Technologies and you look at.

Speaker Change: Small and micro grid and you combine all of this together you really realize that its a solution thats necessary theres no. Other company today that can literally do your internal combustion engine vehicle at your facility now.

Michael Farkas: There's no other company today that can literally fill your internal combustion engine vehicle at your facility now. assist you with providing charging services for the vehicles that you're using today that may need some wires, and then also provide you with wireless charging in the future. But it's not only that, the smart microgrid component allows us to generate that electricity at your location. So you don't have to rely solely upon the grid. So the biggest problem today, most people don't realize this, you know, for fleets to be able to go ahead and electrify, it's not about getting a charging station anymore, it's not about getting the vehicles, those are plenty, you've got massive of those.

Speaker Change: Assist you with providing charging services for the vehicles that you're using today that may need some wires.

Speaker Change: And then also provide you with wireless charging in the future, but it's not only that the smart micro grid component allows us to generate that electricity at your location. So you don't have to rely solely upon the grid. So the biggest problem today. Most people don't realize this for to be able to go ahead and electrify its not about.

Speaker Change: Getting a charging station anymore, it's not about getting the vehicles those those are plenty you'll get it.

Michael Farkas: The problem today is actually getting the power at these locations to be able to provide the fuel for those vehicles. And the only company today that can really hold your hand and take you through that entire process, and assist you in not only producing the energy for your vehicles, but for your entire facility. That's what having all of these different components of our business allows us to do, we could fill your vehicle today with easy fill, we could charge your vehicle today, using typical means, in the future, we'll be able to use wireless charging. And at the same time, we'll be able to power your facility, store the energy there, and then allow that energy to be used not only for your fleets and for mobility, but literally for your electronics, for your air conditioning, for your computers, for your robotics, that really separates us from every other single player out there.

Speaker Change: The problem today is actually getting the power at these locations to be able to provide the fuel for those vehicles.

Speaker Change: And the only company today that can really hold your hand, and take you through that entire process and assist you in not only producing the energy for your vehicles, but for your entire facility. That's having all of these different components of our business allows us to do we could still your vehicle today with easy Phil we could charge a vehicle today.

Speaker Change: Using typical means in the future, we'll be able to use wireless charging and at the same time, we'll be able to power your facility.

Speaker Change: Sure the energy there and then allow that energy to be used not only for your fruits and fruit mobility literally for your electronics for your air conditioning for your computer's view robotics that really separates us from every other single player out there. There's no. One that has these capabilities internally and more importantly, nobody has the technology, the IP and the patents that.

Michael Farkas: There's no one that has these capabilities internally. And more importantly, nobody has the technology, the IT and the patents that we do that allow us to provide these services.

Speaker Change: We do that allow us to provide these services.

Speaker Change: Great.

Michael Farkas: One of the questions, so can you talk about AI powered energy infrastructure and maybe some examples of how it's. Yes. Okay.

Speaker Change: One other question so.

Speaker Change: Can you talk about AI powered energy infrastructure and maybe some examples of how it's being implemented.

Speaker Change: Yes, okay. So when you're looking at a broad base.

Michael Farkas: So when you're looking at a broad based grid scale deployment of AI, it really hasn't been done except for one place, which is Florida Power Light. The technology that was developed in that $850 million Department of Energy collaboration between NextEra Energy, Florida Power Light, FIU, which is the university that we got the technology from and the Department of Energy, that really was the first implementation of AI and machine learning broad based deployment throughout the utility grid. And what happened was that technology took FTL from being one of the worst performing utilities in the United States to literally the most efficient in the world.

Speaker Change: Grid scale deployment of AI, it really hasn't been done except for one place, which is a Florida power lights.

Speaker Change: On the technology that was developed in that 850 million Department of energy collaboration between Nextera Energy, Florida Power <unk> light FY, you, which of the University that we got the technology from the department of energy.

Speaker Change: That really was the first implementation of AI and machine learning broad based deployment throughout the utility grid and what happened was that technology to FPL from being one of the worst performing utilities in the United States.

