Core Viewpoint - NextPlat Corp is undergoing a strategic review and operational restructuring following the unexpected passing of its former CEO, with a focus on enhancing its healthcare division and expanding e-commerce capabilities to unlock growth opportunities [2][3][9]. Company Overview - NextPlat Corp is a global consumer products and services company that provides healthcare and technology solutions through e-commerce and retail channels worldwide [10]. Current Operations - The healthcare division is identified as the largest part of the business, presenting significant untapped opportunities [3]. - The retail pharmacy sector is facing challenges due to rising drug costs and reimbursement rates not keeping pace, necessitating a focus on operational efficiency and investment in alternative healthcare areas [3][4]. Strategic Initiatives - Streamlining healthcare operations and expanding contracted 340B and long-term care services are key areas for profitable growth [4]. - The company plans to enhance operational efficiencies, reduce costs, and ensure the right talent is in place to drive growth [5][12]. - There is a commitment to invest prudently in both organic and non-organic growth opportunities while enhancing cash flow and long-term profitability [5][12]. E-Commerce Expansion - E-commerce, although currently a smaller part of the business, presents vast global opportunities through partnerships with major marketplaces like Amazon, Walmart, and Alibaba [7]. - The company aims to grow its e-commerce business through various initiatives, including launching new international marketplaces and forming distribution partnerships [11]. Future Outlook - The company is focused on maximizing efficiencies and generating positive operating results, with plans to fill gaps in the team and empower leaders to execute growth plans [12]. - There is an ongoing effort to improve shareholder transparency and engagement, including outreach to the broader investor community [12].

Core Points - NextPlat Corp announced the appointment of Rodney Barreto as Interim Chairman and David Phipps as Interim CEO following the unexpected passing of Executive Chairman and CEO Charles M. Fernandez on May 24, 2025 [1][2] - The company expressed deep condolences for Mr. Fernandez's passing, highlighting his commitment to the company and his family [3] - Rodney Barreto has over 35 years of business experience and has been a director at NextPlat since January 2022, while David Phipps has previously served as CEO and Chairman from 2015 to 2021 [3][4] Company Overview - NextPlat Corp is a global e-commerce platform focused on high-growth sectors such as technology and healthcare, aiming to assist businesses in optimizing their online sales [6] - The company operates an e-commerce communications division that provides voice, data, tracking, and IoT products and services globally, along with pharmacy and healthcare data management services in the U.S. through its subsidiary, Progressive Care [6]

Core Insights - NextPlat Corp has announced that its subsidiary, Global Telesat Communications Ltd, is the exclusive distributor for ZOLEO Inc in the UK and European Economic Area, enhancing its satellite communication offerings [1][3]. Group 1: Company Overview - NextPlat Corp is a global e-commerce provider focused on high-growth sectors, including technology and healthcare, and aims to assist businesses in optimizing their online sales [5]. - Global Telesat Communications Ltd has established a strong reputation as a premier partner for connectivity manufacturers and service providers in the UK and Europe [4]. Group 2: Product Details - ZOLEO's flagship product is a global satellite communicator that extends smartphone messaging coverage using the Iridium satellite network, cellular, and Wi-Fi, making it valuable for outdoor enthusiasts and remote workers [2][6]. - The ZOLEO communicator has received several industry accolades, including the Outdoor Retailer Innovation Award "Product of the Year," highlighting its market recognition [2]. Group 3: Market Positioning - The partnership with ZOLEO allows GTC to complement its growing portfolio of satellite connectivity products, which are sold globally through e-commerce and Amazon storefronts [2][3]. - ZOLEO Inc specializes in global messaging solutions that ensure connectivity beyond traditional mobile coverage, targeting consumers on the fringe of mobile coverage, outdoor recreation users, and field workers [6].

