NextPlat Corp
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
NXPL$8.24+8.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001437749-24-017030
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001437749-24-026477
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 68 previous paragraphs and 100 current paragraphs.
34 unchanged; 33 reworded; 22 added; 1 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 5 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (22)
Current report
Business acquisition of Outfitter Satellite, Inc.
Current report
On March 25, 2024, the Company entered into a Stock Purchase Agreement with James T. McKinley, pursuant to which the Company agreed to purchase all of the issued and outstanding shares of common stock of Outfitter Satellite, Inc. (“Outfitter”). The closing of the transaction occurred on April 1, 2024.
Current report
Our operating expenses were as follows (in thousands):
Current report
The Company performed a goodwill impairment test during the three months ended June 30, 2024 and it was determined that the carrying amount of goodwill at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge of approximately $0.7 million during the period, recorded to the Healthcare Operations reporting segment. As of June 30, 2024, there was no remaining goodwill as it relates to the Healthcare Operations reporting segment. Refer to Note 13. Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, and inputs used in the fair value measurements.
Current report
The Company performed a long-lived assets impairment test as it relates to the Healthcare Operations reporting segment during the three months ended June 30, 2024 and it was determined that the carrying amount of the asset group at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge to certain long-lived assets, primarily intangible assets, of approximately $9.1 million during the period. Refer to Note 13. Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, inputs used in the fair value measurements, and the changes in intangible assets for the period.
Current report
Our total other income decreased by approximately $0.3 million for the three months ended June 30, 2024 when compared to same period in 2023, and was mainly due to non-recurring write off of aged payables of approximately $0.2 million and Progressive Care management fee of approximately $0.1 million which was eliminated in consolidation during 2024 as a result of Progressive Care acquisition on July 1, 2023.
Current report
Gross profit margins increased from approximately 25.1% for the six months ended June 30, 2023, to 30.8% for the six months ended June 30, 2024. The increase in gross profit in 2024 compared to the same period in 2023, was primarily attributable to the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023.
Current report
Loss before other income increased by approximately $8.1 million for the six months ended June 30, 2024, when compared to the six months ended June 30, 2023, as a result of the increase in operating expenses of approximately $17.2 million, partially offset by the increase in gross profit of approximately $9.1 million. See detailed discussion below.
Current report
Revenue
Current report
Total e-Commerce revenues were approximately $6.3 million and $5.8 million for the six months ended June 30, 2024 and 2023, respectively, an increase of approximately $0.5 million mainly due to the Outfitter acquisition on April 1, 2024.
Current report
Total pharmacy prescription and 340B contract revenues were approximately $28.1 million for the six months ended June 30, 2024 as a result of the Progressive Care acquisition on July 1, 2023. The pharmacy filled approximately 266,000 prescriptions for the six months ended June 30, 2024.
Current report
Operating Expenses*.*
Current report
Our operating expenses were as follows (in thousands):
Current report
Selling, general and administrative (“SG&A”) expenses were approximately $4.2 million and $3.3 million for the six months ended June 30, 2024 and 2023, respectively, an increase of approximately $0.9 million or 27.6%. The increase for the six months ended June 30, 2024, was mainly attributable to an increase in $1.7 million as it relates to operating expenses of the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023, and partially offset by the decrease in stock-based compensation of approximately $0.8 million.
Current report
The Company performed a goodwill impairment test during the six months ended June 30, 2024 and it was determined that the carrying amount of goodwill at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge of approximately $0.7 million during the period, recorded to the Healthcare Operations reporting segment. As of June 30, 2024, there was no remaining goodwill as it relates to the Healthcare Operations reporting segment. Refer to Note 13. Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, and inputs used in the fair value measurements.
Current report
The Company performed a long-lived assets impairment test as it relates to the Healthcare Operations reporting segment during the six months ended June 30, 2024 and it was determined that the carrying amount of the asset group at June 30, 2024 exceeded its fair value resulting in the Company recording a non-cash impairment charge to certain long-lived assets, primarily intangible assets, of approximately $9.1 million during the period. Refer to Note 13. Goodwill and Intangible Assets for additional details on the impairment charges, valuation methodologies, inputs used in the fair value measurements, and the changes in intangible assets for the period.
