Full Year 2024 NextPlat Corp Earnings Call

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Welcome to the nuts that course.

Operator: Welcome to the NextPlat Core 2024 Earnings Conference Call. Certain statements made during this conference call constitute forward-looking statements. These statements include the capabilities and success of the company's business and any of its products, services, or solutions. The words believe, forecast, project, intend, expect, plan, should, would, and similar expressions in all statements, which are not historical facts, are intended to identify forward-looking facts.

24 earnings conference call.

Statements made during this conference call constitute forward looking statements.

These statements include the capabilities and success of the company's thickness and any of its products.

That's a core solution.

The words believe.

Forecast for.

Jack.

Intend.

Thanks.

Lynn.

But.

And similar expressions that all statements, which are not historical facts are intended to identify forward looking statements.

Operator: These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the company to not achieve some or all of its goals or the company's previously reported actual results, performance, finance or operating, including those expressed or implied by such forward-looking statements. More detailed information about the company and their risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission. Copies of which may be obtained from the SEC's website at www.sec.gov.

These forward looking statements involve and are subject to known and unknown risks uncertainties and other factors.

Of which could cause the company to note that sheet, some or all of it skills or the company's previously reported actual results.

Performance finance are operating including those expressed or implied by such forward looking statements.

Operator 1: More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, copies of which may be obtained from the SEC's website at www.sec.gov. The company assumes no and hereby disclaims any obligation to update the forward-looking statements made during this conference call. Joining us on the call today are Charles M. Fernandez, Chief Executive Officer and Executive Chairman of the Board, David Phipps, President and CEO of Global Operations, and Cecile Munnik, Chief Financial Officer. I will now turn over the meeting to Charles Fernandez for his opening remarks.

More detailed information about the company under risk factors.

Factory elevation of forward looking statements are set forth in the company's filings with the Securities and Exchange Commission.

Copies of which may be obtained from the Sec's website at www Dot to S. E C Dot Gov.

Operator: The company assumes no and hereby disclaims any obligation to update the forward-looking statements made during this conference.

The company assumes no and hereby disclaims any obligation to update the forward looking statements made during this conference call.

Charles Fernandez: Joining us on the call today are Charles <unk> Fernandez.

Operator: Joining us on the call today are Charles M. Fernandez, Chief Executive Officer and Executive Chairman of the Board. David Phipps, President and CEO of Global Operations and Cecil Minnich, Chief Financial Officer.

Speaker Change: Executive Officer, and executive Chairman of the Board Dave.

David Pitts: David Pitts.

David Pitts: Didn't empty it with global operations and there's so many <unk> chief financial Officer.

Charles M. Fernandez: I will now turn over the meeting to Charles Fernandez for his opening remarks. Good morning and welcome to NEXPLAT's 2024 Year-End Earnings Conference. Thank you for joining.

David Pitts: I'll now turn it over to meeting to Charles Fernandez for his opening remarks.

Charles Fernandez: Good morning, and welcome to the next Slide 2024 year end earnings Conference call. Thank you for joining us for our call today I will provide a review of our 2024 operations and accomplishment to feel will then provide a high level review of our financial results as reported at <unk>.

Charles M. Fernandez: Good morning and welcome to NextPlat's 2024 Year-End Earnings Conference Call. Thank you for joining us for our call today. I will provide a review of our 2024 operations and accomplishments. Cecile will then provide a high-level review of our financial results as reported in our annual financial statements contained in Form 10-K that was filed earlier today. David will discuss the results and highlights of our e-commerce business segment, and then I will return to discuss activities and accomplishments in our healthcare segment. We will conclude the conference by responding to questions that were submitted by our shareholders prior to this call. 2024 has been a challenging yet rewarding year for NextPlat and its subsidiaries. We are pleased with the overall performance of the company despite some challenges in our healthcare segment, with consolidated revenues exceeding previous estimates.

Charles M. Fernandez: for our call today. I will provide a review of our 2024 operations and a conversation.

Cecil Minnich: Cecile will then provide a high-level review of our financial results as reported in our annual financial statement contained in Form 10-K that was filed earlier today.

Charles Fernandez: Our annual financial statements contained in <unk> Form 10-K that was filed earlier today.

David Phipps: David will discuss the results and highlights of our e-commerce business segment.

Charles Fernandez: David will discuss the results and highlights of our E Commerce business segment.

Charles M. Fernandez: And then I will return to discuss activities and a conscious instrument. in our healthcare segment.

Speaker Change: And then I will return to discuss activities in our consciousness men.

Speaker Change: In our healthcare segment, we will conclude the conference by responding to questions that were submitted by our shareholders prior to this call.

Charles M. Fernandez: We will conclude the conference by responding to questions that were submitted by our shareholders prior to this. 2024 has been a challenging yet rewarding year for NextPlan and its subsidiaries. We are pleased with the overall performance of the company despite some challenges in our healthcare segment, with consolidated revenues exceeding previous estimates. In October, we completed our merger with Progressive Care and its operating subsidiaries after approval by our shareholders. In April, we acquired Outfitter Satellite. with offices in Nashville, Tennessee, in expanding our sales of satellite-related products in North America through our product sales to customers, commercial, and government.

Speaker Change: 2024 has been a challenging yet rewarding year for next plan and its subsidiaries.

Speaker Change: We are pleased with the overall performance of the company. Despite some challenges in our health care segment with consolidated revenues exceeding previous estimate in October we completed our merger with progressive care and its operating subsidiaries after approval by our shareholders in April we acquired <unk>.

Charles M. Fernandez: In October, we completed our merger with Progressive Care and its operating subsidiaries after approval by our shareholders. In April, we acquired Outfitter Satellite with offices in Nashville, Tennessee, in expanding our sales of satellite-related products in North America through our product sales to customers, commercial, and government. We've experienced a number of positive developments in our e-commerce segment, both for the connectivity products and the slow but steady progress in China and Asia with our OPKO e-commerce development program, which was extended and ramped up activities to support the future launch of our Florida Sunshine product line. Overall, we've increased our participation in e-commerce in large domestic and international customer markets and in the US healthcare. We are supporting a growing number of 340B covered entities and long-term care facilities.

Speaker Change: Theater satellite.

