Next Bridge Hydrocarbons Faces Deepening Losses, Cash Crunch

TL;DR

**Next Bridge is burning cash faster than it can find oil, making it a highly speculative bet with significant going concern risk.**

AI Summary

Next Bridge Hydrocarbons, Inc. reported a net loss of $2,356,938 for the six months ended June 30, 2025, a significant increase from the $998,342 net loss for the same period in 2024. Revenue from oil and natural gas sales decreased slightly to $5,027 for the six months ended June 30, 2025, compared to $5,206 in 2024. General and administrative expenses more than doubled to $2,338,280 for the first half of 2025, up from $1,207,555 in 2024. The company's cash position plummeted from $191,117 at December 31, 2024, to $4,601 by June 30, 2025. A substantial working capital deficit of $53,768,052 as of June 30, 2025, and the expiration of mineral leases for its primary Orogrande Project on December 31, 2024, raise significant going concern doubts. Management plans to seek debt or equity funding, financial institution loans, or joint venture transactions to address liquidity issues. The company has no full-time employees and relies on consultants.

Why It Matters

Next Bridge Hydrocarbons' escalating losses and critical cash shortage signal severe operational challenges, directly impacting investor confidence and the company's ability to fund future exploration. The expiration of its primary Orogrande Project leases without a clear replacement strategy puts its core business at risk, making it difficult to compete in the highly capital-intensive oil and gas sector. Employees (consultants) face uncertainty, and customers (buyers of oil/gas) will see minimal output. This filing highlights the precarious nature of small-cap energy ventures, especially those without significant producing assets or robust financing, in a market dominated by larger, more established players.

Risk Assessment

Risk Level: high — The company reported a net loss of $2,356,938 for the six months ended June 30, 2025, and a working capital deficit of $53,768,052. Its cash balance dwindled to $4,601, down from $191,117 at December 31, 2024. These figures, coupled with the expiration of its primary Orogrande Project leases on December 31, 2024, indicate substantial doubt about its ability to continue as a going concern.

Analyst Insight

Investors should exercise extreme caution and consider this a high-risk speculative play. Given the significant going concern warning, the dwindling cash, and the expiration of primary assets, investors should avoid initiating new positions and those holding shares should re-evaluate their investment thesis, potentially considering an exit.

Financial Highlights

debt To Equity

N/A

revenue

$5,027

operating Margin

N/A

total Assets

$1,354,530

total Debt

$55,529,795

net Income

-$2,356,938

eps

-$0.01

gross Margin

N/A

cash Position

$4,601

revenue Growth

-3.44%

Revenue Breakdown

Key Numbers

• $2,356,938 — Net Loss (for the six months ended June 30, 2025, increased from $998,342 in 2024)
• $4,601 — Cash (as of June 30, 2025, down from $191,117 at December 31, 2024)
• $53,768,052 — Working Capital Deficit (as of June 30, 2025)
• $5,027 — Oil and Natural Gas Sales (for the six months ended June 30, 2025, a slight decrease from $5,206 in 2024)
• $2,338,280 — General and Administrative Expenses (for the six months ended June 30, 2025, more than doubled from $1,207,555 in 2024)
• 264,637,563 — Common Shares Outstanding (as of December 19, 2025)
• December 31, 2024 — Orogrande Project Lease Expiration (mineral leases for the primary project expired)

Key Players & Entities

• Next Bridge Hydrocarbons, Inc. (company) — registrant
• Meta Materials, Inc. (company) — previous parent company
• Torchlight Energy Resources, Inc. (company) — previous parent of subsidiaries
• Orogrande Basin (location) — primary oil and natural gas project location
• Hudspeth County, Texas (location) — location of Orogrande Project
• Midland Basin (location) — location of Hazel Project
• Oklahoma (location) — location of Hunton wells
• Nevada (location) — state of incorporation
• United States Securities and Exchange Commission (regulator) — filing recipient

FAQ

Risk Factors

• Severe Liquidity Constraints [high — financial]: The company's cash position has drastically reduced from $191,117 as of December 31, 2024, to $4,601 as of June 30, 2025. This, coupled with a substantial working capital deficit of $53,768,052, indicates a severe lack of liquidity.
• Expiration of Key Project Leases [high — operational]: The mineral leases for the company's primary Orogrande Project expired on December 31, 2024. This expiration poses a significant operational risk as it impacts the core assets for revenue generation.
• Increasing Net Losses [high — financial]: The company reported a net loss of $2,356,938 for the six months ended June 30, 2025, a significant increase from the $998,342 net loss in the prior year period. This trend exacerbates the financial distress.
• High Reliance on Consultants [medium — operational]: The company has no full-time employees and relies entirely on consultants. This structure may lead to a lack of institutional knowledge, potential inefficiencies, and challenges in long-term strategic execution.
• Surging General and Administrative Expenses [high — financial]: General and administrative expenses more than doubled to $2,338,280 for the first half of 2025, up from $1,207,555 in 2024. This rapid increase in overhead is unsustainable given the minimal revenue.
• Significant Debt Load [high — financial]: The company has total liabilities of $55,529,795 as of June 30, 2025, including a significant related party note payable of $43,983,832. This debt burden is substantial relative to the company's assets and revenue.

Industry Context

The oil and natural gas industry is capital-intensive and subject to volatile commodity prices. Companies typically require substantial investment in exploration, development, and infrastructure. Recent trends include a focus on energy transition, but traditional exploration and production remain crucial. Next Bridge Hydrocarbons operates in a sector where lease management and operational efficiency are paramount for profitability.

Regulatory Implications

Companies in the oil and natural gas sector are subject to various environmental, safety, and financial regulations. Failure to comply can result in fines, operational shutdowns, and reputational damage. The expiration of leases may also involve specific regulatory filings or processes.

