NextPlat (NXPL) 10-Q 15 Aug 22 2022 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2022	Aug. 15, 2022
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	001-40447
Entity Registrant Name	NEXTPLAT CORP
Entity Central Index Key	0001058307
Entity Tax Identification Number	65-0783722
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	3250 Mary St.
Entity Address, Address Line Two	Suite 410
Entity Address, City or Town	Coconut Grove
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33133
City Area Code	(305)
Local Phone Number	560-5355
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,508,096
Common Stock, par value $0.0001
Title of 12(b) Security	Common Stock, par value $0.0001
Trading Symbol	NXPL
Security Exchange Name	NASDAQ
Warrants [Member]
Title of 12(b) Security	Warrants
Trading Symbol	NXPLW
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash	$ 20,467,722	$ 17,267,978
Accounts receivable, net	344,915	349,836
Inventory	1,370,425	1,019,696
Unbilled revenue	120,816	100,422
VAT receivable	459,541	491,417
Prepaid expenses – current portion	64,523	97,068
Other current assets	2,873	48,539
Total current assets	22,830,815	19,374,956
Property and equipment, net	1,243,631	1,042,859
Right of use	909,908	22,643
Intangible assets, net	62,500	75,000
Prepaid expenses – long term portion	42,424	49,867
Total assets	25,089,278	20,565,325
Current liabilities:
Accounts payable and accrued liabilities	1,085,698	1,063,344
Contract liabilities	27,110	36,765
Note payable Coronavirus loans– current portion	60,825	56,391
Due to related party		35,308
Lease liabilities - current	203,561	19,763
Provision for income taxes	16,876	56,781
Stock subscription payable		1,400,000
Liabilities from discontinued operations	112,397	112,397
Total current liabilities	1,506,467	2,780,749
Long term liabilities:
Note payable Coronavirus loans– long term	187,544	253,757
Lease liabilities - long term	696,426
Total Liabilities	2,390,437	3,034,506
Stockholders’ Equity:
Preferred Stock, $0.0001 par value; 3,333,333 shares authorized
Common stock, ($0.0001 par value; 50,000,000 shares authorized, 9,293,096 shares issued and outstanding as of June 30, 2022 and 7,053,146 outstanding at December 31, 2021, respectively)	929	705
Additional paid-in capital	47,206,953	39,513,093
Accumulated (deficit)	(24,492,159)	(21,986,215)
Accumulated other comprehensive income (loss)	(16,882)	3,236
Total stockholders’ equity	22,698,841	17,530,819
Total liabilities and stockholders’ equity	$ 25,089,278	$ 20,565,325

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2022	Dec. 31, 2021	Jul. 24, 2019	Mar. 05, 2016	Mar. 04, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	3,333,333	3,333,333	50,000,000	50,000,000	20,000,000
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	50,000,000	50,000,000	750,000,000	750,000,000	200,000,000
Common Stock, Shares, Issued	9,293,096	7,053,146
Common Stock, Shares, Outstanding	9,293,096	7,053,146

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Net sales	$ 2,871,479	$ 1,956,260	$ 6,449,257	$ 3,417,688
Cost of sales	2,304,090	1,414,770	5,080,775	2,438,681
Gross profit	567,389	541,490	1,368,482	979,007
Operating expenses:
Selling, general and administrative	1,160,855	282,006	1,735,205	443,696
Salaries, wages and payroll taxes	670,797	479,538	1,306,373	687,712
Professional fees	156,990	256,034	483,203	548,916
Depreciation and amortization	111,996	73,248	211,565	146,948
Total operating expenses	2,100,638	1,090,826	3,736,346	1,827,272
Loss before other expenses and income taxes	(1,533,249)	(549,336)	(2,367,864)	(848,265)
Other (income) expense
Gain on debt extinguishment		(20,832)		(20,832)
Interest earned	(4,616)		(9,572)
Interest expense	3,681	940,907	6,924	1,461,601
Foreign currency exchange rate variance	123,547	(11,017)	140,728	(27,498)
Total other (income) expense	122,612	909,058	138,080	1,413,271
Net loss	(1,655,861)	(1,458,394)	(2,505,944)	(2,261,536)
Provision for income taxes
Net loss	(1,655,861)	(1,458,394)	(2,505,944)	(2,261,536)
Comprehensive Income:
Net loss	(1,655,861)	(1,458,394)	(2,505,944)	(2,261,536)
Foreign currency translation adjustments	(4,788)	(14,345)	(20,118)	(12,734)
Comprehensive loss	$ (1,660,649)	$ (1,472,739)	$ (2,526,062)	$ (2,274,270)
NET LOSS INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
Weighted number of common shares outstanding – basic & diluted	9,293,096	5,668,522	9,230,335	5,299,399
