NEXTNRG, INC. — Call Transcript 2025

Good morning and welcome to the NextNRG Inc. Second Quarter 2025 Earnings Conference Call. All participants are in a listen-only mode. After today's presentation, we will conduct a question-and-answer session. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. Please note this event is being recorded. I would now like to turn the conference over to Jeff Ramson. Please go ahead. Thank you and good morning. Joining us today are Michael Farkas, our Chief Executive Officer and Executive Chairman, and Joel Kleiner, Chief Financial Officer. Before we begin, I'd like to remind you that today's remarks include forward-looking statements. These are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our filings with the SEC, including our most recent Form 10-K and Form 10-Q, for full discussion of these risks. With that, I'll turn the call over to Michael. Thank you, Jeff, and welcome everyone. I'd also like to welcome the many new shareholders who have joined us recently. Thank you for coming on this journey with us. This quarter represents a key moment in our growth story. It's a time when execution, commercial traction, and platform development are coming together, and where we can share how NextNRG Inc. is delivering on its vision. Our mission is to build a fully integrated energy platform, powered by AI and backed by our patented technology, connecting fueling, electrification, storage, and grid orchestration to deliver smarter, more resilient infrastructure for commercial and institutional customers. This includes on-site mobile fueling, AI-powered microgrids for local generation and battery storage, wireless in-motion EV charging systems, and the Next Utility Operating System, which is our AI software layer that ties all systems together. This is about building infrastructure that works, systems that are intelligent, efficient, and built to meet the real operational needs of today's energy users. Q2 execution highlights. Number one, EzFill expansion. Following our investment in 99 new trucks, we've expanded to 15 metro markets, up from 10. In Q2 alone, we generated $19.7 million in revenues, bringing us to $36 million for the first half of 2025. That already exceeds our full-year 2024 volume of $27.7 million. EzFill's model is working. We enter a new market with a Fortune 50 anchor client, build operational density, and drive efficiency through route optimization and local logistics. We then expand deeper into that market off the heels of that anchor client. It's a blueprint we're continuing to scale. Number two, our smart microgrid traction. What's exciting is how our broader energy platform is gaining traction with many of our existing trusted client relationships. It's demonstrating our platform's value going beyond fuel and into AI-enabled modern energy solutions. A Fortune 50 EzFill customer focused on a renewable transformation project. They asked us for a proposal to install a full smart microgrid platform solution, integrating solar, battery storage, and on-site generation. In the future, we expect this client to benefit from our wireless in-motion EV charging systems, delivering 100% uptime for their fulfillment equipment inside their facilities. In California, we're making progress on several healthcare deployments. Our AI-driven smart microgrid platform will integrate natural gas generators with solar panels and battery storage to provide both resilience and significant cost savings. These engagements show that the flywheel is starting to turn and that we can extend customer value way beyond traditional fueling. We're growing our commercial pipeline. We're actively working with our sales team and consultants to expand our reach across both our existing fleet client base and new commercial, municipal, and institutional targets. This pipeline is increasingly diverse and both behind the meter and in front of the meter. We're building off long-term partnerships, not just one-off installs. Our Utility Operating System continues to draw interest from utilities and governments. The sales cycles are longer than our other products, but this model generates long and recurring revenues. Average contracts will be about 20 to 25 to 30 years in duration, providing long visibility and contractual recurring revenues. We will continue to update you on their progress and future communications. Number four is our wireless in-motion charging. Our wireless EV charging continues to move towards commercialization. We're building the technical foundation and partnership ecosystem to create a path to scale when we go live. With applications in fulfillment, logistics, and fleet depots, we will continue to invest in this capability and make consistent progress with the goal of going live in 2026. Number five, tariffs and the big beautiful bill. We're cognizant that investors are focused on the impacts of tariffs and the big beautiful bill. We want to take this opportunity to clarify that our equipment and parts are manufactured here in Florida. Yes, made in the great U.S. of A. By working with strong local partners, we're able to manage supply chain timelines and cost risks while accelerating delivery on our pipeline. This will help us to meet certain criteria to benefit from the big beautiful bill. Strategic focus. Looking ahead, our execution priorities are clear. Expand our EzFill footprint centered around our anchor clients in each market, scale deployments of smart microgrids and battery storage, cross-sell infrastructure into our existing client base, advance commercialization of wireless charging, and drive efficiency in our operations and capital structure. We're building carefully with discipline, and we're seeing clear signals of traction. NextNRG is not just a fueling company. It is a clean, and it's not just a clean energy company. It's a platform built for resilience, built for integration, and built to scale with the needs of real operators. We're early, but we're building with purpose, and we're grateful for your belief in the opportunity ahead. With that, I'll turn it over to Joel for the financial review. Thank you, Michael. Let me walk through our second quarter financials and highlight the progress we're making toward our long-term financial goals. Start with revenue and gross profit. Q2 revenue was $19.7 million, up 166% year-over-year. First half revenue reached $36 million, compared to $27.7 million for all of 2024. Gross profit was $1.6 million, up from $0.6 million in Q1. Gross margin expanded from 3% in Q1 to 8% in Q2. When we set out to expand into new markets, we believe we could deliver strong top-line growth while capturing operating synergies. This quarter, we're beginning to demonstrate exactly that. Let's talk about operating expenses and stock compensation. Loss from operations was $30.8 million, but that includes a non-cash stock-based compensation charge of $25.5 million. Adjusted operating loss excluding that charge was $5.2 million, compared to $5.8 million in Q1, reflecting the team's focus to reduce operating expenses and drive toward cash flow positive. I want to take a minute to explain that $25.5 million charge mentioned a moment ago. That charge reflects the launch of our new equity incentive plan, our first since the merger, designed to attract and retain top talent. While stock comp will remain part of our model, we don't expect future charges of this size to recur. Cash flow and capital structure. Cash used in operations was $6.4 million in the first half of 2025, down from $8.4 million year-over-year. A material improvement. We made meaningful progress on the balance sheet. We converted a portion of our debt to equity, refinanced some of our truck fleet on better terms, and reduced our monthly debt service burden by close to $1 million. This increased flexibility strengthens our liquidity position and moves us closer to positive cash flow from operations. As we continue to execute our plan, driving top-line growth, managing burn, and accelerating our path to profitability, we plan to raise capital to help fuel our business strategy. We'll do so thoughtfully with a focus on preserving long-term shareholder value. With accelerating revenue, improving margins, better