Current report
The Company recorded approximately $0.1 million of impairment loss related to the write-down of a right-of-use asset as a result of taking the leased equipment out of service and not returning to service in the future. This was recorded to the Healthcare Operations reporting segment for the six months ended June 30, 2024
Current report
Total Other Income*.*
Current report
Our total other income decreased by approximately $217,000 for the six months ended June 30, 2024 when compared to the same period in 2023, and was mainly due to non-recurring write off of aged payables of approximately $0.2 million and Progressive Care management fee of approximately $0.1 million which was eliminated in consolidation during 2024 as a result of Progressive Care acquisition on July 1, 2023, change in foreign exchange rate of approximately $0.1 million, and partially offset by interest received of approximately $0.2 million.
Current report
Equity Method Investment.
Current report
Net Loss.
Current report
Comprehensive Loss*.*
Removed paragraphs (1)
Previous report
Our total other income increased by approximately $0.1 million for the three months ended March 31, 2024 when compared to same period in 2023, and was mainly due to interest received, which was partially offset by unfavorable impact of fluctuations in foreign exchange rates.
Reworded paragraphs (33)
Previous wording
We encourage you to review our periodic reports filed with the SEC and included in the SEC’s EDGAR database, including our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 11, 2024, and our subsequent public filings with the SEC. We encourage you to review Progressive Care Inc. periodic reports filed with the SEC and included in the SEC’s EDGAR database, including our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 11, 2024, and their subsequent public filings with the SEC.
Current wording
We encourage you to review our periodic reports filed with the SEC and included in the SEC’s EDGAR database, including our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 11, 2024, and our subsequent public filings with the SEC. We encourage you to review Progressive Care's. periodic reports filed with the SEC and included in the SEC’s EDGAR database, including Progressive Care Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on April 11, 2024, and Progressive Care's subsequent public filings with the SEC.
Previous wording
On August 30, 2022, NextPlat entered into a Securities Purchase Agreement (the “SPA”) between NextPlat and Progressive Care, under which NextPlat, its Executive Chairman and Chief Executive Officer, Charles M. Fernandez, board member, Rodney Barreto, and certain other investors invested an aggregate of $8.3 million into Progressive Care. In connection with the SPA, NextPlat purchased 3,000 newly issued Units of Progressive Care valued at $6 million, with each Unit comprised of one share of Progressive Care’s Series B Convertible Preferred Stock, $0.001 par value, and one Investor Warrant to purchase a share of Series B Convertible Preferred Stock at an exercise price of $2,000 The Investor Warrants may also be exercised, in whole or in part, by means of a cashless exercise. The Convertible Preferred Stock has a stated value of $2,000 per share and each Preferred Stock share has the equivalent voting rights of 500 common stock shares (after giving effect to the Reverse Stock Split described below). Each share of Series B Convertible Preferred Stock is convertible at any time at the option of the holder into shares of Progressive Care Common Stock shares determined by dividing the stated value by the conversion price which is $4.00 (after giving effect to the Reverse Stock Split described below).
Current wording
On August 30, 2022, NextPlat entered into a Securities Purchase Agreement (the “SPA”) between NextPlat and Progressive Care, under which NextPlat, its Executive Chairman and Chief Executive Officer, Charles M. Fernandez, board member, Rodney Barreto, and certain other investors invested an aggregate of $8.3 million into Progressive Care. In connection with the SPA, NextPlat purchased 3,000 newly issued Units of Progressive Care valued at $6 million, with each Unit comprised of one share of Progressive Care’s Series B Convertible Preferred Stock, $0.001 par value, and one Investor Warrant to purchase a share of Series B Convertible Preferred Stock at an exercise price of $2,000 The Investor Warrants may also be exercised, in whole or in part, by means of a cashless exercise. The Convertible Preferred Stock has a stated value of $2,000 per share and each Preferred Stock share has the equivalent voting rights of 500 common stock shares (after giving effect to the Reverse Stock Split described below). Each share of Series B Convertible Preferred Stock is convertible at any time at the option of the holder into shares of Progressive Care common stock determined by dividing the stated value by the conversion price which is $4.00 (after giving effect to the Reverse Stock Split described below).