Basic and diluted net loss per share	$ (0.18)	$ (0.26)	$ (0.27)	$ (0.43)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Comprehensive Income [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 82	$ 14,486,492	$ (13,878,553)	$ (42,832)	$ 565,189
Beginning balance, shares at Dec. 31, 2020	817,450
Issuance of common related to offering	$ 288	12,661,696			12,661,984
Issuance of common related to offering, shares	2,880,000
Comprehensive loss				(12,734)	(12,734)
Net loss			(2,261,536)		(2,261,536)
Issuance common stock from convertible debt	$ 135	1,644,132			1,644,267
Issuance common stock from convertible debt, shares	1,345,468
Issuance of common for over-allotment	$ 43	1,983,226			$ 1,983,269
Issuance of common for over-allotment, shares					432,000
Issuance of warrants for over-allotment		4,320			$ 4,320
Issuance of common stock from exercise warrant		5,000			$ 5,000
Issuance of common stock from exercise of warrant, shares					1,000
Issuance of common for services		14,200			$ 14,200
Issuance of common for services, shares					1,000
Beneficial conversion feature of convertible debt		340,420			$ 340,420
Ending balance, value at Jun. 30, 2021	$ 548	31,139,486	(16,140,089)	(55,566)	14,944,379
Ending balance, shares at Jun. 30, 2021	5,476,918
Beginning balance, value at Dec. 31, 2020	$ 82	14,486,492	(13,878,553)	(42,832)	565,189
Beginning balance, shares at Dec. 31, 2020	817,450
Ending balance, value at Dec. 31, 2021	$ 705	39,513,093	(21,986,215)	3,236	17,530,819
Ending balance, shares at Dec. 31, 2021	7,053,146
Beginning balance, value at Mar. 31, 2021	$ 124	15,299,161	(14,681,695)	(41,221)	576,369
Beginning balance, shares at Mar. 31, 2021	1,236,887
Issuance of common related to offering	$ 288	12,661,696			12,661,984
Issuance of common related to offering, shares	2,880,000
Comprehensive loss				(14,345)	(14,345)
Net loss			(1,458,394)		(1,458,394)
Issuance common stock from convertible debt	$ 93	1,186,083			1,186,176
Issuance common stock from convertible debt, shares	927,031
Issuance of common for over-allotment	$ 43	1,983,226			$ 1,983,269
Issuance of common for over-allotment, shares					432,000
Issuance of warrants for over-allotment		4,320			$ 4,320
Issuance of common stock from exercise warrant		5,000			$ 5,000
Issuance of common stock from exercise of warrant, shares					1,000
Ending balance, value at Jun. 30, 2021	$ 548	31,139,486	(16,140,089)	(55,566)	$ 14,944,379
Ending balance, shares at Jun. 30, 2021	5,476,918
Beginning balance, value at Dec. 31, 2021	$ 705	39,513,093	(21,986,215)	3,236	17,530,819
Beginning balance, shares at Dec. 31, 2021	7,053,146
Issuance of common related to offering	$ 223	7,004,815			7,005,038
Issuance of common related to offering, shares	2,229,950
Issuance of common related to restricted stock award	$ 1	34,799			34,800
Issuance of common related to restricted stock award, shares	10,000
Stock based compensation in relation to restricted stock award		654,246			654,246
Comprehensive loss				(20,118)	(20,118)
Net loss			(2,505,944)		(2,505,944)
Ending balance, value at Jun. 30, 2022	$ 929	47,206,953	(24,492,159)	(16,882)	22,698,841
Ending balance, shares at Jun. 30, 2022	9,293,096
Beginning balance, value at Mar. 31, 2022	$ 929	46,552,707	(22,836,298)	(12,094)	23,705,244
Beginning balance, shares at Mar. 31, 2022	9,293,096
Stock based compensation in relation to restricted stock award		654,246			654,246
Comprehensive loss				(4,788)	(4,788)
Net loss			(1,655,861)		(1,655,861)
Ending balance, value at Jun. 30, 2022	$ 929	$ 47,206,953	$ (24,492,159)	$ (16,882)	$ 22,698,841
Ending balance, shares at Jun. 30, 2022	9,293,096

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,655,861)	$ (1,458,394)	$ (2,505,944)	$ (2,261,536)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation expense			199,065	134,448	$ 292,102
Amortization of intangible asset			12,500	12,500
Amortization of convertible debt, net				1,425,366
Amortization of right to use				15,476
Stock based compensation			689,046	14,200
Gain on debt extinguishment		(20,832)		(20,832)
Change in operating assets and liabilities:
Accounts receivable			4,921	(158,079)
Inventory			(350,729)	(790,536)
Unbilled revenue			(20,394)	(10,171)
VAT receivable			31,876	(279,215)
Prepaid expense			39,988
Other current assets			45,666	(3,664)
Accounts payable and accrued liabilities			22,354	662,022
Lease liabilities			(7,041)	(15,512)
Provision for income taxes			(39,905)	227
Contract liabilities			(9,655)	4,469
Net cash used in operating activities			(1,888,252)	(1,270,837)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(395,245)	(27,248)
