Next Bridge Hydrocarbons' Losses Widen, Cash Dries Up Amid Going Concern Doubts

TL;DR

**Next Bridge is burning cash faster than ever with no clear path to profitability, making it a high-risk bet for any investor.**

AI Summary

Next Bridge Hydrocarbons, Inc. reported a net loss of $1,153,672 for the three months ended March 31, 2025, a significant increase from the $775,003 net loss in the same period of 2024. Revenue from oil and natural gas sales decreased to $3,064 in Q1 2025 from $3,567 in Q1 2024. General and administrative expenses surged to $1,147,138 in Q1 2025, up from $751,502 in Q1 2024, contributing to the increased loss. The company's cash position drastically declined from $191,117 at December 31, 2024, to $16,294 by March 31, 2025. A substantial working capital deficit of $52,573,071 as of March 31, 2025, raises significant doubt about the company's ability to continue as a going concern, especially after the mineral leases for its primary Orogrande Project expired on December 31, 2024. The strategic outlook involves seeking debt or equity funding, loans, or joint ventures to address liquidity issues.

Why It Matters

This filing paints a grim picture for Next Bridge Hydrocarbons, highlighting severe liquidity issues and a widening net loss. For investors, the substantial working capital deficit of $52.6 million and the going concern warning are critical red flags, indicating a high risk of financial distress or even bankruptcy. Employees face uncertainty given the company's lack of full-time staff and reliance on consultants, while customers are minimally impacted due to the company's limited production. In the competitive oil and gas market, Next Bridge's inability to generate significant revenue or secure stable financing positions it poorly against more established players, especially with its primary project's leases expired.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,153,672 for Q1 2025 and a working capital deficit of $52,573,071 as of March 31, 2025. Cash plummeted from $191,117 to $16,294 in three months, and the primary Orogrande Project's mineral leases expired on December 31, 2024, directly impacting future revenue potential. These factors collectively raise substantial doubt about the company's ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider divesting any holdings in Next Bridge Hydrocarbons. The significant financial distress, including a going concern warning and rapidly depleting cash, suggests a high probability of further value erosion. Avoid new investments until a clear, funded path to sustainable operations and profitability is demonstrated.

Financial Highlights

debt To Equity

N/A

revenue

$3,064

operating Margin

N/A

total Assets

$1,264,768

total Debt

$54,249,267

net Income

$-1,153,672

eps

$-0.00

gross Margin

N/A

cash Position

$16,294

revenue Growth

-14.1%

Revenue Breakdown

Key Numbers

• $1,153,672 — Net Loss (for the three months ended March 31, 2025, increased from $775,003 in Q1 2024)
• $16,294 — Cash (as of March 31, 2025, down from $191,117 at December 31, 2024)
• $52,573,071 — Working Capital Deficit (as of March 31, 2025, indicating severe liquidity issues)
• $3,064 — Oil and Natural Gas Sales (for the three months ended March 31, 2025, decreased from $3,567 in Q1 2024)
• $1,147,138 — General and Administrative Expenses (for the three months ended March 31, 2025, up from $751,502 in Q1 2024)
• 264,637,563 — Common Shares Outstanding (as of December 18, 2025)
• $43,195,832 — Note Payable - Related Party (as of March 31, 2025, a significant liability)

Key Players & Entities

• Next Bridge Hydrocarbons, Inc. (company) — registrant
• Meta Materials, Inc. (company) — former parent company
• Torchlight Energy Resources, Inc. (company) — previous parent of subsidiaries
• Orogrande Project (project) — primary oil and natural gas project with expired leases
• Hudspeth County, Texas (location) — location of Orogrande Project
• Nevada (location) — state of incorporation
• United States Securities and Exchange Commission (regulator) — filing recipient
• Johnson Participants (person) — recipients of common shares

FAQ

Risk Factors

• Severe Liquidity Constraints [high — financial]: The company's cash position has plummeted from $191,117 at December 31, 2024, to $16,294 by March 31, 2025. This, coupled with a substantial working capital deficit of $52,573,071 as of March 31, 2025, raises significant doubt about its ability to continue as a going concern.
• Expiration of Key Mineral Leases [high — operational]: The mineral leases for the company's primary Orogrande Project expired on December 31, 2024. This event directly impacts the company's ability to generate future revenue from its core assets and necessitates urgent strategic action.
• Increasing Net Loss [high — financial]: The net loss for Q1 2025 was $1,153,672, a significant increase from $775,003 in Q1 2024. This widening loss is primarily driven by a surge in general and administrative expenses.
• Surge in General and Administrative Expenses [high — financial]: General and administrative expenses increased dramatically to $1,147,138 in Q1 2025, up from $751,502 in the prior year's quarter. This represents a 52.6% increase and is a major contributor to the escalating net loss.
• Significant Related Party Debt [medium — financial]: The company has a substantial 'Note payable - related party' of $43,195,832 as of March 31, 2025. This large liability, along with other current liabilities totaling $53,148,157, exacerbates the liquidity crisis.