Previous wording
On September 13, 2022, the Progressive Care Board of Directors appointed Charles M. Fernandez as Chairman of the Board of Directors and Rodney Barreto as the Vice Chairman of the Board of Directors. In connection with these appointments, Alan Jay Weisberg, Progressive Care’s current Chairman and Chief Executive Officer, was appointed to serve as a Vice Chairman. On September 12, 2022, two of Progressive Care’s Directors, Birute Norkute and Oleg Firer, resigned as Directors. On October 7, 2022, the Progressive Care Board of Directors unanimously voted to approve the appointment of Pedro Rodriguez, MD to the Board. Dr. Rodriguez was nominated to the Progressive Care Board by NextPlat.
Current wording
On September 13, 2022, the Progressive Care Board of Directors appointed Charles M. Fernandez as Chairman of the Board of Directors and Rodney Barreto as the Vice Chairman of the Board of Directors.
Previous wording
On November 11, 2022, Mr. Weisberg resigned from his positions as Progressive Care’s Chief Executive Officer and co-Vice-Chairman of the Board of Directors. On the same date, the Board appointed Mr. Fernandez to serve as the new Chief Executive Officer immediately.
Current wording
On November 11, 2022, Progressive Care’s board appointed Mr. Fernandez to serve as the new Chief Executive Officer of Progressive Care.
Previous wording
On December 29, 2022, Progressive Care filed a Certificate of Amendment to Articles of Incorporation (the “Amendment to Articles”) with the Secretary of State of the State of Delaware. Pursuant to the Amendment to Articles, each 200 shares of Progressive Care’s common stock outstanding was converted into one share of common stock (the “Reverse Stock Split”) and the number of shares of common stock that Progressive Care is authorized to issue was reduced to 100 million (the “Reduction in Authorized Stock”). The Reverse Stock Split and the Reduction in Authorized Stock were approved by the Progressive Care Board of Directors and the shareholders.
Current wording
On December 29, 2022, Progressive Care filed a Certificate of Amendment to Articles of Incorporation (the “Amendment to Articles”) with the Secretary of State of the State of Delaware. Pursuant to the Amendment to Articles, each 200 shares of Progressive Care’s common stock outstanding was converted into one share of common stock (the “Reverse Stock Split”) and the number of shares of common stock that Progressive Care is authorized to issue was reduced to 100 million (the “Reduction in Authorized Stock”). The Reverse Stock Split and the Reduction in Authorized Stock were approved by the Progressive Care's board of directors and shareholders.
Previous wording
Simultaneous with the closing, Progressive Care entered into a Debt Conversion Agreement (the “DCA”) with NextPlat and the other holders (the “Holders”) of that certain Amended and Restated Secured Convertible Promissory Note, dated as of September 2, 2022, made by the Company in the original face amount of approximately $2.8 million (the “Note”). Pursuant to the DCA, NextPlat and the other Holders agreed to convert the total approximately $2.9 million of outstanding principal and accrued and unpaid interest to Common Stock at a conversion price of $2.20 per share (the “Debt Conversion”). Of the total 1,312,379 shares of Common Stock issued upon conversion of the Note pursuant to the DCA, NextPlat received 570,599 shares, Charles M. Fernandez, the Company’s Chairman and Chief Executive Officer, received 228,240 shares, and Rodney Barreto, the Company’s Vice-Chairman of the Board of Directors, received 228,240 shares. In addition, each of the Holders also received a warrant to purchase one share of Common Stock for each share of Common Stock they received upon conversion of the Note (the “Conversion Warrants”). The Conversion Warrants have a three-year term and are immediately exercisable. Each Conversion Warrant is exercisable at $2.20 per share of Common Stock. In addition, the Company issued 330,000 warrants to certain existing Progressive Care investors to induce them to approve the transaction contemplated by the SPA (the “Inducement Warrants”). Charles M. Fernandez and Rodney Barreto received Inducement Warrants to purchase 190,000 and 30,000 shares of Common Stock, respectively. The Inducement Warrants have a three-year term and are immediately exercisable. Each Inducement Warrant is exercisable at $2.20 per share of Common Stock.