Net cash used in investing activities			(395,245)	(27,248)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from convertible note payable				350,000
Proceeds from (repayments) to note payable, related party, net			(35,308)	114,981
Proceeds from common stock offering			5,605,038	12,661,984
Proceeds from warrant offering				1,987,589
Repayments to note payable Coronavirus loans			(30,413)
Proceeds from exercise of warrant				5,000
Repayment of note payable				(121,848)
Net cash provided by financing activities			5,539,317	14,997,706
Effect of exchange rate on cash			(56,076)	(12,734)
Net increase (decrease) in cash			3,199,744	13,686,887
Cash beginning of period			17,267,978	728,762	728,762
Cash end of period	$ 20,467,722	$ 14,415,649	20,467,722	14,415,649	$ 17,267,978
Cash paid during the period for
Interest			6,102	3,228
Income tax			38,555
Non-cash adjustments during the period for
Beneficial conversion feature on convertible debt				340,420
Recognition of operating lease liability			904,744
Conversion of convertible debt into common shares				$ 1,644,268

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements and do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The information furnished reflects all adjustments, consisting only of normal recurring items which are, in the opinion of management, necessary in order to make the financial statements not misleading. The unaudited financial statements for the three and six months ending June 30, 2022, are not necessarily indicative of the results for the remainder of the fiscal year. The consolidated financial statements as of December 31, 2021, have been audited by an independent registered public accounting firm. The accounting policies and procedures employed in the preparation of these condensed consolidated financial statements have been derived from the audited financial statements of the “Company” for the year ended December 31, 2021, which are contained in the Company’s annual report on Form 10-K as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022. The consolidated balance sheet as of December 31, 2021 was derived from those financial statements. Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The consolidated financial statements of the Company include the Company and its wholly-owned subsidiaries, Orbital Satcom Corp, Global Telesat Communications Ltd and NextPlat B.V. All material intercompany balances and transactions have been eliminated in consolidation. . Description of Business Overview 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 a state-of-the-art 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 we expect will become the focus of the Company’s 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 such as Alibaba, Amazon and Walmart. These e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. NextPlat has announced its intention to broaden its e-commerce platform and is implementing comprehensive systems upgrade to support this initiative. The Company has also begun the design and development of a next generation platform for digital assets built for Web3 (an internet service built using decentralized blockchains). This new platform (“NextPlat Digital”) is currently in the design and development phase and will enable the use of a range of digital assets, such as non-fungible tokens (“NFTs”), in e-commerce and in community-building activities. Online Storefronts and E-Commerce Platforms We operate two e-commerce websites offering a range of MSS products and solutions through our subsidiaries, Orbital Satcom, which targets customers in North and South America, and GTC which targets customers in the UK, EU, Middle East, Asia and 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, we plan to develop additional country-specific websites to target customers in South America, Asia and Europe where we anticipate there will be substantial further demand for our products. In addition to our two main e-commerce websites, we make portable satellite voice, data and tracking solutions easier to find and buy online through our various third-party e-commerce storefronts such as Alibaba, Amazon and Walmart. We currently operate 25 storefronts across various countries in 5 continents. We have invested in personnel to translate our listings correctly in the different countries we are represented in and intend to regularly improve and increase our listings on all e-commerce sites. We currently have more