Financial Performance - Consolidated revenue for Q1 2025 was approximately $14.5 million, down from $17.5 million in Q1 2024, primarily due to a decline in Healthcare Operations[6] - Gross profit margin decreased to 23.8% in Q1 2025 from 27.8% in Q1 2024, with Healthcare segment margin dropping to 23.8% from 27.7%[6] - Operating expenses decreased by 26.2% to approximately $4.9 million compared to $6.7 million in the prior year quarter[6] - Net loss attributable to common shareholders decreased by 9% to approximately $1.3 million, or ($0.05) per diluted share, compared to a net loss of approximately $1.5 million, or ($0.08) per diluted share in Q1 2024[6] Cash and Assets - The Company ended the quarter with approximately $17.7 million in cash[6] - Total assets decreased from $36,478 million as of December 31, 2024, to $35,204 million as of March 31, 2025, representing a decline of approximately 3.5%[18] - Current assets decreased from $31,480 million to $30,475 million, a reduction of about 3.2%[18] - Cash balance decreased from $19,960 million to $17,737 million, a decline of approximately 11.2%[18] - Accounts receivable increased from $4,895 million to $5,527 million, an increase of about 12.9%[18] - Inventory decreased from $4,881 million to $4,510 million, a reduction of approximately 7.6%[18] Liabilities and Equity - Total liabilities increased slightly from $9,680 million to $9,753 million, an increase of approximately 0.8%[18] - Current liabilities increased from $8,210 million to $8,424 million, an increase of about 2.6%[18] - Accumulated deficit increased from $(48,950) million to $(50,293) million, reflecting a worsening of approximately 2.7%[18] - Total equity decreased from $26,798 million to $25,451 million, a decline of about 5.0%[18] - Additional paid-in capital increased slightly from $75,697 million to $75,704 million, an increase of about 0.01%[18] Revenue Growth Initiatives - Recurring airtime revenue increased by 51% due to new connectivity contracts and higher margin services[13] - The Company signed several new 340B pharmacy service agreements expected to contribute to revenue growth and improved margins[6] - The launch of the Florida Sunshine branded line of vitamins has been paused due to tariff escalations, impacting anticipated sales[13] - The Company is exploring strategic alternatives to diversify its Healthcare Operations, including new services and joint ventures[6] - Initial in-store sales of OPKO-branded products commenced in China, with regulatory approval for OPKO pet health products expected by Q4 2025[13]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $14.5 million, down from $17.5 million in the same period last year, reflecting a decline due to various factors [11] - The gross profit margin decreased during the quarter, primarily driven by lower 340B contract revenue in the healthcare segment and the expiration of an airtime contract in the e-commerce segment [12][13] - The company ended the quarter with approximately $17.7 million in cash [13] Business Line Data and Key Metrics Changes - In the healthcare segment, there was a decline in prescription volume influenced by changes in provider relationships and patient flow, alongside transitions in pharmacy service agreements [11][12] - E-commerce operations saw an increase in recurring airtime revenue, which grew by 51% due to sustained growth in Internet of Things sales and the impact of the Alphyser acquisition [18] - The healthcare segment is shifting focus towards long-term contracts and new service offerings to improve revenue and margins [15] Market Data and Key Metrics Changes - The current tariff situation has created challenges for the launch of Florida Sunshine products in China, which has been paused, impacting anticipated growth [5][6] - The company is exploring other markets for Florida Sunshine and has seen steady progress in launching OpCo products in China [6][10] Company Strategy and Development Direction - The company is evaluating strategic alternatives, including potential sales or mergers of certain operations and exploring new partnerships and joint ventures to enhance shareholder value [9][10] - There is a commitment to ongoing cost reduction efforts and operational efficiency improvements in the healthcare segment [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by tariffs and the need to adapt strategies to navigate the current market environment [6][21] - The company remains hopeful for a resolution regarding tariffs and is committed to exploring alternative paths for growth [6][22] Other Important Information - The company is actively working to improve its expense structure and has received a substantial performance bonus from a payer, recognizing its quality execution [15] - The company is committed to transparency and sharing progress with investors regarding the steps taken to address industry challenges [23] Q&A Session Summary Question: What is the status of the share buyback? - The company has not repurchased any shares due to legal blackout periods and the need to evaluate cash uses for long-term shareholder value [24][25] Question: Can you comment on Jervis Hall's resignation as director? - The resignation was not due to any disagreement with the company, and while a replacement may be considered, it is not required at this time [26] Question: What is the plan