XML 45 R27.htm IDEA: XBRL DOCUMENT
v3.25.1

Note 19 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | Note 19. Income Taxes The Company accounts for income taxes under ASC Topic 740: Income Taxes which requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry forwards. ASC Topic 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets. The components of earnings before income taxes for the years ended December 31, 2024 and 2023 were as follows (in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Net loss after loss in equity method investment and before income taxes: |  |  |  |  |  |  |  |
Domestic |  | $ | (23,280 | ) |  | $ | (12,672 | )
Foreign |  |  | 226 |  |  |  | 293 |
|  | $ | (23,054 | ) |  | $ | (12,379 | )
Income tax provision consisted of the following for the years ended December 31, 2024 and 2023 (in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Income tax provision: |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | (11 | )
State |  |  | — |  |  |  | — |
Foreign |  |  | 71 |  |  |  | 39 |
Total current |  |  | 71 |  |  |  | 28 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |
State |  |  | — |  |  |  | — |
Foreign |  |  | — |  |  |  | — |
Total deferred |  |  | — |  |  |  | — |
Total income tax provision |  | $ | 71 |  |  | $ | 28 |
The Company’s wholly owned subsidiary, GTC, is a United Kingdom (“UK”) Limited Company and files tax returns in the UK. Its estimated tax liability for December 31, 2024 and 2023 is approximately $56,000 and $60,000, respectively. A reconciliation of the income tax provision (benefit) by applying the statutory United States federal income tax rate to income (loss) before income taxes is as follows (in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Federal income tax provision at statutory rate |  | $ | (1,666 | ) |  | $ | (2,655 | )
Deferred state income taxes, net |  |  | (293 | ) |  |  | — |
Provision true-up adjustments |  |  | 72 |  |  |  | (488 | )
Foreign taxes at rate different than US Taxes |  |  | 70 |  |  |  | 60 |
Net operating loss deduction |  |  | — |  |  |  | (310 | )
Permanent differences |  |  | 142 |  |  |  | (22 | )
Other true-ups |  |  | 4 |  |  |  | 99 |
Change in valuation allowance |  |  | 1,742 |  |  |  | 3,344 |
Income tax provision |  | $ | 71 |  |  | $ | 28 |
Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset is as follows (in thousands):
|  | December 31, 2024 |  |  | December 31, 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 9,625 |  |  | $ | 8,016 |
Property plant and equipment and intangibles asset |  |  | 280 |  |  |  | 327 |
Equity method investment loss |  |  | 806 |  |  |  | 806 |
Accounts receivable |  |  | 33 |  |  |  | — |
Inventory |  |  | 17 |  |  |  | — |
Right-of-use assets |  |  | 171 |  |  |  | — |
Other tax carry-overs |  |  | — |  |  |  | 613 |
Reserves and allowances |  |  | — |  |  |  | 85 |
Stock-based compensation |  |  | 4,177 |  |  |  | 3,861 |
Interest limitation |  |  | 619 |  |  |  | — |
Total deferred tax assets |  |  | 15,728 |  |  |  | 13,708 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Book basis of intangible assets in excess of tax basis |  |  | 150 |  |  |  | 3,650 |
Lease liabilities |  |  | 181 |  |  |  | — |
Total deferred tax liabilities |  |  | 331 |  |  |  | 3,650 |
Net deferred tax asset before valuation allowance |  |  | 15,397 |  |  |  | 10,058 |
Less: valuation allowance |  |  | (15,397 | ) |  |  | (10,058 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
Nextplat Corp’s net operating loss carryforward (“NOL carryforward”) increased from approximately $17.8 million at December 31, 2023 to $21.7 million at December 31, 2024. Out of the approximately $21.7 million NOL carryforward, approximately $2.9 million will begin to expire in 2032 and approximately $18.8 million will have an indefinite life. Progressive Care, LLC has an NOL carryforward of approximately $16.4 million. However, the Company has not performed an IRC Section 382 analysis of the Progressive Care NOL carryforward, so it is not known as this time the amount of the NOL carryforward available to offset NextPlat future taxable income. IRC Section 382 imposes a limitation on a company to use historical NOLs and certain other tax attributes in the event of an ownership change. After consideration of all the evidence, both positive and negative, management has recorded a full valuation allowance at December 31, 2024 and 2023, due to the uncertainty of realizing the deferred income tax assets. The change in the valuation allowance for 2024 was an increase of approximately $5.4 million. The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. U.S. federal income tax returns for 2021 and after remain open to examination. Generally, foreign income tax returns after 2020 remain open to examination. No income tax returns are currently under examination. As of December 31, 2024 and 2023, the Company does not have any unrecognized tax benefits, and continues to monitor its current and prior tax positions for any changes. The Company recognizes penalties and interest related to unrecognized tax benefits as income tax expense. For the years ended December 31, 2024 and 2023, there were no penalties or interest recorded in income tax expense.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration