Monday, March 24, 2025 4:30:35 PM
Question number one the company announced to buy back of shares. Has the company already started buying back shares, and with the shares clearly being undervalued, does the company intend to continue buying and possibly looking to increase the amount of authorized shares for buyback, whether this be from the Board of Directors or stockholder approval?Thanks for your question. While we would like to be active in the market today, we have not yet repurchased any shares. This is due not only to SEC rules but also because we are actively working on capital allocation decisions, as we work to streamline and reinvest into the business, in both the e-Commerce and healthcare. We do expect to be active in the market now that our annual report has been filed, and hope to have an update for you on our first quarter conference call, which will be held in mid-May.Question number two Are you concerned about the low stock price, and what are you doing about it?Thanks for your question. Collectively, myself and other members of management and the Board of Directors have significant investment in NextPlat. Our investments were at prices, significantly greater than today's share price. So we are keenly aware of the low stock price. We also believe the stock price reflects broader market trends, favoring large cap stocks over small cap stocks, due to a perceived lower risk profile, as well as company specific issues.In our case, this includes a series of non-recurring expenses, and non-cash charges including goodwill impairment required by GAAP, over the course of total 2024, because of our ownership of Progressive Care, and our merger in October. Combined, these developments obscured what we believe was the true value of the business, and resulted in large losses and an increase in cash burn, which investors perceived negatively.That combined with a low float, due to higher insider ownership, and limited exposure to Wall Street and retail investors, resulted in volatility and low trading liquidity. With Progressive Care merger behind us and a focus on improving efficiency of the business, we believe the operational cash burn will be significantly decreased, and supported by growth in e-Commerce. We also believe we can improve cash flow, and other key financial metrics.This, along with the efforts to increase awareness of the company through the increased engagement with our investment community should help unlock more value in our shares.Question number three, what are you doing to increase the visibility of the company with investors? Will you be meeting with investors, or participating in investor conferences?Thanks for your question. Yes, we are committed to increasing investor awareness in NextPlat, and this call is just one step in support of that effort. We understand that many investors feel we haven't been proactive. However, our team and Board, almost all of which are significant investors in the company, our focus on execution something we believe that very volatile equity markets, and the small cap market in particular demand.Yes, it's been a long process as we focus on cleaning up the balance sheet, finding and integrating acquisitions, and adjusting our operations to address issues, like payer reimbursement in the retail pharmacy business. But we will communicate our progress, as often as we are legally allowed, and that includes efforts to attract investors, who are seeking investment opportunities in small cap growth companies.Question number four, why are China sales taking so long to ramp up, and what impact do you see from recent tariffs put in place?I will turn this question over to David.Thanks, Charlie. For the first part of the question, I'd say that selling in China isn't easy. That's why you only typically see the very largest companies undertake those efforts, due to the extensive government regulation and logistical challenges. It's this complexity, combined with product availability constraints that, have primarily led to the longer than anticipated ramp up issues, which are now largely being resolved.In China as well, elsewhere there are multiple levels of regulations, and approvals needed for international organizations to sell, and these vary by type of products being sold, such as those for human consumption or pets. But in most cases it is a slow process, dealing with the various governmental authorities. That is partly why the most successful brands in China.Are those that create local partnerships, with organizations that can help support approvals and distribute, market and sell their products. We are somewhat unique in our ability to tap into the large Chinese market through relationship with partners such as Alibaba, JD.com and others we've already secured. And we're also working with our customer OPKO, to not only pursue the required approvals for their pet care products.But also with them to further tap their supply chains, to obtain significantly increased levels of inventory, so that we can expand our sales. We're very optimistic about the potential we see in China as early demand for products like OPKO's joint care product Artilane has been strong.We believe we have addressed many of the roadblocks, which have slowed our progress and by the end of the second quarter, 2025 should be in the market with a wider array of products, supported with increased inventory levels. To answer the second part of the question regarding tariffs, due to where we source our products and their nature, we are not currently seeing any significant impact from tariffs, but we're monitoring it closely. Back to you, Charlie.Okay. Question number five. What are the marketing plans for Florida Sunshine? Where and when will it be available, and will it be sold to U.S. customers and customers of their pharmacies? I will again turn this question over to David to answer.Thanks, Charlie, and thanks for that question. We have made significant progress in creating the Florida Sunshine brand, and preparing it for international launch. Complying with the unique regulations inherent in selling products in multiple international markets, has been time intensive, especially in China. We have created the required infrastructure, are building out the storefronts.And in the case of China, are working towards a new partnership there, which will be very beneficial in terms of marketing expertise, and distribution. In terms of the U.S., the North American market for vitamins and supplements, is very crowded and competitive. So right now our focus is on international markets where we believe the brand can quickly stand out.While we're looking at the potential for sales of Florida Sunshine in the U.S., perhaps through our pharmacies under the OTC benefits programs for Medicare Advantage. Again, our focus is really untapping into the large market in China and in Europe. Back to you, Charlie.All right, question number six. Does the company intend to continue expansion by organic growth, or is the company currently looking at any other acquisitions?Currently, we're working to support organic growth, across both our e-Commerce and healthcare segments. This could include investment in additional inventory as well as into marketing, and other sales programs. We are not currently looking at any other acquisitions.Our final question. Can you comment about the lawsuits mentioned in the financial reporting?Thanks for your question. We cannot comment specifically about the lawsuits, only that we believe they are without merit, and our legal counsel believe the courts will agree, and move to dismiss them. So we could avoid incurring significant legal costs.That was the final question that we received from investors. Thank you again for submitting them. Please remember that you could submit your questions to our Investor Relations email, which is investors@nextplat, or with our IR contact listed on our press release. Michael Glickman at mike@mwgco.net. We continually strive to respond to your questions in a timely manner.That concludes our earnings call. We look forward to an exciting and rewarding year in 2025, and to talking with you again in mid-May 2025, for about our first quarter. Have a nice rest of your day.Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may all disconnect your lines.
Recent NXPL News
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