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Note 20 - Leases | 12 Months Ended
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Dec. 31, 2024
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | Note 20. 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. Finance Lease Agreements In May 2018, Progressive Care entered into a finance lease obligation to purchase pharmacy equipment with a cost of approximately $115,000. The terms of the lease agreement require monthly payments of approximately $1,700 plus applicable tax over 84 months ending March 2025 including interest at the rate of 6%. Operating Lease Agreements On December 2, 2021, Nextplat entered into a 62-month lease for 4,141 square feet of office space in Florida (“Florida lease”), for approximately $186,000 annually. The rent increases 3% annually. The lease commenced upon occupancy on June 13, 2022, and will expire on August 31, 2027. The Florida lease does not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. For our facilities in Poole, England, we rent office and warehouse space of approximately 2,660 square feet for £30,000 annually or approximately USD $37,100, based on a yearly average exchange rate of 1.24 GBP: USD. The Poole lease was renewed on October 6, 2022, and expired October 31, 2023 and renewed for an additional twelve months. On August 1, 2024 we relocated from our previous location in Poole, England to a new facility in Poole and entered into a new lease for office and warehouse space. This is a three-year lease and expires on July 31, 2027. The annual rent is approximately £14,000 through July 31, 2025, approximately £30,000 through July 31, 2026, and approximately £26,000 through July 31, 2027. Outfitter rents office space at 2727 Old Elm Hill Pike, Nashville, Tennessee. The lease was entered into and commenced in April 2024 with an expiration date of April 2026. The lease agreement calls for monthly payments of approximately $4,800. Progressive Care entered into a lease agreement for its Orlando pharmacy in August 2020. The term of the lease is 66 months with a termination date of February 2026. The lease agreement calls for monthly payments that began in February 2021, of $4,310, with an escalating payment schedule each year thereafter. Progressive Care leases its North Miami Beach pharmacy location under an operating lease agreement with a lease commencement date in September 2021. The term of the lease is 60 months with a termination date in August 2026. The lease calls for monthly payments of $5,237, with an escalating payment schedule each year thereafter. Progressive Care also leases its Palm Beach County pharmacy locations under operating lease agreements expiring in February 2025. During June 2023 Nextplat entered into a 36-months lease to lease twenty-five (25) hours in a Phenom 300 aircraft, for approximately $200,650 annually. The rent increases 3% annually. The lease commenced on June 7, 2023. In June 2024, NextPlat terminated the lease and paid a lease termination fee in the amount of $0.1 million. The remaining carrying value, net of the ROU asset and liability in the amount of $0.1 million, was written off and recorded in asset write-off on the Consolidated Statements of Comprehensive Loss. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. Right-of-use assets for operating leases are periodically reduced by impairment losses. We use the long-lived assets impairment guidance in ASC Subtopic 360-10, Property, Plant, and Equipment – Overall, to determine whether an ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company recorded approximately $0.1 million of impairment loss related to the write-down of a right-of-use asset as a result of taking the leased equipment out of service and not returning to service in the future. This was recorded to the Healthcare Operations reporting segment for the year ended December 31, 2024. We monitor for events or changes in circumstances that require a reassessment of one of our leases. When a reassessment results in the re-measurement 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. We recognized lease costs associated with all leases as follows (in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Operating lease cost: |  |  |  |  |  |  |  |
Fixed rent expense |  | $ | 603 |  |  | $ | 427 |
Variable rent expense |  |  | 65 |  |  |  | 111 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 20 |  |  |  | 15 |
Interest expense |  |  | 1 |  |  |  | 1 |
Total Lease Costs |  | $ | 689 |  |  | $ | 554 |
Supplemental cash flow information related to leases was as follows (in thousands):
|  | Years Ended December 31, |
|  | 2024 |  |  | 2023 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 427 |  |  | $ | 464 |
Financing cash flows from finance leases |  |  | 24 |  |  |  | 15 |
Total cash paid for lease liabilities |  | $ | 451 |  |  | $ | 479 |
Supplemental balance sheet information related to leases was as follows (in thousands):
|  | December 31, 2024 |  |  | December 31, 2023 |
Operating leases: |  |  |  |  |  |  |  |
Operating lease right-of-use assets, net |  | $ | 812 |  |  | $ | 1,566 |
Operating lease liabilities: |  |  |  |  |  |  |  |
Current portion |  |  | 404 |  |  |  | 532 |
Long-term portion |  |  | 438 |  |  |  | 929 |
|  | $ | 842 |  |  | $ | 1,461 |
Weighted average remaining lease term (years) |  |  | 2.25 |  |  |  | 2.96 |
Weighted average discount rate |  |  | 4.21 | % |  |  | 4.65 | %
Finance leases: |  |  |  |  |  |  |  |
Finance lease right-of-use assets, net |  | $ | 5 |  |  | $ | 22 |
Finance lease liabilities: |  |  |  |  |  |  |  |
Current portion |  |  | 5 |  |  |  | 18 |
Long-term portion |  |  | — |  |  |  | 5 |
|  | $ | 5 |  |  | $ | 23 |
Weighted average remaining lease term (years) |  |  | 0.24 |  |  |  | 1.25 |
Weighted average discount rate |  |  | 6.00 | % |  |  | 6.00 | %
Future minimum lease payments are as follows (in thousands):
Years Ending December 31, |  | Finance Lease |  |  | Operating Lease |  |  | Total Future Lease Commitments |
2025 |  | $ | 5 |  |  | $ | 431 |  |  | $ | 436 |
2026 |  |  | — |  |  |  | 314 |  |  |  | 314 |
2027 |  |  | — |  |  |  | 137 |  |  |  | 137 |
2028 |  |  | — |  |  |  | — |  |  |  | — |
Total lease payments to be paid |  |  | 5 |  |  |  | 882 |  |  |  | 887 |
Less: future interest expense |  |  | — |  |  |  | (40 | ) |  |  | (40 | )
Lease liabilities |  |  | 5 |  |  |  | 842 |  |  |  | 847 |
Less: current maturities |  |  | (5 | ) |  |  | (404 | ) |  |  | (409 | )
Long-term portion of lease liabilities |  | $ | — |  |  | $ | 438 |  |  | $ | 438 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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