What Investors Should Do

1. Monitor management's ability to secure new funding (debt, equity, or joint ventures) to address the severe liquidity crisis and avoid potential bankruptcy.
2. Assess the strategic plan for replacing or renewing the expired Orogrande Project leases, as this is critical for future operations.
3. Evaluate the sustainability of the current operational model, particularly the high G&A expenses and reliance on consultants, in light of minimal revenue.
4. Consider the significant increase in net losses and the growing working capital deficit as indicators of ongoing financial deterioration.

Key Dates

• 2024-12-31: Expiration of Orogrande Project Mineral Leases — This marks the end of the company's primary operational asset leases, creating significant uncertainty about future operations and revenue generation.
• 2025-06-30: End of Second Quarter Reporting Period — The financial statements as of this date reveal a critical liquidity crunch and a substantial increase in net losses.
• 2025-06-30: Cash balance reduced to $4,601 — A drastic decline from $191,117 at year-end 2024, highlighting an immediate need for funding.
• 2025-06-30: Working Capital Deficit of $53,768,052 — Indicates the company's inability to meet its short-term obligations with its short-term assets.

Glossary

Stockholders Deficit

A negative stockholders' equity, meaning the company's liabilities exceed its assets. (Indicates the company has a negative net worth, a common sign of financial distress.)

Working Capital Deficit

Occurs when a company's current liabilities are greater than its current assets. (Highlights the company's short-term liquidity problems and its inability to cover immediate debts.)

Mineral Leases

Agreements that grant a company the right to explore for and extract mineral resources from a specific area of land. (The expiration of these leases for the Orogrande Project is a critical risk factor for Next Bridge Hydrocarbons.)

General and Administrative Expenses

Costs incurred for the overall management and operation of a business, not directly tied to production or sales. (The significant increase in these expenses is a major contributor to the company's growing net loss.)

Year-Over-Year Comparison

Compared to the prior year period, Next Bridge Hydrocarbons has seen a significant increase in its net loss, which more than doubled to $2,356,938 for the six months ended June 30, 2025. Revenue from oil and natural gas sales experienced a slight decline. Most concerning is the dramatic decrease in cash reserves and the substantial growth in the working capital deficit, alongside a sharp rise in general and administrative expenses, indicating a worsening financial condition.

Key Financial Figures

• $0 — the registrants common stock, par value $0.0001, as of December 19, 2025 was 264,6

Filing Documents

• nbh-10q.htm (10-Q) — 612KB
• nbh-ex31_1.htm (EX-31.1) — 16KB
• nbh-ex31_2.htm (EX-31.2) — 16KB
• nbh-ex32_1.htm (EX-32.1) — 9KB
• 0001199835-25-000443.txt ( ) — 2673KB
• nbh-20250630.xsd (EX-101.SCH) — 24KB
• nbh-20250630_cal.xml (EX-101.CAL) — 36KB
• nbh-20250630_def.xml (EX-101.DEF) — 26KB
• nbh-20250630_lab.xml (EX-101.LAB) — 159KB
• nbh-20250630_pre.xml (EX-101.PRE) — 118KB
• nbh-10q_htm.xml (XML) — 330KB

Financial Information

PART I. Financial Information 7

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): 7 Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 7 Condensed Consolidated Statements of Operations - for the six months ended June 30, 2025 and 2024 8 Condensed Consolidated Statements of Stockholders Deficit - for the six months ended June 30, 2025 and 2024 9 Condensed Consolidated Statements of Cash Flows - for the six months ended June 30, 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 24

Quantitative and Qualitative Disclosure About Market Risk

Item 3. Quantitative and Qualitative Disclosure About Market Risk 30

Controls and Procedures

Item 4. Controls and Procedures 30

Other Information

PART II. Other Information 31

Legal Proceedings

Item 1. Legal Proceedings 31

Risk Factors

Item 1A. Risk Factors 31

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 32 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

FINANCIAL STATEMENTS NEXT BRIDGE HYDROCARBONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited Audited June 30 December 31 2025 2024 ASSETS Current assets: Cash $ 4,601 $ 191,117 Accounts receivable - 85,000 Production receivable 494 - Prepayments - development costs 443,255 385,888 Prepaid expenses 210,484 95,256 Total current assets 658,834 757,261 Oil and natural gas properties 590,517 569,551 Other assets 105,179 105,179 TOTAL ASSETS $ 1,354,530 $ 1,431,991 LIABILITIES AND STOCKHOLDERS DEFICIT Current liabilities: Accounts payable $ 377,018 $ 519,841 Accounts payable - related party 97,027 97,027 Note payable - related party 43,983,832 42,750,832 Note payable 2,000,000 2,000,000 Accrued interest payable 7,969,009 6,808,410 Total current liabilities 54,426,886 52,176,110 Asset retirement obligations 1,102,909 1,099,311 Total liabilities 55,529,795 53,275,421 Commitments and contingencies - - Stockholders deficit: Preferred stock, par value $ 0.0001 , 50,000,000 shares authorized; - 0 - issued and outstanding June 30, 2025 and December 31, 2024 - - Common stock, par value $ 0.0001 ; 500,000,000 shares authorized; 264,387,563 issued and outstanding at June 30, 2025; and 251,930,516 , issued and outstanding at December 31, 2024; 26,439 25,193 Shares to be issued - 1,143 Additional paid-in capital 107,703,096 107,678,096 Accumulated deficit ( 161,904,800 ) ( 159,547,862 ) Total stockholders deficit ( 54,175,265 ) ( 51,843,430 ) TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT $ 1,354,530 $ 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 Six Six Ended Ended Months Ended Months Ended June 30, 2025 June 30, 2024 June 3

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