Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 12, 2023 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-40447 | |
Entity Registrant Name | NEXTPLAT CORP | |
Entity Central Index Key | 0001058307 | |
Entity Tax Identification Number | 65-0783722 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 3250 Mary St. | |
Entity Address, Address Line Two | Suite 410 | |
Entity Address, City or Town | Coconut Grove | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33133 | |
City Area Code | (305) | |
Local Phone Number | 560-5355 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,489,596 | |
Common Stock Par Value 0.0001 [Member] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Trading Symbol | NXPL | |
Security Exchange Name | NASDAQ | |
Warrants [Member] | ||
Title of 12(b) Security | Warrants | |
Trading Symbol | NXPLW | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 16,719,968 | $ 18,891,232 |
Accounts receivable | 956,098 | 383,786 |
Inventory | 2,163,521 | 1,286,612 |
Unbilled revenue | 141,702 | |
VAT receivable | 509,538 | 432,769 |
Prepaid expenses – current portion | 77,688 | 45,679 |
Total Current Assets | 20,426,813 | 21,181,780 |
Property and equipment, net | 1,159,041 | 1,245,802 |
Right of use assets, net | 806,249 | 854,862 |
Intangible assets, net | 43,750 | 50,001 |
Equity method investment | 5,228,361 | 5,260,525 |
Prepaid expenses – long term portion | 49,226 | 49,078 |
Total Other Assets | 6,127,586 | 6,214,466 |
Total Assets | 27,713,440 | 28,642,048 |
Current Liabilities | ||
Accounts payable and accrued expenses | 1,795,298 | 1,518,095 |
Contract liabilities | 33,820 | 36,415 |
Note payable Coronavirus loans– current portion | 61,840 | 60,490 |
Due to related party | 26,548 | 28,467 |
Operating lease liabilities - current | 207,733 | 208,660 |
Income taxes payable | 96,347 | 94,244 |
Liabilities from discontinued operations | 112,397 | 112,397 |
Total Current Liabilities | 2,333,983 | 2,058,768 |
Long Term Liabilities: | ||
Notes payable Coronavirus – long term | 144,293 | 156,266 |
Operating lease liabilities – long term | 607,720 | 649,895 |
Total Liabilities | 3,085,996 | 2,864,929 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred stock ($0.0001 par value; 3,333,333 shares authorized) | ||
Common stock ($0.0001 par value; 50,000,000 shares authorized, 14,441,025 and 14,402,025 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively) | 1,444 | 1,440 |
Additional paid-in capital | 57,023,736 | 56,963,200 |
Accumulated deficit | (32,334,034) | (31,146,804) |
Accumulated other comprehensive loss | (63,702) | (40,717) |
Total Stockholders’ Equity | 24,627,444 | 25,777,119 |
Total Liabilities and Stockholders’ Equity | $ 27,713,440 | $ 28,642,048 |
Condensed Consolidated Balan_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Other Liability, Current, Related and Nonrelated Party Status [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 3,333,333 | 3,333,333 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 14,441,025 | 14,402,025 |
Common stock, shares, outstanding | 14,441,025 | 14,402,025 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Net sales | $ 2,876,153 | $ 3,577,778 |
Cost of sales | 2,255,339 | 2,776,685 |
Gross profit | 620,814 | 801,093 |
Operating expenses: | ||
Selling, general and administrative | 788,633 | 574,350 |
Salaries, wages and payroll taxes | 588,119 | 635,576 |
Professional fees | 320,930 | 326,213 |
Depreciation and amortization | 161,594 | 99,569 |
Total operating expenses | 1,859,276 | 1,635,708 |
Loss before other (income) expense | (1,238,462) | (834,615) |
Interest expense | 5,139 | 3,243 |
Interest earned | (10,127) | (4,956) |
Other income | (50,000) | |
Foreign currency exchange rate variance | (28,408) | 17,181 |
Total other (income) expense | (83,396) | 15,468 |
Loss before equity method investment | (1,155,066) | (850,083) |
Equity in net loss of affiliate | (32,164) | |
Net loss | (1,187,230) | (850,083) |
Comprehensive loss: | ||
Net loss | (1,187,230) | (850,083) |
Foreign currency translation adjustments | (22,985) | (15,330) |
Comprehensive loss | $ (1,210,215) | $ (865,413) |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ||
Weighted number of common shares outstanding – basic & diluted | 14,415,458 | 9,166,877 |
Basic and diluted net loss per share | $ (0.08) | $ (0.09) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2021 | $ 705 | $ 39,513,093 | $ (21,986,215) | $ 3,236 | $ 17,530,819 |
Balance, shares at Dec. 31, 2021 | 7,053,146 | ||||
Issuance of common stock related to restricted stock award | $ 1 | 34,799 | 34,800 | ||
Issuance of common related to restricted stock award, shares | 10,000 | ||||
Comprehensive loss | (15,330) | (15,330) | |||
Net loss | (850,083) | (850,083) | |||
Issuance of common stock related to offering | $ 223 | 7,004,815 | 7,005,038 | ||
Issuance of common related to offering, shares | 2,229,950 | ||||
Balance at Mar. 31, 2022 | $ 929 | 46,552,707 | (22,836,298) | (12,094) | 23,705,244 |
Balance, shares at Mar. 31, 2022 | 9,293,096 | ||||
Balance at Dec. 31, 2022 | $ 1,440 | 56,963,200 | (31,146,804) | (40,717) | 25,777,119 |
