NextPlat Corp
For the period ended Mar 31, 2026. Filed May 15, 2026.
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.
Mar 31, 2026 · Filed May 15, 2026
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 2025-09-30; filed 2025-11-13.
0001437749-25-034525
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-15.
0001437749-26-017156
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 84 previous paragraphs and 53 current paragraphs.
18 unchanged; 20 reworded; 15 added; 43 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 4 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 (15)
Current report
NextPlat Corp operates through two primary business segments: e-Commerce Operations and Healthcare Operations. Our strategy is focused on expanding global e-Commerce distribution of satellite communication products and services while continuing to grow our healthcare platform through pharmacy services and healthcare data analytics solutions.
Current report
Our e-Commerce Operations segment distributes satellite communications equipment, connectivity solutions, and related services through proprietary websites and third-party marketplaces. These products enable voice, data, tracking, and emergency communications in remote environments where traditional terrestrial communications infrastructure may be unavailable or unreliable. We generate revenue primarily from the sale of satellite communication devices and related equipment, as well as recurring revenue from satellite airtime and connectivity service plans.
Current report
Our Healthcare Operations segment operates through Progressive Care LLC and its pharmacy and healthcare technology subsidiaries. This segment provides prescription pharmaceuticals, medication therapy management services, long-term care pharmacy support, and healthcare analytics solutions. The segment also participates in the federal 340B Drug Pricing Program through contract pharmacy arrangements, which contributes meaningfully to pharmacy segment margins.
Current report
Pharmacy prescription revenue, net was approximately $4.8 million and $9.5 million for the three months ended March 31, 2026 and 2025, respectively, a decrease of approximately $4.7 million. The decrease was primarily driven by lower reimbursement rates of approximately $3.0 million and a reduction in prescription volume of approximately $1.7 million, reflecting the changes in payer reimbursement rates and overall payer mix. Despite the decline in revenue and prescription count, gross margin significantly improved to approximately 16% from approximately 8% in the prior year period. This improvement was driven by higher gross profit per prescription reflecting a shift in dispensing mix and continued margin discipline. Additionally, beginning in the first quarter of 2026, the implementation of the Medicare Maximum Fair Price program impacted reimbursement on certain Medicare prescriptions. As a result, certain prescriptions that were previously dispensed at lower margins in the prior year period generated improved margins under the updated reimbursement framework, contributing to the increase in overall gross profit.
Current report
Pharmacy contract revenue was approximately $1.9 million and $1.4 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately $0.4 million. The increase was attributable to the medication fulfillment contract services secured late in 2025. These pharmacy contracted services generate a higher gross margin which contribute to the increase in overall gross profit.
Current report
• Depreciation and amortization decreased approximately $0.1 million for the three months March 31, 2026, when compared to the prior year period, primarily as a result of certain assets reaching the end of the useful lives.
Current report
Non-operating Expense (Income)
Current report
At-the-Market Offering Program
Current report
On May 13, 2026, we entered into a Sales Agreement (the “Sales Agreement”) with H.C. Wainwright & Co., LLC, pursuant to which we may offer and sell shares of our common stock, from time to time, having an aggregate offering price of up to $3,738,706, through or to the sales agent(s) acting as our agent or principal (the “ATM Program”).
Current report
Sales of shares of our common stock under the ATM Program, if any, will be made by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, including sales made directly on or through NASDAQ Stock Market or any other existing trading market for our common stock.
Current report
We intend to use the net proceeds from any sales under the ATM Program for general corporate purposes, which may include working capital, capital expenditures, repayment of indebtedness, and potential acquisitions or strategic investments. We are not obligated to make any sales under the ATM Program and may suspend or terminate the offering at any time.
Current report
We will pay the sales agent(s) a commission of up to 3.0% of the gross proceeds from any shares sold under the Sales Agreement.
Current report
As of the date of filing this Quarterly Report on Form 10-Q, no shares have been sold under the ATM Program.
Current report
Our long-term cash requirements (beyond the next 12 months from filing this Quarterly Report on Form 10-Q) include lease obligations, note payable obligations, and potential capital investments in technology development and strategic acquisitions. We anticipate funding these long-term requirements through cash generated from operations, available cash on hand, and, if necessary, proceeds from future equity or debt financings. We do not have any material commitments for capital expenditures as of March 31, 2026.