cash efficiency, and a more flexible balance sheet, we believe we're on a path to achieve break-even in the coming quarters while setting ourselves up to scale. We're staying focused on smart growth, and we're confident in the direction we're heading. Thank you for listening. Michael, back to you. Thank you, Joel. Before we open the call for questions, I want to take a moment to thank the people who are making our progress possible. To our shareholders, including many new ones, thank you for your belief in our vision and your continued support. To our customers and partners, we're honored to be solving complex energy challenges alongside you. To the entire NextNRG team, your dedication, innovation, and grit are what drive this company forward every day. We're building something meaningful, a smarter, more resilient energy platform designed for how the world works today and where it's headed tomorrow. We still have work to do, but we're executing with discipline and momentum, and we're excited about what lies ahead. Thank you. Operator, we can now open the call for questions. I understand that there were some emailed questions. Jeff Ramson, please go ahead, sir. Correct. Thank you. Yes, I've collected some questions, and Michael, I'll ask them for you. The first one relates to the flywheel that you discussed. Can you elaborate a bit more on what you mean by the flywheel and how that impacts your business? Okay. We have different technologies that are integrated together. While, when you combine them all, it's an amazing solution for many different companies out there, whether you're in the logistics space or any manufacturing. There's an issue today with generating electricity. There's not enough power out there. That's one of our main products and services that we provide. We assist companies in being able to generate electricity locally and store that electricity locally. In addition, if you have vehicles and you need wireless charging, we have the ability of providing you that as well. It's an entire ecosystem that we're building. You can select each of the individual components on its own, but you can have that entire ecosystem as well. Hypothetically speaking, we're talking about providing energy both before and after the meter, right? Before the meter, that's energy that we're typically selling to institutions, municipalities, utilities. That's that model. After the meter, we're selling directly to the customer. By having all these technologies and all these capabilities, we're allowed to be able to service different customers as they need. You may have a customer that just needs energy generation and energy storage. They don't need charging. They don't need all the other functionality and features. We can provide them with that. We have locations that just need charging. We could provide them with that solution as well. We have an entire ecosystem where you could pick and choose each of the different services and products that we have to provide you exactly with what you need. Very good. Okay. Another question we got was, if you could talk a bit more about the California projects and maybe, you know, talk about timing and things like that. Okay. Excellent. The California projects that we're referring to are healthcare-oriented. They're for healthcare facilities. These facilities are mandated by law to have a certain amount of backup if the grid goes out. In these specs, we're looking at about 96 hours of backup time. When you look at our technology, it's not about renewables. It's not we're a solar company. We're actually deploying natural gas solutions as well as solar solutions on a hybrid smart microgrid. We're agnostic, and all of our technology is agnostic as to how we produce the fuel, whether it's done through burning petroleum or whether it's through nuclear or whether it's through natural gas or even coal. Our technology allows for the production of energy to be done a lot more efficiently with whatever way you're using, whatever fuel you're using to create that electricity. It's very important to understand that we are not just a green energy company, but we're a company that allows, no matter how you're producing that energy, to do so way more efficiently. It's not only just from an energy perspective. It's from an operation and management perspective. Our client has used our technology in the real world, and it was a long-term project. It was backed by an $800+ million DOE collaboration. That utility that deployed our technology has reduced their O&M cost by almost 32%. You're talking about a grid. You're talking about a utility grid. You're talking billions of dollars that can be saved. Across the board, our technology digitizes a grid and allows for efficiencies that have never, ever been achieved beforehand. Got it. Okay. The last one I have here is talking about the technology. I believe you mentioned, or in the past as well, being agnostic to fuel source. Can you just talk a bit more about that? Could you repeat that question, please? Yeah, just talking about your technology and it being fuel-agnostic to the type of fuel source. Yes. Again, utilities have different ways of producing electricity, right? Right now, we have many of our commercial fuel clients focusing on transitioning to renewable solutions. Our legacy business allows us to service our customers of today and then assist them and hold their hands through that process. You are going to have customers that are going to always have some sort of legacy fueling. You want to have redundancy no matter what. The grid is not going away so fast. You need to implement all these different methodologies of producing electricity so that you have redundancy. You do not want to be dependent on any single fuel source. There is going to be nuclear. It is not going away. You are going to have natural gas plants. Those are still online for quite some time.You are going to have your hydrogen and your solar and your energy storage and your wind. There are going to be different components of it. We need to make sure that we are not dependent on any single fuel source. The most important thing is whatever fuel we are using to create electricity, we need to be a lot more efficient in doing so. That is what we bring to the table. Okay. Those are the main questions I received. I think we're good on the questions. Thank you. This concludes our question-and answer session. I would like to turn the conference back over to Michael Farkas for any closing remarks. Thank you, everybody, for joining us on this journey. We still have a way to go. There's a lot of work that needs to be done. The energy space in its entirety is very, very antiquated. We need to digitize the grid globally. We believe with our technology being implemented, you're talking about annual savings over $0.5 trillion if every utility implemented our technologies. It is something that could be groundbreaking globally and impact everyone personally. Thank you, everybody. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker 2: Good morning and welcome to the NextNRG Inc. Second Quarter 2025 Earnings Conference Call. All participants are in a listen-only mode. After today's presentation, we will conduct a question-and-answer session. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. Please note this event is being recorded. I would now like to turn the conference over to Jeff Ramson. Please go ahead. Good morning and welcome to the NextNRG Inc. Second Quarter 2025 Earnings Conference Call. good morning and welcome to the nextnrg inc second quarter 2025 earnings conference call All participants are in a listen-only mode. all participants are in a listen-only mode After today's presentation, we will conduct a question -and -answer session. after today's presentation we will conduct a question -and -answer session Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. should you need assistance please signal a conference specialist by pressing star then zero on your telephone keypad Please note this event is being recorded. please note this event is being recorded I would now like to turn the conference over to Jeff Ramson. i would now like to turn the conference over to jeff ramson Please go ahead. please go ahead