to address the NASDAQ letter and minimum bid requirement? - The company has a six-month period to address the share price and intends to improve financial results and explore strategic alternatives [27] Question: What is the status of ongoing litigation? - The company cannot comment on ongoing litigation [27]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $14.5 million, a decline from $17.5 million in the same period last year, reflecting various operational challenges [10] - The gross profit margin decreased, particularly in the healthcare segment due to lower 340B contract revenue and increased operational costs in the e-commerce segment [12][14] - The company ended the quarter with approximately $17.7 million in cash [12] Business Line Data and Key Metrics Changes - In the healthcare segment, there was a decline in prescription volume and changes in pharmacy service agreements, impacting revenue [10][14] - E-commerce operations saw an increase in recurring airtime revenue, which grew by 51%, but this was offset by a decline in hardware sales [11][16] - The healthcare operations are shifting focus towards long-term contracts and new service offerings to improve margins [14] Market Data and Key Metrics Changes - The current tariff situation has significantly impacted the launch of Florida Sunshine products in China, leading to a pause in those plans [5][19] - The company is exploring other markets for Florida Sunshine and has seen steady progress in launching OpCo products in China [6][19] Company Strategy and Development Direction - The company is evaluating strategic alternatives, including potential sales or mergers of certain operations and exploring new partnerships [9] - There is a commitment to improving operational efficiency and cost structure in the healthcare segment, with a focus on 340B pharmacy service agreements [14] - The company aims to achieve a cash neutral position from operations by 2026, although current conditions may delay this goal [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to tariffs and the need to explore alternative markets and products [6][19] - There is optimism regarding the potential for growth in the e-commerce segment, particularly in high-margin recurring revenue streams [16] - The management is committed to transparency and addressing industry challenges to maximize shareholder value [21] Other Important Information - The company received a substantial performance bonus from a payer, recognizing its execution and focus on quality [14] - The company is actively working on cost-saving initiatives and renegotiating vendor contracts to improve its financial position [13] Q&A Session Summary Question: What is the status of the share buyback? - The company has not repurchased any shares due to legal blackout periods and the need to evaluate cash uses for long-term shareholder value [22][23] Question: Can you comment on Jervis Hall's resignation as director? - The resignation was not due to any disagreement with the company, and while a replacement may be considered, it is not required at this time [24] Question: What is the plan to address the NASDAQ letter and minimum bid requirement? - The company has a six-month period to address the share price and intends to improve financial results and explore strategic alternatives [25][26] Question: What is the status of ongoing litigation? - The company cannot comment on ongoing litigation matters [26]

Core Insights - NextPlat Corp reported Q1 2025 revenue of approximately $14.5 million, a decrease from $17.5 million in Q1 2024, primarily due to challenges in Healthcare Operations and changes in pharmacy service agreements [5][2] - The company is focusing on cost reduction and efficiency improvements, with operating expenses decreasing by 26.2% to approximately $4.9 million compared to $6.7 million in the prior year [5][2] - The net loss attributable to common shareholders decreased by 9% to approximately $1.3 million, or ($0.05) per diluted share, compared to a net loss of approximately $1.5 million, or ($0.08) per diluted share in Q1 2024 [5][2] Financial Highlights - Consolidated revenue for Q1 2025 was approximately $14.5 million, down from $17.5 million in Q1 2024 [5] - Gross profit margin declined to 23.8% from 27.8% year-over-year, with the Healthcare segment's gross profit margin decreasing to 23.8% from 27.7% [5] - Operating expenses decreased by 26.2% to approximately $4.9 million, attributed to the elimination of non-recurring expenses [5] Business Developments - The company signed several new 340B pharmacy service agreements expected to contribute to revenue growth and improved margins [5] - NextPlat's e-Commerce operations saw a 51% increase in recurring airtime revenue, driven by new connectivity contracts and partnerships [5][6] - The company is exploring strategic alternatives to diversify its Healthcare Operations, including new services and joint ventures [5] Cash Position - NextPlat ended the quarter with approximately $17.7 million in cash [5] - The company continues to evaluate its financial position and operational strategies to enhance growth and profitability [2][5]

