LEGAL PROCEEDINGS
+Added: On March 17, 2025, a former employee of Pharmco LLC, a wholly owned subsidiary of the Company, filed a lawsuit against Pharmco LLC, asserting claims under the Equal Employment Opportunity Commission (EEOC) regulations.
+Added: On October 14, 2025, the Company reached a Settlement Agreement with the plaintiff to resolve all claims.
+Added: The settlement was fully covered by the Company’s insurance policy, and the insurer remitted payment directly to the plaintiff on the Company’s behalf.
On October 28, 2024, Alan Jay Weisberg, the former Chief Executive Officer and Chairman of Progressive Care Inc.
(“RXMD”), filed a putative class action suit on behalf of himself and all other former RXMD stockholders against NextPlat, Charles M.
−Removed: Fernandez, the Chief Executive Officer and a director of NextPlat, and Rodney Barreto, a director of NextPlat.
+Added: Fernandez, the former Chief Executive Officer and director of NextPlat, and Rodney Barreto, a director of NextPlat.
The complaint purports to allege a breach of fiduciary duty by NextPlat and Messrs.
−Removed: Fernandez and Barreto in connection with the merger of RXMD with and into a wholly-owned subsidiary of NextPlat (the “Merger”), which Merger was completed on October 1, 2024 following approval by the stockholders of each of NextPlat and RXMD in stockholder meetings held on September 13, 2024 by NextPlat and RXMD, respectively.
+Added: Fernandez and Barreto in connection with the merger of RXMD with and into a wholly owned subsidiary of NextPlat (the “Merger”), which Merger was completed on October 1, 2024 following approval by the stockholders of each of NextPlat and RXMD in stockholder meetings held on September 13, 2024 by NextPlat and RXMD.
Among other things, the complaint asserts that the consideration paid to Mr.
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Fernandez, Rodney Barreto and Nextplat Corp., and the case number is C.A.
−Removed: The Company’s management does not believe that the Weisberg’s claim is meritorious and plans to vigorously defend against the suit.
−Removed: The Company is in the process of preparing a response to the complaint and has filed a motion to dismiss the complaint.
−Removed: On October 15, 2024, the Company settled its ongoing lawsuit with Mr.
−Removed: Thomas Seifert, the Company’s former Chief Financial Officer.
−Removed: Under the terms of the settlement, the Company agreed to pay to Mr.
−Removed: Seifert $150,000 and to reimburse him for legal costs in the amount of $600,000.
−Removed: In exchange, the Company and Mr.
−Removed: Seifert each agreed to dismiss the lawsuit with prejudice and to release the other party from all claims.
−Removed: On June 17, 2024, Progressive Care was notified of a potential claim that a former employee allegedly suffered a loss due to an alleged breach by Progressive Care of an employment contract with the former employee.
−Removed: Management believes, based on discussions with its legal counsel, that Progressive Care has meritorious defenses against the former employee’s claim.
−Removed: Since receipt of the notice of claim, Progressive Care filed a petition for arbitration against the former employee, asserting that it was the employee who breached the employment contract.
−Removed: Progressive Care will prosecute its claims and will defend any counterclaims vigorously as Progressive Care believes it will prevail on the merits.
−Removed: At this time, we cannot reasonably estimate the amount of the loss.
+Added: The Company believes the claims asserted in the action are without merit and intends to continue to vigorously defend against the lawsuit.
+Added: The Company has filed a motion to dismiss the complaint.
+Added: Although the parties have engaged in discussions regarding a potential resolution of the matter, no agreement has been reached and there can be no assurance that the matter will be resolved on acceptable terms or at all.
+Added: Based on currently available information and after consultation with legal counsel, management determined that a loss associated with this matter is probable and reasonably estimable in accordance with applicable accounting guidance.
+Added: Accordingly, as of December 31, 2025, the Company recorded an accrual of approximately $1.75 million, which represents management’s current estimate of loss exposure and corresponds to the Company’s applicable insurance retention under its directors’ and officers’ liability insurance coverage.
+Added: The ultimate outcome of the matter remains uncertain, and the actual loss could differ materially from the amount accrued.
+Added: Any such difference could have a material effect on the Company’s consolidated financial condition, results of operations, and cash flows in the period in which the matter is resolved.
+Added: On June 17, 2024, Progressive Care was notified of a potential claim that a former employee (the “Claimant”) allegedly suffered a loss due to an alleged breach by Progressive Care of an employment contract with the Claimant.
+Added: Following receipt of the notice of claim, Progressive Care filed a petition for arbitration against the Claimant, asserting that it was the Claimant who breached the employment contract.
+Added: On November 7, 2025, Progressive Care entered into a Settlement Agreement (the “Settlement Agreement”) with the Claimant to resolve all disputes related to the employment and the arbitration proceeding.
+Added: The details of the Settlement Agreement are disclosed below in the section entitled “ Item 9B.
+Added: Other Information.
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.
−Removed: Other than the matter described above, 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.
+Added: Other than the matters described above, 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, operating results, and cash flows.
MINE SAFETY DISCLOSURES
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.