Speaker 3: Thank you and good morning. Joining us today are Michael Farkas, our Chief Executive Officer and Executive Chairman, and Joel Kleiner, Chief Financial Officer. Before we begin, I'd like to remind you that today's remarks include forward-looking statements. These are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our filings with the SEC, including our most recent Form 10-K and Form 10-Q, for full discussion of these risks. With that, I'll turn the call over to Michael. Thank you and good morning. thank you and good morning Joining us today are Michael Farkas, our Chief Executive Officer and Executive Chairman, and Joel Kleiner, Chief Financial Officer. joining us today are michael farkas our chief executive officer and executive chairman and joel kleiner chief financial officer Before we begin, I'd like to remind you that today's remarks include forward-looking statements. before we begin i'd like to remind you that today's remarks include forward-looking statements These are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. these are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially Please refer to our filings with the SEC, including our most recent Form 10-K and Form 10-Q, for full discussion of these risks. please refer to our filings with the sec including our most recent form 10-k and form 10-q for full discussion of these risks With that, I'll turn the call over to Michael. with that i'll turn the call over to michael

Speaker 1: Thank you, Jeff, and welcome everyone. I'd also like to welcome the many new shareholders who have joined us recently. Thank you for coming on this journey with us. This quarter represents a key moment in our growth story. It's a time when execution, commercial traction, and platform development are coming together, and where we can share how NextNRG Inc. is delivering on its vision. Our mission is to build a fully integrated energy platform, powered by AI and backed by our patented technology, connecting fueling, electrification, storage, and grid orchestration to deliver smarter, more resilient infrastructure for commercial and institutional customers. This includes on-site mobile fueling, AI-powered microgrids for local generation and battery storage, wireless in-motion EV charging systems, and the Next Utility Operating System, which is our AI software layer that ties all systems together. This is about building infrastructure that works, systems that are intelligent, efficient, and built to meet the real operational needs of today's energy users. Q2 execution highlights. Number one, EzFill expansion. Following our investment in 99 new trucks, we've expanded to 15 metro markets, up from 10. In Q2 alone, we generated $19.7 million in revenues, bringing us to $36 million for the first half of 2025. That already exceeds our full-year 2024 volume of $27.7 million. EzFill's model is working. We enter a new market with a Fortune 50 anchor client, build operational density, and drive efficiency through route optimization and local logistics. We then expand deeper into that market off the heels of that anchor client. It's a blueprint we're continuing to scale. Number two, our smart microgrid traction. What's exciting is how our broader energy platform is gaining traction with many of our existing trusted client relationships. It's demonstrating our platform's value going beyond fuel and into AI-enabled modern energy solutions. A Fortune 50 EzFill customer focused on a renewable transformation project. They asked us for a proposal to install a full smart microgrid platform solution, integrating solar, battery storage, and on-site generation. In the future, we expect this client to benefit from our wireless in-motion EV charging systems, delivering 100% uptime for their fulfillment equipment inside their facilities. In California, we're making progress on several healthcare deployments. Our AI-driven smart microgrid platform will integrate natural gas generators with solar panels and battery storage to provide both resilience and significant cost savings. These engagements show that the flywheel is starting to turn and that we can extend customer value way beyond traditional fueling. We're growing our commercial pipeline. We're actively working with our sales team and consultants to expand our reach across both our existing fleet client base and new commercial, municipal, and institutional targets. This pipeline is increasingly diverse and both behind the meter and in front of the meter. We're building off long-term partnerships, not just one-off installs. Our Utility Operating System continues to draw interest from utilities and governments. The sales cycles are longer than our other products, but this model generates long and recurring revenues. Average contracts will be about 20 to 25 to 30 years in duration, providing long visibility and contractual recurring revenues. We will continue to update you on their progress and future communications. Number four is our wireless in-motion charging. Our wireless EV charging continues to move towards commercialization. We're building the technical foundation and partnership ecosystem to create a path to scale when we go live. With applications in fulfillment, logistics, and fleet depots, we will continue to invest in this capability and make consistent progress with the goal of going live in 2026. Number five, tariffs and the big beautiful bill. We're cognizant that investors are focused on the impacts of tariffs and the big beautiful bill. We want to take this opportunity to clarify that our equipment and parts are manufactured here in Florida. Yes, made in the great U.S. of A. By working with strong local partners, we're able to manage supply chain timelines and cost risks while accelerating delivery on our pipeline. This will help us to meet certain criteria to benefit from the big beautiful bill. Strategic focus. Looking ahead, our execution priorities are clear. Expand our EzFill footprint centered around our anchor clients in each market, scale deployments of smart microgrids and battery storage, cross-sell infrastructure into our existing client base, advance commercialization of wireless charging, and drive efficiency in our operations and capital structure. We're building carefully with discipline, and we're seeing clear signals of traction. NextNRG is not just a fueling company. It is a clean, and it's not just a clean energy company. It's a platform built for resilience, built for integration, and built to scale with the needs of real operators. We're early, but we're building with purpose, and we're grateful for your belief in the opportunity ahead. With that, I'll turn it over to Joel for the financial review. Thank you, Jeff, and welcome everyone. thank you jeff and welcome everyone I'd also like to welcome the many new shareholders who have joined us recently. i'd also like to welcome the many new shareholders who have joined us recently Thank you for coming on this journey with us. thank you for coming on this journey with us This quarter represents a key moment in our growth story. this quarter represents a key moment in our growth story It's a time when execution, commercial traction, and platform development are coming together, and where we can share how NextNRG Inc. is delivering on its vision. it's a time when execution commercial traction and platform development are coming together and where we can share how nextnrg inc is delivering on its vision Our mission is to build a fully integrated energy platform, powered by AI and backed by our patented technology, connecting fueling, electrification, storage, and grid orchestration to deliver smarter, more resilient infrastructure for commercial and institutional customers. our mission is to build a fully integrated energy platform powered by ai and backed by our patented technology connecting fueling electrification storage and grid orchestration to deliver smarter more resilient infrastructure for commercial and institutional customers This includes on-site mobile fueling, AI-powered microgrids for local generation and battery storage, wireless in-motion EV charging systems, and the Next Utility Operating System, which is our AI software layer that ties all systems together. this includes on-site mobile fueling ai-powered microgrids for local generation and battery storage wireless in-motion ev charging systems and the next utility operating system which is our ai software layer that ties all systems together This is about building infrastructure