[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)) Q1 2025 unaudited financials report total assets of $35.2 million, a net loss of $1.34 million, and $2.1 million net cash used in operations [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $35.2 million by March 31, 2025, driven by reduced cash, with total equity declining to $25.5 million | Balance Sheet Highlights (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $30,475 | $31,480 | | Cash | $17,737 | $19,960 | | **Total Assets** | **$35,204** | **$36,478** | | **Total Current Liabilities** | $8,424 | $8,210 | | **Total Liabilities** | **$9,753** | **$9,680** | | **Total Equity** | **$25,451** | **$26,798** | [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Q1 2025 net revenue decreased 17% to $14.5 million, but reduced operating expenses led to a smaller net loss of $1.34 million | Income Statement (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue, net | $14,525 | $17,493 | | Gross profit | $3,463 | $4,863 | | Total operating expenses | $4,948 | $6,705 | | Net loss | $(1,343) | $(1,701) | | Basic and diluted loss per share | $(0.05) | $(0.08) | - The decrease in operating expenses was largely due to a significant reduction in intangible asset amortization, which fell from **$698,000** in Q1 2024 to just **$26,000** in Q1 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $2.1 million in Q1 2025, with the cash balance ending at $17.7 million | Cash Flow Summary (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(2,059) | $(2,685) | | Net cash used in investing activities | $(22) | $(63) | | Net cash used in financing activities | $(134) | $(1) | | **Net decrease in cash** | **$(2,223)** | **$(2,781)** | | **Cash end of period** | **$17,737** | **$23,526** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail company structure, accounting policies, and financial components, highlighting the Outfitter Satellite acquisition, segment performance, and ongoing litigation - The company operates through two main business segments: **e-Commerce Operations** (including satellite communication services) and **Healthcare Operations** (pharmacy and related services)[25](index=25&type=chunk)[26](index=26&type=chunk)[29](index=29&type=chunk) - On April 1, 2024, NextPlat acquired **100%** of Outfitter Satellite, Inc. to expand its Satellite Industry services in the U.S.[28](index=28&type=chunk) | Revenue by Category (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | e-Commerce revenue | $3,006 | $2,865 | | Pharmacy prescription revenue | $10,090 | $11,324 | | Pharmacy 340B contract revenue | $1,429 | $3,304 | | **Total Revenues, net** | **$14,525** | **$17,493** | - The company is involved in several legal proceedings, including a class action lawsuit concerning the Progressive Care merger and an EEOC claim from a former employee, which it is vigorously defending[85](index=85&type=chunk)[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 17% revenue decrease to Healthcare segment declines, operating expenses fell by $1.8 million, and current cash is sufficient for 12 months [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2025 total revenue decreased 17% to $14.5 million due to Healthcare segment declines, while operating expenses fell 26%, reducing net loss | Financial Summary (In thousands) | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $14,525 | $17,493 | $(2,968) | (17)% | | Gross profit | $3,463 | $4,863 | $(1,400) | (29)% | | Operating expenses | $4,948 | $6,705 | $(1,757) | (26)% | | Net loss | $(1,343) | $(1,701) | $358 | (21)% | - The decrease in revenue was primarily due to a decline in the Healthcare segment, with pharmacy prescription revenue falling by **$1.2 million** and 340B contract revenue decreasing by **$1.9 million**[123](index=123&type=chunk)[124](index=124&type=chunk) - The significant drop in operating expenses was mainly due to a **$0.7 million** decrease in intangible asset amortization and a **$0.4 million** reduction in professional fees[130](index=130&type=chunk)[132](index=132&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $17.7 million in cash and $22.1 million in working capital, deemed sufficient for the next 12 months, with ongoing cost-reduction efforts - The company's cash balance was approximately **$17.7 million** as of March 31, 2025[137](index=137&type=chunk) - Management asserts that existing cash resources are sufficient to support planned operations for at least the next **12 months**[138](index=138&type=chunk) - Cost reduction measures are being implemented to improve efficiency and preserve liquidity, and management is exploring strategic alternatives, including a possible sale or merger of a portion of the business[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, NextPlat Corp is exempt from providing quantitative and qualitative disclosures about market risk - The company is exempt from this disclosure requirement due to its status as a smaller reporting company[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, disclosure controls and procedures were deemed ineffective due to a material weakness in inventory valuation, with remediation efforts ongoing for Q2 2025 completion - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of March 31, 2025[145](index=145&type=chunk) - A material weakness related to controls over the valuation of inventories was identified in fiscal 2024 and is still being remediated[146](index=146&type=chunk) - Remediation efforts are underway, including implementing new policies and enhancing management review of inventory