NextNRG Bets on Patient Safety for Its Financial Future

MIAMI, FL – December 11, 2025 – For a company navigating significant financial headwinds, NextNRG (NASDAQ: NXXT) is making a decidedly long-term play. The AI-driven energy firm announced it has signed a 28-year Power Purchase Agreement (PPA) to build and operate a sophisticated microgrid for the Topanga Terrace Rehabilitation & Subacute Care Center in California. This isn't just another infrastructure contract; it's a strategic move that illuminates the powerful intersection of regulatory mandates, technological innovation, and the urgent need for energy resilience in America's most critical sectors.

Coming just after a similar deal with Sunnyside, the Topanga Terrace agreement signals a deliberate and aggressive push into the healthcare energy market. The company is betting that by solving a life-or-death problem for facilities facing grid instability, it can build a fortress of long-term, contracted revenue. The deal, projected to generate $3.85 million over its term, provides a crucial test case for NextNRG’s model: can it translate its high-tech energy solutions into the financial stability investors are seeking?

A Mandate for Resilience

The story behind this transaction begins not in a boardroom, but in the corridors of facilities like Topanga Terrace, a 112-bed skilled nursing facility where consistent power is not a convenience, but a clinical necessity. For its patients, many of whom rely on life-sustaining equipment for cardiopulmonary care or neurological support, a power outage is a direct threat to their well-being. This vulnerability has been thrown into sharp relief by the increasing frequency of extreme weather events and the fragility of aging power grids.

California, a state all too familiar with power disruptions, has moved from recommendation to regulation. The state’s Assembly Bill (AB) 2511 now mandates that all skilled nursing facilities maintain an alternative power source capable of sustaining essential operations—including HVAC systems and life-saving equipment—for a minimum of 96 hours during an outage. This is a monumental leap from the previous six-hour requirement and has sent facilities scrambling for compliant, reliable solutions.

This regulatory pressure has created a multi-billion-dollar market practically overnight. For facilities, the challenge is immense; achieving compliance often requires significant capital expenditure and complex engineering projects they are ill-equipped to manage. This is the precise pain point NextNRG aims to solve. By offering a PPA, the company eliminates the upfront cost for Topanga Terrace, instead selling power as a service over the long term. It’s a compelling value proposition: regulatory compliance and enhanced patient safety with predictable operational costs and zero capital outlay.

A High-Stakes Bet on Contracted Revenue

While the deal addresses a critical need for the healthcare sector, for NextNRG, it's a calculated financial maneuver. The company has posted impressive triple-digit revenue growth, with year-to-date revenues topping $73 million through November. Yet, this growth has been overshadowed by significant net losses and a “going concern” warning in recent filings, highlighting tight liquidity and a pressing need to shore up its financial foundation.

In this context, the Topanga Terrace PPA represents more than just a new project; it’s a cornerstone of a new financial strategy. The 28-year contract, complete with 2% annual rate escalators, is designed to create a predictable, inflation-resistant revenue stream. It’s the kind of asset-backed, long-term cash flow that can anchor a company’s balance sheet and build investor confidence. As CEO Michael D. Farkas stated, “This agreement...is a powerful indicator of the momentum building around our healthcare microgrid strategy...it further strengthens our long-term contracted revenue base and demonstrates the scalability of our model.”

The strategy is to replicate this model across the more than 15,000 nursing homes and 32,000 assisted-living communities nationwide, a vast and underserved market. By owning and operating the assets, NextNRG is not just a service provider but an asset holder, building tangible value on its books with each new microgrid it deploys. The challenge, however, will be execution. Successfully financing and managing a portfolio of these complex, long-duration projects while still navigating its current financial pressures will be the ultimate test of the company's operational and fiscal discipline.

Beyond Backup: The AI Orchestrating the Grid

What differentiates NextNRG's solution from a simple diesel generator is the intelligence at its core. The Topanga Terrace microgrid is not just a collection of hardware—rooftop solar panels, a 1,000 kWh lithium-ion battery system, and integration with an existing gas generator—but a dynamic ecosystem orchestrated by the company’s proprietary AI.

At the heart of the system is the Next Utility Operating System (UOS) and SmartGrid AI platform. This technology acts as the microgrid’s brain, constantly making decisions to optimize for cost, reliability, and resilience. It uses machine learning algorithms to forecast the facility's energy demand and the solar array's potential output. Based on these predictions, it intelligently dispatches power from the most efficient source available: pulling from the solar panels when the sun is shining, charging the battery with low-cost grid power overnight, deploying that stored energy during expensive peak hours, and seamlessly activating the gas generator as a final layer of redundancy during a grid outage.

This AI-driven approach delivers benefits far beyond basic backup. For Topanga Terrace, it means lower and more predictable energy bills, as the system actively minimizes reliance on expensive grid power. For NextNRG, it demonstrates a technological moat. The company claims its AI can reduce generation and distribution costs by over 10% and, through predictive analytics, enhance the reliability and lifespan of the system's components. Successfully delivering on these promises in mission-critical environments like healthcare is essential for building the credibility needed to capture the wider market.

As Microgrid Deployment Manager James Scrivener noted, “These contracts show the market exactly what NextNRG can deliver. We expect them to accelerate conversations with other healthcare operators.” Each successful deployment becomes a powerful marketing tool, proving that the company's technology is not just theoretical but a field-tested solution for one of society's most pressing infrastructure challenges. This string of executed PPAs represents a crucial step in transforming NextNRG from a company with a compelling vision into an established leader in critical energy infrastructure.