Current wording
Simultaneous with the closing, Progressive Care entered into a Debt Conversion Agreement (the “DCA”) with NextPlat and the other holders (the “Holders”) of that certain Amended and Restated Secured Convertible Promissory Note, dated as of September 2, 2022, made by the Company in the original face amount of approximately $2.8 million (the “Note”). Pursuant to the DCA, NextPlat and the other Holders agreed to convert the total approximately $2.9 million of outstanding principal and accrued and unpaid interest to Progressive Care common Stock at a conversion price of $2.20 per share (the “Debt Conversion”). Of the total 1,312,379 shares of Progressive Care common stock issued upon conversion of the Note pursuant to the DCA, NextPlat received 570,599 shares, Charles M. Fernandez, the Company’s Chairman and Chief Executive Officer, received 228,240 shares, and Rodney Barreto, the Company’s Vice-Chairman of the Board of Directors, received 228,240 shares. In addition, each of the Holders also received a warrant to purchase one share of Progressive Care common stock for each share of Progressive Care common stock they received upon conversion of the Note (the “Conversion Warrants”). The Conversion Warrants have a three-year term and are immediately exercisable. Each Conversion Warrant is exercisable at $2.20 per share of Common Stock. In addition, the Company issued 330,000 warrants to certain existing Progressive Care investors to induce them to approve the transaction contemplated by the SPA (the “Inducement Warrants”). Charles M. Fernandez and Rodney Barreto received Inducement Warrants to purchase 190,000 and 30,000 shares of Common Stock, respectively. The Inducement Warrants have a three-year term and are immediately exercisable. Each Inducement Warrant is exercisable at $2.20 per share of Common Stock.
Previous wording
On July 1, 2023, NextPlat, along with Messrs. Fernandez and Barreto, exercised common stock purchase warrants and were issued common stock shares by Progressive Care. NextPlat exercised common stock purchase warrants on a cashless basis and was issued 402,269 common stock shares. NextPlat also exercised common stock purchase warrants on a cash basis and paid consideration in the amount of $506,000 and was issued 230,000 common stock shares. Mr. Fernandez exercised common stock purchase warrants on a cashless basis and was issued 211,470 common stock shares. Mr. Barreto exercised common stock purchase warrants on a cashless basis and was issued 130,571 common stock shares. At the time of exercise, all of the above common stock purchase warrants were in-the-money. After the exercise of the common stock purchase warrants, NextPlat, Messrs. Fernandez and Barreto collectively owned approximately 53% of Progressive Care’s voting common stock.
Current wording
On July 1, 2023, NextPlat, along with Messrs. Fernandez and Barreto, exercised common stock purchase warrants and were issued shares of Progressive Care common stock. NextPlat exercised common stock purchase warrants on a cashless basis and was issued 402,269 shares of Progressive Care common stock. NextPlat also exercised common stock purchase warrants on a cash basis and paid consideration in the amount of $506,000 and was issued 230,000 shares of Progressive Care common stock. Mr. Fernandez exercised common stock purchase warrants on a cashless basis and was issued 211,470 shares of Progressive Care common stock. Mr. Barreto exercised common stock purchase warrants on a cashless basis and was issued 130,571 shares of Progressive Care common stock. At the time of exercise, all of the above common stock purchase warrants were in-the-money. After the exercise of the common stock purchase warrants, NextPlat, Messrs. Fernandez and Barreto collectively owned approximately 53% of Progressive Care’s voting stock.
Previous wording
Also, on July 1, 2023, NextPlat, along with Messrs. Fernandez and Barreto, entered into a voting agreement whereby at any annual or special shareholders meeting of Progressive Care’s stockholders, and whenever the holders of Progressive Care’s common stock act by written consent, Messrs. Fernandez and Barreto agreed to vote all of the common stock shares (including any new shares acquired after the date of the voting agreement or acquired through the conversion of securities convertible into Common Stock) that they own, directly or indirectly, in the same manner that NextPlat votes its common stock and equivalents. The voting agreement is irrevocable and perpetual in term.
Current wording
Also, on July 1, 2023, NextPlat, along with Messrs. Fernandez and Barreto, entered into a voting agreement whereby at any annual or special shareholders meeting of Progressive Care’s stockholders, and whenever the holders of Progressive Care’s common stock act by written consent, Messrs. Fernandez and Barreto agreed to vote all of their shares of Progressive Care common stock (including any new shares acquired after the date of the voting agreement or acquired through the conversion of securities convertible into Progressive Care common stock) that they own, directly or indirectly, in the same manner that NextPlat votes its Progressive Care common stock and equivalents. The voting agreement is irrevocable and perpetual in term.
