NextPlat Corp (NextPlat) is a global e-commerce and healthcare company.
The company’s e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. The company’s healthcare business is 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, offering a broad range of solutions to address the dispensing, d...
NextPlat Corp (NextPlat) is a global e-commerce and healthcare company.
The company’s e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. The company’s healthcare business is 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, offering a broad range of solutions to address the dispensing, delivery, dosing, and reimbursement of clinically intensive, high-cost drugs.
Segments
The company operates in two segments: e-Commerce Business and Healthcare Business.
e-Commerce Business
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 an 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 the company expects will become the focus of its business in the future. Historically, the business of NextPlat has been the provision of a comprehensive array of Satellite Industry communication services, and related equipment sales. As detailed in Online Storefronts and E-Commerce Platforms below, the company operates two main e-commerce websites as well as 25 third-party e-commerce storefronts on platforms, such as Alibaba, Amazon, OnBuy, and Walmart. These e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. The company is actively pursuing distribution, marketing and license arrangements and joint ventures with companies that could distribute their products through the company’s e-commerce platform. The company may also seek to joint venture with or purchase part or all of businesses that manufacture or distribute products, particularly those that the company could market through its e-commerce platform, as well as business that could enhance the company’s e-commerce platform.
Communications Products and Services
Through the company’s legacy Global Telesat Communications Ltd and Orbital Satcom Corp business units, the company provides Mobile Satellite Services (‘MSS’) solutions to fulfill the growing global demand for satellite-enabled voice, data, personnel and asset tracking, Machine-to-Machine (M2M) and Internet of Things (IoT) connectivity services. The company provides these solutions for businesses, governments, military, humanitarian organizations, and individual users, enabling them to communicate, connect to the internet, track and monitor remote assets and lone workers, or request SOS assistance via satellite from almost anywhere in the world, even in the most remote and hostile of environments. As the company proceeds to grow and enhance its e-commerce business and product offerings, the company will consider whether the company should retain its Global Telesat Communications Ltd and Orbital Satcom Corp business units, or whether the company should sell or spin them off.
The company provides voice, data communications, IoT and M2M services via Geostationary and Low Earth Orbit (‘LEO’) satellite constellations and offer reliable connectivity in areas where terrestrial wireless or wireline networks do not exist or are limited, including remote land areas, open ocean, airways, the polar regions and regions where terrestrial networks are not operational, for example due to political conflicts and natural or man-made disasters.
The company has expertise and long-term experience in providing tracking and monitoring services via satellite, specifically through the Globalstar Low Earth Orbit satellite network. The company owns unique network infrastructure devices, known as appliques, which are in various Globalstar ground stations around the world and provide the signal receipt and processing technology that enables and powers the Globalstar simplex data service. The company’s ownership of these appliques provides the company with competitive access to the global simplex data service which addresses the market demand for a small solution for sending data, such as geographic coordinates, from assets or individuals in remote locations to a central monitoring station and is used in numerous applications such as tracking vehicles, asset shipments, livestock, and monitoring unattended remote assets. In addition, the company provides tracking and monitoring solutions using Automatic Identification System (AIS), 2G-5G, Push-to-Talk and two-way radio technology.
The company generates revenue from both the provision of services and the sale of equipment. The company provides its products and services directly to end users and reseller networks located both in the United States and internationally through the company’s subsidiaries, the U.S. based Orbital Satcom Corp (‘Orbital Satcom’) and the U.K. based Global Telesat Communications Limited (‘GTC’). The company has a physical presence in the United States and the United Kingdom, as well as an ecommerce storefront presence in 18 countries across 5 continents. The company has a diverse geographical customer base having provided solutions to more than 50,000 customers located in more than 165 countries across most every continent in the world.
MSS Products
The company’s MSS products rely on satellite networks for voice, data and tracking connectivity and thus are not reliant on cell towers or other local infrastructure. As a result, the company’s MSS solutions are suitable for recreational travelers and adventurers, government and military users, and corporations and individuals wishing to communicate or connect to the internet from remote locations, or in the event of an emergency such as a power outage, following a hurricane or other natural disaster during which regular cell phone, telephone and internet service may not be available.
The company’s satellite communications products enable users to make voice calls, send and receive text messages and emails, and transmit GPS location coordinates from virtually anywhere on the planet, no matter how remote the location and regardless of the availability of local communication infrastructure. The company’s range of satellite data products allows users around the world to connect to the internet, stream live video, and communicate via voice and data applications.
The company is a provider of GPS enabled emergency locator distress beacons that can save lives, on land and at sea. The company’s distress beacons enable essential communication between its customers and search and rescue organizations during emergency situations and pinpoint locational information to Search and Rescue services, essential during an emergency.
The company provides a wide range of satellite tracking devices used to monitor the location, movements, and history of almost anything that moves. The company specializes in offering satellite tracking services through the Globalstar satellite network and have supplied tens of thousands of tracking devices which are used around the world to locate lone workers, track shipping containers, livestock, vehicles, and vessels along with many other types of assets.
