Accessibility StatementSkip Navigation Highlighted features of ClearMetrX 4.0 include: solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional e-commerce capabilities ...

Accessibility StatementSkip Navigation Company Plans Multi-National AI-Powered Digital and Social Media Marketing Programs to Support the Introduction of the Florida Sunshine Brand HALLANDALE BEACH, Fla., Sept. 16, 2025 /PRNewswire/ -- NextPlat Corp (NASDAQ: NXPL, NXPLW) ("NextPlat" or the "Company"), a global consumer products and services company providing healthcare and technology solutions through e-Commerce and retail channels worldwide, today announced that it has officially launched its Florida Sun ...

Accessibility StatementSkip Navigation Company Executes on Initiatives Including New Business Development, Corporate Reinvestment and Implements Additional Cost-Cutting Initiatives Recent developments and progress against some of the activities outlined in the Interim CEO Update Shareholder Letter include: For more information about NextPlat, please visit www.NextPlat.com and connect with us on Facebook, LinkedIn and X. NextPlat has implemented several leadership and staffing changes throughout the organiza ...

Core Insights - NextPlat Corp is strategically expanding its healthcare operations, focusing on enhancing customer service and introducing new services for 340B and long-term care providers [1][2] - The company has appointed new senior leadership to drive this expansion, including Birute Norkute as Vice President of Healthcare Operations and Alexis Fernandez as Director of Pharmacy [5] Group 1: Company Strategy - NextPlat aims to capitalize on the expanding healthcare market by investing in talented leadership and entering higher-margin healthcare segments to enhance profitability and shareholder value [2] - The company is making investments into PharmcoRx to support growth and profitability, including hiring dedicated sales and marketing professionals for securing 340B and Long-Term Care contracts [5] Group 2: Leadership Appointments - Birute Norkute has been appointed as Vice President of Healthcare Operations, bringing over a decade of experience from Progressive Care, where she led significant growth and operational success [5] - Alexis Fernandez, with over 20 years of pharmacy experience, has been appointed as Director of Pharmacy, focusing on improving pharmacy operations and patient care [5] Group 3: Operational Enhancements - NextPlat is initiating a technology upgrade cycle aimed at improving internal process efficiencies and enhancing patient care and customer service responsiveness [5] - The company is focused on building a strong reputation in the healthcare sector, leveraging its leadership's experience to drive operational excellence and service quality [5]

[Executive Summary](index=1&type=section&id=Executive%20Summary) NextPlat's Q2 revenue declined to $13.2 million, primarily from Healthcare Operations, but net loss decreased 66% due to expense reductions and strategic efficiency initiatives [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) NextPlat reported $13.2 million in Q2 revenue, a decrease from the prior year, primarily due to challenges in Healthcare Operations, while achieving a significant reduction in operating expenses and net loss Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | | :------------------------------------------------ | :------ | :------ | | Consolidated Revenue | $13.2M | $17.0M | | Net Loss Attributable to NextPlat Corp | ($1.8M) | ($5.3M) | | Diluted EPS | ($0.07) | ($0.28) | - Net loss attributable to NextPlat Corp common shareholders decreased **66% year-over-year**[6](index=6&type=chunk) [Strategic Focus and Outlook](index=1&type=section&id=Strategic%20Focus%20and%20Outlook) The company is implementing cost reduction and efficiency improvements, particularly in Healthcare Operations, to support growth and improve profitability, guided by a strategic review identifying key objectives - Company continues cost reduction and efficiency improvements to support growth[2](index=2&type=chunk) - Implementing initiatives in Healthcare Operations to positively transform business, attract and retain customers, and move into higher margin/growth segments[3](index=3&type=chunk) - Identified three primary objectives: continued operational process efficiency and cost reduction, ensuring necessary talent, and renewing commitment to prudently invest for opportunities, cashflow, and long-term profitability[7](index=7&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Q2 2025 consolidated revenue declined to $13.2 million with reduced gross profit margins, yet operating expenses significantly decreased to $4.7 million, leading to a substantial net loss improvement [Consolidated Revenue and Gross Profit](index=1&type=section&id=Consolidated%20Revenue%20and%20Gross%20Profit) Consolidated revenue for Q2 2025 decreased to $13.2 million from $17.0 million in Q2 2024, primarily due to declines in Healthcare Operations, with overall gross profit margin also significantly declining to 21.8% Consolidated Revenue and Gross Profit Margins | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Consolidated Revenue | $13.2M | $17.0M | -$3.8M | | Overall Gross Profit Margin | 21.8% | 34.5% | -12.7% | | Healthcare Gross Profit Margin | 19.9% | 35.2% | -15.3% | | e-Commerce Gross Profit Margin | 25.9% | 31.6% | -5.7% | - Decrease in consolidated revenue primarily driven by a **$2.3 million decrease in pharmacy prescription revenue** and a **$2.0 million decrease in pharmacy 340B contract revenue** within Healthcare Operations[6](index=6&type=chunk) - Healthcare gross profit margin decreased due to lower prescription fills, 340B revenue, and drug price increases outpacing reimbursement rates; e-Commerce gross profit margin decreased due to new airtime costs and temporary rate reductions[6](index=6&type=chunk) [Operating Expenses and Net Loss](index=1&type=section&id=Operating%20Expenses%20and%20Net%20Loss) Operating expenses significantly decreased to $4.7 million in Q2 2025 from $16.8 million in Q2 2024, largely due to the absence of a $9.7 million non-recurring impairment loss and other reductions, leading to a substantial reduction in net loss Operating Expenses and Net Loss Summary | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------------------------------ | :------ | :------ | :----- | | Operating Expenses | $4.7M | $16.8M | -$12.1M | | Net Loss Attributable to NextPlat Corp | ($1.8M) | ($5.3M) | $3.5M improvement | | Basic and Diluted Loss Per Share | ($0.07) | ($0.28) | $0.21 improvement | - Operating expenses decreased primarily due to the absence of a **$9.7 million non-recurring impairment loss** in the prior year, and ongoing reductions in stock-based compensation, executive compensation, and headcount[6](index=6&type=chunk) - Company anticipates annual expense savings in excess of **$1.0 million** from operational process efficiency improvements and staff adjustments[6](index=6&type=chunk) [Cash Position](index=1&type=section&id=Cash%20Position) The company ended the second quarter of 2025 with approximately $16.6 million in cash Cash Position | Metric | June 30, 2025 (M USD) | December 31, 2024 (M USD) | | :----- | :-------------------- | :------------------------ | | Cash | $16.6M | $19.96M | [Organizational Highlights and