Speaker Change: To literally the most efficient in the world.

Michael Farkas: and all of that technology that was developed under that program ultimately is now ours. We licensed, we acquired a company that licensed all of that technology. There was a portfolio of patents, four of them pertain to smart microgrid and utility operating system technologies, and three of them were focused on wireless EV charging.

Speaker Change: And all of that technology that was developed under that program. Ultimately is now hours license, we acquired a company that licensed all of that technology.

Speaker Change: As a portfolio of patents four of them pertains to smart micro grid in utility operating systems technologies and three of them were focused on wireless charging is very important to note that our utility operating system technology, and Thats really where you see the deployment of AI throughout the grid.

Michael Farkas: It's very important to note that on our utility operating system technology, that's really where you see the deployment of AI throughout the grid. The efficiencies that Florida Power Light receives now allowed them in 2024 to reduce the cost of electricity to their consumers twice. No other utility in the world was able to do that. And really what this technology does is it allows utility grids to better predict what actual demand is going to be. The way utility grid works today is there's supply and demand and they always need to create way more supply than demand requires because it's not, if there's ever a spike, that's when you have brownouts and blackouts and issues that you see in Puerto Rico and what we saw in Europe, you know, the last couple of weeks.

Speaker Change: <unk> sees that Florida power <unk> light receives now allows them in 2024 to reduce the cost of electricity to their consumers twice no. Other utility in the world was able to do that and really what this technology does is allows utility grids to better predict what actual demand is going to be.

Speaker Change: The utility grid works today is there supply and demand and they always need to create more supply than demand requires because it's not if there is ever a spike that's when you have brownouts and blackouts and issues that you see in Puerto Rico, and what we saw in Europe.

Speaker Change: The last couple of weeks.

Michael Farkas: So what our technology does, it's able to monitor and understand and predict what that actual demand is going to be. And then we're able to supply the right amount of electricity for that. You're talking savings, 10, 12, 15, and even 17%. These are massive, massive savings. And it's very, very, very beneficial for utilities to implement this technology.

Speaker Change: So what our technology does it it's able to monitor and understand and predict what that actual demand. There is going to be and then we're able to supply the right amount of electricity for that.

Speaker Change: You are talking savings.

Speaker Change: $10, $12 15, and even 17%.

Speaker Change: A massive massive savings and it's very very very beneficial for utilities to implement this technology no. One has done it with the size of FY. Besides FPL are rule now after gaining control of this technology is allowing to assist other utilities to deploy that exact same technology.

Michael Farkas: No one has done it besides FPL. Our role now after gaining control of this technology is to allow and assist other utilities to deploy that exact same technology.

Speaker Change: Yeah.

Speaker Change: Got it.

Unknown Executive: Great. I don't have any other questions here, Michael.

Michael Good: Okay, Great I don't have any other questions here Michael.

Unknown Executive: This concludes our question and answer session.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Michael <unk> for any closing remarks.

Michael Farkas: I would like to turn the conference back over to Michael Farkas for any closing remarks. Yes, it was a pleasure. Keep on focusing on looking at what we're doing every day, we're having additional developments, we're at a really an amazing point of the business, we're starting to really see a major convergence between all of these different services. There are many, many fleet operators out there hundreds of millions of vehicles globally, that need services that we provide. And little by little, we're getting that traction. And we believe that we're going to make a big impact in the energy markets globally.

Michael Good: Yes, it was a pleasure keep on focusing on looking at what we're doing everyday we're having additional developments, where they're really an amazing point of the business. We're starting to really see a major convergence between all of these different services.

Speaker Change: There are many many fleet operators out there are hundreds of millions of vehicles globally that need services that we provide and little by little we're getting that traction and we believe that we're going to make a big impact.

Speaker Change: And the energy markets globally.

Michael Farkas: Thank you.

Speaker Change: Thank you.

Operator: The conference is now concluded. Thank you for attending today's presentation.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Operator: You may now.