Current report
The Company expects that a portion of the outstanding receivables contributing to the timing-related decreases in cash collections will be collected during the second quarter of 2026; however, the timing of such collections may vary.
Removed paragraphs (43)
Previous report
You should consider the risks and difficulties frequently encountered by early-stage companies, particularly those engaged in new and rapidly evolving markets and technologies. Our limited operating history provides only a limited historical basis to assess the impact that critical accounting policies may have on our business and our financial performance.
Previous report
e-Commerce Operations:
Previous report
Historically, the business of NextPlat has been the provision of a comprehensive array of satellite enabled communication services, and related equipment sales. The Company operates two main e-Commerce websites as well as 25 third-party e-Commerce storefronts such as Alibaba, Amazon, and Walmart. These e-Commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. Leveraging the e-Commerce experience of the Company’s management team and the Company’s existing e-Commerce platforms, the Company has embarked upon the rollout of a state-of-the-art e-Commerce platform to collaborate with businesses to optimize their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-Commerce presence and revenue, which we expect will become the focus of the e-Commerce operating business segment in the future.
Previous report
Business Acquisition of Outfitter Satellite, Inc.
Previous report
On April 1, 2024, the Company acquired all of the issued and outstanding shares of common stock of Outfitter Satellite, Inc. (“Outfitter”). Outfitter provides consumers, commercial and government customers, with advanced satellite-based connectivity solutions from leading brands, including Iridium, Inmarsat and Globalstar.
Previous report
Impact of U.S. and Chinese Tariffs
Previous report
During 2025, the introduction of U.S. and Chinese tariffs on certain imported goods did not have a material impact on our e-Commerce business operations or financial results. However, starting in the second quarter of 2025, certain goods we sell in the U.S. that are imported became subject to these tariffs which affected our costs and pricing strategies. Only approximately 32% of our total e-Commerce sales take place within the United States. The OPKO products sold by us in China are manufactured in Spain and are not currently impacted by Chinese tariffs, however, the ongoing trade tensions may impact the potential success and execution of future projects planned in China under our Florida E-Commerce Development Program, including the launch of our Florida Sunshine range of vitamins.
Previous report
Healthcare Operations:
Previous report
Through our wholly owned subsidiaries, we currently own and operate five pharmacies, which generate most of our pharmacy revenues, which is derived from dispensing medications to our patients. We also provide patient health risk reviews and free same-day and next-day delivery.
Previous report
In addition, our healthcare operations provide prescription pharmaceuticals, Third Party Administration (“TPA”), data management, telepharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities, medication adherence packaging, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. Our healthcare operations are focused on improving the lives of patients with complex chronic diseases through a patient and provider engagement and their partnerships with payors, pharmaceutical manufacturers, and distributors. We offer a broad range of solutions to address the dispensing, delivery, dosing, and reimbursement of clinically intensive, high-cost drugs.
Previous report
Our pharmacies also provide contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program. Under the terms of these agreements, our pharmacies act as a pass-through for reimbursements on prescription claims adjudicated on behalf of the 340B covered entities in exchange for a dispensing fee per prescription. These fees vary by the covered entity and the level of services we provide.
Previous report
Our healthcare operations are focused on complex chronic diseases that generally require multi-year or lifelong therapy, which drives recurring revenue and sustainable growth. Our pharmacy services revenue historical source of growth have included expanding our services, new drugs coming to market, new indications for existing drugs, volume growth with current clients, and additions of new customers due to their focus on higher patient engagement, benefit of free delivery to the patient, and clinical expertise. The pharmacies also expanded revenue growth through the signing of new contract pharmacy service and data management contracts with 340B covered entities.
Previous report
Our healthcare operations also provide data management and TPA services for 340B covered entities, pharmacy analytics, and programs to manage HEDIS Quality Measures including Medication Adherence. These offerings cater to the need for frontline providers to understand best practices, patient behaviors, care management processes, and the financial mechanisms behind these decisions. ClearMetrX provides data access, and actionable insights that providers and support organizations can use to improve their practice and patient care. ClearMetrX’s TPA services include management of wholesale accounts, patient eligibility with regard to the 340B drug program, development and review of 340B policies and procedures, and management of receivables.
