nxpl20240331

nxpl20240331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______________to _______________.

Commission File Number 001-40447

NEXTPLAT CORP

(Exact name of registrant as specified in its charter)

Nevada		65-0783722
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3250 Mary St., Suite 410, Coconut Grove, FL		33133
(Address of principal executive offices)		(Zip Code)

(305)-560-5355

Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.0001	NXPL	The Nasdaq Stock Market Inc.
Warrants	NXPLW	The Nasdaq Stock Market Inc.

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.

Class		Outstanding at May 10, 2024
Common Stock, $0.0001 par value		18,773,146

Table of Contents

FORM 10-Q

INDEX

	Page

PART I: FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)	2

CONDENSED CONSOLIDATED BALANCE SHEETS	2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS	3

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY	4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	6

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	23

ITEM 4. CONTROLS AND PROCEDURES	23

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS	24

ITEM 1A. RISK FACTORS	24

ITEM 5. OTHER INFORMATION	24

ITEM 6. EXHIBITS	25

SIGNATURES	26

Table of Contents

Part I Financial Information

Item 1. Condensed Consolidated Financial Statements

The unaudited condensed consolidated financial statements of NextPlat Corp, (“NextPlat,” the “Company,” “we,” or “our”), for the three months ended March 31, 2024 and for comparable periods in the prior year are included below. The financial statements should be read in conjunction with the notes to financial statements that follow.

NEXTPLAT CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares and par data)

	*March 31, 2024*			*December 31, 2023*
	(Unaudited)			(Audited)
ASSETS
Current Assets
Cash	$	23,526		$	26,307
Accounts receivable, net		12,928			8,923
Receivables - other, net		2,068			1,846
Inventory, net		5,610			5,135
Unbilled revenue		185			189
VAT receivable		357			342
Prepaid expenses		404			640
Notes receivable due from related party		260			256
Total Current Assets		45,338			43,638

Property and equipment, net		3,846			3,989

Goodwill		731			731
Intangible assets, net		13,725			14,423
Operating right of use assets, net		1,303			1,566
Finance right-of-use assets, net		18			22
Deposits		39			39
Prepaid expenses, net of current portion		61			61
Total Other Assets		15,877			16,842
Total Assets	$	65,061		$	64,469

LIABILITIES AND EQUITY

Current Liabilities
Accounts payable and accrued expenses	$	14,893		$	13,176
Contract liabilities		140			42
Notes payable		233			312
Due to related party		42			18
Operating lease liabilities		532			532
Finance lease liabilities		20			18
Income taxes payable		90			139
Total Current Liabilities		15,950			14,237

Long Term Liabilities:
Notes payable, net of current portion		1,165			1,211
Operating lease liabilities, net of current portion		853			929
Finance lease liabilities, net of current portion		-			5
Total Liabilities		17,968			16,382

Commitments and Contingencies		-			-

Equity
Preferred stock ($0.0001 par value; 3,333,333 shares authorized)		-			-
Common stock ($0.0001 par value; 50,000,000 shares authorized, 18,724,596 and 18,724,596 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)		2			2
Additional paid-in capital		67,717			67,170
Accumulated deficit		(36,406	)		(34,925	)
Accumulated other comprehensive loss		(90	)		(63	)
Equity attributable to NextPlat Corp stockholders		31,223			32,184
Equity attributable to non-controlling interests		15,870			15,903
Total Equity		47,093			48,087

Total Liabilities and Equity	$	65,061		$	64,469

See accompanying notes to condensed consolidated financial statements.

Table of Contents

NEXTPLAT CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands, except per share data)

	*Three Months Ended*			*Three Months Ended*
	*March 31, 2024*			*March 31, 2023*
	(Unaudited)			(Unaudited)

Sales of products, net	$	14,120		$	2,876
Revenues from services		3,373			-
Revenue, net		17,493			2,876

Cost of products		12,620			2,255
Cost of services		63			-
Cost of revenue		12,683			2,255

Gross profit		4,810			621

Operating expenses:
Selling, general and administrative		2,005			788
Salaries, wages and payroll taxes		2,624			588
Impairment loss		132			-
Professional fees		985			321
Depreciation and amortization		906			162
Total operating expenses		6,652			1,859

Loss before other (income) expense		(1,842	)		(1,238	)

Other (income) expense:
Interest expense		21			5
Interest earned		(215	)		(10	)
Other income		-			(50	)
Foreign currency exchange rate variance		26			(28	)
Total other income		(168	)		(83	)

Loss before income taxes and equity in net loss of affiliate		(1,674	)		(1,155	)

Income taxes		(27	)		-
Loss before equity in net loss of affiliate		(1,701	)		(1,155	)

Equity in net loss of affiliate		-			(32	)
Net loss		(1,701	)		(1,187	)

Net loss attributable to non-controlling interest		220			-
Net loss attributable to NextPlat Corp	$	(1,481	)	$	(1,187	)

Comprehensive income (loss):
Net loss	$	(1,701	)	$	(1,187	)
Foreign currency loss		(27	)		(23	)
Comprehensive loss	$	(1,728	)	$	(1,210	)

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(1,481	)	$	(1,187	)
Weighted number of common shares outstanding – basic and diluted		18,725			14,415

Loss per share - basic and diluted	$	(0.08	)	$	(0.08	)

See the accompanying notes to condensed consolidated financial statements.

Table of Contents

NEXTPLAT CORP AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In thousands, except per share data)

(Unaudited)

For the Three Months Ended March 31, 2024

	Common Stock				Additional
	$0.0001 Par Value				Paid in		Accumulated			Comprehensive			Stockholders’		Non-controlling		Total
	Shares		Amount		Capital		Deficit			Loss			Equity NextPlat Corp		Interests		Equity
Balance, December 31, 2023		18,725	$	2	$	67,170	$	(34,925	)	$	(63	)	$	32,184	$	15,903	$	48,087
Stock-based compensation in connection with options granted		-		-		160		-			-			160		-		160
Stock-based compensation in connection with restricted stock awards		-		-		387		-			-			387		65		452
Capital contribution of non-controlling interests		-

SEC Form 10-Q filed by NextPlat Corp