Nextnrg (NXXT) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We will require substantial additional capital to support our operations and growth plans, and such capital may not be available on terms acceptable to us, if at all. This could hamper our growth and adversely affect our business
2. 02We anticipate that our principal sources of liquidity will only be sufficient to fund our activities through June 30, 2025. In order to have sufficient cash to fund our operations beyond June 30, 2025, we will need to raise additional equity or debt capital
3. 03Uncertain geopolitical conditions could adversely affect our results of operations
4. 04Operating and litigation risks may not be covered by insurance
5. 05Future climate change laws and regulations and the market response to these changes may negatively impact our operations
6. 06Our auditors have included an explanatory paragraph in their opinion regarding our ability to continue as a going concern. If we are unable to continue as a going concern, our securities will have little or no value
7. 07We anticipate that we will continue to generate operating losses and use cash in operations through the foreseeable future. As further set forth above, we anticipate that we will need significant additional capital by June 30, 2025, or we may be required to curtail or cease operations
8. 08High fuel prices can lead to customer conservation and attrition, resulting in reduced demand for our product
9. 09Changes in commodity market prices may have a negative effect on our gross margin
10. 10The decline of the retail fuel market may impact our potential to get new customers
11. 11Competition in the fuel delivery industry may negatively impact our operations
12. 12Our trucks transport hazardous flammable fuel, which may cause environmental damage and liability to us
13. 13Our cash flow and net income may decrease if we are forced to comply with new governmental regulation surrounding the transportation of fuel
14. 14Our current dependence on a single fuel supplier increases our risk of an interruption in fuel supply, impacting our operations
15. 15Our profitability is subject to fuel pricing and inventory risk
16. 16Loss of a major customer could result in a decrease in our future sales and earnings
17. 17We operate in a new industry segment and may be subject to new and existing laws, regulations and oversight
18. 18NextNRG has a very limited operating history, which makes it difficult to evaluate its business and prospects
19. 19To date, NextNRG has not generated significant revenues or achieved profitability, and may never generate significant revenues or become profitable
20. 20The market for NextNRG’s platform and services may not be as large as NextNRG believes it to be
21. 21NextNRG has limited experience with respect to determining the optimal prices and pricing structures for its products and services, which may impact its financial results
22. 22NextNRG is in a highly competitive EV charging services industry and there can be no assurance that it will be able to compete with many of its competitors which are larger and have greater financial resources
23. 23NextNRG’s revenue growth ultimately depends on consumers’ willingness to adopt electric vehicles with wireless charging capabilities in a market which is still in its early stages

Risks Related to Ownership of Our Common Stock and this Offering

1. 24Our stock price is expected to fluctuate significantly
2. 25A significant percentage of the Company’s common stock is held by a small number of shareholders
3. 26We have never paid dividends on our capital stock, and we do not anticipate paying any dividends in the foreseeable future. Consequently, any gains from an investment in our common stock will likely depend on whether the price of our common stock increases
4. 27If we fail to comply with the continued listing requirements of NASDAQ, we would face possible delisting, which would result in a limited public market for our shares and make obtaining future debt or equity financing more difficult for us
5. 28Upon submission of the Company’s plan to regain compliance, the Staff granted the Company an extension until February 20, 2024 to comply with this requirement
6. 29We have elected to take advantage of specified reduced disclosure requirements applicable to an “emerging growth company” under the JOBS Act, the information that we provide to stockholders may be different than they might receive from other public companies
7. 30Additional stock offerings in the future may dilute your percentage ownership of our company