Previous wording
As a result of the common stock purchase warrant exercises and the entry into the voting agreement, NextPlat concluded that there was a change in control in Progressive Care. As of July 1, 2023, NextPlat has the right to control more than 50 percent of the voting interests in Progressive Care through the concurrent common stock purchase warrant exercises and voting agreement noted above. Beginning on July 1, 2023, the Company changed the accounting method for its investment in Progressive Care, which prior to July 1, 2023 had been accounted for as an equity method investment to consolidation under the voting interest model in FASB ASC Topic 805. Therefore, Progressive Care became a consolidated subsidiary of the Company on July 1, 2023.
Current wording
As a result of the common stock purchase warrant exercises and the entry into the voting agreement, NextPlat concluded that there was a change in control in Progressive Care. As of July 1, 2023, NextPlat has the right to control more than 50 percent of the voting stock of Progressive Care through the concurrent common stock purchase warrant exercises and voting agreement noted above. Beginning on July 1, 2023, the Company changed the accounting method for its investment in Progressive Care, which prior to July 1, 2023 had been accounted for as an equity method investment to consolidation under the voting interest model in FASB ASC Topic 805. Therefore, Progressive Care became a consolidated subsidiary of the Company on July 1, 2023.
Previous wording
For the three months ended March 31, 2024 and 2023, we recognized overall revenue from operations of approximately $17.5 million and $2.9 million, respectively, an overall increase of approximately $14.6 million for the three months ended March 31, 2024, when compared to the three months ended March 31, 2023. The increase in revenue was primarily attributable to an increase of approximately $14.6 million from the healthcare operations as a result of the Progressive Care acquisition on July 1, 2023.
Current wording
For the three months ended June 30, 2024 and 2023, we recognized overall revenue from operations of approximately $17.0 million and $3.0 million, respectively, an overall increase of approximately $14.0 million for the three months ended June 30, 2024, when compared to the three months ended June 30, 2023. The increase in revenue was primarily attributable to an increase of approximately $13.5 million from the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023.
Previous wording
Gross profit margins increased from approximately 21.6% for the three months ended March 31, 2023, to 27.5% for the three months ended March 31, 2024. The increase in gross profit margins during the first quarter of 2024 compared to the same period in 2023, was primarily attributable to the healthcare operations as a result of the Progressive Care acquisition on July 1, 2023.
Current wording
Gross profit margins increased from approximately 28.5% for the three months ended June 30, 2023, to 34.2% for the three months ended June 30, 2024. The increase in gross profit margins during the second quarter of 2024 compared to the same period in 2023, was primarily attributable to the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023.
Previous wording
Loss before other (income) expense increased by approximately $0.6 million for the three months ended March 31, 2024, when compared to the three months ended March 31, 2023, as a result of the increase in gross profit of approximately $4.2 million, partially offset by the increase in operating expenses of approximately $4.8 million. See detailed discussion below.
Current wording
Loss before other (income) expense increased by approximately $7.5 million for the three months ended June 30, 2024, when compared to the three months ended June 30, 2023, as a result of the increase in operating expenses of approximately $12.5 million, partially offset by the increase in gross profit of approximately $5.0 million, See detailed discussion below.
Previous wording
Sales for the three months ended March 31, 2024, consisted primarily of e-Commerce sales of satellite phones, tracking devices, accessories, airtime plans, and pharmacy prescription, and 340B contract revenues. For the three months ended March 31, 2024, overall revenues were approximately $17.5 million compared to $2.9 million of revenues for the three months ended March 31, 2023, an increase in of approximately $14.6 million or 508.2%.
Current wording
Sales for the three months ended June 30, 2024, consisted primarily of e-Commerce sales of satellite phones, tracking devices, accessories, airtime plans, and pharmacy prescription, and 340B contract revenues. For the three months ended June 30, 2024, overall revenues were approximately $17.0 million compared to $3.0 million of revenues for the three months ended June 30, 2023, an increase in of approximately $14.0 million or 474.5%.
Previous wording
Total e-Commerce revenues were approximately $2.9 million for both three months ended March 31, 2024 and 2023.