Balance, shares at Dec. 31, 2022 | 14,402,025 | ||||
Issuance of common stock related to restricted stock award | $ 4 | 60,536 | 60,540 | ||
Issuance of common related to restricted stock award, shares | 39,000 | ||||
Comprehensive loss | (22,985) | (22,985) | |||
Net loss | (1,187,230) | (1,187,230) | |||
Balance at Mar. 31, 2023 | $ 1,444 | $ 57,023,736 | $ (32,334,034) | $ (63,702) | $ 24,627,444 |
Balance, shares at Mar. 31, 2023 | 14,441,025 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,187,230) | $ (850,083) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation expense | 155,344 | 93,319 |
Amortization of intangible asset | 6,250 | 6,250 |
Amortization of right of use assets | 48,613 | 8,803 |
Share of loss from equity method investment | 32,164 | |
Stock-based compensation | 243,285 | 34,800 |
Change in operating assets and liabilities: | ||
Accounts receivable | (572,312) | (70,307) |
Inventory | (876,909) | (453,496) |
Unbilled revenue | 141,702 | 8,278 |
Prepaid expense | (32,009) | (26,232) |
Other current assets | 48,539 | |
VAT receivable | (76,769) | 33,044 |
Accounts payable and accrued expenses | 94,458 | 352,201 |
Lease liabilities | (43,102) | (8,718) |
Income taxes payable | 2,103 | (38,555) |
Contract liabilities | (2,595) | (6,401) |
Net cash used in operating activities | (2,067,007) | (868,558) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (68,582) | (67,997) |
Net cash used in investing activities | (68,582) | (67,997) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from (repayments to) note payable, related party, net | (1,919) | 19,737 |
Proceeds from common stock offering | 5,605,038 | |
Repayments to note payable Coronavirus loans | (10,623) | (16,422) |
Net cash (used in) provided by financing activities | (12,542) | 5,608,353 |
Effect of exchange rate on cash | (23,133) | (31,841) |
Net (decrease) increase in cash | (2,171,264) | 4,639,957 |
Cash beginning of period | 18,891,232 | 17,267,978 |
Cash end of period | 16,719,968 | 21,907,935 |
Cash paid during the period for | ||
Interest | 4,988 | 3,243 |
Income tax | 38,555 | |
Non-cash adjustments during the period for | ||
Common stock issued for stock subscription payable | $ 1,400,000 |
Organization & Nature of Operat
Organization & Nature of Operations | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization & Nature of Operations | Note 1. Organization & Nature of Operations NextPlat Corp, a Nevada corporation (the “Company”, “NextPlat”, “we”), formerly Orbsat Corp was incorporated in 1997. The Company operates two main e-commerce websites as well as 25 third-party e-commerce storefronts on platforms such as Alibaba, Amazon and Walmart. These e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. NextPlat has announced its intention to broaden its e-commerce platform and is implementing a comprehensive system upgrade to support this initiative. The Company has also begun the design and development of a next generation platform for digital assets built for Web3 (an internet service built using decentralized blockchains). This new platform (“NextPlat Digital”) is currently in the design and development phase and will enable the use of a range of digital assets, such as non-fungible tokens (“NFTs”), in e-commerce and in community-building activities. In addition, we provide a comprehensive array of Satellite Industry communication services and related equipment sales. Our wholly-owned subsidiary, Global Telesat Communications Limited (“GTC”), was formed under the laws of England and Wales in 2008. On February 19, 2015, we entered into a share exchange agreement with GTC and all of the holders of the outstanding equity of GTC pursuant to which we acquired all of the outstanding equity in GTC. Our wholly-owned subsidiary, Orbital Satcom Corp. (“Orbital Satcom”), a Nevada corporation, was formed on November 14, 2014. On June 22, 2022, NextPlat B.V. (“NXPLBV”) was formed in Amsterdam, Netherlands, as a wholly owned subsidiary of NextPlat Corp. Presently, NXPLBV does not have any active operations. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Note 2. Basis of Presentation and Principles of Consolidation The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), consistent in all material respects with those applied in the 2022 Form 10-K, for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all information and footnotes normally included in annual consolidated financial statements and should be read in conjunction with the consolidated financial statements and notes thereto included in the 2022 Form 10-K. In the opinion of management, the Condensed Consolidated Financial Statements contain all adjustments (consisting principally of normal recurring accruals) necessary for a fair presentation of the condensed consolidated balance sheets, statements of comprehensive loss, statements of stockholders’ equity and statements of cash flows for such interim periods presented. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. These Condensed Consolidated Financial Statements have been prepared by management in accordance with general accepted accounting principles in the United States of America (“U.S. GAAP”) and this basis assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Use of Estimates In preparing the Condensed Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, assumptions used to calculate stock-based compensation, and common stock and options issued for services, receivables, the useful lives of property and equipment, and intangible assets, the estimate of the fair value of the lease liability and related right of use assets and the estimates of the valuation allowance on deferred tax assets and corporate income taxes. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 3. Summary of Significant Accounting Policies The significant accounting policies of the Company were described in Note 1. to the Audited Consolidated Financial Statements included in the Company’s Form 10-K for the fiscal year ended December 31, 2022. There have been no material changes to the Company’s significant accounting policies for the three months ended March 31, 2023. Cash The Company places its cash with high credit quality financial institutions. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 250,000 16.2 250,000 Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The accounts of one of the Company’s subsidiaries, GTC, is maintained using the appropriate local currency, Great British Pound, as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the three months ended March 31, 2023, closing rate at 1.23 1.21 1.31 1.34 1.21 1.24 Unearned Revenue Contract liabilities are shown separately in the condensed consolidated balance sheets as current liabilities. At March 31, 2023 and December 31, 2022, we had contract liabilities of approximately $ 34,000 36,000 NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which introduces an impairment model based on expected, rather than incurred, losses. Additionally, it requires expanded disclosures regarding (a) credit risk inherent in a portfolio and how management monitors the portfolio’s credit quality; (b) management’s estimate of expected credit losses; and (c) changes in estimates of expected credit losses that have taken place during the period. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU clarifies receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies various scoping and other issues arising from ASU 2016-13. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” This ASU improves the Codification and amends the interaction of Topic 842 and Topic 326. ASU 2016-13 and related amendments are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance effective January 1, 2023 and the adoption had no material impact on our condensed consolidated financial statements and related disclosures. On an ongoing basis, the Company will contemplate forward-looking economic conditions in recording lifetime expected credit losses for the Company’s financial assets measured at cost, such as the Company’s trade receivables. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Earnings (Loss) per Share
Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | |
Earnings (Loss) per Share | Note 4. Earnings (Loss) per Share Net income (loss) per common share is calculated in accordance with Accounting Standards Codification (“ASC”) Topic 260: Earnings per Share (“ASC 260”). Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. In periods where the Company has a net loss, all dilutive securities are excluded. Schedule Of Earnings Per Share Three Months Ended March 31, 2023 2022 Net loss attributable to common shareholders $ (1,187,230 ) $ (850,083 ) Basic weighted average common shares outstanding 14,415,458 9,166,877 Potentially dilutive common shares — — Diluted weighted average common shares outstanding 14,415,458 9,166,877 Basic weighted average loss per common share $ (0.08 ) $ (0.09 ) Diluted weighted average loss per common share $ (0.08 ) $ (0.09 ) |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5. Inventory At March 31, 2023 and December 31, 2022, inventory consisted of the following: SCHEDULE OF INVENTORY March 31, (Unaudited) December 31, (Audited) Finished goods $ 2,163,521 $ 1,286,612 Less reserve for obsolete inventory - - Total $ 2,163,521 $ 1,286,612 |
VAT Receivable
VAT Receivable | 3 Months Ended |
Mar. 31, 2023 | |
Vat Receivable | |
VAT Receivable | Note 6. VAT Receivable On January 1, 2021, VAT rules relating to imports and exports between the UK and EU changed as a result of the UK’s departure from the EU. For the three months ended March 31, 2023 and the year ended December 31, 2022, the Company recorded a receivable in the amount of approximately $ 510,000 and $ 433,000 , respectively, for amounts available to reclaim against the tax liability from UK and EU countries. |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses | |
