NextNRG completes restructuring, reduces monthly cash burn by $1 million

MIAMI - NextNRG, Inc. (NASDAQ:NXXT), currently trading at $1.76 and showing a concerning current ratio of 0.22, announced Monday it has completed a financial restructuring that reduces its monthly cash burn by approximately $1 million through two key transactions. According to InvestingPro data, the company’s short-term obligations exceed its liquid assets, making this restructuring particularly crucial.

The AI-driven energy company executed a debt conversion agreement on July 11, issuing 1,081,395 shares of restricted common stock at $2.15 per share to an existing lender, eliminating its obligations to that lender. The issued shares cannot be sold for at least six months. The stock has experienced significant pressure, down nearly 63% over the past year, though analysts maintain a Strong Buy rating with a $6 price target.

Simultaneously, NextNRG secured new financing to pay off certain short-term debt, replacing high-cost short-term obligations with an 8-month $2 million note. While the company operates with a moderate level of debt, InvestingPro analysis reveals strong revenue growth of 52.3% in the last twelve months, with analysts forecasting continued sales growth ahead. Get access to 15+ additional ProTips and comprehensive financial analysis with an InvestingPro subscription.

"This comprehensive financial restructuring represents a transformative moment for NextNRG, dramatically improving our cash flow position and providing the financial stability needed to execute our growth strategy," said Michael D. Farkas, Executive Chairman and CEO of NextNRG in the company’s press release. The company’s efforts to improve its financial position come as its overall financial health score remains weak, according to InvestingPro’s comprehensive assessment.

The company, which focuses on AI-driven energy innovation through its Next Utility Operating System, smart microgrids, wireless EV charging, and mobile fuel delivery, stated the restructuring provides improved cash flow dynamics as it continues expansion across multiple energy sectors. Despite current challenges, including a gross profit margin of just 6.3%, the company’s revenue reached $37.45 million in the last twelve months.

NextNRG indicated the restructuring will allow the company to direct additional resources toward scaling its AI-driven energy platform while moving closer to profitability.

The information in this article is based on a company press release statement.

In other recent news, NextNRG, Inc. has reported significant financial growth, with June 2025 revenue reaching $6.98 million, a 231% increase year-over-year. This marks the sixth consecutive month of record revenue for the company. Furthermore, NextNRG has entered into a 28-year power purchase agreement to develop energy infrastructure for two healthcare facilities in Los Angeles. The company will design and operate smart microgrid systems, providing reliable energy solutions. In addition, NextNRG has announced plans to acquire ReFuel Mobile, a Canadian mobile fueling company, marking its first international expansion. The acquisition is expected to close by August 1, 2025, and will integrate ReFuel’s software platform with NextNRG’s technology. Moreover, NextNRG has signed a $75 million at-the-market equity sales agreement with several firms, allowing it to sell shares of its common stock. These developments highlight NextNRG’s strategic expansion and financial growth in the energy sector.

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