Recent Business Developments](index=1&type=section&id=Organizational%20Highlights%20and%20Recent%20Business%20Developments) NextPlat implements Healthcare cost-reductions, expands e-Commerce, pursues product market expansion for OPKO and Florida Sunshine, and defined strategic objectives following a post-CEO strategic review [Healthcare Operations Initiatives](index=1&type=section&id=Healthcare%20Operations%20Initiatives) NextPlat is actively implementing cost-reduction and business process improvements in its Healthcare Operations, including technology upgrades and recruiting dedicated sales professionals, with positive impacts expected through 2025 and 2026 - Continued efforts to implement cost-reduction and business process improvements in Healthcare Operations, such as technology upgrades and recruitment of sales professionals for 340B and Long-Term Care segments[5](index=5&type=chunk) - Positive impact of these efforts expected to contribute to operational results throughout remainder of 2025 and into 2026[5](index=5&type=chunk) [e-Commerce Operations Growth](index=2&type=section&id=e-Commerce%20Operations%20Growth) The e-Commerce segment continues to grow, driven by record levels of recurring airtime contracts and elevated hardware sales, with near-term opportunities in new connectivity contracts and mission-critical communications expansion in Europe - e-Commerce revenue for connectivity products and services continues to grow, driven by record-levels of recurring airtime contracts and elevated hardware sales[7](index=7&type=chunk) - Securing new connectivity contracts and expanding mission-critical communications capabilities for enterprise, government, and humanitarian organizations across Europe[7](index=7&type=chunk) [Product and Market Expansion](index=2&type=section&id=Product%20and%20Market%20Expansion) Sales of OPKO Healthcare products on Alibaba's Tmall Global in China continue despite inventory limitations, with regulatory approval for OPKO pet health products anticipated in Q4, and Florida Sunshine vitamins launching in the UK and EU - Growth in sales of OPKO Healthcare products on Alibaba's Tmall Global in China, with efforts to secure increased inventory volumes[7](index=7&type=chunk) - Anticipates regulatory approval for OPKO pet health products in Q4, with sales to commence approximately 12 weeks after receipt[7](index=7&type=chunk) - Florida Sunshine-branded US-produced vitamins launch in China temporarily on hold due to evolving trade conditions, but now launching in the UK and EU[7](index=7&type=chunk) [Post-CEO Strategic Review](index=2&type=section&id=Post-CEO%20Strategic%20Review) Following the passing of the former CEO, the company conducted an extensive business review, particularly of Healthcare Operations, identifying three key objectives: operational efficiency, talent empowerment, and prudent investment for growth and profitability - Completed extensive business review, focusing on Healthcare Operations, identifying three primary objectives: operational process efficiency and cost reduction for maximum ROI, talent empowerment for growth, and prudent investment for opportunities, cashflow, and long-term profitability[7](index=7&type=chunk) - Significant developments against these objectives expected over the next 60 days[7](index=7&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) Financial statements show a reduced Q2 2025 net loss due to lower operating expenses, alongside decreased total assets, liabilities, and cash position [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The condensed consolidated statements of comprehensive loss show a significant reduction in net loss for both the three and six months ended June 30, 2025, compared to the prior year periods, primarily driven by lower operating expenses Condensed Consolidated Statements of Comprehensive Loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues, net | $13,240 | $16,989 | $27,765 | $34,482 | | Gross profit | $2,883 | $5,858 | $6,346 | $10,720 | | Total operating expenses | $4,712 | $16,754 | $9,660 | $23,457 | | Net loss attributable to NextPlat Corp | ($1,789) | ($5,311) | ($3,132) | ($6,791) | | Basic and diluted loss per share | ($0.07) | ($0.28) | ($0.12) | ($0.36) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show a decrease in total assets from $36.478 million at December 31, 2024, to $31.033 million at June 30, 2025, with corresponding decreases in total liabilities and cash Condensed Consolidated Balance Sheets | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $31,033 | $36,478 | | Total Liabilities | $7,425 | $9,680 | | Total Equity | $23,608 | $26,798 | | Cash | $16,635 | $19,960 | | Accounts receivable, net | $3,153 | $4,895 | | Inventory, net | $5,215 | $4,881 | [Additional Information](index=3&type=section&id=Additional%20Information) This section details the Q2 2025 conference call, company overview, forward-looking statement disclaimers, and media/investor contact information [Conference Call Notification](index=3&type=section&id=Conference%20Call%20Notification) NextPlat will host a conference call on August 14, 2025, at 8:30 a.m. Eastern time to discuss Q2 2025 results and recent developments, with dial-in and webcast details provided Conference Call Details | Detail | Information | | :------------------------ | :-------------------------- | | Date | Thursday, August 14, 2025 | | Time | 8:30 a.m. Eastern time | | Toll-free dial-in number | 1-800-836-8184 | | International dial-in number | 1-646-357-8785 | | Conference webcast link | https://app.webinar.net/okKXG80G0MA | [About NextPlat Corp](index=3&type=section&id=About%20NextPlat%20Corp) NextPlat Corp is a global consumer products and services company offering healthcare and technology solutions through e-Commerce and retail channels, operating an e-Commerce communications division and pharmacy/healthcare data management services - NextPlat is a global consumer products and services company providing healthcare and technology solutions through e-Commerce and retail channels worldwide[12](index=12&type=chunk) - Operates an e-Commerce communications division (voice, data, tracking, IoT) and pharmacy and healthcare data management services in the US through Progressive Care[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to update these statements - Statements in this release are forward-looking and involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ[13](index=13&type=chunk) - Company disclaims any obligation to update forward-looking statements[13](index=13&type=chunk) [Media and Investor Contact](index=3&type=section&id=Media%20and%20Investor%20Contact) Contact information for media and investor inquiries is provided - Media and Investor Contact: Michael Glickman, MWGCO, Inc., 917-397-2272, mike@mwgco.net[14](index=14&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was approximately $13.2 million, down from approximately $17 million in the same period last year, representing a decline of about 22% [7] - Year-to-date revenue was approximately $27.8 million compared to approximately $34.5 million for the same period last year, indicating a decrease of about 19% [7] - Gross profits from the healthcare segment decreased to approximately 20% in 2025 from 35% in 2024, primarily due to decreased prescription volume and changes in 340B revenue [10] - Gross profits