Previous report
For the three months ended September 30, 2025 and 2024, we recognized overall revenue from operations of approximately $13.8 million and $15.4 million, respectively, an overall decrease of approximately $1.6 million for the three months ended September 30, 2025, when compared to the three months ended September 30, 2024. The decrease in revenue was attributable to the decrease of approximately $1.5 million from Healthcare Operations and the decrease of approximately $0.1 million from e-Commerce Operations.
Previous report
Total e-Commerce revenue was approximately $3.7 million and $3.8 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of approximately $0.1 million primarily due to a decrease in hardware sales of approximately $0.3 million and a favorable foreign currency impact of approximately $0.1 million.
Previous report
Total pharmacy prescription and other revenue, net of PBM fees, was approximately $9.5 million and $9.1 million for the three months ended September 30, 2025 and 2024, respectively, an increase of approximately $0.4 million. The increase was due to an increase in reimbursement rates per prescription filled of approximately $2.5 million, which was offset by the decrease in the number of total prescriptions filled of approximately $2.1 million. During the third quarter of 2025, we filled approximately 96,000 prescriptions versus 128,000 in the prior year period. The decline in prescription volume during the third quarter of 2025 was influenced in part by the continued changes in provider relationships and shifts in patient flow due to insurance network adjustments or provider decisions to align with different pharmacy partners.
Previous report
Pharmacy 340B contract revenue was approximately $0.6 million and $2.5 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of approximately $1.9 million. The decrease was due to certain relationships transitioning to other pharmacy partners, some covered entities opened in-house pharmacies, and another covered entity no longer participates in the 340B program, when compared to the prior year period.
Previous report
Total operating expenses for the three months ended September 30, 2025, were approximately $4.7 million, a decrease of approximately $6.8 million, or 59.2%, from total operating expenses for the three months ended September 30, 2024, of approximately $11.6 million. Factors contributing to the decrease are described below.
Previous report
Selling, general and administrative expenses decreased approximately $0.2 million to approximately $1.5 million for the three months ended September 30, 2025 from approximately $1.7 million when compared to the prior year period. The decrease was primarily due to a decrease in computer equipment purchases.
Previous report
No impairment loss was recognized during the three months ended September 30, 2025. Impairment loss for the three months ended September 30, 2024 of approximately $3.7 million was related to the impairment of goodwill.
Previous report
Professional fees include expenses for legal fees, accounting services fees, consulting fees, and public company expenses. Professional fees were approximately $0.4 million and $2.1 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of approximately $1.8 million or 81.9%. The decrease was mainly attributable to the decrease in accounting services fees of approximately $0.1 million, a decrease in director fees of approximately $0.1 million, and a decrease in legal and consulting fees of approximately $1.6 million.
Previous report
Depreciation and amortization slightly decreased to approximately $0.1 million for the three months ended September 30, 2025, compared to approximately $0.2 million for the three months ended September 30, 2024.
Previous report
Intangible asset amortization was approximately $25,000 and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of approximately $0.3 million or 91.1%. The decrease was attributable to the decrease in the carrying amount of intangible assets when compared to the prior year period. Intangible assets, net as of September 30, 2025 and 2024 were approximately $0.4 million and $0.6 million. Intangible assets related to our Healthcare Operations were fully impaired throughout the year ending December 31, 2024. Intangible assets, net as of September 30, 2025 were related to our e-Commerce Operations due to the Outfitter acquisition in April 2024.
Previous report
Total Other Expense (Income)
Previous report
Results of Operations for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 (in thousands):
Previous report
Gross profit margins decreased from approximately 28.6% for the nine months ended September 30, 2024, to approximately 21.9% for the nine months ended September 30, 2025. The decrease in gross profit margins during the nine months of 2025 compared to the same period in 2024, was attributable to the overall decrease in gross profit in both operating segments. The gross profit margin for Healthcare Operations decreased to approximately 20.9% for the current year period from 28.5% when compared to the same period in 2024 and was primarily attributable to the decrease in pharmacy 340B contract revenue. The gross profit margin for e-Commerce Operations decreased to approximately 24.7% for the current year period from 29.3% when compared to the same period in 2024 due to a service provider airtime contract that expired on December 31, 2024, which introduced new airtime costs beginning January 1, 2025, and temporary rate reductions for some customers affected by ongoing service interruptions.