Current wording
Total e-Commerce revenues were approximately $3.5 million and $2.9 million for the three months ended June 30, 2024 and 2023, respectively, an increase of approximately $0.5 million mainly due to the Outfitter acquisition on April 1, 2024.
Previous wording
Total pharmacy prescription and 304B contract revenues were approximately $14.6 million for the three months ended March 31, 2024 as a result of the Progressive Care acquisition on July 1, 2023. The pharmacy filled approximately 134,000 prescriptions for the three months ended March 31, 2024
Current wording
Total pharmacy prescription and 340B contract revenues were approximately $13.5 million for the three months ended June 30, 2024 as a result of the Progressive Care acquisition on July 1, 2023. The pharmacy filled approximately 133,000 prescriptions for the three months ended June 30, 2024.
Previous wording
Total operating expenses for the three months ended March 31, 2024, were approximately $6.7 million, an increase of approximately $4.8 million on or 257.8%, from total operating expenses for the three months ended March 31, 2023, of approximately $1.9 million. Factors contributing to the increase are described below.
Current wording
Total operating expenses for the three months ended June 30, 2024, were approximately $16.7 million, an increase of approximately $12.5 million, or 297.8%, from total operating expenses for the three months ended June 30, 2023, of approximately $4.2 million. Factors contributing to the increase are described below.
Previous wording
Selling, general and administrative (“SG&A”) expenses were approximately $2.0 million and $0.8 million for the three months ended March 31, 2024 and 2023, respectively, an increase of approximately $1.2 million or 154.4%. The increase for the three months ended March 31, 2024, was mainly attributable to the increase in stock-based compensation of approximately $0.4 million, other operating expenses as it relates to the e-Commerce operations of approximately $0.4 million, and approximately $0.4 million as it relates to operating expenses of the healthcare operations as a result of the Progressive Care acquisition on July 1, 2023.
Current wording
Selling, general and administrative (“SG&A”) expenses were approximately $2.2 million and $2.5 million for the three months ended June 30, 2024 and 2023, respectively, a decrease of approximately $0.3 million or 11.9%. The decrease for the three months ended June 30, 2024, was mainly attributable to the decrease in stock-based compensation of approximately $1.1 million, partially offset by an increase in operating expenses of approximately $0.8 million as it relates to the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023.
Previous wording
Salaries, wages and payroll taxes were approximately $2.6 million and $0.6 million for the three months ended March 31, 2024 and 2023, respectively, an increase of approximately $2.0 million or 346.3%. The increase was mainly attributable to the healthcare operations as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $2.1 million, partially offset by a decrease in e-Commerce salaries and wages of approximately $0.1 million.
Current wording
Salaries, wages and payroll taxes were approximately $2.8 million and $1.0 million for the three months ended June 30, 2024 and 2023, respectively, an increase of approximately $1.8 million or 187.7%. The increase was mainly attributable to the Healthcare operations segment as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $2.1 million, partially offset by a decrease in e-Commerce salaries and wages of approximately $0.3 million.
Previous wording
Professional fees were approximately $1.0 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively, an increase of approximately $664,000 or 206.9%. The increase was mainly attributable to legal and consulting fees as it relates to the healthcare operations as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $0.4 million, and legal and consulting fees associated with the e-Commerce business of approximately $0.2 million.
Current wording
Professional fees were approximately $1.0 million and $0.5 million for the three months ended June 30, 2024 and 2023, respectively, an increase of approximately $0.5 million or 84.6%. The increase was mainly attributable to legal and consulting fees as it relates to the Healthcare Operations as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $0.4 million, and legal and consulting fees associated with the e-Commerce business of approximately $0.1 million.
Previous wording
Depreciation and amortization expenses were approximately $0.9 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively, an increase of approximately $0.7 million or 459.3%. The increase was mainly attributable to depreciation and amortization as it relates to the healthcare operations from the Progressive Care acquisition on July 1, 2023, of approximately $0.7 million.
Current wording
Depreciation and amortization expenses were approximately $0.9 million and $0.2 million for the three months ended June 30, 2024 and 2023, respectively, an increase of approximately $0.7 million or 437.5%. The increase was mainly attributable to depreciation and amortization as it relates to the Healthcare Operations from the Progressive Care acquisition on July 1, 2023, of approximately $0.7 million.