that works, systems that are intelligent, efficient, and built to meet the real operational needs of today's energy users. this is about building infrastructure that works systems that are intelligent efficient and built to meet the real operational needs of today's energy users Q2 execution highlights. q2 execution highlights Number one, EzFill expansion. number one ezfill expansion Following our investment in 99 new trucks, we've expanded to 15 metro markets, up from 10. following our investment in 99 new trucks we've expanded to 15 metro markets up from 10 In Q2 alone, we generated $19.7 million in revenues, bringing us to $36 million for the first half of 2025. in q2 alone we generated $19.7 million in revenues bringing us to $36 million for the first half of 2025 That already exceeds our full-year 2024 volume of $27.7 million. that already exceeds our full-year 2024 volume of $27.7 million EzFill's model is working. ezfill's model is working We enter a new market with a Fortune 50 anchor client, build operational density, and drive efficiency through route optimization and local logistics. we enter a new market with a fortune 50 anchor client build operational density and drive efficiency through route optimization and local logistics We then expand deeper into that market off the heels of that anchor client. we then expand deeper into that market off the heels of that anchor client It's a blueprint we're continuing to scale. it's a blueprint we're continuing to scale Number two, our smart microgrid traction. number two our smart microgrid traction What's exciting is how our broader energy platform is gaining traction with many of our existing trusted client relationships. what's exciting is how our broader energy platform is gaining traction with many of our existing trusted client relationships It's demonstrating our platform's value going beyond fuel and into AI-enabled modern energy solutions. it's demonstrating our platform's value going beyond fuel and into ai-enabled modern energy solutions A Fortune 50 EzFill customer focused on a renewable transformation project. a fortune 50 ezfill customer focused on a renewable transformation project They asked us for a proposal to install a full smart microgrid platform solution, integrating solar, battery storage, and on-site generation. they asked us for a proposal to install a full smart microgrid platform solution integrating solar battery storage and on-site generation In the future, we expect this client to benefit from our wireless in-motion EV charging systems, delivering 100% uptime for their fulfillment equipment inside their facilities. in the future we expect this client to benefit from our wireless in-motion ev charging systems delivering 100% uptime for their fulfillment equipment inside their facilities In California, we're making progress on several healthcare deployments. in california we're making progress on several healthcare deployments Our AI-driven smart microgrid platform will integrate natural gas generators with solar panels and battery storage to provide both resilience and significant cost savings. our ai-driven smart microgrid platform will integrate natural gas generators with solar panels and battery storage to provide both resilience and significant cost savings These engagements show that the flywheel is starting to turn and that we can extend customer value way beyond traditional fueling. these engagements show that the flywheel is starting to turn and that we can extend customer value way beyond traditional fueling We're growing our commercial pipeline. we're growing our commercial pipeline We're actively working with our sales team and consultants to expand our reach across both our existing fleet client base and new commercial, municipal, and institutional targets. we're actively working with our sales team and consultants to expand our reach across both our existing fleet client base and new commercial municipal and institutional targets This pipeline is increasingly diverse and both behind the meter and in front of the meter. this pipeline is increasingly diverse and both behind the meter and in front of the meter We're building off long-term partnerships, not just one-off installs. we're building off long-term partnerships not just one-off installs Our Utility Operating System continues to draw interest from utilities and governments. our utility operating system continues to draw interest from utilities and governments The sales cycles are longer than our other products, but this model generates long and recurring revenues. the sales cycles are longer than our other products but this model generates long and recurring revenues Average contracts will be about 20 to 25 to 30 years in duration, providing long visibility and contractual recurring revenues. average contracts will be about 20 to 25 to 30 years in duration providing long visibility and contractual recurring revenues We will continue to update you on their progress and future communications. we will continue to update you on their progress and future communications Number four is our wireless in-motion charging. number four is our wireless in-motion charging Our wireless EV charging continues to move towards commercialization. our wireless ev charging continues to move towards commercialization We're building the technical foundation and partnership ecosystem to create a path to scale when we go live. we're building the technical foundation and partnership ecosystem to create a path to scale when we go live With applications in fulfillment, logistics, and fleet depots, we will continue to invest in this capability and make consistent progress with the goal of going live in 2026. with applications in fulfillment logistics and fleet depots we will continue to invest in this capability and make consistent progress with the goal of going live in 2026 Number five, tariffs and the big beautiful bill. number five tariffs and the big beautiful bill We're cognizant that investors are focused on the impacts of tariffs and the big beautiful bill. we're cognizant that investors are focused on the impacts of tariffs and the big beautiful bill We want to take this opportunity to clarify that our equipment and parts are manufactured here in Florida. we want to take this opportunity to clarify that our equipment and parts are manufactured here in florida Yes, made in the great U.S. of A. yes made in the great u.s of a By working with strong local partners, we're able to manage supply chain timelines and cost risks while accelerating delivery on our pipeline. by working with strong local partners we're able to manage supply chain timelines and cost risks while accelerating delivery on our pipeline This will help us to meet certain criteria to benefit from the big beautiful bill. this will help us to meet certain criteria to benefit from the big beautiful bill Strategic focus. strategic focus Looking ahead, our execution priorities are clear. looking ahead our execution priorities are clear Expand our EzFill footprint centered around our anchor clients in each market, scale deployments of smart microgrids and battery storage, cross-sell infrastructure into our existing client base, advance commercialization of wireless charging, and drive efficiency in our operations and capital structure. expand our ezfill footprint centered around our anchor clients in each market scale deployments of smart microgrids and battery storage cross-sell infrastructure into our existing client base advance commercialization of wireless charging and drive efficiency in our operations and capital structure We're building carefully with discipline, and we're seeing clear signals of traction. we're building carefully with discipline and we're seeing clear signals of traction NextNRG is not just a fueling company. nextnrg is not just a fueling company It is a clean, and it's not just a clean energy company. it is a clean and it's not just a clean energy company It's a platform built for resilience, built for integration, and built to scale with the needs of real operators. it's a platform built for resilience built for integration and built to scale with the needs of real operators We're early, but we're building with purpose, and we're grateful for your belief in the opportunity ahead. we're early but we're building with purpose and we're grateful for your belief in the opportunity ahead With that, I'll turn it over to Joel for the financial review. with that i'll turn it over to joel for the financial review