Prepaid Expenses | Note 7. Prepaid Expenses Prepaid expenses current and long term amounted to approximately $ 78,000 49,000 46,000 49,000 |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Note 8. Property and Equipment, net Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET March 31, (Unaudited) December 31, (Audited) Office furniture and fixtures $ 128,605 $ 128,252 Computer equipment 77,243 72,345 Rental equipment 46,099 37,531 Appliques 2,160,096 2,160,096 Leasehold improvements 47,824 47,792 Website development 721,022 665,030 Property and equipment gross 3,180,889 3,111,046 Less: accumulated depreciation (2,021,848 ) (1,865,244 ) Property and equipment, net $ 1,159,041 $ 1,245,802 Depreciation expense was approximately $ 155,000 93,000 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Note 9. Intangible Assets, net Intangible assets, net consist of customer contracts purchased as part of the GTC acquisition in 2014. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Amortization of customer contracts is included in depreciation and amortization in the accompanying Condensed Consolidated Statements of Comprehensive Loss. For the three months ended March 31, 2023 and 2022, the Company recognized amortization expense of $ 6,250 6,250 SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS 2023 (nine months) $ 18,750 2024 25,000 Total $ 43,750 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | Note 10. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES March 31, (Unaudited) December 31, (Audited) Accounts payable $ 1,312,170 $ 1,194,067 Rental deposits 4,422 4,325 Customer deposits payable 62,093 86,462 Accrued wages & payroll liabilities 27,835 23,040 VAT liability & sales tax payable 104,470 5,685 U.K. income tax payable 5,847 23,771 Accrued legal fees - 84,685 Accrued stock based compensation 182,745 - Pre-merger accrued other liabilities 88,448 88,448 Accrued interest - 356 Accrued other liabilities 7,268 7,256 Total $ 1,795,298 $ 1,518,095 NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Coronavirus Loan
Coronavirus Loan | 3 Months Ended |
Mar. 31, 2023 | |
Coronavirus Loan | |
Coronavirus Loan | Note 11. Coronavirus Loan On July 16, 2020 (the “Issue Date”), GTC, entered into a Coronavirus Interruption Loan Agreement (“Debenture”) by and among the Company and HSBC UK Bank PLC (the “Lender”) for an amount of £ 250,000 338,343 1.3533720 4.0 0.1 4,166.67 Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture As of March 31, 2023, and December 31, 2022, the Company has recorded approximately $ 62,000 60,000 144,000 156,000 |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 12. Stockholders’ Equity Preferred Stock We have authorized 3,333,333 0.0001 No Common Stock We have authorized 50,000,000 0.0001 Listing on the Nasdaq Capital Market Our common stock and warrants have been trading on the Nasdaq Capital Market under the symbols “NXPL” and “NXPLW,” respectively, since January 21, 2022. Prior to January 21, 2022, our common stock and warrants were traded on the Nasdaq Capital Market under the symbols “OSAT” and “OSATW,” respectively. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 13. Stock-Based Compensation For the three months ended March 31, 2023 and 2022, stock-based compensation expense recognized in selling, general and administrative expenses was approximately $ 243,000 35,000 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions On February 1, 2023, the Company entered into a Management Services Agreement with Progressive Care Inc. (“Progressive Care”) to provide certain management and administrative services to Progressive Care for a $ 25,000 50,000 On July 12, 2022, the Company hired Lauren Sturges Fernandez, the spouse of Mr. Fernandez, as Manager of Digital Assets. Mrs. Fernandez is an at-will employee with an annual salary of $ 95,000 10,995 125,000 NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies Litigation On June 22, 2021, Thomas Seifert’s employment as the Company’s Chief Financial Officer was terminated for cause. Mr. Seifert asserts that the termination was not for cause and that he is owed all compensation payable under his employment agreement executed in June 2021. The Company’s position is that Mr. Seifert is not owed any additional consideration or compensation relating to his prior service with the Company or arising under any employment agreement. The Company believes it has adequate defenses to any such claims. The Company has determined to initiate litigation against Mr. Seifert asserting a number of claims including, but not limited to, rescission of the employment agreement, fraud in the inducement in connection with the execution of the employment agreement, and breach of the fiduciary duties of good faith and loyalty. The Company does not expect to seek substantial monetary relief in the litigation. From time to time, the Company may become involved in litigation relating to claims arising out of our operations in the normal course of business. The Company is not currently involved in any pending legal proceeding or litigation, and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which the Company is a party or to which any of the Company’s properties is subject, which would reasonably be likely to have a material adverse effect on the Company’s business, financial condition and operating results. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