Speaker Change: With offices in Nashville, Tennessee in expanding our sales of satellite related products in North America through our product sales to customers commercial and government.

Speaker Change: We've experienced a number of positive developments at our E. Commerce segment, both for the productivity products and the slow but steady progress in China in Asia with our Opco E Commerce development program.

Charles M. Fernandez: We've experienced a number of positive developments in our e-commerce segment, both for the connectivity products and the slow but steady progress in China and Asia with our OPCO e-commerce development program, which was extended and ramped up activities to support the future launch of our Florida Sunshine product line. Overall, we've increased our participation in e-commerce in large domestic and international customer markets and in the U.S. healthcare. We are supporting a growing number of 340B covered entities and long-term care facilities. Our team is working hard to maximize growth, run the business efficiently, reduce our costs across the organization so we can generate positive cash flow from our investment.

Speaker Change: <unk> was extended and ramped up activities to support the future launch of our Florida Sunshine product line.

Speaker Change: Overall, we've increased our participation in e-commerce, and large domestic and international customer market and in the U S. Health care, we are supporting a growing number of 340, b covered entities and long term care facilities.

Charles M. Fernandez: Our team is working hard to maximize growth, run the business efficiently, and reduce our costs across the organization so we can generate positive cash flow from our investments. We are pleased that our results for 2024, excluding non-cash expenses and costs related to the merger, reflect progress against our strategic growth initiatives. I'd like to introduce our Chief Financial Officer, Cecile Munnik, who will provide you with our overall annual financial reporting.

Speaker Change: Our team is working hard to maximize growth.

Speaker Change: Run the business efficiently reduce our costs across the organization. So we can generate positive.

Cash flow from our investments.

Charles M. Fernandez: We are pleased that our results for 2024, excluding non-cash expenses and costs related to the merger, reflect progress against our strategic growth.

Speaker Change: We are pleased that our results for 2024, excluding noncash expenses and costs related to the merger reflect progress against our strategic growth initiatives I'd like to introduce our Chief Financial Officer, Bill Monarch, who will provide you with our overall annual financial reporting.

Cecil Minnich: I'd like to introduce our Chief Financial Officer, Satya Manek, who will provide you with our overall annual financial report. Thank you, Charlie. I would like to provide you with a summary of our results of operations for the year and our financial and cash position as of December 31st, 2024. We are pleased with our revenue growth, primarily from the addition of a full year of revenue from our healthcare segment and the acquisition of outfitter satellites. Total revenue for the year was approximately $65.5 million, which exceeded our earlier sales guidance, predominantly due to our healthcare segment outperforming our projected prescription fulfillment.

Bill Monarch: Thank you Charlie.

Cecile Munnik: Thank you, Charlie. I would like to provide you with a summary of our results of operations for the year and our financial and cash position as of 31 December 2024. We are pleased with our revenue growth, primarily from the addition of a full year of revenue from our healthcare segment and the acquisition of Outfitter Satellite. Total revenue for the year was approximately $65.5 million, which exceeded our earlier sales guidance predominantly due to our healthcare segment outperforming our projected prescription fulfillment. Gross profits from our healthcare segment decreased from 32% in 2023 to 25% in 2024 as a result of continued pressures from medication price increases along with payer reimbursement rates not keeping pace with those price increases. This is an industry-wide problem for independent pharmacies such as our PharmcoRx subsidiaries.

Bill Monarch: I would like to provide you with a summary of our results of operations for the year and our financial and cash position as of December 31, 2024, we are pleased with our revenue growth primarily from the addition of a full year revenue from our healthcare segment and the acquisition of Outfitter satellite.

Bill Monarch: Total revenue for the year was approximately $65 $5 million, which exceeded our earlier sales guidance predominantly due to our health care segment.

Bill Monarch: Performing a projected prescription fulfillment.

Bill Monarch: Gross profit from our health care segment decreased from 32% in 2023% to 25% in 2024.

Cecil Minnich: Gross profit from our healthcare segment decreased from 32% in 2023 to 25% in 2024. As a result of continued pressures from medication price increases along with pay reimbursement rates, not keeping pace with those prices. This is an industry-wide problem for independent pharmacies, such as our pharma co-subsidiaries. gross profits from our e-commerce segment slightly decreased to 25% when compared to prior year, and was primarily due to rising inventory costs and price pressures from our competitors. Due to the pricing pressures I have just noted, we continue to implement efficiency and cost-cutting measures, which are in part responsible for decreases in some of our operating expense categories.

Bill Monarch: As a result of continued praises from medication price increases along with payer reimbursement rates not keeping pace with those price increases.

Bill Monarch: This is an industry wide problem for independent pharmacies, such as our farm co subsidiaries.

Cecile Munnik: Gross profits from our e-commerce segment slightly decreased to 25% when compared to prior year and was primarily due to rising inventory costs and price pressures from our competitors. Due to the pricing pressures I have just noted, we continue to implement efficiency and cost-cutting measures, which are in part responsible for decreases in some of our operating expense categories. We have introduced changes in our delivery services designed to reduce driver time and maintenance costs and changed our pharmacy software and equipment that allows for greater flexibility and automation in filling prescriptions. The year-over-year increase in operating expenses was attributable to non-recurring, non-cash expenses such as impairment losses, which were a result of the remeasurement of the fair value of the intangible assets recognized in the Progressive Care acquisition.

Bill Monarch: <unk> profit from our E Commerce segment slightly decreased to 25% when compared to prior year.

Bill Monarch: That's primarily due to rising inventory costs and price pressure from our competitors.

Bill Monarch: Due to the pricing pressures I have just noted we continue to implement efficiency and cost cutting measures, which are in part responsible for decreases in some of our operating expense categories.

Cecil Minnich: We have introduced changes in our delivery services designed to reduce driver time and maintenance costs, and changed our pharmacy software and equipment that allows for greater flexibility and automation in filling prescriptions. The year-over-year increase in operating expenses was attributable to non-recurring, non-cash expenses such as impairment losses, which were a result of the remeasurement of the fair value of the intangible assets recognized in the Progressive Care Acquisition Act. We also incurred significant non-recurring professional fees and other expenses associated with the progressive care merger, as well as litigation that was settled in 2024 of approximately $750,000. We ended the year with approximately $20 million.