Previous report
Loss before other income decreased by approximately $15.4 million for the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024, as a result of the decrease in operating expenses of approximately $20.6 million, which was partially offset by the decrease in gross profit of approximately $5.2 million. See detailed discussion below.
Previous report
Revenue
Previous report
Total pharmacy prescription and other revenue, net of PBM fees, was approximately $27.8 million and $30.9 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $3.2 million. The decrease was attributable to the decrease in the number of total prescriptions filled of approximately $7.2 million, which was offset by the increase in reimbursement rates per prescription filled of approximately $4.0 million. During the nine months ended September 30, 2025, we filled approximately 294,000 prescriptions versus 395,000 in the prior year period. The decline in prescription volume during the current year period was influenced in part by the continued changes in provider relationships and shifts in patient flow due to insurance network adjustments or provider decisions to align with different pharmacy partners.
Previous report
Pharmacy 340B contract revenue was approximately $2.9 million and $8.7 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $5.8 million, due to certain relationships transitioning to other pharmacy partners, some covered entities opened in-house pharmacies, and another covered entity no longer participates in the 340B program.
Previous report
Operating Expenses
Previous report
Total operating expenses for the nine months ended September 30, 2025, were approximately $14.4 million, a decrease of approximately $20.6 million, or 58.9%, from total operating expenses for the nine months ended September 30, 2024, of approximately $35.0 million. Factors contributing to the decrease are described below.
Previous report
Selling, general and administrative expenses decreased by approximately $0.2 million to $4.4 million for the nine months ended September 30, 2025 from approximately $4.7 million in the prior year period. The decrease was primarily due to a decrease in computer equipment purchases.
Previous report
Salaries, wages and payroll taxes were approximately $7.9 million and $10.3 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $2.4 million or 23.0%. The decrease was attributable to the decrease of stock-based compensation for non-recurring grants fully vested of approximately $1.4 million, a decrease in executive compensation of approximately $0.2 million, and a decrease in total headcount of approximately $0.8million.
Previous report
No impairment loss was recognized during the nine months ended September 30, 2025. Impairment loss for the nine months ended September 30, 2024 of approximately $13.7 million was related to a goodwill impairment of approximately $0.7 million, long-lived assets, primarily intangible assets, impairment of approximately $12.8 million, and 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 of approximately $0.1 million.
Previous report
Professional fees include expenses for legal fees, accounting services fees, consulting fees, and public company expenses. Professional fees were approximately $1.5 million and $4.1 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $2.6 million or 63.5%. The decrease was mainly attributable to the decrease in accounting services fees of approximately $0.3 million, a decrease in director fees of approximately $0.2 million, and a decrease in legal and consulting fees of approximately $2.1 million.
Previous report
Depreciation and amortization was approximately $0.5 million and $0.6 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous report
Intangible asset amortization was approximately $0.1 million and $1.7 million for the nine months ended September 30, 2025 and 2024, respectively, a decrease of approximately $1.6 million or 95.5%. The decrease was attributable to the decrease in the carrying amount of intangible assets when compared to the prior year period. Intangible assets related to our Healthcare Operations were fully impaired throughout the year ending December 31, 2024. Intangible assets, net as of September 30, 2025 were related to our e-Commerce Operations due to the Outfitter acquisition in April 2024.
Previous report
Total Other Income
Previous report
Total other income was approximately zero and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively. The decrease was primarily due to a loss on settlement of litigation in the amount of approximately $0.3 million; loss on sale or disposal of property and equipment recognized in the amount of approximately $0.2, compared to a gain on sale or disposal of property and equipment in the amount of approximately $0.1 million in the prior year period; a decrease in interest earned of approximately $0.3 million due to the decrease in cash on hand; and an unfavorable change in foreign currency rates of approximately $0.1 million.