Speaker 4: Thank you, Michael. Let me walk through our second quarter financials and highlight the progress we're making toward our long-term financial goals. Start with revenue and gross profit. Q2 revenue was $19.7 million, up 166% year-over-year. First half revenue reached $36 million, compared to $27.7 million for all of 2024. Gross profit was $1.6 million, up from $0.6 million in Q1. Gross margin expanded from 3% in Q1 to 8% in Q2. When we set out to expand into new markets, we believe we could deliver strong top-line growth while capturing operating synergies. This quarter, we're beginning to demonstrate exactly that. Let's talk about operating expenses and stock compensation. Loss from operations was $30.8 million, but that includes a non-cash stock-based compensation charge of $25.5 million. Adjusted operating loss excluding that charge was $5.2 million, compared to $5.8 million in Q1, reflecting the team's focus to reduce operating expenses and drive toward cash flow positive. I want to take a minute to explain that $25.5 million charge mentioned a moment ago. That charge reflects the launch of our new equity incentive plan, our first since the merger, designed to attract and retain top talent. While stock comp will remain part of our model, we don't expect future charges of this size to recur. Cash flow and capital structure. Cash used in operations was $6.4 million in the first half of 2025, down from $8.4 million year-over-year. A material improvement. We made meaningful progress on the balance sheet. We converted a portion of our debt to equity, refinanced some of our truck fleet on better terms, and reduced our monthly debt service burden by close to $1 million. This increased flexibility strengthens our liquidity position and moves us closer to positive cash flow from operations. As we continue to execute our plan, driving top-line growth, managing burn, and accelerating our path to profitability, we plan to raise capital to help fuel our business strategy. We'll do so thoughtfully with a focus on preserving long-term shareholder value. With accelerating revenue, improving margins, better cash efficiency, and a more flexible balance sheet, we believe we're on a path to achieve break-even in the coming quarters while setting ourselves up to scale. We're staying focused on smart growth, and we're confident in the direction we're heading. Thank you for listening. Michael, back to you. Thank you, Michael. thank you michael Let me walk through our second quarter financials and highlight the progress we're making toward our long-term financial goals. let me walk through our second quarter financials and highlight the progress we're making toward our long-term financial goals Start with revenue and gross profit. start with revenue and gross profit Q2 revenue was $19.7 million, up 166% year -over -year. q2 revenue was $19.7 million up 166% year -over -year First half revenue reached $36 million, compared to $27.7 million for all of 2024. first half revenue reached $36 million compared to $27.7 million for all of 2024 Gross profit was $1.6 million, up from $0.6 million in Q1. gross profit was $1.6 million up from $0.6 million in q1 Gross margin expanded from 3% in Q1 to 8% in Q2. gross margin expanded from 3% in q1 to 8% in q2 When we set out to expand into new markets, we believe we could deliver strong top-line growth while capturing operating synergies. when we set out to expand into new markets we believe we could deliver strong top-line growth while capturing operating synergies This quarter, we're beginning to demonstrate exactly that. this quarter we're beginning to demonstrate exactly that Let's talk about operating expenses and stock compensation. let's talk about operating expenses and stock compensation Loss from operations was $30.8 million, but that includes a non-cash stock-based compensation charge of $25.5 million. loss from operations was $30.8 million but that includes a non-cash stock-based compensation charge of $25.5 million Adjusted operating loss excluding that charge was $5.2 million, compared to $5.8 million in Q1, reflecting the team's focus to reduce operating expenses and drive toward cash flow positive. adjusted operating loss excluding that charge was $5.2 million compared to $5.8 million in q1 reflecting the team's focus to reduce operating expenses and drive toward cash flow positive I want to take a minute to explain that $25.5 million charge mentioned a moment ago. i want to take a minute to explain that $25.5 million charge mentioned a moment ago That charge reflects the launch of our new equity incentive plan, our first since the merger, designed to attract and retain top talent. that charge reflects the launch of our new equity incentive plan our first since the merger designed to attract and retain top talent While stock comp will remain part of our model, we don't expect future charges of this size to recur. while stock comp will remain part of our model we don't expect future charges of this size to recur Cash flow and capital structure. cash flow and capital structure Cash used in operations was $6.4 million in the first half of 2025, down from $8.4 million year -over -year. cash used in operations was $6.4 million in the first half of 2025 down from $8.4 million year -over -year A material improvement. a material improvement We made meaningful progress on the balance sheet. we made meaningful progress on the balance sheet We converted a portion of our debt to equity, refinanced some of our truck fleet on better terms, and reduced our monthly debt service burden by close to $1 million. we converted a portion of our debt to equity refinanced some of our truck fleet on better terms and reduced our monthly debt service burden by close to $1 million This increased flexibility strengthens our liquidity position and moves us closer to positive cash flow from operations. this increased flexibility strengthens our liquidity position and moves us closer to positive cash flow from operations As we continue to execute our plan, driving top-line growth, managing burn, and accelerating our path to profitability, we plan to raise capital to help fuel our business strategy. as we continue to execute our plan driving top-line growth managing burn and accelerating our path to profitability we plan to raise capital to help fuel our business strategy We'll do so thoughtfully with a focus on preserving long-term shareholder value. we'll do so thoughtfully with a focus on preserving long-term shareholder value With accelerating revenue, improving margins, better cash efficiency, and a more flexible balance sheet, we believe we're on a path to achieve break-even in the coming quarters while setting ourselves up to scale. with accelerating revenue improving margins better cash efficiency and a more flexible balance sheet we believe we're on a path to achieve break-even in the coming quarters while setting ourselves up to scale We're staying focused on smart growth, and we're confident in the direction we're heading. we're staying focused on smart growth and we're confident in the direction we're heading Thank you for listening. thank you for listening Michael, back to you. michael back to you