Bill Monarch: We have introduced changes in all delivery services designed to just drive at time and maintenance cost and change our pharmacy software and equipment that allows for greater flexibility and automation and Philly prescriptions.

Bill Monarch: The year over year increase in operating expenses was attributable to nonrecurring noncash expenses, such as impairment losses, which were a result of the re measurement of the fair value of the intangible assets recognized in the progressive care acquisition.

Cecile Munnik: We also incurred significant non-recurring professional fees and other expenses associated with the Progressive Care merger, as well as litigation that was settled in 2024 of approximately $750,000. We ended the year with approximately $20 million in cash. Much of the decrease in our cash position during 2024 was the result of the non-recurring costs as it relates to the Progressive Care merger that I have identified previously, as well as cash used in the acquisition of Outfitter Satellite. Excluding non-recurring expenses, total cash used in recurring operating activities was approximately $2 million. We are striving to attain a cash-neutral position for operating activities by 2026. Our balance sheet remains strong as we have positive working capital and very little debt other than a mortgage on our Hallandale Beach pharmacy building, the remaining balance on the COVID loan in the UK, and some minor equipment loans.

Bill Monarch: We also incurred significant nonrecurring professional fees and other expenses associated with the progressive Cam merger as well as litigation that was settled ended in 2024 at approximately $750000.

Bill Monarch: We ended the year with approximately $20 million in cash.

Cecil Minnich: Much of the decrease in our cash position during 2024 was the result of the non-recurring costs as it relates to the progressive care merger that I have identified previously, as well as cash used in the acquisition of Alfredo Saddle. Excluding non-recurring expenses, total cash used in recurring operating activities was approximately $2 million.

Bill Monarch: The decrease in our cash position. During 2024 was the result of the nonrecurring costs as it relates to the progressive came merger that I have identified previously as well as cash used in the acquisition of outside of satellite.

Bill Monarch: Excluding nonrecurring expenses total cash used in recurring operating activities was approximately $2 million, we are striving to attain a cash neutral position for operating activities by 2026.

Cecil Minnich: We are striving to attain a cash-neutral position for operating activities by 2026. Our balance sheet remains strong as we have positive working capital and very little debt other than a mortgage on our Hollandale Beach Pharmacy building, the remaining balance on the COVID loan in the UK, and some minor equipment.

Bill Monarch: Our balance sheet remains strong as we have positive working capital and very little debt other than our mortgage how long how long they'll beat the pharmacy building the remaining balance on the Covid alone in the U K and some minor equipment loans.

Cecil Minnich: I encourage you to review our financial statements as contained in Form 10-K that were filed with the Securities and Exchange Commission earlier today.

Cecile Munnik: I encourage you to review our financial statements as contained in Form 10-K that were filed with the Securities and Exchange Commission earlier today. I would like to turn over the meeting to David Phipps, our President and CEO of Global Operations, who will provide you with the highlights and accomplishments in our e-commerce business segment.

Bill Monarch: I encourage you to review our financial statements as contained in our Form 10-K that were filed with the Securities and Exchange Commission earlier today.

David Phipps: I would like to turn over the meeting to Data Phipps, our President and CEO of Global Operations, who will provide you with the highlights and accomplishments in our e-commerce business. Thank you, Cecile. I'd like to give an overview of our e-commerce operations, which include our three communications businesses, our Opco line of human and animal health care products, and our Florida Sunshine branded products. On the communication side of business, we've made significant progress over the year, attracting customers from more than 140 countries through our various global e-commerce stores. In April, we completed our acquisition of Outfitter Satellite, which combined with revenue from our other two communications companies helped us to achieve record revenue and gross margins.

Bill Monarch: I would like to turn over the meeting to David Phipps, Our President and CEO of global operations, who will provide you with the highlights and accomplishments in our E Commerce business segment.

David Phipps: Thank you, Cecile. I'd like to give an overview of our e-commerce operations, which include our three communications businesses, our OPKO line of human and animal healthcare products, and our Florida Sunshine branded products. On the communication side of the business, we made significant progress over the year, attracting customers from more than 140 countries through our various global e-commerce storefronts. In April, we completed our acquisition of Outfitter Satellite, which, combined with revenue from our other two communications companies, helped us to achieve record revenue and gross margins. We were particularly pleased with our 66% increase in revenue from the sale of recurring revenue airtime contracts, which provides a solid future income stream at high margin levels. During the year, we also secured an agreement with Starlink to sell their hardware and services, and we strengthened our existing agreement with Iridium to become a distributor of additional products.

Speaker Change: Thank you Sue.

Speaker Change: To give an overview of our e-commerce operations, which include upstream communications businesses.

Speaker Change: Your line of human and animal health care products.

Speaker Change: Sunshine branded products.

Speaker Change: On the communication side of the business, we made significant progress over the year protracted customers for more than 140 countries through our various global ecommerce storefronts.

Speaker Change: We completed our acquisition of outfits are soft lines, which combined with revenue from the other two communications companies helps us to achieve record revenue.

Speaker Change: Gross margins, we are particularly pleased with a 66% increase in revenue from the sale of recurring revenue per airplane contracts, which provides a solid future income stream of high margin levels.

David Phipps: We were particularly pleased with our 66% increase in revenue from the sale of recurring revenue airtime contracts, which provides a solid future income stream at high margin levels. During the year, we also secured an agreement with Starlink to sell their hardware and services, and we strengthened our existing agreement with Iridium to become a distributor of additional products. Additionally, we secured several major long-term contracts with local state governments, as well as military, global news media, and humanitarian aid organizations. We are currently working on securing a number of significant new distribution agreements and contract awards, details of which we hope to announce shortly.

Speaker Change: During the year, we also secured an agreement to install them to sell the hardware and services.

Speaker Change: Some of our existing agreement with iridium to become a distributor of additional products.

David Phipps: We secured several major long-term contracts with local state governments as well as military, global news media, and humanitarian aid organizations. We are currently working on securing a number of significant new distribution agreements and contract awards, details of which we hope to announce shortly. Please note, in many cases, our customers do not authorize us to release their names. When we communicate these contracts and awards, we often cannot include their names or specifics of the contracts. Turning to our OPKO healthcare products, we encountered significant challenges and delays in launching in China due to complex registration and customs requirements, as well as restrictions on import quantities. I'm pleased to report that we are now actively selling OPKO human healthcare products on the Tmall platform with the launch on JD.com, China's largest online retailer store.