Showing the first 40 of 43 passages. Open the source sections for the rest.
Reworded paragraphs (20)
Previous wording
For the nine months ended September 30, 2025 and 2024, we recognized overall revenue from operations of approximately $41.5 million and $49.9 million, respectively, an overall decrease of approximately $8.3 million for the nine months ended September 30, 2025, when compared to the nine months ended September 30, 2024. The decrease in revenue was primarily attributable to the decrease of approximately $9.0 million from Healthcare Operations, partially offset by the increase of approximately $0.6 million from e-Commerce Operations.
Current wording
We recognized overall revenue from operations of approximately $9.9 million and $13.9 million, an overall decrease of approximately $4.1 million, for the three months ended March 31, 2026, when compared to the three months ended March 31, 2025. The decrease in revenue was attributable to the decrease of approximately $4.3 million from Healthcare Operations, which was partially offset by an increase of approximately $0.2 million from e-Commerce Operations.
Previous wording
Gross profit margins decreased from approximately 23.2% for the three months ended September 30, 2024, to approximately 19.9% for the three months ended September 30, 2025. The decrease in gross profit margins during the third quarter of 2025 compared to the same period in 2024, was attributable to the overall decline in gross profit in both operating segments. The gross profit margins for Healthcare Operations decreased for the third quarter of 2025 to approximately 18.4% from 21.5% when compared to the same period in 2024 and was primarily attributable to the decrease in pharmacy 340B contract revenue. The gross profit margins for e-Commerce Operations decreased for the third quarter of 2025 to approximately 23.7% from 28.1% when compared to the same period in 2024 due to a service provider airtime contract that expired on December 31, 2024, which introduced new airtime costs beginning January 1, 2025, and temporary rate reductions for some customers affected by ongoing service interruptions.
Current wording
Gross margin increased from approximately 21% for the three months ended March 31, 2025, to approximately 35% for the three months ended March 31, 2026. The increase in gross margin during the first quarter of 2026 compared to the same period in 2025, was attributable to the increase in volume of pharmacy contract revenue in the Healthcare Operations segment. Gross margin for Healthcare Operations increased for the first quarter of 2026 to approximately 39% from 20% when compared to the same period in 2025 and was attributable to new contracted medication fulfillment services as well as the improved drug costing as a result of the Medicare Maximum Fair Price program which began in January 2026. The gross profit margins for e-Commerce Operations slightly increased for the first quarter of 2026 to approximately 25% from 24% when compared to the same period in 2025.
Previous wording
Loss before other income decreased by approximately $6.0 million for the three months ended September 30, 2025, when compared to the three months ended September 30, 2024, as a result of the decrease in operating expenses of approximately $6.8 million, which was partially offset by the decrease in gross profit of approximately $0.8 million See detailed discussion below.
Current wording
Operating loss decreased by approximately $1.0 million for the three months ended March 31, 2026, when compared to the three months ended March 31, 2025, as a result of the decrease in operating expenses of approximately $0.4 million, and the increase in gross profit of approximately $0.6 million. See detailed discussion below.
Previous wording
Our net revenues consist of e-Commerce sales of satellite phones, tracking devices, accessories and airtime plans; pharmacy prescription revenues; and pharmacy 340B contract revenues. For the three months ended September 30, 2025, overall revenues were approximately $13.8 million compared to $15.4 million for the three months ended September 30, 2024, a decrease of approximately $1.6 million or 10.5%.
Current wording
Our net revenues consist of e-Commerce sales of satellite phones, tracking devices, accessories and airtime plans; pharmacy prescription revenues; and pharmacy contract revenues. For the three months ended March 31, 2026, overall revenues were approximately $9.9 million compared to $13.9 million for the three months ended March 31, 2025, a decrease of approximately $4.1 million or 29.2%.
Previous wording
Total e-Commerce revenue was approximately $10.8 million and $10.2 million for the nine months ended September 30, 2025 and 2024, respectively, an increase of approximately $0.6 million driven by growth in recurring airtime revenue and hardware sales.
Current wording
e-Commerce revenue was approximately $3.2 million and $3.0 million for the three months ended March 31, 2026 and 2025, respectively, an increase of approximately $0.2 million primarily due to the increase in airtime sales.