Leases | Note 16. Leases The Company has entered into a number of lease arrangements under which the Company is the lessee. These leases are classified as operating leases. In addition, the Company has elected the short-term lease practical expedient in ASC Topic 842 related to real estate leases with terms of one year. The following is a summary of the Company’s lease arrangements. Operating Lease Agreements On December 2, 2021, the Company entered into a 62-month lease for 4,141 186,345 3 For our facilities in Poole, England, we rent office and warehouse space of approximately 2,660 30,000 37,107 1.24 The Florida lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not have any leases classified as financing leases. The rate implicit to the Florida lease is not readily determinable, and we therefore use our incremental borrowing rate to determine the present value of the lease payments. The weighted average incremental borrowing rate used to determine the initial value of right of use (ROU) assets and lease liabilities for the three months ended March 31, 2023 and for the year ended December 31, 2022 was 3.75 We monitor for events or changes in circumstances that require a reassessment of one of our leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in profit or loss. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Concentrations
Concentrations | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 17. Concentrations Customers: Sales to customers through Amazon accounted for 57.2 45.9 10 Suppliers: The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended March 31, 2023 and 2022 (unaudited). SCHEDULE OF CONCENTRATION RISK March 31, March 31, Iridium Satellite $ 527,681 18.6 % $ - - % Garmin $ 594,441 20.9 % $ 415,965 14 % Network Innovations $ 334,184 11.8 % $ 320,516 10.8 % Cygnus Telecom $ 308,668 10.9 % $ 940,914 31.7 % Concentration risk, amount $ 308,668 10.9 % $ 940,914 31.7 % Geographic The following table sets forth revenue as to each geographic location, for the three months ended March 31, 2023 and 2022 (unaudited): SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION March 31, March 31, Europe $ 2,063,354 71.7 % $ 2,899,398 81.00 % North America 585,796 20.4 % 437,216 12.20 % South America 9,274 0.3 % 11,773 0.30 % Asia & Pacific 158,500 5.5 % 196,169 5.50 % Africa 59,229 2.1 % 33,222 1.00 % Revenue $ 2,876,153 $ 3,577,778 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18. Subsequent Events May 2023 Investment in Progressive Care and Debt Conversion On May 5, 2023, NextPlat entered into a Securities Purchase Agreement (the “SPA”) with Progressive Care, pursuant to which the Company agreed to purchase 455,000 2.20 1 0.0001 2.20 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 Progressive Care in the original face amount of approximately $ 2.8 million 2.9 million 2.20 1,312,379 570,599 228,240 228,240 three-year 2.20 NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At the same time, Progressive Care and NextPlat entered into a First Amendment (the “Amendment”) to that certain Securities Purchase Agreement dated November 16, 2022 (the “Debenture Purchase Agreement”). Under the Debenture Purchase Agreement, Progressive Care agreed to issue, and NextPlat Corp agreed to purchase, from time to time during the three-year term of the Debenture Purchase Agreement, up to an aggregate of $ 10 2.20 In addition, Progressive Care issued 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 30,000 2.20 Alibaba Merchant Sourcing Agreement On April 20, 2023, the Company and Alibaba.com Singapore E-Commerce Private Limited, a company organized under the laws of Singapore (“Alibaba”), entered into a Merchant Sourcing Agreement (the “Agreement”) pursuant to which the Company and Alibaba will collaborate in a non-exclusive manner to increase the sale of products produced and sold by American companies to the Chinese consumer market on the Tmall Global e-commerce platform. The Agreement has a term of ninety (90) days. A pril 2023 Private Placement of Common Stock On April 5, 2023, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”) for the sale by the Company in a private placement of 3,428,571 0.0001 1.75 6.0 |
Basis of Presentation and Pri_2
Basis of Presentation and Principles of Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates In preparing the Condensed Consolidated Financial Statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, assumptions used to calculate stock-based compensation, and common stock and options issued for services, receivables, the useful lives of property and equipment, and intangible assets, the estimate of the fair value of the lease liability and related right of use assets and the estimates of the valuation allowance on deferred tax assets and corporate income taxes. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Cash | Cash The Company places its cash with high credit quality financial institutions. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 250,000 16.2 250,000 |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The accounts of one of the Company’s subsidiaries, GTC, is maintained using the appropriate local currency, Great British Pound, as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the three months ended March 31, 2023, closing rate at 1.23 1.21 1.31 1.34 1.21 1.24 |
