Progressive Care Inc. Announces Record First Quarter 2024 Revenues of $14.6 Million, an Increase of 28% Over First Quarter 2023 Results 340B Contract Service Revenue Grows 110% as New Contract Momentum Continues

May 15, 2024

Miami, FL May 15, 2024 – ProgressiveCare Inc. (OTCQB: RXMD) (“Progressive Care” or the “Company”), a personalized healthcare services and technology provider, today announced financial results for its first quarter ended March31, 2024. The Company reported record first quarter revenues of approximately$14.6 million, a 28% increase compared to revenues reported in the first quarter of 2023. The results reflect continues increases in prescription volumes and revenue generated from multiple 340B service contracts secured late last year.


“First quarter results clearly demonstrate the continued positive momentum in our business, highlighted by considerable growth in our 340B contract services segment. Our ability to deliver highly specialized care for patients and create enhanced value for providers remains critical to our success, attributes we believe will allow us to further expand our long-term care and OTC business going forward,” said Charles M. Fernandez, Chairman and CEO of Progressive Care Inc. “Furthermore, through the recently proposed merger with NextPlat Corp, we believe that Progressive Care will have the opportunity to leverage additional capabilities and resources, further supporting its growth into new and existing healthcare markets throughout the remainder of 2024 and beyond.”


First Quarter 2024 Financial Highlights:


● Total revenues increased by approximately  $3.2 million, or 28%, to approximately $14.6 million  during the three months ended March 31, 2024, compared to approximately  $11.4 million in the prior year period.

● Prescription revenue, net of PBM fees, increased  by approximately $1.6 million, or 16%, to approximately  $11.3 million during the first quarter of 2024, compared to approximately  $9.8 million in the prior year period.

● 340B  contract revenue was approximately $3.3 million during the first  quarter of 2024, an increase of approximately  $1.7 million, compared to approximately $1.6 million in the  prior year period. The increase was attributable to an increase in our  existing 340B contracts of approximately $1.1 million and an increase in  new 340B contract revenue of approximately $0.6 million.

● Overall gross profit margin in the first  quarter of 2024 was approximately 27% versus approximately 28% in the first  quarter of 2023. The unfavorable significant increase in drug costs per  prescription negatively impacted our overall gross profit margin.

● Cash balance as of March 31, 2024  was approximately $5.5 million as compared  to approximately $7.9 million as of December 31, 2023.


Organizational Highlights and Recent Business Developments:


● On April 12,  2024, NextPlat Corp (NASDAQ: NXPL, NXPLW) (“NextPlat”) announced a proposed business combination with Progressive Care  in an all-stock transaction which is expected to provide revenue synergies  and significant initial annual operating cost reductions. The transaction has  been unanimously approved by the Board of Directors of both NextPlat and  Progressive Care and is expected to close in the third quarter of 2024,  subject to regulatory and stockholder approvals, and other customary closing  conditions. On July 1, 2023, NextPlat, Mr. Fernandez, Chairman and Chief  Executive Officer of the Company, and Mr. Rodney Barreto, Vice-Chairman of  the Company, exercised their common stock purchase warrants in Progressive  Care and collectively owned 53% of Progressive Care's voting common stock.

● PharmcoRx added  several additional 340B contracts during late fiscal 2023 as it continued to  support the unique needs of 340B covered entities. For the quarter ended  March 31, 2024, approximately $0.9 million of the $1.7 million increase in  340B contract revenue was attributable to new 340B contracts, with the  remaining $0.8 million increase attributable to existing 340B contracts.

● During the  first quarter of 2024, the Company began ramping-up additional sales and  marketing activities targeting the long-term care market in South Florida,  engaging a team of dedicated sales personnel.


Summary Financials for the Three Months Ended March31, 2024 and 2023


In connection with the change in control on July 1, 2023, the application ofpush-down accounting created a new basis of accounting for all assets andliabilities based on their fair value at the date of acquisition. As a result, our financial results of operations subsequent to the acquisition on July1, 2023 have been segregated to indicate pre-acquisition and post-acquisitionperiods. The pre-acquisition period through June 30, 2023 is referred to as the“Predecessor”. The post-acquisition period, July 1, 2023 and forward, includesthe impact of push-down accounting and is referred to as the “Successor”.


 We recognized overall revenue from operations of approximately $14.6 millionand $11.4 million during the three months ended March 31, 2024 and 2023,respectively, an overall increase of approximately $3.2 million, or28%. The increase in revenue was primarily attributable to an increase inprescription revenue, net of PBM fees of approximately $1.6 millionand an increase in 340B contract revenue of approximately $1.7 million,which was offset by a decrease in COVID-19 testing revenue ofapproximately $45,000, when compared to the prior year period.