valuation, with completion anticipated by the end of Q2 2025[146](index=146&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal proceedings, including an EEOC claim, a class action suit related to a merger, and an employment contract dispute, all being vigorously defended - A former employee of subsidiary Pharmco LLC filed a lawsuit asserting claims under **EEOC regulations** on March 17, 2025[150](index=150&type=chunk) - A class action suit was filed by Alan Jay Weisberg, former CEO of Progressive Care Inc., alleging breach of fiduciary duty and insufficient consideration in the **October 1, 2024 merger**[151](index=151&type=chunk) - The company is also in an arbitration dispute with a former employee over an alleged breach of an employment contract, where the company has filed a counterclaim[153](index=153&type=chunk) [Item 1A. Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) The U.S./China tariff environment poses a significant risk, leading the company to pause certain e-Commerce initiatives like the 'Florida Sunshine' brand launch in China due to reduced competitiveness - The ongoing **U.S./China tariff environment** poses a significant risk to the company's business, financial condition, and profitability[157](index=157&type=chunk) - The company plans to pause the introduction of its **Florida Sunshine brand** of vitamins in China due to the adverse impact of tariffs on competitiveness[158](index=158&type=chunk) - Sales of products manufactured by OPKO Health Europe in China will continue as they are not produced in the U.S. and thus not subject to the additional tariffs[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported during the period - None reported for the quarter[161](index=161&type=chunk) [Item 3. Defaults Upon Senior Securities](index=40&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None reported for the quarter[162](index=162&type=chunk) [Item 4. Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[163](index=163&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 trading arrangement during Q1 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[164](index=164&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including Sarbanes-Oxley Act certifications and Inline XBRL data files - Lists required certifications under Sections 302 and 906 of the Sarbanes-Oxley Act and XBRL financial data files as exhibits[165](index=165&type=chunk)

Core Viewpoint - NextPlat Corp is set to release its financial results for the quarter ended March 31, 2025, on May 15, 2025, before market open, and will host a conference call to discuss these results and other developments [1][2]. Group 1: Financial Results Announcement - NextPlat Corp will announce its financial results for Q1 2025 on May 15, 2025, before the market opens [1]. - The conference call will take place at 8:30 a.m. Eastern time on the same day [2]. Group 2: Conference Call Details - The call will be hosted by Executive Chairman and CEO Charles M. Fernandez, CFO Cecile Munnik, and President and CEO of Global Operations David Phipps [2]. - Investors can submit questions for the Q&A portion of the call before May 12, 2025 [2]. - Access details for the call include a toll-free dial-in number (1-800-836-8184) and an international dial-in number (1-646-357-8785) [2]. Group 3: Replay Information - The conference call will be available for live broadcast and replay on the company's website [3]. - A replay will be accessible after 12:00 p.m. Eastern time on May 15, 2025, through March 22, 2025 [3]. - The toll-free replay number is 1-888-660-6345, and the international replay number is 1-646-517-4150 [3]. Group 4: Company Overview - NextPlat is a global e-commerce platform focusing on high-growth sectors such as technology and healthcare [4]. - The company aims to assist businesses in enhancing their online sales through various strategies, including acquisitions and collaborations [4]. - NextPlat operates an e-commerce communications division and provides healthcare data management services in the U.S. through its subsidiary, Progressive Care LLC [4].

Core Viewpoint - NextPlat Corp has received a notice from Nasdaq indicating non-compliance with the minimum bid price requirement, as its closing bid price has been below $1.00 for 30 consecutive business days [1][2]. Compliance Period - The company has been granted a 180-calendar day compliance period until October 27, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days [2]. - If compliance is not achieved by the deadline, NextPlat may qualify for a second 180-calendar day compliance period, provided it meets other listing requirements [3]. Company Response - The Executive Chairman and CEO of NextPlat stated that the company is actively addressing challenges in drug pricing and tariff escalations, while also working to reduce operating expenses and improve business efficiency [4]. - The company plans to monitor its stock price and explore options to regain compliance during the compliance period [4]. Company Overview - NextPlat is a global e-commerce platform focused on high-growth sectors, including technology and healthcare, and aims to assist businesses in optimizing their online sales [6]. - The company operates an e-commerce communications division and provides pharmacy and healthcare data management services through its subsidiary, Progressive Care LLC [6].