NextPlat Corp 10-Q: Outfitter Acquisition Impacts Tax Liability

TL;DR

**NextPlat's Outfitter deal created a $0.1M tax liability due to book/tax differences.**

AI Summary

NextPlat Corp filed its 10-Q for the period ending September 30, 2024. The filing details a decrease in deferred tax liability related to the business acquisition of Outfitter, which occurred on April 1, 2024. This difference arose because previously unidentified finite-lived intangible assets from the acquisition have no tax basis under federal tax law, leading to a book/tax basis difference and an approximate $0.1 million deferred tax liability.

Why It Matters

This filing clarifies the tax implications of NextPlat's acquisition of Outfitter, impacting the company's reported deferred tax liability.

Risk Assessment

Risk Level: low — The filing primarily discusses accounting and tax implications of a past acquisition, with no immediate operational or financial distress indicated.

Key Numbers

• $0.1 million — Deferred Tax Liability (Resulting from Outfitter acquisition's book/tax basis difference.)

Key Players & Entities

• NextPlat Corp (company) — Filer of the 10-Q
• Outfitter (company) — Acquired business
• April 1, 2024 (date) — Date of Outfitter business combination
• $0.1 million (dollar_amount) — Approximate deferred tax liability

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 NXPL The Nasdaq Stock Market Inc.

Filing Documents

• nxpl20240930c_10q.htm (10-Q) — 2043KB
• ex_721702.htm (EX-31.1) — 9KB
• ex_721703.htm (EX-31.2) — 9KB
• ex_721704.htm (EX-32.1) — 8KB
• 0001437749-24-034987.txt ( ) — 9763KB
• nxpl-20240930.xsd (EX-101.SCH) — 75KB
• nxpl-20240930_cal.xml (EX-101.CAL) — 75KB
• nxpl-20240930_def.xml (EX-101.DEF) — 556KB
• nxpl-20240930_lab.xml (EX-101.LAB) — 436KB
• nxpl-20240930_pre.xml (EX-101.PRE) — 587KB
• nxpl20240930c_10q_htm.xml (XML) — 1846KB

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) INCOME 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 32

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 46

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 46

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 47

RISK FACTORS

ITEM 1A. RISK FACTORS 47

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 47

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 47

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 47

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 47

EXHIBITS

ITEM 6. EXHIBITS 48

SIGNATURES

SIGNATURES 49 i Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This quarterly report and other documents that we file with the Securities and Exchange Commission ("SEC") contain forward-looking statements that are based on current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management's assumptions. Statements that are not historical facts are forward-looking statements, including forward-looking information concerning sales trends, gross margins, number and location of new store openings, outcomes of litigation, the level of capital expenditures, industry trends, demographic trends, growth strategies, financial results, cost reduction initiatives, acquisition synergies, regulatory approvals, and competitive strengths. Words such as "expect," "outlook," "forecast," "would," "could," "should," "project," "intend," "plan," "continue," "sustain," "on track," "believe," "seek," "estimate," "anticipate," "may," "assume," and variations of such words and similar expressions are often used to identify such forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, those described in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 11, 2024 ("2023 Form 10-K"), this quarterly report on Form 10-Q for the three and nine months ended September 30, 2024, and our other reports that we file or furnish with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forwar

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The accompanying Unaudited Condensed Consolidated Financial Statements of NextPlat Corp, ("NextPlat," the "Company," "we," or "our"), for the three and nine months ended September 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) (Unaudited) September 30, 2024 December 31, 2023 ASSETS Current Assets Cash $ 20,360 $ 26,307 Accounts receivable, net 6,575 8,923 Receivables - other, net 1,235 1,846 Inventories, net 6,362 5,135 Unbilled revenue 219 189 VAT receivable 350 342 Prepaid expenses 484 640 Notes receivable due from related party, net of allowances of $ 63 and $ 0 at September 30, 2024 and December 31, 2023, respectively 206 256 Total Current Assets 35,791 43,638 Property and equipment, net 3,595 3,989 Goodwill 156 731 Intangible assets, net 555 14,423 Operating right of use assets, net 898 1,566 Finance right-of-use assets, net 10 22 Deposits 94 39 Prepaid expenses, net of current portion — 61 Total Other Assets 1,713 16,842 Total Assets $ 41,099 $ 64,469 LIABILITIES AND EQUITY Current Liabilities Accounts payable and accrued expenses $ 8,531 $ 13,176 Contract liabilities 104 42 Notes payable 461 312 Due to related party 24 18 Operating lease liabilities 381 532 Finance lease liabilities 10 18 Income taxes payable 162 139 Total Current Liabilities 9,673 14,237 Long Term Liabilities: Notes payable, net of current portion 1,080 1,211 Operating lease liabilities, net of current portion 553 929 Finance lease liabilities, net of current portion — 5 Total Liabilities 11,306 16,382 Commitments and Contingencies — — Equity Preferred stock ($ 0.

View Full Filing

View this 10-Q filing on SEC EDGAR