Industry Context

The oil and natural gas sector is capital-intensive and subject to volatile commodity prices and regulatory changes. Companies in this industry often face challenges related to exploration, production, and lease management. The expiration of key leases, as seen with Next Bridge Hydrocarbons, is a critical event that can fundamentally alter a company's operational capacity and financial outlook.

Regulatory Implications

While this filing does not detail specific regulatory actions, companies in the oil and gas sector are subject to environmental regulations, drilling permits, and reporting requirements. Failure to comply can result in fines and operational disruptions. The financial distress of Next Bridge Hydrocarbons may also attract scrutiny regarding its disclosures and ability to meet any outstanding regulatory obligations.

What Investors Should Do

1. Monitor the company's progress in securing debt or equity funding, as this is critical for survival.
2. Closely evaluate any new joint venture proposals or loan agreements for terms and feasibility.
3. Assess the impact of the expired Orogrande Project leases on future revenue potential and operational strategy.
4. Analyze the sustainability of the current G&A expense level in light of minimal revenue generation.
5. Consider the significant going concern risk highlighted by the severe liquidity crunch and working capital deficit.

Key Dates

• 2024-12-31: Expiration of mineral leases for the Orogrande Project — This marks the end of the company's primary revenue-generating asset's operational period, creating an immediate need for new strategies or funding.
• 2025-03-31: End of Q1 2025 — Reporting period showing a significant increase in net loss, a drastic decrease in cash, and a large working capital deficit, highlighting severe financial distress.
• 2025-03-31: Condensed Consolidated Balance Sheet date — Reveals a cash balance of $16,294 and a working capital deficit of $52,573,071, underscoring the going concern issue.
• 2025-03-31: Condensed Consolidated Statement of Operations date — Shows a net loss of $1,153,672 for the quarter, driven by increased G&A expenses, and minimal revenue of $3,064.

Glossary

Working Capital Deficit

Occurs when a company's current liabilities exceed its current assets, indicating a potential inability to meet short-term obligations. (Next Bridge Hydrocarbons has a significant deficit of $52,573,071 as of March 31, 2025, which is a critical indicator of its going concern risk.)

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future, typically at least 12 months from the reporting date. (The company's severe liquidity issues and lease expirations raise substantial doubt about its ability to continue as a going concern.)

General and Administrative Expenses (G&A)

Costs incurred by a business that are not directly related to the production of goods or services, but are necessary for the overall operation of the company. (These expenses surged by 52.6% to $1,147,138 in Q1 2025, significantly contributing to the company's increased net loss.)

Stockholders Deficit

Represents the negative equity of a company, meaning its liabilities exceed its assets. (Next Bridge Hydrocarbons has a substantial stockholders deficit of $(52,984,499) as of March 31, 2025, reflecting its financial position.)

Note Payable - Related Party

A debt obligation owed to an entity or individual that has a close relationship with the reporting company, such as a parent company, subsidiary, or key management personnel. (The company has a significant liability of $43,195,832 under this category as of March 31, 2025.)

Year-Over-Year Comparison

Compared to the prior year's first quarter, Next Bridge Hydrocarbons has experienced a significant deterioration in its financial performance. Revenue from oil and natural gas sales has declined by 14.1% to $3,064. More alarmingly, the net loss has widened substantially from $775,003 to $1,153,672, primarily due to a 52.6% surge in general and administrative expenses. The company's liquidity position has also worsened dramatically, with cash reserves plummeting and a substantial working capital deficit now evident.

