NextNRG Inc (NXXT) 2024 Q4 法說會逐字稿

Good day and welcome to the NextNRG fourth quarter in full year 2024 financial call. (operator Instructions)

Please note this event is being recorded. You may submit questions throughout the event by clicking the word Questions on your screen. Questions will be addressed after the formal presentation has ended. I would now like to turn the conference over to Mr. Jeff Ramson, CEO of PCG Advisory. Please go ahead, sir.

Thank you, operator. Good afternoon, everyone, and thank you for joining us. With me today are Michael Farkas, Chief Executive Officer of NextNRG, Joel Kleiner, Chief Financial Officer; and Yehuda Levy, founder and manager of the Legacy Eye Business Line, who served as CEO of EzFill in 2024.

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. For 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.

With that, I'll turn the call over to CEO, Michael Farkas.

Thank you and good afternoon, everyone. 2024 was a defining year for NextNRG. It marked the beginning of a new era as we transition from EzFill to a broader energy infrastructure platform under NextNRG 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. 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. 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 our wirelessly charging systems, which now include bidirectional, 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As AI data centers, EV adoption, and green energy initiatives surge, outdated infrastructure is struggling to keep up.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 good management and improve resiliency. 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 the pathway to support their EV transition for tomorrow. 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 rapidly electrifying data-driven world.

Let me now hand it off to our CFO, Joe Kleiner for a deeper dive into our financial results.

Thank you, Michael. 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 segments. Costs 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 from 6% to 8%.

Gallons delivered grew to $7.2 million from $5.6 million, a growth of $1.4 million gallons, or 24%. Operating expenses were $9.6 million, slightly down from $9.9 million in 2023. This includes $8.5 million in GNA expenses and $1.1 million in depreciation and amortization. Operating loss narrowed to $7.3 million from $8.5 million in 2023. However, we recorded $8.9 million in other expenses, including a $4.5 million charge related to a strategic default penalty interest and a $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 2023. While the net loss increased, it's important to note that much of this was driven by one-time non-operational expenses. In the beginning of this year, NextNRG's mobile fueling solution expanded into an additional five states through the acquisition of Shell Oil's fleet, 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 fee accounts nationwide. As 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 translates to growth in revenues of $10.1 million compared to $4.2 million. 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 distribution. We're actively evaluating different financing options and strategic partnerships to support our 2025 growth plan.

Back to you, Michael.

Thank you, Joel. We believe 2025 will be a breakout year for NextNRG. 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 into acquisitions. And four, generating new recurring revenue through licensing and [exacs] for our AI-driven microgrid technology. We are transforming from a last mile fuel company into a comprehensive energy technology company. Thank you to our shareholders, our employees, and our partners for believing in this mission. Operator let's now open the line for questions.

(Operator Instructions)

Thank you. So while we're waiting to see if anything else comes in, I've got a couple of questions that were emailed in, Michael.

Okay.

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 '24, is nothing compared to what we're now seeing in 2025.

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. And 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.

Okay. Another one I've got here is, when do you expect to recognize revenue from the smart microgrid projects?

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. So we're expecting to see, our first project breaking ground in 2025. And because we add, technology to the equation, because we had project management, and 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 secure equipment, hardware, provide project management or 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, for, the northern Florida projects is roughly about 35 years of clearly defined revenues. We know exactly what we're getting paid for 35 years.

Okay, great. Thank you. 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, the industry, taking up the technology, so, we're working along with that. Most people don't realize, but the Tesla Cyber taxi that was previewed a couple of 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. 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, in a pilot phase here during this year, and as the industry, takes, the technology and commercializes it, we'll be standing them, side by side doing so.

Okay. The last question I have here is, 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. As you can 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, 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.

That's those are the only questions I've got, Michael. So that's it.

Excellent. Thank you very much. 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.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.