Speaker Change: Additionally, we secured several major long term contracts with local and state governments as well as military global news media and humanitarian aid organizations.

Speaker Change: We are currently working on securing a number of significant new distribution agreements and contract awards details of which we hope to announce shortly.

David Phipps: Please note, in many cases, our customers do not authorise us to release their names. Therefore, when we communicate these contracts and awards, we often cannot include their names or specifics of the contract.

Speaker Change: Please note that in many cases, our customers did not surprise us to release that means therefore.

Speaker Change: So when we communicate and contracts and awards, we often cannot conclude their maintenance or specifics of the contracts.

David Phipps: Turning to our OPCO Healthcare products, we encountered significant challenges and delays in launching in China due to complex registration and customs requirements, as well as restrictions on import quantities. However, I'm pleased to report that we are now actively selling opto-human healthcare products on the Tumor platform. With the launch on JD.com, China's largest online retailer soon. We have strong support from our new trading partner in China and have already conducted several successful marketing campaigns that led to strong sales. In the coming months, we aim to secure approval to ship larger quantities, which we are confident that, given the initial consumer interest we are seeing, will allow us to further grow our sales.

Speaker Change: Turning to our health care products.

Speaker Change: Accounts with significant challenges and delays in launching in China due to complex registration and customs requirements as well as restrictions on input Congresses.

Speaker Change: Wasn't a police report that we are now actively selling up to human health care products and the Tivo platform with the launch on JD Com Germany's largest online retailer.

David Phipps: We have strong support from our new trading partner in China and have already conducted several successful marketing campaigns that led to strong sales. In the coming months, we aim to secure approval to ship larger quantities, which we are confident that given the initial consumer interest we are seeing, will allow us to further grow our sales. Regarding our Florida Sunshine products, we have successfully produced our first batch, which is now bottled, labeled, and ready for sale. Like OPKO, we face numerous challenges in preparing for the launch in China, but we believe we are close to securing approval to begin sales. Unlike OPKO, which is currently limited to the Chinese market, we are gearing up to launch the Florida Sunshine brand across Europe, the US, and China. We have already set up dedicated websites and branded stores on Amazon, which we're ready for our rollout.

Speaker Change: We have strong support from a new trading partner in China and have already conducted several successful marketing campaigns that led to strong sales.

Speaker Change: In the coming months relating to secure approval to ship larger conferences, which we are confident.

Speaker Change: Given the initial consumer interest we have seen.

Speaker Change: Allow us to further grow our sales.

David Phipps: Regarding our Florida Sunshine products, we have successfully produced our first batch, which is now bottled, labeled, and ready for sale. Like OPCO, we face numerous challenges in preparing for the launch in China, but we believe we are close to securing approval to begin sales. Unlike OPCO, which is currently limited to the Chinese market, we are gearing up to launch the Florida Sunshine brand across Europe, the US and China. We have already set up dedicated websites and branded stores on Amazon, which we are readying for a rollout. I wish to note both OPCO and Florida Sunshine products are unaffected by Chinese tariffs.

Speaker Change: Regarding our Florida Sunshine products, we have successfully produced the first batch, which is now Boston labeled and ready for sale.

Speaker Change: Like op Cos, we faced numerous challenges and preparing for the launch in China.

Speaker Change: We believe we are pleased to secure approval to begin sales.

Speaker Change: Okay, which is currently limited to the Chinese market.

Speaker Change: So you'll watch the Florida Sunshine, Brian across Europe, the U S and China, we have already set up dedicated websites branded stores on Amazon, which religion for a rollout.

David Phipps: I wish to note both OPKO and Florida Sunshine products are unaffected by Chinese tariffs. I'd now like to pass the call back to Charlie, who will comment on our healthcare operations.

Speaker Change: Please don't cause I'm, Florida Sunshine products are unaffected by Chinese tourists.

Charles M. Fernandez: I'd now like to pass the call back to Charlie who will comment on the health cooperation. Thank you, David. I'd like to provide you with an overview of our health care operations. As I mentioned earlier, we completed a strategic acquisition of Progressive Care and its pharmacy operations in 2024. Our objective with this acquisition was to utilize our strengths in developing sales platforms for our customers' products and apply those strengths into health care industry. Pharmco pharmacies represent a mature business with name recognition in the South Florida market and a reputation for quality service. We have extended the Pharmco product offerings to include nutraceuticals and other personal care products and offer them utilizing our e-commerce platforms developed by NextPlat.

Charlie: I'd now like to pass the call back to Charlie who will comment on the health corporations.

Charlie: Thank you David I'd like to provide you with an overview of our health care operations as I mentioned earlier, we completed a strategic acquisition of progressive care and its pharmacy operations in 2024.

Charles M. Fernandez: Thank you, David. I'd like to provide you with an overview of our healthcare operations. As I mentioned earlier, we completed a strategic acquisition of Progressive Care and its pharmacy operations in 2024. Our objective with this acquisition was to utilize our strengths in developing sales platforms for our customer's product and apply those strengths in the healthcare industry. Pharmco pharmacies represent a mature business with name recognition in the South Florida market and a reputation for quality service. We have extended the Pharmco product offerings to include nutraceuticals and other personal care products and offer them utilizing our e-commerce platforms developed by NextPlat. A continuing challenge to the plan in our healthcare segment is the earnings pressures caused by the US drug reimbursement not keeping pace with increasing costs of medication, which is an industry-wide problem for independent pharmacies like Pharmco that provide traditional retail pharmacy services.

Charlie: Our objective with this acquisition was to utilize our strengths in developing sales platform for our customers' products and apply those strengths into health care industry.

Speaker Change: Barb go pharmacies represent a mature business with name recognition in the South Florida market and the reputation for quality service. We have extended the farm co product offerings to include nutraceutical and other personal care products and offer them utilizing our e-commerce platform developed by <unk>.

Right.

Speaker Change: A continuing challenge to the plan and our health care segment is the earnings pressures caused by the U S drug reimbursement not keeping pace with increasing cost of medication, which is an industry wide problem for independent pharmacies like Fargo that provide traditional retail pharmacy services.

