NextPlat Corp 10-Q: Outfitter Acquisition Impacts Tax Liability

TL;DR

NextPlat's Q2 10-Q shows minimal revenue but solid net income, with a $0.1M tax hit from the Outfitter deal.

AI Summary

NextPlat Corp filed its 10-Q for the period ending June 30, 2024. The company reported $0.0001 in revenue and $3,333,333 in net income. A significant note details a $0.1 million deferred tax liability related to the business acquisition of Outfitter, which created a book/tax basis difference for intangible assets.

Why It Matters

This filing provides insight into NextPlat's financial performance and the tax implications of its recent business acquisition, which could affect future profitability.

Risk Assessment

Risk Level: medium — The filing indicates a deferred tax liability and potential complexities arising from business acquisitions, which can introduce financial risks.

Key Numbers

• $0.0001 — Revenue (Revenue for the reporting period)
• $3,333,333 — Net Income (Net income for the reporting period)
• $0.1 million — Deferred Tax Liability (Related to Outfitter acquisition)

Key Players & Entities

• NextPlat Corp (company) — Filer of the 10-Q
• Outfitter (company) — Acquired business
• $0.1 million (dollar_amount) — Deferred tax liability
• June 30, 2024 (date) — End of reporting period

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 NXPL The Nasdaq Stock Market Inc.
• $250,000 — to uninsured FDIC amounts in excess of $250,000. Foreign Currency Translation The C

Filing Documents

• nxpl20240630_10q.htm (10-Q) — 1876KB
• ex_712694.htm (EX-10.2) — 53KB
• ex_692961.htm (EX-31.1) — 8KB
• ex_692962.htm (EX-31.2) — 8KB
• ex_692963.htm (EX-32.1) — 8KB
• 0001437749-24-026477.txt ( ) — 9333KB
• nxpl-20240630.xsd (EX-101.SCH) — 75KB
• nxpl-20240630_cal.xml (EX-101.CAL) — 70KB
• nxpl-20240630_def.xml (EX-101.DEF) — 527KB
• nxpl-20240630_lab.xml (EX-101.LAB) — 411KB
• nxpl-20240630_pre.xml (EX-101.PRE) — 563KB
• nxpl20240630_10q_htm.xml (XML) — 1766KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 2 CONDENSED CONSOLIDATED BALANCE SHEETS 2 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS 3 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 4 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 5 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 6

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 47

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 47

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 48

RISK FACTORS

ITEM 1A. RISK FACTORS 48

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 48

EXHIBITS

ITEM 6. EXHIBITS 49

SIGNATURES

SIGNATURES 50 i Table of Contents

Financial Information

Part I Financial Information

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements of NextPlat Corp, ("NextPlat," the "Company," "we," or "our"), for the three and six months ended June 30, 2024 and for comparable periods in the prior year are included below. The financial statements should be read in conjunction with the notes to financial statements that follow. NEXTPLAT CORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares and par data) June 30, 2024 December 31, 2023 (Unaudited) (Audited) ASSETS Current Assets Cash $ 24,877 $ 26,307 Accounts receivable, net 10,369 8,923 Receivables - other, net 1,013 1,846 Inventories, net 4,701 5,135 Unbilled revenue 206 189 VAT receivable 333 342 Prepaid expenses 273 640 Notes receivable due from related party 265 256 Total Current Assets 42,037 43,638 Property and equipment, net 3,694 3,989 Goodwill 156 731 Intangible assets, net 4,564 14,423 Operating right of use assets, net 887 1,566 Finance right-of-use assets, net 18 22 Deposits 39 39 Prepaid expenses, net of current portion 66 61 Total Other Assets 5,730 16,842 Total Assets $ 51,461 $ 64,469 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses $ 11,894 $ 13,176 Contract liabilities 142 42 Notes payable 205 312 Due to related party 23 18 Operating lease liabilities 380 532 Finance lease liabilities 13 18 Income taxes payable 93 139 Total Current Liabilities 12,750 14,237 Long Term Liabilities: Notes payable, net of current portion 1,120 1,211 Operating lease liabilities, net of current portion 619 929 Finance lease liabilities, net of current portion - 5 Total Liabilities 14,489 16,382 Commitments and Contingencies - - Equity Preferred stock ($ 0.0001 par value; 3,333,333 shares authorized) - - Common stock ($ 0.0001 par value; 50,000,000 shares authorize

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View this 10-Q filing on SEC EDGAR