than 9,000 product listings on all third-party sites and invest 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. Our Amazon Marketplaces represented approximately 49.5 64.6 63.6 73.3 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 U.K. consumers electing to shop online. During 2021, senior management of the Company determined to invest in a comprehensive systems upgrade project which commenced in September with the goal of building a state-of-the-art e-commerce platform. This implementation is anticipated to be substantially complete within the next six to nine months, and the Company intends 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. NextPlat Digital We intend to develop a next generation platform for digital assets built for Web3, an internet service built using decentralized blockchains. Our new platform (“NextPlat Digital”), which is currently in the design and development phase in collaboration with consultants and contracted developers, will initially enable the use of non-fungible tokens (“NFTs”), in e-commerce and in community-building activities. NextPlat Digital may in the future also enable the posting and use of other digital or “crypto” assets once applicable legal and regulatory requirements are addressed. As currently contemplated, NextPlat Digital will facilitate the creation/minting, purchase and sale of a broad range of non-yield-generating and non-fractionalized NFT products, including, but not limited to, art, music, collectables, digital real estate, video games, game items and certificates of authenticity. We also anticipate developing and deploying NFTs for use in tokenizing data for use in brand loyalty programs. NextPlat Digital, as currently planned, will be used by us to create both (a) public marketplaces, for us and third-parties, where anyone with a crypto wallet or credit card can buy an NFT from an authorized user, or, if authorized, sell their own NFTs, and (b) private market places that only allow a particular company or entity to sell their own NFTs within a branded market (such as for the promotion of a particular brand or product). We anticipate that NextPlat Digital will be substantially complete within the next six to nine months. The legal status of NFTs under a myriad of state and federal laws and regulatory regimes (including securities, banking, and commodities laws) is highly uncertain and unresolved, and the applicability of various of those regimes to any NFTs that we may propose to post on our platform is also unresolved. Our creation and operation of NextPlat Digital will present a number of new regulatory and legal compliance obligations for the Company. As an initial matter we will need to make a determination whether a particular NFT could reasonably be considered a security for federal and state law purposes, and if so we would be required to comply with the applicable securities registration requirements or obtain comfort that our activities would fall within applicable exemptions from registration. To the extent that we determine that a particular NFT could be deemed a “security” within the meaning of the U.S. federal and/or securities laws, we intend to obtain contractual comfort from licensed broker-dealer authorized to act as a trading system for those digital assets that such broker-dealer will comply with the applicable “Know Your Customer” (“KYC”) rules and custom and practice, as well as with the applicable Anti-Money Laundering laws and regulations (“AML”) and Combating the Financing of Terrorism (“CFT”), administered and enforced by the U.S. Treasury Financial Crimes and Enforcement Network discussed below, among others. We may have legal exposure for any alleged failures on the part of such licensed broker-dealer to fulfil its obligations under its contracts with us. With respect to the securities status of an NFT that we propose to post to our platform, we will follow an internally developed model that will permit us to make a risk-based assessment regarding the likelihood that a particular NFT could be deemed a “security” within the meaning of the U.S. federal and/or state securities laws in determining if and how an NFT can be posted on our platform. This process will involve employees trained to identify the indicia of a “security” who will also work with outside legal counsel experienced in crypto asset regulatory matters to make a determination with respect to each NFT, or category of NFT, proposed to be posted on our