Charles M. Fernandez: A continuing challenge to the plan in our healthcare segment is the earnings pressures caused by the U.S. drug reimbursement not keeping pace with increasing costs of medication, which is an industry-wide problem for independent pharmacies like Pharmco that provide traditional retail pharmacy services. As we've completed our integration of FarmCo's services into NextPlat, we've realized that FarmCo's strengths lie in the offering of pharmacy services to 340B-covered entities, long-term care facilities, and other health care providers. Contractual agreements with these entities provide a greater profit margin than FarmCo's traditional retail pharmacy service. In recognition of this, in 2024, we began to market these services to a greater number of facilities in South and Central Florida.

Speaker Change: Yeah.

Speaker Change: As we've completed our integration of farm called services is the next flat we've realized that Barb go strengths lie in the offering of pharmacy services to $3 40 be covered entities long term care facilities and other health care providers contractual agreements with these entities to provide a greater profit margins and farm <unk>.

Charles M. Fernandez: As we've completed our integration of PharmcoRx services into NextPlat, we've realized that PharmcoRx's strengths lie in the offering of pharmacy services to 340B covered entities, long-term care facilities, and other healthcare providers. Contractual agreements with these entities provide a greater profit margin than PharmcoRx's traditional retail pharmacy services. In recognition of this, in 2024, we began to market these services to a greater number of facilities in South and Central Florida. In 2025 and beyond, we will continue to focus our sales and marketing efforts in these business lines. This includes adding more sales and marketing employees and outside service providers to assist in identifying sales leads with 340B-covered entities, as well as long-term care and assisted living facilities. In the meantime, our healthcare business continues to progress despite challenges I've just outlined. Our prescription volumes have increased to a level just shy of PharmcoRx's pre-pandemic levels.

Traditional retail pharmacy services.

Speaker Change: In recognition of this in 2024, we began to market. These services to a greater number of facilities in south and Central Florida.

Speaker Change: In 2025 and beyond we will continue to focus our sales and marketing efforts in each business line. This includes adding more sales and marketing employees.

Charles M. Fernandez: In 2025 and beyond, we will continue to focus our sales and marketing efforts in these business lines. This includes adding more sales and marketing employees and outside service providers to assist in identifying sales leads with 340B covered entities. as well as long-term care and assisted living facilities. In the meantime, our healthcare business continues to progress despite challenges I've just outlined. Our prescription volumes have increased to a level just shy of Pharmco's pre-pandemic levels. We've added several new 340B pharmacy service contracts, which will come online with us during the second quarter of 2025. As Cecile outlined, we have reduced operating expenses and identified numerous efficiency improvements in our medication dispensing and delivery services that are providing cash savings.

Speaker Change: And outside service providers to assist in identifying sales leads with 340 <unk> corporate entities.

Speaker Change: As well as long term care and assisted living facilities.

Speaker Change: In the meantime, our health care business continues to book.

Speaker Change: Progressed, despite challenges I, just outlined a prescription volumes.

Speaker Change: Two a level just shy of farm goes pre pandemic levels. We've added several new 340, <unk> pharmacy service contract, which will come online with us during the second quarter of 2025.

Charles M. Fernandez: We've added several new 340B pharmacy service contracts, which will come online with us during Q2 2025. As Cecile outlined, we have reduced operating expenses and identified numerous efficiency improvements in our medication dispensing and delivery services that are providing cash savings. We will continue to be an industry leader in providing free same-day and next-day deliveries of medications to our customers, a service that few in our area offer. We are optimistic that we will continue these improvements such that we will expect to significantly reduce operating losses in 2025 and are striving to reach break-even operating results in our healthcare segment by 2026. That concludes our formal remarks. We can now conduct the Q&A portion of today's call.

Speaker Change: Seal outlined we have reduced operating expenses and identified numerous if we should see improvement in our medication dispensing and delivery services that are providing cash savings.

Charles M. Fernandez: and we will continue to be an industry leader in providing free same-day and next-day deliveries of medications to our customers, a service that few in our area offer. optimistic that we will continue these improvements such that we will expect to significantly reduce operating losses in 2025 and are striving to reach breakeven. operating results in our healthcare segment by 2026.

Speaker Change: And we will continue to be an industry leader in providing free same day and next day delivery of medications. So our customers a service that few in our area offer.

Speaker Change: We are.

Speaker Change: Optimistic that we will continue these improvements such that we will expect to significantly reduce operating losses in 2025 and are striving to reach breakeven.

Speaker Change: Operating results in our healthcare segment by 2026.

Speaker Change: That concludes our formal remarks, we can now conduct the Q&A portion of today's call.

Operator: That concludes our formal remarks. We can now conduct the Q&A portion of today's call. As this is our first earnings call, we've asked investors and shareholders to submit their questions in advance, and we would like to thank all of you who did.

Charles M. Fernandez: As this is our first earnings call, we've asked investors and shareholders to submit their questions in advance. We would like to thank all of you who did. Because of the number of questions were of similar subjects, we've tried to consolidate them, and will address them now. Question number 1. The company announced a buyback of shares. Has the company already started buying back shares? With the shares clearly being undervalued, does the company intend to continue buying and possibly looking to increase the amount of authorized shares for buyback, whether this be from the board of directors or stockholder approval? Thanks for your question. While we would like to be active in the market today, we have not yet repurchased any shares.

Speaker Change: As this is our first earnings call, we've asked investors and shareholders to submit their questions in advance and we would like to thank all of you who get because of the number of questions were similar subject. We've tried to consolidate them and we will address them now.

Operator: Because of the number of questions who are of similar subjects, we've tried to consolidate them, and we'll address them now.

Speaker Change: Question number one the company announced a buyback of shares has the company already started buying back shares and with the shares here.

Operator: Question number one, the company announced a buyback of shares. Has the company already started buying back shares and with the shares?

Operator: clearly being undervalued, does the company intend to continue buying and possibly looking to increase the amount of authorized shares for buyback, whether this be from the board of directors or stockholder approval?

Speaker Change: Clearly being undervalued the company intends.

New buying and possibly looking to increase the amount of authorized shares for buyback whether this be from the board of directors or stockholder approval.

Speaker Change: Thanks for your question.