Overall gross profit margins decreased from 28% for the three months ended March31, 2023 to 27% for the three months ended March 31, 2024. The increase ingross profit of approximately $0.9 million was primarily attributable to (i) a favorable increase in reimbursement rates per prescriptionof approximately $1.0 million, which was offset by theunfavorable increase in drug cost per prescription of approximately $1.9million; (ii) a favorable increase in pharmacy prescription volume ofapproximately $0.1 million; and (iii) a favorable increase in 340B contractrevenue of approximately $1.7 million. The unfavorable significant increase in drug cost per prescription, negatively impacted our overall gross profitmargin.


Loss from operations was approximately $0.4 million for the three months endedMarch 31, 2024, compared to an income from operations of approximately $14,000for the three months ended March 31, 2023, a decrease of approximately$0.4 million primarily attributable to the increase in operating expenses,partially offset by the increase in gross profits. See below for furtherexplanation relating to the increase in operating expenses.


Financial Results for the three months ended March 31, 2024




We have filled approximately 134,000 and 120,000 prescriptions during thethree months ended March 31, 2024 and 2023, respectively, resulting in afavorable impact on prescription revenue of approximately $0.6million. Revenue per prescription filled was also favorably impacted bythe increase of reimbursement rates per prescription of approximately $1.0million, when compared to the prior year period.


Dispensing fees and TPA revenue earned on our 340B contracts for the three months endedMarch 31, 2024 and 2023 were approximately $3.3 million and$1.6 million, respectively, an increase of approximately$1.7 million. The increase in 340B contract revenue was attributable to anincrease in our existing 340B contracts of approximately $0.8 million andan increase in new 340B contract revenue of approximately $0.9 million.


Operating Expenses


Our operating expenses increased by approximately $1.3 million, or 41%, forthe three months ended March 31, 2024, as compared to the prior year period.The increase was primarily attributable to the following:


● approximately  $0.7 million increase in the amortization of newly identifiable intangible  assets as a result of the push-down accounting;


● approximately  $0.5 million increase in salaries and wages due to a combination of  performance-based salary adjustments and additional headcount, net of  attrition due to normal employee turnover;


● approximately  $0.1 million of impairment loss related to the write-down of  a right-of-use asset; and


● approximately  $0.1 million increase in computer expenses.



During the three months ended March 31, 2024, the right-of-use asset impairment was aresult of taking the leased equipment out of service and not returning toservice in the future.


Other Income (Expense)


Otherincome (expense) increased by approximately $0.2 million for the threemonths ended March 31, 2024, as compared to the prior year period, primarilyattributable to the decrease in interest expense as a result of the decrease innotes payable.


Net Loss


We had a net loss of approximately $0.4 million and $0.1 million for thethree months ended March 31, 2024 and 2023, respectively. The increase in netloss was primarily attributable to the decrease in operating income.


QuarterlyReport on Form 10-Q Available


TheCompany’s Quarterly Report on Form 10-Q, available at and on theCompany’s website, contains a thorough review of its financial results for thethree months ended March 31, 2024.




Forward-LookingStatements contained herein that are not based upon current or historical factare forward-looking in nature and constitute forward-looking statements withinthe meaning of Section 27A of the Securities Act of 1933 and Section 21E of theSecurities Exchange Act of 1934. Such forward-looking statements reflect theCompany’s expectations about its future operating results, performance, andopportunities that involve substantial risks and uncertainties. When usedherein, the words “anticipate,” “believe,” “estimate,” “upcoming,” “plan,”“target,” “intend” and “expect” and similar expressions, as they relate toProgressive Care Inc., its subsidiaries, or its management, are intended toidentify such forward-looking statements. These forward-looking statements arebased on information currently available to the Company and are subject to anumber of risks, uncertainties, and other factors discussed in our AnnualReport on Form 10-K and other SEC filings that could cause the Company’s actualresults, performance, prospects, and opportunities to differ materially fromthose expressed in, or implied by, these forward-looking statements. You shouldnot rely on these forward-looking statements, as actual outcomes and resultsmay differ materially from those expressed or implied in the forward-lookingstatements as a result of such risks and uncertainties. All forward-lookingstatements in this press release are based on management’s beliefs andassumptions and on information currently available to Progressive Care, andProgressive Care does not assume any obligation to update the forward-lookingstatements provided to reflect events that occur or circumstances that existafter the date on which they were made.


AboutProgressive Care


ProgressiveCare Inc. (OTCQB: RXMD) through its subsidiaries, is a Florida health servicesorganization and provider of Third-Party Administration (TPA), data management,COVID-19 related diagnostics and vaccinations, 340B contracted pharmacyservices, prescription pharmaceuticals, compounded medications, provider oftele-pharmacy services, the sale of anti-retroviral medications, medicationtherapy management (MTM), the supply of prescription medications to long-termcare facilities, and health practice risk management. Progressive Care, Inc.became a subsidiary of NextPlat Corp. (NASDAQ: NXPL & NXPLW) on July 1,2023.


InvestorContact for Progressive Care