Speaker 1: Thank you, Joel. Before we open the call for questions, I want to take a moment to thank the people who are making our progress possible. To our shareholders, including many new ones, thank you for your belief in our vision and your continued support. To our customers and partners, we're honored to be solving complex energy challenges alongside you. To the entire NextNRG team, your dedication, innovation, and grit are what drive this company forward every day. We're building something meaningful, a smarter, more resilient energy platform designed for how the world works today and where it's headed tomorrow. We still have work to do, but we're executing with discipline and momentum, and we're excited about what lies ahead. Thank you. Operator, we can now open the call for questions. Thank you, Joel. thank you joel Before we open the call for questions, I want to take a moment to thank the people who are making our progress possible. before we open the call for questions i want to take a moment to thank the people who are making our progress possible To our shareholders, including many new ones, thank you for your belief in our vision and your continued support. to our shareholders including many new ones thank you for your belief in our vision and your continued support To our customers and partners, we're honored to be solving complex energy challenges alongside you. to our customers and partners we're honored to be solving complex energy challenges alongside you To the entire NextNRG team, your dedication, innovation, and grit are what drive this company forward every day. to the entire nextnrg team your dedication innovation and grit are what drive this company forward every day We're building something meaningful, a smarter, more resilient energy platform designed for how the world works today and where it's headed tomorrow. we're building something meaningful a smarter more resilient energy platform designed for how the world works today and where it's headed tomorrow We still have work to do, but we're executing with discipline and momentum, and we're excited about what lies ahead. we still have work to do but we're executing with discipline and momentum and we're excited about what lies ahead Thank you. thank you Operator, we can now open the call for questions. operator we can now open the call for questions

Speaker 2: I understand that there were some emailed questions. Jeff Ramson, please go ahead, sir. I understand that there were some emailed questions. i understand that there were some emailed questions Jeff Ramson, please go ahead, sir. jeff ramson please go ahead sir

Speaker 3: Correct. Thank you. Yes, I've collected some questions, and Michael, I'll ask them for you. The first one relates to the flywheel that you discussed. Can you elaborate a bit more on what you mean by the flywheel and how that impacts your business? Correct. correct Thank you. thank you Yes, I've collected some questions, and Michael, I'll ask them for you. yes i've collected some questions and michael i'll ask them for you The first one relates to the flywheel that you discussed. the first one relates to the flywheel that you discussed Can you elaborate a bit more on what you mean by the flywheel and how that impacts your business? can you elaborate a bit more on what you mean by the flywheel and how that impacts your business