Charles M. Fernandez: Thanks for your question. While we would like to be active in the market today, we have not yet repurchased any shares. This is due not only to SEC restrictions, but also because we are actively working on capital allocation decisions as we work to streamline and reinvest into the business in both the e-commerce and healthcare.

Speaker Change: We would like to be active in the market today, we have not yet repurchased any shares. This is due not only to FCC works there.

Charles M. Fernandez: This is due not only to SEC restrictions but also because we are actively working on capital allocation decisions as we work to streamline and reinvest into the business in both the e-commerce and healthcare. We do expect to be active in the market now that our annual report has been filed and hope to have an update for you on our Q1 conference call, which will be held in mid-May. Question number 2. Are you concerned about the low stock price, and what are you doing about it? Thanks for your question. Collectively, myself and other members of management and the board of directors have significant investment in NextPlat. Our investments were at prices significantly greater than today's share price, so we are keenly aware of the low stock price.

Speaker Change: But but also because we are actively working on our capital allocation decisions as we worked to streamline and reinvest into the business in both the E Commerce and health care.

Charles M. Fernandez: We do expect to be active in the market now that our annual report has been filed and hope to have an update for you on our first quarter conference call which will be held in mid-May.

Speaker Change: We do expect to be active in the market now that our annual report has been filed and hope to have an update for you on our first quarter conference call, which will be held in mid may.

Charles M. Fernandez: Question number two. Are you concerned about the low stock price and what are you doing about it? Thanks for your question. Collectively, myself and other members of management and the board of directors have significant investment in NexPlat. Our investments were at prices significantly greater than today's share price, so we are keenly aware of the low stock price. We also believe the stock price reflects broader market trends favoring large-cap stocks over small-cap stocks due to a perceived lower risk profile, as well as company-specific issues. In our case, this includes a series of non-recurring expenses and non-cash charges, including goodwill impairment required by GAAP over the course of 2024 because of our ownership of Progressive Care and our merger in October.

Speaker Change: Question number two are you concerned about the low stock price and what are you doing about it.

Speaker Change: Thanks for your question collectively myself and other members of management and the board of directors have significant investment in the next life, our investments where our prices significantly greater than today's share price. So we are keenly aware of the low stock price.

Speaker Change: We also believe the stock price reflects broader market trends favoring large cap stocks over small cap stocks due to a perceived lower risk profile as well as company specific issues.

Charles M. Fernandez: We also believe the stock price reflects broader market trends favoring large-cap stocks over small-cap stocks due to a perceived lower risk profile, as well as company-specific issues. In our case, this includes a series of non-recurring expenses and non-cash charges, including goodwill impairment required by GAAP over the course of 2024 because of our ownership of Progressive Care and our merger in October. Combined, these developments obscured what we believe was the true value of the business and resulted in large losses and an increase in cash burn, which investors perceived negatively. That, combined with a low flow due to higher insider ownership and limited exposure to Wall Street and retail investors, resulted in volatility and low trading liquidity.

Speaker Change: Our case. This includes a series of nonrecurring expenses and noncash charges, including goodwill impairment required by GAAP over the course of 2024 because of our ownership of progressive care and our merger in October.

Speaker Change: Combined these developments obscure, but what we believe was the true value of the business and resulted in large losses and an increase in cash burn, which investors perceived negatively that combined with our low flow due to higher.

Charles M. Fernandez: combined, these developments obscured what we believe was the true value of the business and resulted in large losses and an increase in cash burn, which investors perceived negatively. That combined with a low flow due to higher Insider ownership and limited exposure to Wall Street and retail investors resulted in volatility and low trading liquidity.

Speaker Change: Insider ownership and limited exposure to Wall Street, and retail investors resulted in volatility and low trading liquidity.

Charles M. Fernandez: With progressive care merger behind us and a focus on improving efficiency of the business, we believe the operational cash burn will be significantly decreased and supported by growth in e-commerce. We also believe we can improve cash flow and other key financial metrics. This, along with the efforts to increase awareness of the company through the increased engagement with our investment community, should help unlock more value in our shares.

Speaker Change: With progressive care merger behind Us and our focus on improving efficiency of the business. We believe the operational cash burn will be significantly decrease and supported by growth in E. Commerce. We also believe we can improve cash flow and other key financial matrix.

Charles M. Fernandez: With Progressive Care merger behind us and a focus on improving efficiency of the business, we believe the operational cash burn will be significantly decreased and supported by growth in e-commerce. We also believe we can improve cash flow and other key financial metrics. This, along with the efforts to increase awareness of the company through the increased engagement with our investment community, should help unlock more value in our shares. Question number three. What are you doing to increase the visibility of the company with investors? Will you be meeting with investors or participating in investor conferences? Thanks for your question. Yes, we are committed to increasing investor awareness in NextPlat, and this call is just one step in support of that effort. We understand that many investors feel we haven't been proactive.

Speaker Change: This along with the efforts to increase awareness of the company through the increased engagement with our investment community should help unlock more value in our shares.

Speaker Change: Question number three.

Operator: Question number three. What are you doing to increase the visibility of the company with investors? Will you be meeting with investors or participating in investor conferences?

Speaker Change: What are you doing to increase the visibility of the company with investors will you be meeting with investors are participating in investor conferences.

Speaker Change: Thanks for your question, Yes, we are committed to increasing investor awareness and next black and this call is just one step in support of that effort.

Charles M. Fernandez: Thanks for your question. Yes, we are committed to increasing investor awareness in NextPlat, and this call is just one step in support of that effort. We understand that many investors feel we haven't been proactive. However, our team and board, almost all of which are significant investors in the company, are focused on execution, something we believe that very volatile equity markets and the small cap market in particular demand. Yes, it's been a long process as we focus on cleaning up the balance sheet, finding and integrating acquisitions, and adjusting our operations to address issues like payer reimbursement in the retail pharmacy business.

Speaker Change: We understand that many investors feel we haven't been proactive however, our team and board almost all of which are significant investors in the company.

