NXPL

• Overall Turnaround Progress • The company’s 1-year-old turnaround initiative has delivered meaningful results, with strong sequential growth driving consolidated gross margin to a record 40% and nearly eliminating net loss. • Management is unlocking value by positioning community pharmacies as local hubs for higher-margin 340B, long-term care, and institutional healthcare services, creating a differentiated model vs. traditional national pharmacy chains. • The company ended Q2 with $11.9 million in cash, no meaningful debt, and a healthy liquidity position.

• Healthcare Segment Operations • Shifted business mix toward higher-margin contracted services: total prescriptions filled grew to 96,000 in Q2 from 91,000 year-over-year, with 340B prescriptions growing 33% year-over-year to 7,500. The segment added 6 new 340B contracts in Q2, a new quarterly record beating Q1's 5 contracts. • Agreed to acquire an independent profitable pharmacy in the Pensacola, Florida market (a new geographic market for the company), expected to close by Q4 2026 (originally targeted for end of Q3) funded by cash on hand, to extend geographic reach and serve as a platform for expanding contracted services. • H2 2026 operational priorities: onboarding 11 newly secured 340B covered entities to full referral volume, closing and integrating the Pensacola acquisition, and optimizing the Florida pharmacy footprint.

• E-commerce Segment Operations • Generated record high-margin recurring airtime contract revenue, with sales to customers across 115 countries. The segment saw particularly strong demand from the European government and military sector, with over $1.75 million in government sector sales in H1 2026. • A new dedicated online healthcare e-commerce website, featuring prescription medications (including GLP-1s) and the company's Florida Sunshine brand OTC vitamins/supplements, is expected to launch in Q3 2026. • The company is evaluating additional growth initiatives for its PharmCo subsidiary, including further acquisitions and new market expansion.

• Management expects sequential improvement in key financial metrics to continue, with year-over-year revenue comparisons becoming favorable starting in the second half of 2026.
• Meaningful sequential and year-over-year top-line healthcare revenue growth is expected to begin in Q3 2026, driven by growing contracted services revenue and contribution from the Pensacola acquisition.
• Management confirms that if current trends hold, the company will reach bottom-line profitability starting in Q3 2026, and sustain profitability into 2027. Q3 will absorb transaction and integration costs related to the Pensacola acquisition.
• The company's at-the-market share offering program established in May 2026 remains available for future growth flexibility, but no share sales have occurred to date and there are no immediate plans to use it.

1. Healthcare Segment: Q2 2026 net revenue was $7.8 million, down from $9.1 million in Q2 2025. Contracted pharmacy revenue grew 136% year-over-year to $2.2 million, and increased 20% sequentially from Q1 2026. Retail prescription revenue was $5.6 million, down from $8.2 million year-over-year. Gross margin hit 46%, up from 20% in Q2 2025 and 39% in Q1 2026. Gross profit grew to $3.6 million from $1.8 million year-over-year. Contracted and 340B services represented 61% of total healthcare gross profit, up from 52% year-over-year. The segment generated $1.0 million in operating income, compared to a $1.1 million operating loss in Q2 2025 and $24,000 operating income in Q1 2026. 2. E-commerce Segment: Q2 2026 revenue was $4.1 million, flat year-over-year and up 27% sequentially from Q1 2026. Gross margin was 27%, up 1 percentage point year-over-year. The segment generated $200,000 in operating income, up from $88,000 in Q2 2025 and compared to a $84,000 operating loss in Q1 2026. Consolidated: Total Q2 2026 net revenue was $11.9 million, down from $13.2 million year-over-year and up 20% sequentially from Q1 2026. Consolidated gross margin was 40% (a company record), up from 22% in Q2 2025 and 35% in Q1 2026. Operating loss was $127,000, down from $1.8 million in Q2 2025.

• Forward-looking statements (including the profitability outlook) are subject to known and unknown risks and uncertainties that could cause actual results to differ from expectations, with detailed risk factors disclosed in the company's SEC filings.
• Retail pharmacy continues to face industry-wide headwinds from lower payer reimbursement rates and unfavorable payer mix, which have driven year-over-year retail revenue declines.
• The contracted 340B business currently has a concentrated customer base among a limited number of entities, so quarterly gross margin can fluctuate based on business mix; management is working to broaden the customer base.
• The Pensacola acquisition remains subject to customary closing conditions, and there is uncertainty around whether it will close on the expected timeline.
• The company faces an ongoing unresolved lawsuit, with no material update provided as of the Q2 2026 call.

Q: Will the company pursue additional pharmacy acquisitions outside of Florida? How will future acquisitions be funded, and will they dilute existing shareholders? / A: Management currently concentrates its brick-and-mortar acquisition focus on Florida, drawn by favorable population demographics and existing local infrastructure. The company is actively exploring add-on acquisitions in Florida that meet specific criteria: unsaturated markets, established customer bases, and existing profitable operations. Future acquisitions will be approached conservatively to ensure they add to margins, cash flow, and profitability. The company has multiple funding options available including cash, restricted shares, earnouts, and bank credit lines, and will structure deals to avoid unnecessary shareholder dilution.

Q: Will AI be integrated into the company's operations, and how will it impact the business? / A: AI is already a core part of the company's growth and operational efficiency strategy. It helps the company identify and respond to trends across both the healthcare and e-commerce segments faster, and supports efficient processing and analysis of growing volumes of patient healthcare data. AI is a core component of ClearMetrics 4, the company's newly deployed proprietary healthcare data analytics and reporting platform used internally and by customers. The e-commerce segment has also built internal AI-powered systems to automate routine tasks and improve operational efficiency.

Q: Is there an update on the company's ongoing lawsuit? / A: There is no new material update beyond what has already been disclosed in previous SEC periodic filings, and the updated disclosure will be included in the upcoming Q2 Form 10-Q filing. The matter is currently managed by outside counsel and the company's insurance provider. Management remains focused on resolving the dispute as quickly as possible while protecting the long-term interests of shareholders.