NextPlat Corp Q1 FY2025 earnings call

• E-commerce: Satellite products business steady with new contracts, tariff challenges for Florida Sunshine in China with potential resumption of launch plans if tariffs improve, OPKO products in China making progress including initial in-store sales test.
• Healthcare: Making progress despite drug pricing and payer challenges, received substantial performance bonus, continuing 340B and long term care business development, proactive steps to improve expense structure like optimizing delivery and renegotiating vendor contracts.
• Strategic: Exploring sale, merger, partnerships to protect shareholder value, evaluating options to generate and protect shareholder value.

Total revenue for the first quarter was approximately $14.5 million, down from $17.5 million in the same period last year. In the healthcare segment, changes in 340B pharmacy service agreements, a covered entity opening an in-house pharmacy, and a covered entity leaving the 340B program, along with a decline in prescription volume, impacted results. Gross profit margin decreased due to lower 340B contract revenue. In the e-commerce segment, recurring airtime revenue grew driven by IoT sales and Outfitter acquisition, but was offset by a decline in hardware sales. Satellite products business saw steady growth, but tariff challenges affected Florida Sunshine launch in China. OPKO products in China had progress, while OPKO animal health products awaited Chinese regulatory approval.

• Tariff situation could materially impact Florida Sunshine launch and anticipated growth, potentially delaying goal of cash neutral position from operations by 2026.
• Healthcare continuing efforts to achieve cost savings and operational efficiency improvements.

• Tariff impacts on Florida Sunshine launch making it economically unattractive.
• Delayed Chinese regulatory approval for OPKO animal health products, expected by Q4 with initial sales 12 weeks after receipt.
• NASDAQ listing requirements and share price issues, with 6-month period to address share price under NASDAQ compliance.

Q: What is the status of the share buyback?

A: Currently, no shares have been repurchased under the buyback program due to blackout periods and material non-public information restrictions.

Q: Jervis Hall recently resigned as director of NextPlat. Can you comment on why and if a replacement will be found?

A: Cannot speak for Jervis, not due to disagreement with company; currently not required to add an additional director but will consider adding qualified Independent Director under bylaws.

Q: What is the company planning on doing to address the NASDAQ letter and minimum bid requirement?

A: Intend to continue improving financial results and pursuing strategic alternatives during initial 6-month NASDAQ compliance period to address share price issue.

Q: What is the status of ongoing law suit?

A: Cannot comment on any ongoing litigation.