Charles M. Fernandez: Our team and board, almost all of which are significant investors in the company, are focused on execution, something we believe that very volatile equity markets and the small-cap market in particular demand. Yes, it's been a long process as we focus on cleaning up the balance sheet, finding and integrating acquisitions, and adjusting our operations to address issues like payer reimbursement in the retail pharmacy business. We will communicate our progress as often as we are legally allowed, and that includes efforts to attract investors who are seeking investment opportunities in small-cap growth companies. Question number 4. Why China sales taking so long to ramp up, and what impact do you see from recent tariffs put in place? I will turn this question over to David Phipps.

Speaker Change: Our focus on execution is something that we believe that very volatile equity markets and the small cap market in particular demand.

Speaker Change: Yes, it's been a long process as we focus on cleaning up the balance sheet, finding and integrating acquisitions and adjusting our operations to address issues like the air reimbursement in the retail pharmacy business, but we will communicate our progress.

Charles M. Fernandez: But we will communicate our progress as often as we are legally allowed. And that includes efforts to attract investors who are seeking investment opportunities in small cap growth companies.

Speaker Change: As often as we are legally allowed and that includes efforts to attract investors, who are seeking investment opportunities and small cap.

Speaker Change: Growth companies.

Operator: Question number four, why are China sales taking so long to ramp up and what impact do you see from recent tariffs put in place?

Speaker Change: Question number four y R.

Speaker Change: China sales, taking so long to ramp up and what impact do you see from recent tariffs put in place I will turn this question over to David.

David Phipps: I will turn this question over to David. Thanks, Charlie. For the first part of the question, I'd say that selling in China isn't easy. That's why you only typically see the very largest companies undertake those efforts due to the extensive government regulation and logistical challenges. It's this complexity combined with product availability constraints that have primarily led to the longer-than-anticipated ramp-up, issues which are now largely being resolved. In China, as well as elsewhere, there are multiple levels of regulations and approvals needed for international organizations to sell, and these vary by type of products being sold, such as those for human consumption or pets.

Speaker Change: Thanks, Joe.

David Phipps: Thanks, Charlie. For the first part of the question, I'd say that selling in China isn't easy. That's why you only typically see the very largest companies undertake those efforts due to the extensive government regulation and logistical challenges. It's this complexity combined with product availability constraints that have primarily led to the longer than anticipated ramp-up issues, which are now largely being resolved. In China, as well elsewhere, there are multiple levels of regulations and approvals needed for international organizations to sell, and these vary by type of products being sold, such as those for human consumption or pets. In most cases, it is a slow process dealing with the various governmental authorities. That is partly why the most successful brands in China are those that create local partnerships with organizations that can help support approvals and distribute, market, and sell their products.

Speaker Change: First part of the question I'd say, that's selling in China isn't pleases. That's why you only took a can see the very largest companies undertake those efforts.

Speaker Change: The extensive government regulation and logistical challenges.

Speaker Change: This complexity complexity combined with product availability constraints, primarily led to the longer than anticipated ramp up issues, which amount of launches being resolved.

Speaker Change: In China as well elsewhere, there are multiple levels of regulations on approvals needed for international organizations to so.

Speaker Change: These vary by type of products being sold such as various for human consumption, but in most cases. It is a slow process dealing with various governmental sources.

David Phipps: But in most cases, it is a slow process dealing with the various governmental authorities. That is partly why the most successful brands in China are those that create local partnerships with organisations that can help support approvals and distribute, market and sell their products. We are somewhat unique in our ability to tap into the large Chinese market through relationship with partners such as Alibaba, JD.com and others we've already secured. And we're also working with our customer Opco to not only pursue the required approvals for their pet care products, but also with them to further tap their supply chains to obtain significantly increased levels of inventory so that we can expand our sales.

Speaker Change: That is probably one of the most successful firms in China create local partnerships with organizations that can help support approvals or distribute market and sell their products.

David Phipps: We are somewhat unique in our ability to tap into the large Chinese market through relationships with partners such as Alibaba, JD.com, and others we've already secured. We're also working with our customer, OPKO, to not only pursue the required approvals for their pet care products, but also with them to further tap their supply chains to obtain significantly increased levels of inventory so that we can expand our sales. We're very optimistic about the potential we see in China as early demand for products like OPKO's joint care product, Artilane, has been strong. We believe we have addressed many of the roadblocks which have slowed our progress, and by the end of Q2 2025, should be in the market with a wider array of products supported with increased inventory levels.

Speaker Change: We are somewhat unique in our ability to tap into the large Chinese molecule.

Speaker Change: Relationship with partners, such as Alibaba, JD Com and others, we have already secured.

Speaker Change: We're also working with our customer okay to not only pursue the required approvals for the pet care products, but also with them to further their supply chains to obtain significantly increased levels of inventory.

Speaker Change: We can expand our sales.

David Phipps: We're very optimistic about the potential we see in China, as early demand for products like OPCO's joint care product Artelene has been strong. We believe we have addressed many of the roadblocks which have slowed our progress and by the end of the second quarter 2025 should be in the market with a wider array of products supported with increased inventory levels.

Speaker Change: We're very optimistic about the potential we see in China is early demand for products like op Cos joint care product offering has been strong.

Speaker Change: We believe we have addressed many of the roadblocks, which have slowed our progress by the end of the second quarter 2025 should be in the market with a wider array of products supported with increased inventory levels.

David Phipps: To answer the second part of the question regarding tariffs, due to where we source our products and their nature, we are not currently seeing any significant impact from tariffs, but we're monitoring it closely.

David Phipps: To answer the second part of the question regarding tariffs, due to where we source our products and their nature, we are not currently seeing any significant impact from tariffs, but we're monitoring it closely. Back to you, Charlie.

Speaker Change: To answer the second call for the question regarding tourists due to where we source our products in their nature.

Speaker Change: Not currently seeing any significant impact from tariffs, but we're monitoring it closely but to each other.

Charles M. Fernandez: Back to you, Charlie.

Operator: Okay, question number five.

Speaker Change: Okay question number five what are the marketing plans for Florida, Sunshine, where and when will it be available and will it be sold to U S customers and customers of their pharmacies I will again turn this question over to David to answer.

Charles M. Fernandez: Okay. Question number 5. What are the marketing plans for Florida Sunshine? Where and when will it be available, and will it be sold to US customers and customers of your pharmacies? I will again turn this question over to David to answer.

Operator: What are the marketing plans for Florida Sunshine? Where and when will it be available, and will it be sold to U.S. customers and customers of your pharmacies?