Previous wording
For the three months ended March 31, 2023, we recorded a net loss in the equity of our affiliate, Progressive Care, of approximately $32,000 which was accounted for as an equity method investment. Effective July 1, 2023, Progressive Care became a consolidated subsidiary of the Company, which resulted in a change in the accounting treatment from equity method to consolidation.
Current wording
For the three months ended June 30, 2023, we recorded a net loss in the equity of our affiliate, Progressive Care, of approximately $1.4 million which was accounted for as an equity method investment. Effective July 1, 2023, Progressive Care became a consolidated subsidiary of the Company, which resulted in a change in the accounting treatment from equity method to consolidation.
Previous wording
We recorded net losses of approximately $1.7 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively. The increase was a result of the factors described above.
Current wording
We recorded net losses of approximately $10.7 million and $4.3 million for the three months ended June 30, 2024 and 2023, respectively. The increase was a result of the factors described above.
Previous wording
We recorded comprehensive losses for foreign currency translation adjustments of approximately $27,000 and $23,000 for the three months ended March 31, 2024 and 2023, respectively. The change was primarily attributed to exchange rate variances.
Current wording
We recorded comprehensive losses for foreign currency translation adjustments of approximately $27,000 and $12,000 for the three months ended June 30, 2024 and 2023, respectively. The change was primarily attributed to exchange rate variances.
Previous wording
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. As of March 31, 2024, we had a cash balance of approximately $23.5 million. Our working capital was approximately $29.4 million at March 31, 2024.
Current wording
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. As of June 30, 2024, we had a cash balance of approximately $24.9 million. Our working capital was approximately $29.3 million at June 30, 2024.
Previous wording
Our current assets at March 31, 2024 increased 3.9% from December 31, 2023 primarily due to the Progressive Care consolidation as of July 1, 2023.
Current wording
Our current assets at June 30, 2024 decreased by 3.7% from December 31, 2023 primarily due to the Outfitter acquisition as of April 1, 2024.
Previous wording
Our current liabilities at March 31, 2024 increased approximately $1.7 million from December 31, 2023 primarily due to Progressive Care consolidation as of July 1, 2023.
Current wording
Our current liabilities at June 30, 2024 decreased approximately $1.5 million from December 31, 2023 primarily due to the decrease in accounts payable as it relates to the timing of vendor payments.
Previous wording
Net cash flows used by operating activities totaled approximately $2.7 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively, and changed by approximately $0.6 million period over period. The unfavorable change of approximately $0.6 million was primarily attributable to the following:
Current wording
Net cash flows used by operating activities totaled approximately $0.4 million and $3.3 million for the six months ended June 30, 2024 and 2023, respectively, and changed by approximately $2.9 million period over period. The favorable change of approximately $2.9 million was primarily attributable to the following when compared period over period:
Previous wording
unfavorable change in net loss of approximately $0.5 million;
Current wording
● an unfavorable change in net loss of approximately $6.9 million;
Previous wording
favorable change in other non-cash items of approximately $1.3 million and include stock-based compensation, amortization, depreciation, impairment loss, and loss in equity of equity method investment;
Current wording
● a favorable change in other non-cash items of approximately $9.3 million and include stock-based compensation, amortization, depreciation, impairment losses, and loss in equity of equity method investment;
Previous wording
unfavorable change in operating assets of approximately $3.1 million and mainly a result of increased accounts receivable and inventory due to the acquisitions of Progressive Care as of July 1, 2023;
Current wording
● a favorable change in operating assets of approximately $1.7 million and mainly a result of an increase in inventory and prepaid expenses, and a decrease in accounts receivable, mainly due to the acquisitions of Progressive Care as of July 1, 2023 and Outfitter as of April 1, 2024;
Previous wording
favorable change in operating liabilities of approximately $1.7 million and mainly a result of increased accounts payable due to the acquisition of Progressive Care as of July 1, 2023.
Current wording
● an unfavorable change in operating liabilities of approximately $1.2 million and mainly a result of decreased accounts payable due to timing of vendor payments and the acquisition of Progressive Care as of July 1, 2023.