from the e-commerce segment decreased to approximately 26% in 2025 from 32% in 2024, attributed to new airtime costs and temporary rate reductions for some customers [10] - Cash position at the end of Q2 was approximately $16.6 million [11] Business Line Data and Key Metrics Changes - Healthcare operations revenue declined due to decreased pharmacy prescription volume and changes in provider relationships [8] - E-commerce operations experienced an increase in revenue driven by growth in recurring airtime revenue and hardware sales [9] Market Data and Key Metrics Changes - E-commerce sales in China showed steady progress, limited by inventory import capabilities [4] - The tariff situation in the U.S. remains volatile, affecting operations in Florida [4] Company Strategy and Development Direction - The company is focused on refining healthcare operations, including personnel changes and improving operational efficiency [13] - New hires include pharmacy operations managers to enhance long-term growth and strategic planning [14] - The company is pursuing specialty pharmacy accreditation to access new revenue sources [15] Management Comments on Operating Environment and Future Outlook - Management acknowledges challenges in healthcare operations but sees potential for growth through cost reductions and operational efficiencies [5] - The company is committed to transparency and proactive steps to address challenges and invest for long-term success [16] Other Important Information - The company has not yet repurchased any shares under its repurchase program but plans to be active in the coming quarter [17] - The company is closely monitoring compliance with NASDAQ requirements and is prepared to utilize the grace period if necessary [18] Q&A Session Summary Question: What is the status of the buyback? - The company has not repurchased any shares yet but expects to be active in the coming quarter while being prudent with cash deployment [17] Question: What is the plan to regain compliance with NASDAQ? - The company is monitoring the situation and believes that executing strategic developments will be central to regaining compliance [18] Question: Should the company consider closing its business in China? - The company acknowledges tariff challenges but sees potential in the OpCo products and plans to launch animal health products in China [19]

Financial Performance - Consolidated revenue for Q2 2025 was approximately $13.2 million, down from approximately $17.0 million in Q2 2024, primarily due to a decline in Healthcare Operations [5] - The gross profit margin decreased to approximately 21.8% from 34.5% year-over-year, with the Healthcare segment's margin dropping to 19.9% from 35.2% [5] - Operating expenses decreased significantly to approximately $4.7 million from $16.8 million in the prior year, aided by a reduction in non-recurring expenses and ongoing cost-cutting measures [5] - Net loss attributable to common shareholders decreased by 66% to approximately $1.8 million, or ($0.07) per diluted share, compared to a net loss of approximately $5.3 million, or ($0.28) per diluted share in Q2 2024 [5][13] Business Operations - The company is focusing on improving its Healthcare Operations through various initiatives aimed at enhancing customer attraction and retention [2] - Significant efforts are being made to implement cost-reduction strategies and operational efficiency improvements, with expected annual savings exceeding $1.0 million [5][6] - The company is exploring new business expansion opportunities in higher margin and higher growth segments of the Healthcare spectrum [2] E-Commerce Growth - E-Commerce revenue continues to grow, driven by record levels of recurring airtime contracts and hardware sales [11] - The company is expanding its connectivity products and services, particularly in Europe, and is working to secure new contracts [11] - Sales of OPKO-branded health and wellness products on Alibaba's Tmall Global in China are increasing, despite inventory limitations [11] Organizational Developments - Following the passing of the former CEO, the company has identified three primary objectives: enhancing operational efficiency, ensuring capable leadership, and committing to prudent investments for growth [6] - The company is actively recruiting dedicated sales professionals to focus on opportunities in the 340B and Long-Term Care segments [5]

[FORM 10-Q Filing Information](index=1&type=section&id=FORM%2010-Q) [Registrant Information](index=1&type=section&id=Registrant%20Information) NEXTPLAT CORP (NXPL) filed its quarterly report for the period ended June 30, 2025. The company is a Nevada corporation, classified as a non-accelerated filer and a smaller reporting company, with **25,963,051 shares of common stock outstanding** as of the latest practicable date - NEXTPLAT CORP (NXPL) filed its quarterly report for the period ended June 30, 2025[2](index=2&type=chunk) Classification Status | Classification | Status | | :------------- | :----- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☐ | - Common Stock, $0.0001 par value: **25,963,051 shares outstanding**[6](index=6&type=chunk) [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This report contains forward-looking statements based on current expectations, estimates, and forecasts, which involve risks, assumptions, and uncertainties. Readers are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to update them - This quarterly report contains forward-looking statements based on current expectations, estimates, forecasts, and projections about future performance, business, beliefs, and management's assumptions[10](index=10&type=chunk) - These statements are not guarantees of future performance and involve risks, assumptions, and uncertainties, including those described in the Annual Report on Form 10-K for the year ended December 31, 2024[10](index=10&type=chunk) - The company undertakes no obligation to update publicly any forward-looking statements after the date they are made, except as required by law[10](index=10&type=chunk) [PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)](index=5&type=section&id=ITEM%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents the unaudited condensed consolidated financial statements for NextPlat Corp, including balance sheets, statements of comprehensive loss, changes in equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, revenue recognition, and other financial details [CONDENSED CONSOLIDATED BALANCE SHEETS](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $31,033 | $36,478 | | Total Current Assets | $26,855 | $31,480 | | Total Liabilities | $7,425 | $9,680 | | Total Current Liabilities | $6,208 | $8,210 | | Total Equity | $23,608 | $26,798 | - Total assets **decreased by $5,445 thousand (14.9%)** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) - Total liabilities **decreased by $2,255 thousand (23.3%)** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue, net | $13,240 | $16,989 | $27,765 | $34,482 | | Gross profit | $2,883 | $5,858 | $6,346 | $10,720 | | Total operating expenses | $4,712 | $16,754 | $9,660 | $23,457 | | Net loss attributable to NextPlat Corp | $(1,789) | $(5,311) | $(3,132) | $(6,791) | | Basic and diluted loss per share | $(0.07) | $(0.28) | $(0.12) | $(0.36) | - Net revenue **decreased by $3,749 thousand (22.1%)** for the three months ended June 30, 2025, and by **$6,717 thousand (19.5%)** for the six months ended June 30, 2025, compared to the prior year periods[17](index=17&type=chunk) - Net loss attributable to NextPlat Corp **significantly improved**, decreasing by **$3,522 thousand (66.3%)** for the three months and **$3,659 thousand (53.9%)** for the six months ended June 30, 2025, primarily due to a substantial reduction in operating expenses, especially impairment loss[17](index=17&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20EQUITY) Equity Attributable to NextPlat Corp Stockholders (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Balance at Period End | $23,494 | $26,684 | | Stock-based compensation | $11 | $0 | | Net loss | $(3,132) | $(48,950) (Accumulated Deficit) | | Comprehensive loss (foreign currency) | $(69) | $(66) | - Total equity **decreased from $26,798 thousand** at December 31, 2024, to **$23,608 thousand** at June 30, 2025, primarily due to net loss and comprehensive loss[18](index=18&type=chunk) [CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(3,100) | $(379) | | Net cash provided by (used in) investing activities | $98 | $(981) | | Net cash used in financing activities | $(261) | $(34) | | Net decrease in cash | $(3,325) | $(1,430) | | Cash end of period | $16,635 | $24,877 | - Net cash used in operating activities **increased significantly from $(379) thousand in H1 2024 to $(3,100) thousand in H1 2025**[21](index=21&type=chunk) - Net cash provided by investing activities **turned positive in H1 2025 ($98 thousand)** compared to H1 2024 (**$(981) thousand**), mainly due to the absence of a major acquisition like Outfitter Satellite[21](index=21&type=chunk) [NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=11&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Note 1. Organization and Nature of Operations](index=11&type=section&id=Note%201.%20Organization%20and%20Nature%20of%20Operations) NextPlat Corp operates in two main segments: e-Commerce Operations (satellite communication services, equipment sales, and e-Commerce platforms) and Healthcare Operations (pharmacy services, TPA, and data management). The company expanded its e-Commerce segment with the acquisition of Outfitter Satellite, Inc. in April 2024 - NextPlat operates in **e-Commerce** (satellite communication services, equipment sales, e-Commerce platforms) and **Healthcare** (pharmacy services, TPA, data management)[24](index=24&type=chunk)[25](index=25&type=chunk)[28](index=28&type=chunk) - Acquired **100% of Outfitter Satellite, Inc. on April 1, 2024**, to expand Satellite Industry services in the U.S.[27](index=27&type=chunk) - Healthcare segment includes Progressive Care, LLC and its pharmacy subsidiaries (Pharmco 901, Pharmco 1002, Pharmco 1103/1204) and ClearMetrX Inc. (personalized healthcare services and technology)[28](index=28&type=chunk) [Note 2. Basis of Presentation and Principles of Consolidation](index=12&type=section&id=Note%202.%20Basis%20of%20Presentation%20and%20Principles%20of%20Consolidation) The financial statements are unaudited and prepared in accordance with GAAP and SEC rules. The company retrospectively adopted ASU 2024-03 for expense disaggregation and ASU 2023-09 for income tax disclosures, effective January 1, 2025. Significant events include the Progressive Care merger (October 2024) and the Outfitter Satellite acquisition (April 2024) - Financial statements are **unaudited**, prepared in accordance with **GAAP and SEC rules**, and include all adjustments necessary for fair presentation[35](index=35&type=chunk) - Retrospectively adopted **ASU 2024-03** (expense disaggregation) and adopted **ASU 2023-09** (income tax disclosure) effective **January 1, 2025**[39](index=39&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk) - Progressive Care Inc. merged into a wholly owned subsidiary of NextPlat on **October 1, 2024**, and Outfitter Satellite, Inc. was acquired on **April 1, 2024**[41](index=41&type=chunk)[43](index=43&type=chunk) [Note 3. Summary of Significant Accounting Policies](index=14&type=section&id=Note%203.%20Summary%20of%20Significant%20Accounting%20Policies) The company's significant accounting policies remain consistent with its 2024 Form 10-K, with selected disclosures on cash management (FDIC insurance, ICS agreement) and foreign currency translation (GBP functional currency for GTC). Recent accounting pronouncements, ASU 2024-03 and ASU 2023-09, were early adopted effective January 1, 2025, primarily impacting presentation - No material changes to significant accounting policies for the six months ended June 30, 2025, compared to the **2024 Form 10-K**[47](index=47&type=chunk) - Cash management includes **FDIC insurance up to $250,000** and an **Insured Cash Sweep Service (ICS) agreement** to mitigate credit risk for amounts exceeding this limit[48](index=48&type=chunk) - GTC's functional currency is **Great British Pound (GBP)**; assets and liabilities are translated at balance sheet date rates, equity at historical rates, and P&L at average rates, with adjustments reported in accumulated other comprehensive loss[49](index=49&type=chunk) - Early adopted **ASU 2024-03** (expense disaggregation) and **ASU 2023-09** (income tax disclosure) effective **January 1, 2025**, with no impact on financial condition, results of operations, or cash flows[51](index=51&type=chunk)[52](index=52&type=chunk) [Note 4. Fair Value](index=16&type=section&id=Note%204.%20Fair%20Value) The company uses a fair value hierarchy (Level 1, 2, 3) to measure financial instruments. Cash, accounts receivable, and accounts payable approximate fair value due to their short-term nature. Notes payable and lease liabilities approximate fair value due to variable interest rates or implicit rates in leases (Level 2 inputs) - Fair value is defined as the price received from selling an asset or paid to transfer a liability in an orderly transaction between market participants[58](index=58&type=chunk) - Cash, accounts receivable, and accounts payable approximate fair value due to their **short-term nature**[60](index=60&type=chunk) - Notes payable and lease liabilities approximate fair value due to variable interest rates or implicit rates in leases, classified as **Level 2 inputs**[60](index=60&type=chunk) [Note 5. Revenue](index=17&type=section&id=Note%205.%20Revenue) Total net revenue decreased by 22% for the three months and 19% for the six months ended June 30, 2025, compared to the prior year. This was driven by a significant decline in Healthcare Operations revenue, partially offset by growth in e-Commerce revenue Net Revenues by Major Categories (in thousands) | Revenue Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | e-Commerce revenue | $4,120 | $3,512 | $7,126 | $6,377 | | Pharmacy prescription and other revenue | $8,173 | $10,521 | $18,263 | $21,845 | | Pharmacy 340B contract revenue | $947 | $2,956 | $2,376 | $6,260 | | **Total Revenues, net** | **$13,240** | **$16,989** | **$27,765** | **$34,482** | - e-Commerce revenue **increased by $0.6 million (17.3%)** for the three months and **$0.7 million (11.7%)** for the six months ended June 30, 2025, compared to the prior year[61](index=61&type=chunk) - Healthcare Operations revenue (prescription and 340B) **decreased by $4.3 million (32.1%)** for the three months and **$7.4 million (26.3%)** for the six months ended June 30, 2025, compared to the prior year[61](index=61&type=chunk) [Note 6. Earnings (Loss) per Share](index=18&type=section&id=Note%206.