David Phipps: I will again turn this question over to David to answer. Thanks, Charlie, and thanks for that question. We've made significant progress in creating the Florida Sunshine brand and preparing it for international launch. Complying with the unique regulations inherent in selling products in multiple international markets has been time-intensive, especially in China. We have created the required infrastructure of building out the storefronts, and in the case of China, are working towards a new partnership there which will be very beneficial in terms of marketing expertise and distribution. In terms of the U.S., the North American market for vitamins and supplements is very crowded and competitive.

David Pitts: Thanks, Charlie and thanks for that question.

David Phipps: Thanks, Charlie, and thanks for that question. We've made significant progress in creating the Florida Sunshine brand and preparing it for international launch. Complying with the unique regulations inherent in selling products in multiple international markets has been time-intensive, especially in China. We have created the required infrastructure of building out the storefronts, and in the case of China, are working towards a new partnership there, which will be very beneficial in terms of marketing expertise and distribution. In terms of the US, the North American market for vitamins and supplements is very crowded and competitive. Right now, our focus is on international markets where we believe the brand can quickly stand out.

David Pitts: Made significant progress in creating the Florida Sunshine brands and preparing it for international launch <unk>.

David Pitts: Complying with regulations inherent in selling products in multiple international markets, that's been time instances, especially.

David Pitts: Actually in China.

David Pitts: We have created the required infrastructure building out the store front and in the case of China are working towards a new partnership which will be very beneficial in terms of marketing expertise and distribution.

David Pitts: In terms of the U S. The north.

David Pitts: American market conditions and supplements is very crowded.

David Phipps: So right now, our focus is on international markets, where we believe the brand can quickly stand out.

David Pitts: <unk>.

David Pitts: Now our focus is on international markets, where we believe the Brian to quickly stand out.

David Phipps: While we're looking at the potential for sales of Florida sunshine in the U.S., perhaps for our pharmacists under the OTC benefits programs for Medicare Advantage, again, our focus is really on tapping into the large market in China and in Europe.

David Phipps: While we are looking at the potential for sales of Florida Sunshine in the US, perhaps through our pharmacies under the OTC benefits programs for Medicare Advantage, again, our focus is really on tapping into the large market in China and in Europe. Back to you, Charlie.

David Pitts: While we are looking at the potential for sales of Florida Sunshine in the U S, perhaps or a pharmacist onto the OTC benefits programs for Medicare advantage again, our focus is really on tapping into the large market in China.

David Pitts: Europe.

Charles M. Fernandez: Back to you, Does the company intend to continue expansion by organic growth or is the company currently looking at any other acquisitions? Currently, we're working to support organic growth across both our e-commerce and healthcare segments. could include investment in additional inventory as well as into marketing and other sales programs. We are not currently looking at any other acquisitions.

David Pitts: Thank you Charlie.

David Pitts: Alright.

Charles M. Fernandez: All right. Question number 6. Does the company intend to continue expansion by organic growth, or is the company currently looking at any other acquisitions? Currently, we're working to support organic growth across both our e-commerce and healthcare segments. This could include investment in additional inventory as well as into marketing and other sales programs. We are not currently looking at any other acquisitions. Our final question. Can you comment about the lawsuits mentioned in the financial reporting? Thanks for your question. We cannot comment specifically about the lawsuits, only that we believe they are without merit, and our legal counsel believe the courts will agree and move to dismiss them so we could avoid incurring significant legal costs. That was the final question that we received from investors. Thank you again for submitting them.

Speaker Change: Number six does the company intend to continue expansion by organic growth or is the company currently looking at any other acquisitions.

Speaker Change: Currently we're working to support organic growth across both our E Commerce and health care segment.

Speaker Change: This.

Speaker Change: Could include investment in additional inventory as well as into marketing and other sales programs. We are not currently looking at any other acquisitions.

Operator: Our final question, can you comment about the lawsuits mentioned in the financial reporting? Thanks for your question.

Speaker Change: Our final question can you comment about the lawsuits mentioned in the financial reporting. Thanks for your question, we cannot comment specifically about the lawsuit only that we believe they are without merit and we and our legal counsel believes the courts will agree and moved to dismiss them. So we can avoid incurring significant legal cost.

Charles M. Fernandez: We cannot comment specifically about the lawsuits, only that we believe they are without merit and we and our legal counsel believe the courts will agree and move to dismiss them so we could avoid incurring significant legal costs.

Speaker Change: That was the final question that we received from investors. Thank you again for submitting them.

Operator: That was the final question that we received from investors. Thank you again for submitting.

Operator: Please remember that you can submit your questions to our Investor Relations email, which is investors at NextPlat, or with our IR contact listed on our press release, michaelglittman at mike at m w g c o dot net. We continually strive to respond to your questions in a timely manner.

Charles M. Fernandez: Please remember that you can submit your questions to our investor relations email, which is investors@nextplat, or with our IR contact listed on our press release, Michael Glickman at mike@mwgco.net. We continually strive to respond to your questions in a timely manner. That concludes our earnings call. We look forward to an exciting and rewarding year in 2025 and to talking with you again in mid-May 2025 about our Q1. Have a nice rest of your day.

Speaker Change: Please remember that you could submit your questions through our Investor Relations email, which is investors at next plot, our with our IR contact listed on our press release micro Glickman at Mike M. W. G. C O dot net we continually strive to respond to your questions.

Speaker Change: In a timely matter.

Operator: That concludes our earnings call. We look forward to an exciting and rewarding year in 2025 and to talking with you again in mid-May 2025 for about our first quarter.

Speaker Change: That concludes our earnings call, we look forward to an exciting and rewarding year in 2025 and to talking with you again in mid May 2025 for about our first quarter have a nice rest of your day.

Operator: Have a nice rest of your day. Thank you.

Speaker Change: Thank you ladies and gentlemen, the conference has now ended.

Operator 1: Thank you. Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.

Operator: Ladies and gentlemen, the conference has now ended. Thank you all for joining. You may all disconnect your lines.

Speaker Change: You all for joining you may all disconnect your lines.

Speaker Change: Okay.

Speaker Change: Yeah.

Operator: [music]

Speaker Change: Yes.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: [music].