NextNRG Announces Completion of Strategic Financial Restructuring Reducing Monthly Burn by Approximately $1 Million

Rhea-AI Summary

NextNRG (Nasdaq: NXXT) has completed a strategic financial restructuring that reduces its monthly cash burn by approximately $1 million. The restructuring involves two key transactions:

1. A debt conversion agreement converting existing debt to 1,081,395 shares of restricted common stock at $2.15 per share (premium to market)

2. Refinancing of high-cost short-term debt with an 8-month $2 million note

The issued shares have a six-month lock-up period. The restructuring aims to improve cash flow and provide financial stability as the company expands its AI-driven energy platform across multiple sectors.

Positive

• Monthly cash burn reduction of approximately $1 million improves operational efficiency
• Debt conversion at premium to market price indicates investor confidence
• Conversion of debt to equity improves balance sheet structure
• 6-month lock-up period on issued shares prevents immediate dilution pressure
• Refinancing of high-cost debt with 8-month note improves debt terms

Negative

• Issuance of 1,081,395 new shares creates dilution for existing shareholders
• Company still operating at a loss with focus on 'path to profitability'
• New $2 million note adds short-term debt obligation with 8-month maturity

Company Converts Debt to Restricted Common Stock at Premium to Market and Refinances High-Cost Debt with 8-Month Note

MIAMI, July 21, 2025 (GLOBE NEWSWIRE) -- NextNRG, Inc. (Nasdaq: NXXT), a pioneer in AI-driven energy innovation transforming how energy is produced, managed, and delivered through its Next Utility Operating System®, smart microgrids, wireless EV charging, and mobile fuel delivery, today announced the completion of a comprehensive financial restructuring that significantly reduces the company's monthly cash burn by approximately $1 million.

The restructuring consists of two key transactions: a debt conversion agreement that converts existing debt obligations to equity at a premium to market, and a strategic refinancing that replaces high-cost short-term debt with an 8-month $2 million note. Under the debt conversion executed on July 11, 2025, NextNRG issued 1,081,395 shares of restricted common stock at $2.15 per share to an existing lender, eliminating the company's obligations to the lender. Simultaneously, the company secured new financing to pay off certain short-term debt. The shares issued cannot be sold for a minimum of six months. The net result of the two transactions was a nearly $1 million reduction to the Company’s monthly burn.

"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. "By reducing our monthly burn by approximately $1 million, through these strategic transactions, we can focus additional resources on scaling our AI-driven energy platform and achieving our path to profitability. We are also excited to be converting a lender into a long-term investor into our Company."

The financial restructuring positions NextNRG with significantly improved cash flow dynamics as the company continues its rapid expansion across multiple energy sectors and geographic markets and gets closer to profitability.

About NextNRG, Inc.

NextNRG Inc. (NextNRG) is Powering What's Next by implementing artificial intelligence (AI) and machine learning (ML) into renewable energy, next-generation energy infrastructure, battery storage, wireless electric vehicle (EV) charging and on-demand mobile fuel delivery to create an integrated ecosystem.

At the core of NextNRG's strategy is its Next Utility Operating System®, which leverages AI and ML to help make existing utilities' energy management as efficient as possible, and the deployment of NextNRG smart microgrids, which utilize AI-driven energy management alongside solar power and battery storage to enhance energy efficiency, reduce costs and improve grid resiliency.

To find out more visit: www.nextnrg.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement describing NextNRG's goals, expectations, financial or other projections, intentions, or beliefs is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, including, but not limited to, those related to NextNRG's business and macroeconomic and geopolitical events. These and other risks are described in NextNRG's filings with the Securities and Exchange Commission from time to time. NextNRG's forward-looking statements involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although NextNRG's forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by NextNRG. Except as required by law, NextNRG undertakes no obligation to update any forward-looking statements for any reason. As a result, you are cautioned not to rely on these forward-looking statements.

Investor Relations Contact

NextNRG, Inc.
Sharon Cohen
SCohen@nextnrg.com

FAQ

How much will NextNRG (NXXT) reduce its monthly cash burn through the restructuring?

NextNRG will reduce its monthly cash burn by approximately $1 million through the strategic financial restructuring.

What are the key components of NextNRG's (NXXT) financial restructuring in July 2025?

The restructuring includes two key components: 1) Converting existing debt to 1,081,395 restricted shares at $2.15 per share, and 2) Refinancing high-cost short-term debt with an 8-month $2 million note.

How many shares did NextNRG (NXXT) issue in the debt conversion and at what price?

NextNRG issued 1,081,395 shares of restricted common stock at $2.15 per share to an existing lender.

What is the lock-up period for the newly issued NextNRG (NXXT) shares?

The newly issued shares have a minimum lock-up period of six months, during which they cannot be sold.

How will the financial restructuring affect NextNRG's (NXXT) business strategy?

The restructuring will improve cash flow and financial stability, allowing NextNRG to focus additional resources on scaling its AI-driven energy platform and pursuing its path to profitability.