Speaker 1: Okay. We have different technologies that are integrated together. While, when you combine them all, it's an amazing solution for many different companies out there, whether you're in the logistics space or any manufacturing. There's an issue today with generating electricity. There's not enough power out there. That's one of our main products and services that we provide. We assist companies in being able to generate electricity locally and store that electricity locally. In addition, if you have vehicles and you need wireless charging, we have the ability of providing you that as well. It's an entire ecosystem that we're building. You can select each of the individual components on its own, but you can have that entire ecosystem as well. Hypothetically speaking, we're talking about providing energy both before and after the meter, right? Before the meter, that's energy that we're typically selling to institutions, municipalities, utilities. That's that model. After the meter, we're selling directly to the customer. By having all these technologies and all these capabilities, we're allowed to be able to service different customers as they need. You may have a customer that just needs energy generation and energy storage. They don't need charging. They don't need all the other functionality and features. We can provide them with that. We have locations that just need charging. We could provide them with that solution as well. We have an entire ecosystem where you could pick and choose each of the different services and products that we have to provide you exactly with what you need. Okay. okay We have different technologies that are integrated together. we have different technologies that are integrated together While, when you combine them all, it's an amazing solution for many different companies out there, whether you're in the logistics space or any manufacturing. while when you combine them all it's an amazing solution for many different companies out there whether you're in the logistics space or any manufacturing There's an issue today with generating electricity. there's an issue today with generating electricity There's not enough power out there. there's not enough power out there That's one of our main products and services that we provide. that's one of our main products and services that we provide We assist companies in being able to generate electricity locally and store that electricity locally. we assist companies in being able to generate electricity locally and store that electricity locally In addition, if you have vehicles and you need wireless charging, we have the ability of providing you that as well. in addition if you have vehicles and you need wireless charging we have the ability of providing you that as well It's an entire ecosystem that we're building. it's an entire ecosystem that we're building You can select each of the individual components on its own, but you can have that entire ecosystem as well. you can select each of the individual components on its own but you can have that entire ecosystem as well Hypothetically speaking, we're talking about providing energy both before and after the meter, right? hypothetically speaking we're talking about providing energy both before and after the meter right Before the meter, that's energy that we're typically selling to institutions, municipalities, utilities. before the meter that's energy that we're typically selling to institutions municipalities utilities That's that model. that's that model After the meter, we're selling directly to the customer. after the meter we're selling directly to the customer By having all these technologies and all these capabilities, we're allowed to be able to service different customers as they need. by having all these technologies and all these capabilities we're allowed to be able to service different customers as they need You may have a customer that just needs energy generation and energy storage. you may have a customer that just needs energy generation and energy storage They don't need charging. they don't need charging They don't need all the other functionality and features. they don't need all the other functionality and features We can provide them with that. we can provide them with that We have locations that just need charging. we have locations that just need charging We could provide them with that solution as well. we could provide them with that solution as well We have an entire ecosystem where you could pick and choose each of the different services and products that we have to provide you exactly with what you need. we have an entire ecosystem where you could pick and choose each of the different services and products that we have to provide you exactly with what you need

Speaker 3: Very good. Okay. Another question we got was, if you could talk a bit more about the California projects and maybe, you know, talk about timing and things like that. Very good. very good Okay. okay Another question we got was, if you could talk a bit more about the California projects and maybe, you know, talk about timing and things like that. another question we got was if you could talk a bit more about the california projects and maybe you know talk about timing and things like that

Speaker 1: Okay. Excellent. The California projects that we're referring to are healthcare-oriented. They're for healthcare facilities. These facilities are mandated by law to have a certain amount of backup if the grid goes out. In these specs, we're looking at about 96 hours of backup time. When you look at our technology, it's not about renewables. It's not we're a solar company. We're actually deploying natural gas solutions as well as solar solutions on a hybrid smart microgrid. We're agnostic, and all of our technology is agnostic as to how we produce the fuel, whether it's done through burning petroleum or whether it's through nuclear or whether it's through natural gas or even coal. Our technology allows for the production of energy to be done a lot more efficiently with whatever way you're using, whatever fuel you're using to create that electricity. It's very important to understand that we are not just a green energy company, but we're a company that allows, no matter how you're producing that energy, to do so way more efficiently. It's not only just from an energy perspective. It's from an operation and management perspective. Our client has used our technology in the real world, and it was a long-term project. It was backed by an $800+ million DOE collaboration. That utility that deployed our technology has reduced their O&M cost by almost 32%. You're talking about a grid. You're talking about a utility grid. You're talking billions of dollars that can be saved. Across the board, our technology digitizes a grid and allows for efficiencies that have never, ever been achieved beforehand. Okay. okay Excellent. excellent The California projects that we're referring to are healthcare-oriented. the california projects that we're referring to are healthcare-oriented They're for healthcare facilities. they're for healthcare facilities These facilities are mandated by law to have a certain amount of backup if the grid goes out. these facilities are mandated by law to have a certain amount of backup if the grid goes out In these specs, we're looking at about 96 hours of backup time. in these specs we're looking at about 96 hours of backup time When you look at our technology, it's not about renewables. when you look at our technology it's not about renewables It's not we're a solar company. it's not we're a solar company We're actually deploying natural gas solutions as well as solar solutions on a hybrid smart microgrid. we're actually deploying natural gas solutions as well as solar solutions on a hybrid smart microgrid We're agnostic, and all of our technology is agnostic as to how we produce the fuel, whether it's done through burning petroleum or whether it's through nuclear or whether it's through natural gas or even coal. we're agnostic and all of our technology is agnostic as to how we produce the fuel whether it's done through burning petroleum or whether it's through nuclear or whether it's through natural gas or even coal Our technology allows for the production of energy to be done a lot more efficiently with whatever way you're using, whatever fuel you're using to create that electricity. our technology allows for the production of energy to be done a lot more efficiently with whatever way you're using whatever fuel you're using to create that electricity It's very important to understand that we are not just a green energy company, but we're a company that allows, no matter how you're producing that energy, to do so way more efficiently. it's very important to understand that we are not just a green energy company but we're a company that allows no matter how you're producing that energy to do so way more efficiently It's not only just from an energy perspective. it's not only just from an energy perspective It's from an operation and management perspective. it's from an operation and management perspective Our client has used our technology in the real world, and it was a long-term project. our client has used our technology in the real world and it was a long-term project It was backed by an $800+ million DOE collaboration. it was backed by an $800+ million doe collaboration That utility that deployed our technology has reduced their O&M cost by almost 32%. that utility that deployed our technology has reduced their o&m cost by almost 32% You're talking about a grid. you're talking about a grid You're talking about a utility grid. you're talking about a utility grid You're talking billions of dollars that can be saved. you're talking billions of dollars that can be saved Across the board, our technology digitizes a grid and allows for efficiencies that have never, ever been achieved beforehand. across the board our technology digitizes a grid and allows for efficiencies that have never ever been achieved beforehand