Previous wording
Net cash flows used in investing activities were approximately $0.1 million for both three months ended March 31, 2024 and 2023. The cash outflow in 2024 and 2023 was attributable to the purchase of vehicles and equipment.
Current wording
Net cash flows used in investing activities were approximately $1.0 million for both six months ended June 30, 2024 and 2023. The cash outflow in 2024 was attributable to the acquisition of Outfitter, compared to the cash outflow in 2023 due to the additional investment in Progressive Care.
Previous wording
Net cash flows used in financing activities were approximately $1,000 and $13,000 for the three months ended March 31, 2024 and 2023, respectively, and changed by approximately $12,000 period over period. The cash used in financing activities during the three months ended March 31, 2024 and 2023 was primarily attributable to the repayment of notes payable, partially offset by capital contributions received.
Current wording
Net cash flows used in financing activities were approximately $34,000 for the six months ended June 30, 2024 primarily attributable to the repayment of notes payable, compared to cash provided by financing activities of approximately $6,153,000 for the six months ended June 30, 2023 primarily attributable the proceeds from a capital raise.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
Results of Operations for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 (in thousands):
Current report — wording carried from elsewhere
For the six months ended June 30, 2024 and 2023, we recognized overall revenue from operations of approximately $34.4 million and $5.8 million, respectively, an overall increase of approximately $28.6 million for the six months ended June 30, 2024, when compared to the six months ended June 30, 2023. The increase in revenue was primarily attributable to an increase of approximately $28.1 million from the Healthcare Operations as a result of the Progressive Care acquisition on July 1, 2023.
Current report — wording carried from elsewhere
Our revenues were as follows (in thousands):
Current report — wording carried from elsewhere
Sales for the six months ended June 30, 2024, consisted primarily of e-Commerce sales of satellite phones, tracking devices, accessories, airtime plans, and pharmacy prescription, and 340B contract revenues. For the six months ended June 30, 2024, overall revenues were approximately $34.4 million compared to $5.8 million of revenues for the six months ended June 30, 2023, an increase in of approximately $28.6 million or 491.1%.
Current report — wording carried from elsewhere
Total operating expenses for the six months ended June 30, 2024, were approximately $23.3 million , an increase of approximately $17.3 million on or 285.4%, from total operating expenses for the six months ended June 30, 2023, of approximately $6.0 million. Factors contributing to the increase are described below.
Current report — wording carried from elsewhere
Salaries, wages and payroll taxes were approximately $5.4 million and $1.5 million for the six months ended June 30, 2024 and 2023, respectively, an increase of approximately $3.8 million or 247.6%. The increase was mainly attributable to the Healthcare Operations as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $4.3 million, partially offset by a decrease in e-Commerce salaries and wages of approximately $0.4 million.
Current report — wording carried from elsewhere
Professional fees were approximately$1.9 million and$0.8 million for thesix months ended June 30, 2024 and 2023, respectively, an increase of approximately$1.1 million or 129.9%. The increase was mainly attributable to legal and consulting fees as it relates to the Healthcare Operations as a result of the Progressive Care acquisition as of July 1, 2023, of approximately $0.9 million, and legal and consulting fees associated with the e-Commerce business of approximately $0.2 million.
Current report — wording carried from elsewhere
Depreciation and amortization expenses were approximately $1.8 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively, an increase of approximately $1.5 million or 448.5%. The increase was mainly attributable to depreciation and amortization as it relates to the Healthcare Operations from the Progressive Care acquisition on July 1, 2023, of approximately $1.5 million.
Current report — wording carried from elsewhere
For the six months ended June 30, 2023, we recorded a net loss in the equity of our affiliate, Progressive Care, of approximately $1.4 million which was accounted for as an equity method investment. Effective July 1, 2023, Progressive Care became a consolidated subsidiary of the Company, which resulted in a change in the accounting treatment from equity method to consolidation.
Current report — wording carried from elsewhere
We recorded net losses of approximately $12.4 million and $5.5 million for the six months ended June 30, 2024 and 2023, respectively. The increase was a result of the factors described above.
Current report — wording carried from elsewhere
We recorded comprehensive losses for foreign currency translation adjustments of approximately $9,000 and $35,000 for the six months ended June 30, 2024 and 2023, respectively. The change was primarily attributed to exchange rate variances.