Unearned Revenue | Unearned Revenue Contract liabilities are shown separately in the condensed consolidated balance sheets as current liabilities. At March 31, 2023 and December 31, 2022, we had contract liabilities of approximately $ 34,000 36,000 NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which introduces an impairment model based on expected, rather than incurred, losses. Additionally, it requires expanded disclosures regarding (a) credit risk inherent in a portfolio and how management monitors the portfolio’s credit quality; (b) management’s estimate of expected credit losses; and (c) changes in estimates of expected credit losses that have taken place during the period. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses.” This ASU clarifies receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” This ASU clarifies various scoping and other issues arising from ASU 2016-13. In March 2020, the FASB issued ASU 2020-03, “Codification Improvements to Financial Instruments.” This ASU improves the Codification and amends the interaction of Topic 842 and Topic 326. ASU 2016-13 and related amendments are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance effective January 1, 2023 and the adoption had no material impact on our condensed consolidated financial statements and related disclosures. On an ongoing basis, the Company will contemplate forward-looking economic conditions in recording lifetime expected credit losses for the Company’s financial assets measured at cost, such as the Company’s trade receivables. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the condensed consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. NEXTPLAT CORP AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | |
Schedule Of Earnings Per Share | Schedule Of Earnings Per Share Three Months Ended March 31, 2023 2022 Net loss attributable to common shareholders $ (1,187,230 ) $ (850,083 ) Basic weighted average common shares outstanding 14,415,458 9,166,877 Potentially dilutive common shares — — Diluted weighted average common shares outstanding 14,415,458 9,166,877 Basic weighted average loss per common share $ (0.08 ) $ (0.09 ) Diluted weighted average loss per common share $ (0.08 ) $ (0.09 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | At March 31, 2023 and December 31, 2022, inventory consisted of the following: SCHEDULE OF INVENTORY March 31, (Unaudited) December 31, (Audited) Finished goods $ 2,163,521 $ 1,286,612 Less reserve for obsolete inventory - - Total $ 2,163,521 $ 1,286,612 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property and equipment, net consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET March 31, (Unaudited) December 31, (Audited) Office furniture and fixtures $ 128,605 $ 128,252 Computer equipment 77,243 72,345 Rental equipment 46,099 37,531 Appliques 2,160,096 2,160,096 Leasehold improvements 47,824 47,792 Website development 721,022 665,030 Property and equipment gross 3,180,889 3,111,046 Less: accumulated depreciation (2,021,848 ) (1,865,244 ) Property and equipment, net $ 1,159,041 $ 1,245,802 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS | SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS 2023 (nine months) $ 18,750 2024 25,000 Total $ 43,750 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES | Accounts payable and accrued expenses consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES March 31, (Unaudited) December 31, (Audited) Accounts payable $ 1,312,170 $ 1,194,067 Rental deposits 4,422 4,325 Customer deposits payable 62,093 86,462 Accrued wages & payroll liabilities 27,835 23,040 VAT liability & sales tax payable 104,470 5,685 U.K. income tax payable 5,847 23,771 Accrued legal fees - 84,685 Accrued stock based compensation 182,745 - Pre-merger accrued other liabilities 88,448 88,448 Accrued interest - 356 Accrued other liabilities 7,268 7,256 Total $ 1,795,298 $ 1,518,095 |
Concentrations (Tables)
Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF CONCENTRATION RISK | The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended March 31, 2023 and 2022 (unaudited). SCHEDULE OF CONCENTRATION RISK March 31, March 31, Iridium Satellite $ 527,681 18.6 % $ - - % Garmin $ 594,441 20.9 % $ 415,965 14 % Network Innovations $ 334,184 11.8 % $ 320,516 10.8 % Cygnus Telecom $ 308,668 10.9 % $ 940,914 31.7 % Concentration risk, amount $ 308,668 10.9 % $ 940,914 31.7 % |
SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION | The following table sets forth revenue as to each geographic location, for the three months ended March 31, 2023 and 2022 (unaudited): SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION March 31, March 31, Europe $ 2,063,354 71.7 % $ 2,899,398 81.00 % North America 585,796 20.4 % 437,216 12.20 % South America 9,274 0.3 % 11,773 0.30 % Asia & Pacific 158,500 5.5 % 196,169 5.50 % Africa 59,229 2.1 % 33,222 1.00 % Revenue $ 2,876,153 $ 3,577,778 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 | Dec. 31, 2022 USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Cash, FDIC insured amount | $ 250,000 | ||