Previous wording
Our operating expenses were as follows (in thousands):
Current wording
Significant reductions in operating expenses were as follows:
Previous wording
Salaries, wages and payroll taxes were approximately $2.7 million and $3.5 million for the three months ended September 30, 2025 and 2024, respectively, a decrease of approximately $0.8 million or 23.4%. The decrease was attributable to the decrease of stock-based compensation for non-recurring grants fully vested of approximately $0.3 million, a decrease in executive compensation of approximately $0.2 million, and a decrease in total headcount of approximately $0.3 million.
Current wording
• Salaries, wages and payroll taxes were approximately $2.4 million and $2.7 million for the three months ended March 31, 2026 and 2025, respectively, a decrease of approximately $0.3 million or 10.9%. The decrease was attributable to a decrease in executive compensation of approximately $0.2 million and a decrease in total headcount of approximately $0.4 million, offset by an increase in stock-based compensation of approximately $0.3 million. The reduction in headcount was primarily driven by operational efficiencies and strategic workforce realignment within our healthcare operations.
Previous wording
Total other expense was approximately $0.2 million for the three months ended September 30, 2025, compared to total other income of approximately $0.4 million for the three months ended September 30, 2024. The change was primarily due to a loss on settlement of litigation in the amount of approximately $0.3 million; a loss on sale or disposal of property and equipment recognized in the amount of approximately $36,000, compared to a gain on sale or disposal of property and equipment in the amount of approximately $0.1 million in the prior year period; a decrease in interest earned of approximately $0.1 million due to the decrease in cash on hand; and a favorable change in foreign currency rates of approximately $0.1 million.
Current wording
Non-operating expense was approximately $29.0 thousand for the three months ended March 31, 2026, compared to non-operating income of approximately $0.2 million for the three months ended March 31, 2025. The change was primarily due to a decrease in interest earned of approximately $0.1 million due to the decrease in cash on hand, and a change in foreign currency rates of approximately $0.1 million.
Previous wording
We recorded net losses of approximately $2.2 million and $7.7 million for the three months ended September 30, 2025 and 2024, respectively. The change in net loss was a result of the factors described above.
Current wording
We recorded net losses of approximately $1.1 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively. The change in net loss was a result of the factors described above.
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 September 30, 2025, we had a cash balance of approximately $13.9 million. Our working capital was approximately $18.9 million at September 30, 2025. We continue to closely monitor our cash position and operating expenditures. In response to recent trends and in alignment with our long-term strategic goals, we continue to implement a series of cost reduction measures aimed at improving operational efficiency and preserving liquidity. These measures include optimizing our delivery process and renegotiation of certain vendor agreements. While we remain committed to investing in key growth initiatives, we are prioritizing financial discipline to ensure we maintain adequate liquidity to support ongoing operations and strategic objectives. In addition, management is exploring various options with respect to strategic alternatives to diversify our business operations, including opportunities in additional services, joint ventures, and other collaborative structures.
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 March 31, 2026, we had a cash balance of approximately $11.0 million. Our working capital was approximately $14.2 million at March 31, 2026. Our principal uses of cash include (i) purchases of pharmaceutical inventory and e-Commerce product inventory, (ii) operating expenses, including payroll, professional services, and public company expenses, (iii) technology development and platform investments, and (iv) potential acquisitions and strategic investments. We continue to closely monitor our cash position and operating expenditures. In response to recent trends and in alignment with our long-term strategic goals, we continue to implement a series of cost reduction measures aimed at improving operational efficiency and preserving liquidity. These measures include optimizing our delivery process and renegotiating certain vendor agreements. While we remain committed to investing in key growth initiatives, we are prioritizing financial discipline to ensure we maintain adequate liquidity to support ongoing operations and strategic objectives. In addition, management is exploring various options with respect to strategic alternatives to diversify our business operations, including opportunities in additional services, joint ventures, and other collaborative structures.
Previous wording
As of the date of this report, the Company’s existing cash resources are sufficient to support planned operations for the next 12 months. As a result, management believes that the existing financial resources are sufficient to continue operating activities for at least one year past the issuance date of the consolidated financial statements.