%20Earnings%20(Loss)%20per%20Share) The company reported basic and diluted loss per share of $(0.07) for the three months and $(0.12) for the six months ended June 30, 2025, a significant improvement from $(0.28) and $(0.36) in the prior year periods, respectively. Potentially dilutive securities were anti-dilutive due to net losses Basic and Diluted Loss Per Share (in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Net loss attributable to NextPlat Corp | $(1,789) | $(5,311) | $(3,132) | $(6,791) | | Basic and diluted loss per share | $(0.07) | $(0.28) | $(0.12) | $(0.36) | | Weighted average common shares outstanding | 25,963 | 18,824 | 25,963 | 18,774 | - Basic and diluted loss per share **improved significantly** due to reduced net losses and an increase in weighted average common shares outstanding[64](index=64&type=chunk) - Potentially dilutive common shares were excluded from diluted EPS calculation as they would be **anti-dilutive** due to net losses[63](index=63&type=chunk) [Note 7. Accounts Receivable, net](index=19&type=section&id=Note%207.%20Accounts%20Receivable,%20net) Net accounts receivable decreased to $3,153 thousand at June 30, 2025, from $4,895 thousand at December 31, 2024. The allowance for credit losses decreased by $0.1 million for the six months ended June 30, 2025 Accounts Receivable, net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Gross accounts receivable – trade | $3,185 | $5,036 | | Less: allowance for credit losses | $(32) | $(141) | | **Accounts receivable, net** | **$3,153** | **$4,895** | - The allowance for credit losses was **decreased by $0.1 million** for the six months ended June 30, 2025, reflecting revised estimates based on current economic conditions[65](index=65&type=chunk) [Note 8. Receivables - Other, net](index=19&type=section&id=Note%208.%20Receivables%20-%20Other,%20net) Other receivables, net, increased to $854 thousand at June 30, 2025, from $732 thousand at December 31, 2024, primarily due to an increase in receivables from customers Receivables - Other, net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Performance bonuses | $582 | $588 | | Customers | $222 | $115 | | Other | $50 | $29 | | **Receivables - other, net** | **$854** | **$732** | [Note 9. Inventory, net](index=19&type=section&id=Note%209.%20Inventory,%20net) Net inventory increased to $5,215 thousand at June 30, 2025, from $4,881 thousand at December 31, 2024, with finished goods increasing and a slight increase in the reserve for obsolete inventory Inventory, net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Finished goods | $5,674 | $5,320 | | Less reserve for obsolete inventory | $(459) | $(439) | | **Inventory, net** | **$5,215** | **$4,881** | [Note 10. Property and Equipment, net](index=20&type=section&id=Note%2010.%20Property%20and%20Equipment,%20net) Net property and equipment decreased to $2,839 thousand at June 30, 2025, from $3,407 thousand at December 31, 2024, primarily due to accumulated depreciation. Depreciation expense for the six months ended June 30, 2025, was $0.3 million Property and Equipment, net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Property and equipment gross | $6,248 | $6,667 | | Less: accumulated depreciation | $(3,409) | $(3,260) | | **Property and equipment, net** | **$2,839** | **$3,407** | - Depreciation expense was approximately **$0.3 million** for the six months ended June 30, 2025, down from **$0.4 million** in the prior year[69](index=69&type=chunk) [Note 11. Intangible Assets, net](index=21&type=section&id=Note%2011.%20Intangible%20Assets,%20net) Net intangible assets decreased to $473 thousand at June 30, 2025, from $524 thousand at December 31, 2024. Amortization expense for the six months ended June 30, 2025, was significantly lower at $0.1 million compared to $1.4 million in the prior year, as Healthcare Operations' intangible assets were fully impaired in 2024 Intangible Assets, net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Customer contracts | $311 | $353 | | Trade names | $162 | $171 | | **Total intangible assets** | **$473** | **$524** | - Amortization expense for intangible assets was approximately **$0.1 million** for the six months ended June 30, 2025, a significant decrease from **$1.4 million** in the prior year[71](index=71&type=chunk) - The decrease in amortization is due to Healthcare Operations' intangible assets being **fully impaired throughout 2024**; current intangible assets are related to e-Commerce Operations from the Outfitter acquisition[138](index=138&type=chunk)[158](index=158&type=chunk) [Note 12. Accounts Payable and Accrued Expenses](index=22&type=section&id=Note%2012.%20Accounts%20Payable%20and%20Accrued%20Expenses) Accounts payable and accrued expenses decreased to $5,213 thousand at June 30, 2025, from $7,230 thousand at December 31, 2024, primarily driven by a reduction in accounts payable Accounts Payable and Accrued Expenses (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accounts payable | $4,636 | $6,596 | | Accrued wages and payroll liabilities | $208 | $269 | | Accrued other liabilities | $285 | $269 | | Customer deposits payable | $84 | $96 | | **Total** | **$5,213** | **$7,230** | [Note 13. Notes Payable](index=22&type=section&id=Note%2013.%20Notes%20Payable) Total notes payable decreased to $1,156 thousand at June 30, 2025, from $1,412 thousand at December 31, 2024. This includes a mortgage note, an uncollateralized note, and collateralized notes, with a significant portion due in 2028 Notes Payable (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Mortgage note payable - commercial bank | $1,004 | $1,050 | | Note payable - uncollateralized | $25 | $25 | | Notes payable - collateralized | $122 | $234 | | Insurance premiums financing | $5 | $103 | | **Subtotal** | **$1,156** | **$1,412** | | Less: current portion | $(213) | $(380) | | **Long-term portion** | **$943** | **$1,032** | - The mortgage note payable bears a **fixed interest rate of 4.75%** and matures on **December 14, 2028**[75](index=75&type=chunk) Principal Outstanding Repayment Schedule (in thousands) | Year | Amount | | :------------------------ | :----- | | 2025 (remaining six months) | $122 | | 2026 | $157 | | 2027 | $124 | | 2028 | $753 | | 2029 | — | | **Total** | **$1,156** | [Note 14. Equity](index=24&type=section&id=Note%2014.%20Equity) Stock-based compensation expense decreased significantly to $11 thousand for the six months ended June 30, 2025, from $1.1 million in the prior year, due to non-recurring grants fully vested. The company has 50,000,000 authorized common shares, with 25,963,051 issued and outstanding - Stock-based compensation expense was approximately **$11,000** for the six months ended June 30, 2025, a significant decrease from **$1.1 million** in the prior year, attributed to non-recurring grants fully vested[81](index=81&type=chunk) - The company has **50,000,000 authorized shares** of common stock ($0.0001 par value), with **25,963,051 shares issued and outstanding** as of June 30, 2025, and December 31, 2024[83](index=83&type=chunk) - Common stock (**NXPL**) and warrants (**NXPLW**) are traded on the Nasdaq Capital Market[84](index=84&type=chunk) [Note 15. Related Party Transactions](index=24&type=section&id=Note%2015.