Cash, uninsured amount | 16,200,000 | ||
Contract liabilities | $ 34,000 | $ 36,000 | |
US$: GBP [Member] | Closing Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Foreign currency translation rate | 1.23 | 1.31 | 1.21 |
US$: GBP [Member] | Quarterly Average Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Foreign currency translation rate | 1.21 | 1.34 | |
US$: GBP [Member] | Yearly Average Rate [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Foreign currency translation rate | 1.24 | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cash, FDIC insured amount | $ 250,000 |
Schedule Of Earnings Per Share
Schedule Of Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ||
Net loss attributable to common shareholders | $ (1,187,230) | $ (850,083) |
Basic weighted average common shares outstanding | 14,415,458 | 9,166,877 |
Potentially dilutive common shares | ||
Diluted weighted average common shares outstanding | 14,415,458 | 9,166,877 |
Basic weighted average loss per common share | $ (0.08) | $ (0.09) |
Diluted weighted average loss per common share | $ (0.08) | $ (0.09) |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 2,163,521 | $ 1,286,612 |
Less reserve for obsolete inventory | ||
Total | $ 2,163,521 | $ 1,286,612 |
VAT Receivable (Details Narrati
VAT Receivable (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Vat Receivable | ||
VAT receivable current | $ 509,538 | $ 432,769 |
Prepaid Expenses (Details Narra
Prepaid Expenses (Details Narrative) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses | ||
Prepaid expenses current | $ 77,688 | $ 45,679 |
Prepaid expenses long term | $ 49,226 | $ 49,078 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Office furniture and fixtures | $ 128,605 | $ 128,252 |
Computer equipment | 77,243 | 72,345 |
Rental equipment | 46,099 | 37,531 |
Appliques | 2,160,096 | 2,160,096 |
Leasehold improvements | 47,824 | 47,792 |
Website development | 721,022 | 665,030 |
Property and equipment gross | 3,180,889 | 3,111,046 |
Less: accumulated depreciation | (2,021,848) | (1,865,244) |
Property and equipment, net | $ 1,159,041 | $ 1,245,802 |
Property and Equipment, net (De
Property and Equipment, net (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 155,344 | $ 93,319 |
SCHEDULE OF FUTURE AMORTIZATION
SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) | Mar. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 (nine months) | $ 18,750 |
2024 | 25,000 |
Total | $ 43,750 |
Intangible Assets, net (Details
Intangible Assets, net (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 6,250 | $ 6,250 |
SCHEDULE OF ACCOUNTS PAYABLE AN
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 1,312,170 | $ 1,194,067 |
Rental deposits | 4,422 | 4,325 |
Customer deposits payable | 62,093 | 86,462 |
Accrued wages & payroll liabilities | 27,835 | 23,040 |
VAT liability & sales tax payable | 104,470 | 5,685 |
U.K. income tax payable | 5,847 | 23,771 |
Accrued legal fees | 84,685 | |
Accrued stock based compensation | 182,745 | |
Pre-merger accrued other liabilities | 88,448 | 88,448 |
Accrued interest | 356 | |
Accrued other liabilities | 7,268 | 7,256 |
Total | $ 1,795,298 | $ 1,518,095 |
Coronavirus Loan (Details Narra
Coronavirus Loan (Details Narrative) | Jul. 16, 2020 USD ($) | Jul. 16, 2020 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 16, 2021 |
Short-Term Debt [Line Items] | |||||
Long term note payable | $ 144,293 | $ 156,266 | |||
Notes payable | 61,840 | 60,490 | |||
Coronavirus Loans [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument interest rate stated percentage | 0.10% | ||||
Long term note payable | 144,000 | 156,000 | |||
Notes payable | $ 62,000 | $ 60,000 | |||
Coronavirus Loans [Member] | First Repayment [Member] | |||||
Short-Term Debt [Line Items] | |||||
Long term note payable | € | € 4,166.67 | ||||
Prepayment of balance of debentures percentage | Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture | Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture | |||
Coronavirus Loans [Member] | Lenders [Member] | |||||
Short-Term Debt [Line Items] | |||||
Proceeds from Notes Payable | $ 338,343 | € 250,000 | |||
Debt instrument interest rate stated percentage | 4% | ||||
Coronavirus Loans [Member] | Lenders [Member] | US$: GBP [Member] | |||||
Short-Term Debt [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 1.3533720 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 3,333,333 | 3,333,333 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock based compensation | $ 243,000 | $ 35,000 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |||
Feb. 01, 2023 | Jul. 12, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Related Party [Member] | ||||
Related Party Transaction [Line Items] | ||||
Adminstrative fees | $ 25,000 | $ 50,000 | ||
Mr. Fernandez [Member] | ||||
Related Party Transaction [Line Items] | ||||
Salaries and wages | $ 95,000 | $ 10,995 | ||
Increase salaries and wages | $ 125,000 |
Leases (Details Narrative)
Leases (Details Narrative) | 3 Months Ended | ||