Current wording
As of the date of filing this Quarterly Report on Form 10-Q, the Company’s existing cash resources are sufficient to support planned operations for the next 12 months. As a result, management believes that the existing financial resources are sufficient to continue operating activities for at least one year past the issuance date of the consolidated financial statements.
Previous wording
Net cash used in operating activities totaled approximately $5.8 million and $5.0 million for the nine months ended September 30, 2025 and 2024, respectively, and changed by approximately $0.8 million period-over-period. The unfavorable change of approximately $0.8 million was primarily attributable to the following:
Current wording
Net cash used in operating activities totaled approximately $2.6 million and $2.1 million for the three months ended March 31, 2026 and 2025, respectively, and changed by approximately $0.5 million period-over-period. The unfavorable change of approximately $0.5 million was primarily attributable to the following:
Previous wording
● an increase in cash received from e-Commerce Operations of approximately $4.0 million due to the year-over-year sales increase and collections of outstanding accounts receivable;
Current wording
• a decrease in cash received from e-Commerce Operations of approximately $1.4 million due to the timing of collections of outstanding receivables;
Previous wording
● a decrease in cash received from Healthcare Operations of approximately $13.2 million due to the year-over-year sales decrease;
Current wording
• a decrease in cash received from Healthcare Operations of approximately $5.5 million due to the year-over-year revenue decrease and the timing of collections of outstanding receivables;
Previous wording
● a decrease in cash paid for inventory purchases and other costs of revenue of approximately $0.2 million;
Current wording
• a decrease in cash paid for inventory purchases and other costs of revenue of approximately $5.0 million;
Previous wording
● a decrease in cash paid for salaries and related expenses of approximately $2.4 million due to the decrease in executive compensation and decreased headcount;
Current wording
• a decrease in cash paid for salaries and related expenses of approximately $0.8 million due to the decrease in executive compensation and decreased headcount;
Previous wording
● a decrease in cash paid for other recurring operating expenses of approximately $3.1 million due to the timing of payables and decreases in general legal and consulting fees; and
Current wording
• a decrease in cash paid for other recurring operating expenses of approximately $0.4 million due to the timing of payables; and
Previous wording
● a decrease in cash paid for other non-recurring expenses of approximately $3.0 million due to litigation matters and merger costs in the prior year period.
Current wording
• a decrease in cash paid for other non-recurring expenses of approximately $0.2 million due to litigation matters and merger costs in the prior year period.
Previous wording
Net cash provided by investing activities for the nine months ended September 30, 2025 was approximately $0.2 million, and was attributable to sales of vehicles for our Healthcare Operations delivery fleet. Net cash used in investing activities for the nine months ended September 30, 2024 were approximately $1.0 million, primarily attributable to the acquisition of Outfitter.
Current wording
There were no cash flows from investing activities for the three months ended March 31, 2026. Net cash used in investing activities for the three months ended March 31, 2025 was approximately $22.0 thousand, primarily attributable to the purchase of vehicles for our Healthcare Operations delivery fleet.
Previous wording
Net cash used in financing activities was approximately $0.4 million for the nine months ended September 30, 2025, primarily attributable to the repayment of notes payable and repurchases of common shares. Net cash provided by financing activities was approximately $50,000 for the nine months ended September 30, 2024, primarily attributable to the repayment of notes payable, offset by capital contributions received.
Current wording
Net cash used in financing activities was approximately $0.1 million for both the three months ended March 31, 2026 and 2025 and was attributable to the repayment of notes payable.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Our revenues were as follows (in thousands):
Previous report — wording carried elsewhere
Our net revenues consist of e-Commerce sales of satellite phones, tracking devices, accessories, and airtime plans; pharmacy prescription revenues; and 340B contract revenues. For the nine months ended September 30, 2025, overall revenues were approximately $41.5 million compared to $49.9 million for the nine months ended September 30, 2024, a decrease of approximately $8.3 million or 16.7%.
Previous report — wording carried elsewhere
We recorded net losses of approximately $5.3 million and $20.1 million for the nine months ended September 30, 2025 and 2024, respectively. The change in net loss was a result of the factors described above.