%20Related%20Party%20Transactions) Related party payables to Interim CEO David Phipps decreased to $1 thousand at June 30, 2025, from $18 thousand at December 31, 2024. The company also employed and paid wages to relatives of Mr. Phipps and former COO Dr. Pamela Roberts, and to Lauren Sturges Fernandez, spouse of the late CEO - Accounts payable due to related party (Interim CEO David Phipps) **decreased from approximately $18,000** at December 31, 2024, to **$1,000** at June 30, 2025[85](index=85&type=chunk) - The company employed and paid wages to one employee related to Mr. Phipps and two employees related to Dr. Pamela Roberts (former COO of Progressive Care) during the six months ended June 30, 2025[86](index=86&type=chunk) - Lauren Sturges Fernandez, spouse of the late CEO, was employed as Chief of Staff and Special Assistant to the Chairman of the Board[86](index=86&type=chunk) [Note 16. Commitments and Contingencies](index=25&type=section&id=Note%2016.%20Commitments%20and%20Contingencies) The company is involved in several legal proceedings, including an EEOC lawsuit against Pharmco LLC, a class action suit by a former Progressive Care CEO regarding the merger, and an arbitration claim by Progressive Care against a former employee. Management believes these claims lack merit and is vigorously defending them, with no accruals recorded - A former employee of Pharmco LLC filed an **EEOC lawsuit on March 17, 2025**; the company is vigorously defending and cannot estimate potential loss[88](index=88&type=chunk) - Alan Jay Weisberg, former CEO of Progressive Care, filed a **class action suit on October 28, 2024**, alleging breach of fiduciary duty related to the Progressive Care merger; management believes the claim is not meritorious and is defending against it[89](index=89&type=chunk)[90](index=90&type=chunk) - Progressive Care was notified of a potential claim by a former employee on **June 17, 2024**, and has filed for arbitration, believing it will prevail on the merits[91](index=91&type=chunk) [Note 17. Reportable Segments](index=26&type=section&id=Note%2017.%20Reportable%20Segments) NextPlat operates two reportable segments: e-Commerce Operations and Healthcare Operations. The segments are managed separately due to different business strategies, with financial performance reviewed by the Interim CEO and CFO. Both segments experienced a decline in gross profit margins for the six months ended June 30, 2025, compared to the prior year - The company has two reportable segments: **e-Commerce Operations** (e-commerce platform, satellite communication services) and **Healthcare Operations** (prescription pharmaceuticals, TPA, data management)[94](index=94&type=chunk) Segment Net Loss (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | e-Commerce Operations | $(499) | $(1,467) | $(1,504) | $(2,796) | | Healthcare Operations | $(1,290) | $(9,276) | $(1,628) | $(9,647) | | **Total Net Loss** | **$(1,789)** | **$(10,743)** | **$(3,132)** | **$(12,443)** | - Gross profit margins for Healthcare Operations **decreased to 19.9% (3 months) and 22.1% (6 months) in 2025 from 35.2% and 31.3% in 2024**, respectively, due to decreased prescription volume and drug price increases outpacing reimbursement[124](index=124&type=chunk)[143](index=143&type=chunk) - Gross profit margins for e-Commerce Operations **decreased to 25.9% (3 months) and 25.2% (6 months) in 2025 from 31.6% and 30.0% in 2024**, respectively, due to new airtime costs and temporary rate reductions[124](index=124&type=chunk)[143](index=143&type=chunk) [Note 18. Concentrations](index=29&type=section&id=Note%2018.%20Concentrations) e-Commerce Operations had Amazon as a significant customer (31.1% of revenue in H1 2025) and key suppliers including Iridium Satellite, Garmin, and Globalstar. Geographically, Europe and North America were the largest revenue contributors. Healthcare Operations had a high supplier concentration (96.9% from one vendor in H1 2025) and relied on three significant PBMs for reimbursements - Amazon accounted for **31.1% of e-Commerce Operations revenue** for the six months ended June 30, 2025[103](index=103&type=chunk) e-Commerce Operations Key Suppliers (Purchases in thousands) | Supplier | 6 Months Ended June 30, 2025 Amount | % of Total Purchases | | :--------------- | :-------------------------------- | :------------------- | | Iridium Satellite | $1,388 | 23.8% | | Garmin | $839 | 14.4% | | Globalstar | $619 | 10.6% | e-Commerce Operations Geographic Revenue (in thousands) | Region | 6 Months Ended June 30, 2025 Amount | % of Total | | :-------------- | :-------------------------------- | :--------- | | Europe | $3,499 | 49.1% | | North America | $2,339 | 32.8% | | Asia and Pacific | $1,032 | 14.5% | - Healthcare Operations had **96.9% of total vendor purchases from one significant vendor** for the six months ended June 30, 2025[107](index=107&type=chunk) Healthcare Operations PBM Reimbursement Concentrations (6 Months Ended June 30, 2025) | PBM | % of Reimbursements | | :-- | :------------------ | | A | 28% | | B | 17% | | C | 15% | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=31&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on NextPlat's financial condition and results of operations for the three and six months ended June 30, 2025, compared to the prior year. It covers business overview, critical accounting policies, detailed analysis of revenue, expenses, net loss, and liquidity, highlighting key drivers of changes [Overview](index=31&type=section&id=Overview) NextPlat's e-Commerce segment focuses on satellite communication services and e-Commerce platforms, expanding with the Outfitter Satellite acquisition. The Healthcare segment provides pharmacy services for complex chronic diseases, TPA, and data management. US-China tariffs have not materially impacted e-Commerce but pose a risk to future projects in China - e-Commerce Operations historically provided Satellite Industry communication services and equipment sales, now expanding with a **state-of-the-art e-Commerce platform**[113](index=113&type=chunk) - Acquisition of **Outfitter Satellite, Inc. on April 1, 2024**, expanded satellite-based connectivity solutions in the U.S.