The first product launched by the company, SolarTrack, is a compact, lightweight, IoT tracking device powered by the sun and operating on one of the most modern satellite networks in the world. It is designed for tracking and monitoring anything that moves, or any remote asset used outdoors, almost anywhere in the world and the company anticipates strong demand from customers looking for a low cost, low maintenance tracking device to monitor remote assets.
Mapping and Tracking Portal
The company’s advanced subscription-based mapping and tracking portal, GTCTrack, is available for use by registered customers who pay a monthly fee to access it. This mapping portal provides a universal and hardware-agnostic, cloud-based data visualization and management platform that allows managers to track, command, and control assets in near-real-time. Asset location reports including position, speed, altitude, heading and past location and movement history reports for a wide range of tracking devices and other products sold by the company is available through GTCTrack.
Online Storefronts and E-Commerce Platforms
The company operates two e-commerce websites offering a range of MSS products and solutions through the company’s subsidiaries, Orbital Satcom, which targets customers in North and South America, and GTC which targets customers in the U.K., EU, the Middle East, Asia and the rest of the world. These websites produce sales and attract enquiries from customers and potential customers from all around the world. Over the long term, the company plans to develop additional country-specific websites to target customers in South America, Asia and Europe where the company anticipates there will be substantial further demand for the company’s products.
In addition to the company’s two main e-commerce websites, the company makes portable satellite voice, data and tracking solutions easier to find and buy online through the company’s various third-party e-commerce storefronts such as Alibaba, Amazon, OnBuy and Walmart. The company operates 25 storefronts across various countries on 5 continents. The company has invested in personnel to translate the company’s listings correctly in the different countries the company is represented in and intend to regularly improve and increase the company’s listings on all e-commerce sites. The company has more than 10,000 product listings on all third-party sites and invests significantly in inventory to hold at Amazon’s various fulfillment centers around the world to ensure that orders are shipped to customers as quickly as possible. The products include handheld satellite phones, personal and asset tracking devices, portable high-speed broadband terminals, and satellite Wi-Fi hotspots. The company’s Amazon online marketplaces represented approximately 51.6% and 54.3% of total sales for the years ended December 31, 2023, and 2022, respectively and the company anticipate that these marketplaces will continue to represent a significant portion of the company’s sales for the foreseeable future. The company’s e-commerce storefronts enable the company to attract a significantly diversified level of sales from all over the world, ensuring the company is not overly reliant on any single market or sector for the company’s sales revenue. Furthermore, many products the company sells require subscription-based services which allow the company to increase its recurring revenue airtime sales.
With consumer behavior drastically changing because of COVID-19, e-commerce traffic witnessed double-digit gains in 2021 and 2020, respectively, as stores closed, and shoppers used digital options. This significant change in consumer shopping habits resulted in a substantial increase of U.S., EU and the U.K. consumers electing to shop online. Starting in 2021, senior management of the company invested in a comprehensive systems upgrade project with the goal of building a state-of-the-art e-commerce platform. This implementation is substantially complete, and the company is collaborating with businesses to optimize their ability to sell their goods online, domestically, and internationally, enabling customers and partners to optimize their e-commerce presence and revenue.
Competition
The competitors for the company’s satellite telecommunications services and products are other resellers of leading satellite networks such as Iridium, Inmarsat, Thuraya and Globalstar, some of which are also the company’s suppliers.
Business Strategy
The company’s strategies include increased product offerings; marketplace expansion; government sourced revenue; product innovation; future acquisitions; and e-commerce platforms.
Healthcare Operations Business
The company’s healthcare operations, which are run through the company’s subsidiary, Progressive Care Inc. and its wholly-owned subsidiaries, offers personalized healthcare services and technology that provides prescription pharmaceuticals and risk and data management services to healthcare organizations and providers. Pharmco provides prescription pharmaceuticals, compounded medications, tele-pharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. Through Pharmco, LLC doing business as Pharmcorx (‘Pharmco 901’) and Pharmcorx LTC, Touchpoint RX, LLC doing business as PharmcoRx 1002, LLC (‘Pharmco 1002’), Family Physicians RX, Inc. doing business as PharmcoRx 1103 and PharmcoRx 1204 (‘FPRX’ historically or ‘Pharmco 1103’ and ‘Pharmco 1204’) (pharmacy subsidiaries collectively referred to as ‘Pharmco’) the company also offers certain disease testing and vaccinations.
The company offers services in a variety of languages, including English, Spanish, French, Creole, Portuguese, Ukrainian and Russian.
The company’s services are designed to provide satisfaction across all medication stakeholders and enhance loyalty and key performance metrics. The company offers value-added services at no additional charge including prior authorization assistance, same-day home-medication delivery, on site provider consultation services, primary care reporting and analytics, and customized packaging solutions. The pharmacies accept most major insurance plans and provide access to co-pay assistance programs to income qualified patients, discount and manufacturer coupons, and competitive cash payment options.