Dec. 02, 2021 USD ($) ft² | Mar. 31, 2023 USD ($) ft² | Mar. 31, 2023 EUR (€) ft² | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Weighted average incremental borrowing rate | 3.75% | 3.75% | |
Lease Agreements [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of land | 4,141 | 2,660 | 2,660 |
Annual Rent | $ 186,345 | $ 37,107 | € 30,000 |
Annual lease percentage | 3% | ||
Lease Agreements [Member] | US$: GBP [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Exchange rate | 1.24 | 1.24 |
SCHEDULE OF CONCENTRATION RISK
SCHEDULE OF CONCENTRATION RISK (Details) - Revenue Benchmark [Member] - Supplier Concentration Risk [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Iridium Satellite [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, amount | $ 527,681 | |
Concentration risk percentage | 18.60% | |
Garmin [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, amount | $ 594,441 | $ 415,965 |
Concentration risk percentage | 20.90% | 14% |
Network Innovations [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, amount | $ 334,184 | $ 320,516 |
Concentration risk percentage | 11.80% | 10.80% |
Cygnus Telecom [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, amount | $ 308,668 | $ 940,914 |
Concentration risk percentage | 10.90% | 31.70% |
SCHEDULE OF REVENUE FROM EACH G
SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Concentration Risk [Line Items] | ||
Revenue | $ 2,876,153 | $ 3,577,778 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | 2,876,153 | 3,577,778 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Europe [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 2,063,354 | $ 2,899,398 |
Concentration risk percentage | 71.70% | 81% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | North America [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 585,796 | $ 437,216 |
Concentration risk percentage | 20.40% | 12.20% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | South America [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 9,274 | $ 11,773 |
Concentration risk percentage | 0.30% | 0.30% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Asia Pacific [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 158,500 | $ 196,169 |
Concentration risk percentage | 5.50% | 5.50% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Africa [Member] | ||
Concentration Risk [Line Items] | ||
Revenue | $ 59,229 | $ 33,222 |
Concentration risk percentage | 2.10% | 1% |
Concentrations (Details Narrati
Concentrations (Details Narrative) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amazon [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 57.20% | 45.90% |
Other Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 3 Months Ended | |||||
May 05, 2023 | Apr. 05, 2023 | Apr. 05, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||||||
Number of shares issued, value | $ 7,005,038 | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||
Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares issued | 2,229,950 | |||||
Number of shares issued, value | $ 223 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||
Share price | $ 1.75 | $ 1.75 | ||||
Proceeds from issuance of private placement | $ 6,000,000 | |||||
Subsequent Event [Member] | Private Placement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares issued | 3,428,571 | |||||
Subsequent Event [Member] | Securities Purchase Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares issued | 455,000 | |||||
Shares issued, price per share | $ 2.20 | |||||
Number of shares issued, value | $ 1,000,000 | |||||
Common stock, par value | $ 0.0001 | |||||
Warrant exercise price per share | $ 2.20 | |||||
Subsequent Event [Member] | Debt Conversion Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt face amount | $ 2,800,000 | |||||
Debt carrying amount | $ 2,900,000 | |||||
Warrant term | 3 years | |||||
Subsequent Event [Member] | Debt Conversion Agreement [Member] | Charles M Fernandez [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock shares conversion | 570,599 | |||||
Subsequent Event [Member] | Debt Conversion Agreement [Member] | Chief Executive Officer [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock shares conversion | 228,240 | |||||
Subsequent Event [Member] | Debt Conversion Agreement [Member] | Rodney Barreto [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock shares conversion | 228,240 | |||||
Subsequent Event [Member] | Debt Conversion Agreement [Member] | Common Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrant exercise price per share | $ 2.20 | |||||
Debt conversion price | $ 2.20 | |||||
Common stock shares conversion | 1,312,379 | |||||
Subsequent Event [Member] | Debenture Purchase Agreement [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt conversion price | $ 2.20 | |||||
Secured debt | $ 10,000,000 | |||||
Subsequent Event [Member] | Debenture Purchase Agreement [Member] | Common Stock [Member] | Charles M Fernandez [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrant shares | 190,000 | |||||
Subsequent Event [Member] | Debenture Purchase Agreement [Member] | Common Stock [Member] | Rodney Barreto [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Warrant shares | 30,000 |