Speaker 3: Got it. Okay. The last one I have here is talking about the technology. I believe you mentioned, or in the past as well, being agnostic to fuel source. Can you just talk a bit more about that? Got it. got it Okay. okay The last one I have here is talking about the technology. the last one i have here is talking about the technology I believe you mentioned, or in the past as well, being agnostic to fuel source. i believe you mentioned or in the past as well being agnostic to fuel source Can you just talk a bit more about that? can you just talk a bit more about that

Speaker 1: Could you repeat that question, please? Could you repeat that question, please? could you repeat that question please

Speaker 3: Yeah, just talking about your technology and it being fuel-agnostic to the type of fuel source. Yeah, just talking about your technology and it being fuel-agnostic to the type of fuel source. yeah just talking about your technology and it being fuel-agnostic to the type of fuel source

Speaker 1: Yes. Again, utilities have different ways of producing electricity, right? Right now, we have many of our commercial fuel clients focusing on transitioning to renewable solutions. Our legacy business allows us to service our customers of today and then assist them and hold their hands through that process. You are going to have customers that are going to always have some sort of legacy fueling. You want to have redundancy no matter what. The grid is not going away so fast. You need to implement all these different methodologies of producing electricity so that you have redundancy. You do not want to be dependent on any single fuel source. There is going to be nuclear. It is not going away. You are going to have natural gas plants. Those are still online for quite some time.You are going to have your hydrogen and your solar and your energy storage and your wind. There are going to be different components of it. We need to make sure that we are not dependent on any single fuel source. The most important thing is whatever fuel we are using to create electricity, we need to be a lot more efficient in doing so. That is what we bring to the table. Yes. yes Again, utilities have different ways of producing electricity, right? again utilities have different ways of producing electricity right Right now, we have many of our commercial fuel clients focusing on transitioning to renewable solutions. right now we have many of our commercial fuel clients focusing on transitioning to renewable solutions Our legacy business allows us to service our customers of today and then assist them and hold their hands through that process. You are going to have customers that are going to always have some sort of legacy fueling. our legacy business allows us to service our customers of today and then assist them and hold their hands through that process. you are going to have customers that are going to always have some sort of legacy fueling You want to have redundancy no matter what. you want to have redundancy no matter what The grid is not going away so fast. the grid is not going away so fast You need to implement all these different methodologies of producing electricity so that you have redundancy. you need to implement all these different methodologies of producing electricity so that you have redundancy You do not want to be dependent on any single fuel source. you do not want to be dependent on any single fuel source There is going to be nuclear. It is not going away. You are going to have natural gas plants. there is going to be nuclear. it is not going away. you are going to have natural gas plants Those are still online for quite some time. those are still online for quite some time You are going to have your hydrogen and your solar and your energy storage and your wind. There are going to be different components of it. you are going to have your hydrogen and your solar and your energy storage and your wind. there are going to be different components of it We need to make sure that we are not dependent on any single fuel source. we need to make sure that we are not dependent on any single fuel source The most important thing is whatever fuel we are using to create electricity, we need to be a lot more efficient in doing so. the most important thing is whatever fuel we are using to create electricity we need to be a lot more efficient in doing so That is what we bring to the table. that is what we bring to the table

Speaker 3: Okay. Those are the main questions I received. I think we're good on the questions. Okay. okay Those are the main questions I received. those are the main questions i received I think we're good on the questions. i think we're good on the questions

Speaker 2: Thank you. This concludes our question-and answer session. I would like to turn the conference back over to Michael Farkas for any closing remarks. Thank you. thank you This concludes our question -and answer session. this concludes our question -and answer session I would like to turn the conference back over to Michael Farkas for any closing remarks. i would like to turn the conference back over to michael farkas for any closing remarks

Speaker 1: Thank you, everybody, for joining us on this journey. We still have a way to go. There's a lot of work that needs to be done. The energy space in its entirety is very, very antiquated. We need to digitize the grid globally. We believe with our technology being implemented, you're talking about annual savings over $0.5 trillion if every utility implemented our technologies. It is something that could be groundbreaking globally and impact everyone personally. Thank you, everybody. Thank you, everybody, for joining us on this journey. thank you everybody for joining us on this journey We still have a way to go. we still have a way to go There's a lot of work that needs to be done. there's a lot of work that needs to be done The energy space in its entirety is very, very antiquated. the energy space in its entirety is very very antiquated We need to digitize the grid globally. we need to digitize the grid globally We believe with our technology being implemented, you're talking about annual savings over $0.5 trillion if every utility implemented our technologies. we believe with our technology being implemented you're talking about annual savings over $0.5 trillion if every utility implemented our technologies It is something that could be groundbreaking globally and impact everyone personally. it is something that could be groundbreaking globally and impact everyone personally Thank you, everybody. thank you everybody

Speaker 2: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. The conference has now concluded. the conference has now concluded Thank you for attending today's presentation. thank you for attending today's presentation You may now disconnect. you may now disconnect