Products and Services
The company enhances patient adherence to complex drug regimens, collect and report data, and ensure effective dispensing of medications to support the needs of patients, providers, and payors. The company’s patient and provider support services ensure appropriate drug initiation, facilitate patient compliance and adherence, and capture important information regarding safety and effectiveness of the medications that the company dispenses.
Pharmco is rated by pharmacy benefit managers (‘PBMs’) based on its ability to adequately supply chronic care medications to patients during a measurement period. This score is then compared to the scores of other pharmacies in the network at which point a relative rating is issued. For the year ended December 31, 2023, per EQuIPP, a performance information management tool that provides standardized, benchmarked data to help shape strategies and guide medication-related performance improvement, the company’s performance score was Five Stars, ranking the company’s pharmacy among the top pharmacies in the U.S. Primary care physicians may refer patients to pharmacies that have high performance scores, though patients retain the right to have their prescriptions dispensed by a network of pharmacies of their choice.
Through the company’s wholly owned subsidiary, ClearMetrX, the company offers data management and reporting services to support health care organizations. There are substantial restrictions in federal and state laws on the use and sharing of patient data and ClearMetrX is in compliance with such laws. The ClearMetrX offerings include data management and Third-Party Administration (‘TPA’) services for 340B covered entities, pharmacy data analytics, and programs to manage HEDIS Quality Measures including Medication Adherence. These offerings cater to the glaring need for frontline providers to understand best practices, patient behaviors, care management processes, and the financial mechanisms behind these decisions. The company provides data access and actionable insights that providers and support organizations can use to improve their practice and patient care.
Pharmco also provides contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program. Under the terms of these agreements, the company acts as a pass through for third-party payor reimbursements on prescription claims adjudicated on behalf of each 340B covered entity and receive a dispensing fee per prescription. These dispensing fees vary by the 340B covered entity and the level of service provided by the company.
For the company’s long-term care (‘LTC’) customers, Pharmco provides purchasing, repackaging and dispensing of both prescription and non-prescription pharmaceutical products. Pharmco utilizes a unit-of-dose packaging system as opposed to the traditional vials as this method of distribution is the industry best practice standard. Pharmco is equipped for various types of unit-of-dose packaging options to meet the needs of LTC patients and retail customers. Pharmco uses the same robotic packaging systems used by chain, mail order, and large-scale pharmacies. Pharmco also provides computerized maintenance of patient prescription histories, third-party billing and consultant pharmacist services. Pharmco’s consultant pharmacist services consist primarily of evaluation of monthly patient drug therapy and monitoring the LTC institution’s drug distribution system.
Medication therapy management (‘MTM’) involves review and adjustment of prescribed drug therapies to improve patient health outcomes for patients with multiple prescriptions. This process includes several activities such as performing patient assessments, creating medication treatment plans, monitoring the effectiveness of and adherence to prescribed therapies, and delivering documentation of these services to the patient’s physician to coordinate comprehensive care.
Distribution Methods
The company delivers prescriptions throughout Florida and ship medications to residents in those states where the company holds non-resident pharmacy licenses. The company holds Florida Community Pharmacy Permits at all Florida pharmacy locations and the company’s Pharmco 901 location is licensed as a non-resident pharmacy in the following states: Arizona, Colorado, Connecticut, Georgia, Illinois, Minnesota, Nevada, New Jersey, New York, Pennsylvania, Texas, and Utah. The company can dispense to patients in the state of Massachusetts without a non-resident pharmacy license because Massachusetts does not require such a license for these activities.
Pharmco subsidiaries are full-service retail specialty services pharmacies that offer same-day free delivery within Florida.
Growth Strategy
The company’s key growth strategies include data management services; investing in sales and marketing; and selectively pursue growth through strategic acquisitions.
Competition
In the Specialty Pharmacy Services segment, the company competes with several national and regional specialty pharmacy companies that have substantial financial resources and which also provide products and services to the chronically ill, such as CVS Caremark, Express Scripts, Humana, Optum and Walgreens.
Some of the company’s primary competitors, such as Omnicare and Walgreens, have a substantially larger market share than the company’s existing market share.
Regulatory Matters
The company conducts ongoing educational programs to inform employees regarding compliance with relevant laws and regulations and maintain a formal reporting procedure to disclose possible violations of these laws and regulations to the Office of Inspector General (‘OIG’) of the U.S. Department of Health and Human Services.
Federal and state-controlled substance laws require the company to register its pharmacies with the U.S. Drug Enforcement Administration (‘DEA’) and to comply with security, record keeping, inventory control, labeling standards and other requirements to dispense controlled substances.
Suppliers
The company’s primary supplier for the years ended December 31, 2023 was McKesson.
History
The company was formerly known as Orbsat Corp. and changed its name to NextPlat Corp in 2022.
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