Key Financial Figures

• $0 — the registrants common stock, par value $0.0001, as of December 18, 2025 was 264,6

Filing Documents

• nbh-10q.htm (10-Q) — 556KB
• nbh-ex31_1.htm (EX-31.1) — 16KB
• nbh-ex31_2.htm (EX-31.2) — 16KB
• nbh-ex32_1.htm (EX-32.1) — 9KB
• 0001199835-25-000435.txt ( ) — 2555KB
• nbh-20250331.xsd (EX-101.SCH) — 23KB
• nbh-20250331_cal.xml (EX-101.CAL) — 36KB
• nbh-20250331_def.xml (EX-101.DEF) — 25KB
• nbh-20250331_lab.xml (EX-101.LAB) — 156KB
• nbh-20250331_pre.xml (EX-101.PRE) — 116KB
• nbh-10q_htm.xml (XML) — 310KB

Financial Information

PART I. Financial Information 7

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): 7 Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 7 Condensed Consolidated Statements of Operations - for the three months ended March 31, 2025 and 2024 8 Condensed Consolidated Statements of Stockholders Deficit - for the three months ended March 31, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows - for the three months ended March 31, 2025 and 2024 10 Notes to Condensed Consolidated Financial Statements 11

Managements Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosure About Market Risk

Item 3. Quantitative and Qualitative Disclosure About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 32

Other Information

PART II. Other Information 33

Legal Proceedings

Item 1. Legal Proceedings 33

Risk Factors

Item 1A. Risk Factors 33

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 33

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 33

Other Information

Item 5. Other Information 33

Exhibits

Item 6. Exhibits 34 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These forward-looking can, could, estimate, expect, forecast, goal, intend, may, pending, plan, potential, projected, will, and similar expressions are intended to identify forward-looking statements. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements appear throughout this report, and include statements about such matters as: amount and timing of future production of oil and natural gas; amount, nature and timing of capital expenditures; the number of anticipated wells to be drilled after the date hereof; the availability of exploration and development opportunities; our financial or operating results; our cash flow and anticipated liquidity; operating costs including lease operating expenses, administrative costs and other expenses; finding and development costs; our business strategy; and other plans and objectives for future operations. Our actual results and condition could differ materially from those implied or expressed in the forward-looking statements for any reason. They can be affected by a number of factors, including, among others: the risks described in Risk Factors in Part I, Item 1A of our annual report on Form 10-K for the year ended December 31, 2024; the volatility of prices and supply of, and demand for, oil and natural gas; the timing and success of our drilling activities; the numerous uncertainties inherent in estimating quantities of oil and natural gas reserves and actual future production rates and associated costs;

FINANCIAL STATEMENTS (UNAUDITED)

FINANCIAL STATEMENTS (UNAUDITED) NEXT BRIDGE HYDROCARBONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited Audited March 31 December 31, 2025 2024 ASSETS Current assets: Cash $ 16,294 $ 191,117 Accounts receivable - 85,000 Production receivable 1,751 - Prepayments - development costs 422,141 385,888 Prepaid expenses 134,900 95,256 Total current assets 575,086 757,261 Oil and natural gas properties 584,503 569,551 Other assets 105,179 105,179 TOTAL ASSETS $ 1,264,768 $ 1,431,991 LIABILITIES AND STOCKHOLDERS EQUITY DEFICIT Current liabilities: Accounts payable $ 394,956 $ 519,841 Accounts payable, related party 97,027 97,027 Note payable - related party 43,195,832 42,750,832 Note payable 2,000,000 2,000,000 Accrued interest payable 7,460,342 6,808,410 Total current liabilities 53,148,157 52,176,110 Asset retirement obligations 1,101,110 1,099,311 Total liabilities 54,249,267 53,275,421 Commitments and contingencies Stockholders deficit: Preferred stock, par value $ 0.0001 , 50,000,000 shares authorized; - 0 - issued and outstanding March 31, 2025 and December 31, 2024 - - Common stock, par value $ 0.0001 ; 500,000,000 shares authorized; 260,362,563 issued and outstanding at March 31, 2025 251,930,516 issued and outstanding at December 31, 2024 26,036 25,193 Shares to be issued 403 1,143 Additional paid-in capital 107,690,596 107,678,096 Accumulated deficit ( 160,701,534 ) ( 159,547,862 ) Total stockholders deficit ( 52,984,499 ) ( 51,843,430 ) TOTAL LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) $ 1,264,768 $ 1,431,991 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 NEXT BRIDGE HYDROCARBONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Three Months Ended Ended March 31, 2025 March 31, 2024 Oil and natural gas

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View this 10-Q filing on SEC EDGAR