[114](index=114&type=chunk) - Healthcare Operations include **five pharmacies** providing prescription medications, TPA, data management, and services for **340B covered entities**, focusing on complex chronic diseases[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - US-China tariffs did not materially impact e-Commerce in H1 2025, but starting **Q2 2025**, certain imported goods became subject to tariffs, affecting costs and pricing strategies. Future projects in China, like Florida Sunshine vitamins, may be impacted[115](index=115&type=chunk) [Critical Accounting Policies and Estimates](index=33&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates remain consistent with those disclosed in its 2024 Form 10-K, with recent accounting pronouncements (ASU 2024-03 and ASU 2023-09) adopted primarily affecting presentation - No material changes to critical accounting policies and estimates from the **2024 Form 10-K**[122](index=122&type=chunk) - Most recently adopted accounting pronouncements (**ASU 2024-03 and ASU 2023-09**) are described in Note 3 and primarily relate to presentation[122](index=122&type=chunk) [Results of Operations for the three months ended June 30, 2025 compared to the three months ended June 30, 2024](index=33&type=section&id=Results%20of%20Operations%20for%20the%20three%20months%20ended%20June%2030,%202025%20compared%20to%20the%20three%20months%20ended%20June%2030,%202024) For the three months ended June 30, 2025, net revenue decreased by 22.1% to $13.2 million, primarily due to a $4.4 million decrease in Healthcare Operations, partially offset by a $0.6 million increase in e-Commerce. Gross profit margins declined to 21.8% from 34.5%. Net loss attributable to NextPlat Corp significantly improved by 66% to $(1.8) million, driven by a $12.0 million reduction in operating expenses, mainly due to the absence of impairment losses Key Financial Highlights (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :----------------------------------- | :----- | :----- | :------- | :------- | | Revenue, net | $13,240 | $16,989 | $(3,749) | (22)% | | Gross profit | $2,883 | $5,858 | $(2,975) | (51)% | | Operating expenses | $4,712 | $16,754 | $(12,042) | (72)% | | Net loss attributable to NextPlat Corp | $(1,789) | $(5,311) | $3,522 | (66)% | - Decrease in revenue primarily from Healthcare Operations (**$4.4 million decrease**), partially offset by e-Commerce Operations (**$0.6 million increase**)[123](index=123&type=chunk) - Gross profit margins **decreased from 34.5% in Q2 2024 to 21.8% in Q2 2025**, due to declines in both segments, including drug price increases outpacing reimbursement and new airtime costs[124](index=124&type=chunk) - Operating expenses **decreased by $12.0 million (71.9%)**, mainly due to no impairment loss in Q2 2025 (compared to **$9.8 million in Q2 2024**) and reduced intangible asset amortization[131](index=131&type=chunk)[134](index=134&type=chunk)[138](index=138&type=chunk) [Results of Operations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024](index=37&type=section&id=Results%20of%20Operations%20for%20the%20six%20months%20ended%20June%2030,%202025%20compared%20to%20the%20six%20months%20ended%20June%2030,%202024) For the six months ended June 30, 2025, net revenue decreased by 19.5% to $27.8 million, primarily due to a $7.5 million decrease in Healthcare Operations, partially offset by a $0.8 million increase in e-Commerce. Gross profit margins declined to 22.9% from 31.1%. Net loss attributable to NextPlat Corp significantly improved by 54% to $(3.1) million, driven by a $13.8 million reduction in operating expenses, mainly due to the absence of impairment losses Key Financial Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | $ Change | % Change | | :----------------------------------- | :----- | :----- | :------- | :------- | | Revenue, net | $27,765 | $34,482 | $(6,717) | (19)% | | Gross profit | $6,346 | $10,720 | $(4,374) | (41)% | | Operating expenses | $9,660 | $23,457 | $(13,797) | (59)% | | Net loss attributable to NextPlat Corp | $(3,132) | $(6,791) | $3,659 | (54)% | - Decrease in revenue primarily from Healthcare Operations (**$7.5 million decrease**), partially offset by e-Commerce Operations (**$0.8 million increase**)[142](index=142&type=chunk) - Gross profit margins **decreased from 31.1% in H1 2024 to 22.9% in H1 2025**, due to declines in both segments, including decreased pharmacy prescriptions and new airtime costs[143](index=143&type=chunk) - Operating expenses **decreased by $13.8 million (58.8%)**, mainly due to no impairment loss in H1 2025 (compared to **$9.9 million in H1 2024**) and reduced intangible asset amortization[151](index=151&type=chunk)[154](index=154&type=chunk)[158](index=158&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, NextPlat had $16.6 million in cash and $20.7 million in working capital. The company is implementing cost reduction measures and exploring strategic alternatives to improve operational efficiency and preserve liquidity. Management believes existing cash resources are sufficient for the next 12 months - As of June 30, 2025, the company had a cash balance of approximately **$16.6 million** and working capital of approximately **$20.7 million**[162](index=162&type=chunk) - Management is implementing cost reduction measures, including optimizing delivery processes and renegotiating vendor agreements, and exploring strategic alternatives to diversify business operations[162](index=162&type=chunk) - Management believes existing financial resources are sufficient to support planned operations for at least the **next 12 months**[163](index=163&type=chunk) Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :--------------------------------- | :----- | :----- | | Operating activities | $(3,100) | $(379) | | Investing activities | $98 | $(981) | | Financing activities | $(261) | $(34) | | Effect of exchange rate on cash | $(62) | $(36) | | **Change in cash** | **$(3,325)** | **$(1,430)** | | Cash at end of period | $16,635 | $24,877 | [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has not entered into any off-balance sheet arrangements, financial guarantees, or derivative contracts indexed to its shares - The company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties[168](index=168&type=chunk) - No derivative contracts indexed to company shares or retained/contingent interest in assets transferred to unconsolidated entities[168](index=168&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=43&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) As a smaller reporting company, NextPlat Corp is not required to provide quantitative and qualitative disclosures about market risk - As a **smaller reporting company**, NextPlat Corp is not required to provide quantitative and qualitative disclosures about market risk[169](index=169&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=43&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) As of June 30, 2025, the company's disclosure controls and procedures were deemed ineffective due to a material weakness related to inventory valuation identified in fiscal 2024. However, this material weakness has been remediated through the implementation of expanded internal controls for comprehensive net realizable value assessments - As of **June 30, 2025**, disclosure controls and procedures were **not effective** to provide reasonable assurance that required information is recorded, processed, summarized, and reported timely[170](index=170&type=chunk) - A **material weakness related to inventory valuation controls** was identified in fiscal 2024[171](index=171&type=chunk) - The material weakness was **remediated** by implementing formalized policies and procedures for comprehensive net realizable value (NRV) assessments, establishing senior management oversight, and enhancing accuracy of pricing and cost data[171](index=171&type=chunk) - No other material changes in internal control over financial reporting occurred during the quarter, except for the remediation efforts[173](index=173&type=chunk) [PART II. OTHER INFORMATION](index=44&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) NextPlat is involved in three legal proceedings: an EEOC lawsuit against Pharmco LLC, a class action suit by a former Progressive Care CEO regarding the merger, and an arbitration claim by Progressive Care against a former employee. Management is vigorously defending these claims and does not believe they are meritorious - A former employee of Pharmco LLC filed an **EEOC lawsuit on March 17, 2025**; the company is vigorously defending and cannot estimate potential loss[175](index=175&type=chunk) - Alan Jay Weisberg, former CEO of Progressive Care, filed a **class action suit on October 28, 2024**, alleging breach of fiduciary duty related to the Progressive Care merger; management believes the claim is not meritorious and is defending against it[176](index=176&type=chunk)[177](index=177&type=chunk) - Progressive Care was notified of a potential claim by a former employee on **June 17, 2024**, and has filed for arbitration, believing it will prevail on the merits[178](index=178&type=chunk) [ITEM 1A. RISK FACTORS](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) Beyond the risks outlined in the 2024 Form 10-K, a new material risk factor is the persistent US-China tariff environment, which could adversely impact the company's business, financial prospects, and profitability, particularly affecting e-Commerce initiatives targeting the Chinese market - The persistent **US-China tariff environment** is a new material risk factor that could adversely impact the company's business, financial prospects, results of operations, and financial condition[182](index=182&type=chunk) - The company has paused certain e-Commerce development program initiatives aimed at the Chinese market, such as the Florida Sunshine brand of vitamins, due to **increased tariffs** making them uncompetitive[183](index=183&type=chunk) - The company continues to sell OPKO Health Europe products in China, as they are **not subject to additional tariffs**[184](index=184&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) There were no unregistered sales of equity securities or use of proceeds to report - No unregistered sales of equity securities and use of proceeds to report[186](index=186&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=45&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) There were no defaults upon senior securities to report - No defaults upon senior securities to report[187](index=187&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=45&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable**[188](index=188&type=chunk) [ITEM 5. OTHER INFORMATION](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) On August 12, 2025, two directors, Louis Cusimano and Elizabeth Alcaine, resigned. On August 13, 2025, Lauren Sturges Fernandez, spouse of the late CEO, was unanimously elected to the Board, effective immediately, with an annual cash compensation of $48,000. No Rule 10b5-1 trading arrangements were adopted or terminated during the quarter - Louis Cusimano and Elizabeth Alcaine resigned from the Board of Directors, effective **September 1, 2025**, for personal reasons[189](index=189&type=chunk) - Lauren Sturges Fernandez, spouse of the late CEO, was unanimously elected to the Board on **August 13, 2025**, to fill one of the vacancies[190](index=190&type=chunk) - Mrs. Sturges Fernandez's compensation consists of annual cash compensation of **$48,000** for her board service[192](index=192&type=chunk) - No director or officer adopted or terminated any **Rule 10b5-1 trading arrangement** during the three months ended June 30, 2025[195](index=195&type=chunk) [ITEM 6. EXHIBITS](index=47&type=section&id=ITEM%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including the Director Agreement for Lauren Sturges Fernandez, certifications from the Principal Executive and Financial Officers, and Inline XBRL documents - Exhibit 10.1: **Director Agreement**, dated **August 13, 2025**, between NextPlat Corp and Lauren Sturges Fernandez[197](index=197&type=chunk) - Exhibits 31.1 and 31.2: Certifications of Principal Executive Officer and Principal Financial Officer pursuant to **Section 302 of the Sarbanes-Oxley Act of 2002**[197](index=197&type=chunk) - Exhibit 32.1: Certifications of Principal Executive Officer and Principal Financial Officer pursuant to **Section 906 of the Sarbanes-Oxley Act of 2002**[197](index=197&type=chunk) - Exhibits 101 and 104: **Inline XBRL Instance Document** and **Cover Page Interactive Data File**[197](index=197&type=chunk) [SIGNATURES](index=48&type=section&id=SIGNATURES) The report was signed on August 13, 2025, by David Phipps, Interim Chief Executive Officer, and Cecile Munnik, Chief Financial Officer - The report was signed on **August 13, 2025**[200](index=200&type=chunk) - Signed by **David Phipps, Interim Chief Executive Officer** (Principal Executive Officer)[200](index=200&type=chunk) - Signed by **Cecile Munnik, Chief Financial Officer** (Principal Financial and Accounting Officer)[200](index=200&type=chunk)

Core Viewpoint - NextPlat Corp is set to release its financial results for the quarter ended June 30, 2025, on August 14, 2025, before market open, and will host a conference call to discuss these results and recent developments [1][2]. Group 1: Financial Results Announcement - NextPlat Corp will announce its financial results for Q2 2025 on August 14, 2025, before the market opens [1]. - The conference call will be hosted by Interim CEO David Phipps and CFO Cecile Munnik at 8:30 a.m. EDT [2]. Group 2: Conference Call Details - Investors can submit questions for the Q&A portion of the call before August 12, 2025 [2]. - The call can be accessed via a toll-free number (1-800-836-8184) or an international number (1-646-357-8785) [2]. - A live broadcast and replay of the conference call will be available on the company's website [3]. Group 3: Company Overview - NextPlat is a global consumer products and services company that provides healthcare and technology solutions through eCommerce and retail channels [4]. - The company aims to assist businesses in optimizing their eCommerce presence and revenue through acquisitions, joint ventures, and collaborations [4]. - NextPlat operates an eCommerce communications division and offers pharmacy and healthcare data management services in the U.S. through its subsidiary, Progressive Care [4].

Company Overview - NextPlat operates a global consumer products and services company providing healthcare and technology solutions through e-Commerce and retail channels worldwide[4] - The company is listed on the Nasdaq Capital Market under the tickers NXPL (Common Stock) and NXPLW (Warrants)[6] - As of March 31, 2025, NextPlat had 26 million common shares outstanding[6] - The company's market capitalization was $20.1 million as of July 1, 2025[6] Financial Performance - NextPlat reported $65.5 million in consolidated revenues for the year ended December 31, 2024, representing a 73% increase compared to the prior year[6, 52] - The company had $17.7 million in cash as of March 31, 2025[6, 55] - For the quarter ended March 31, 2025, NextPlat reported $14.525 million in net revenue[55] - Net loss attributed to common stockholders for the quarter ended March 31, 2025, was $1.343 million[55] Strategic Initiatives - NextPlat is focused on high-growth sectors, including technology, healthcare, and consumer wellness[7, 10] - The company leverages global online storefronts and offers turn-key access to high-barrier markets like China[8, 9] - NextPlat is expanding its offerings through strategic investments/acquisitions, licensing, or partnering with brands in high-growth sectors[17]