platform. These processes and procedures are risk-based assessments and are not a legal standard or binding on regulators or courts. In the event an NFT or other digital asset is deemed by us, pursuant to the above analysis, to possess a reasonable likelihood of being deemed a security, we will (a) comply with applicable laws and regulations by forming, acquiring or engaging a licensed broker-dealer authorized to act as an trading system for those digital assets, or (b) transact in such digital assets offshore in a way that complies with applicable laws and regulations; or (c) not transact in the subject NFT. We expect our risk assessment policies will continuously evolve to take into account developments in case law, applicable facts, developments in technology, and changes in applicable regulatory schemes. We do not currently intend to undertake or participate in “initial coin offerings”, the minting of “coins” or the mining of cryptocurrencies. Irrespective of a particular NFT’s status as a security, we will need to assess whether we needed to comply with other applicable regulations and laws (including but not limited to AML and CFT regulations). If we are deemed to be involved in the exchange or transmission of value that substitutes for currency, or fall under other evolving requirements, we may be deemed to be a “money transmitter” and will be subject to AML and CFT regulations. Depending on the particular attributes of an NFT, the manner in which it is marketed, and the nature of the clientele, we could be subject to other legal and regulatory regimes as well. We will endeavor to comply with all applicable laws in connection with our NextPlat Digital business, but the uncertain application of those laws to our proposed business may create substantial risk to the Company. When onboarding new users, we intend to utilize third-party tools to proactively screen for high-risk crypto wallets, including explicitly sanctioned addresses and addresses associated with sanctioned entities. Crypto wallets protect the identity of the owner of the wallet, store the owner’s private keys, secure and provide access by the owner to the cryptocurrency owned by it and allow the owner to send, receive, and transact business with cryptocurrencies. Such wallets by their nature obfuscate the identity of the owner of the wallet and limit access to the transaction history of that wallet and its owner. Consequently, crypto wallets and cryptocurrencies may be used by persons seeking to avoid legal oversight and to violate the law. For example, they can be used to launder money and to promote terrorism. The applicable legal requirements and our compliance obligations will vary depending on the nature of the client, the service or product provided and jurisdiction. For example, if we engage, form or acquire a broker dealer in order to post, trade or sell NFTs or other digital assets that are securities, we will attempt to fully comply with all applicable KYC, AML and CFT compliance requirements. If, on the other hand, we facilitate the distribution of free promotional corporate collectable NFTs that are not deemed to be securities, our compliance requirements will be significantly less. In either event there can be no assurance that our efforts to fully comply with applicable law will be successful. In determining to engage in transactions in an NFT, we will attempt to comply with all applicable laws. However, given the substantial legal uncertainties that may presented by those laws and given the informational constraints presented by crypto wallets we may not be successful in our efforts. As a consequence, we may be exposed to regulatory enforcement and civil or criminal sanction should a legal authority determine that our approach is inadequate or inappropriate, as well as to claims asserting civil liability. Moreover, governmental agencies may seek to apply laws to our NextPlat Digital business that we believe are inapplicable and may seek sanctions relating to our alleged failure to comply with those laws. Communications Services Through our Global Telesat Communications Ltd and Orbital Satcom Corp business units, we provide 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. We provide 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. We provide 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. We have expertise and long-term experience in providing tracking and monitoring services via satellite, specifically through the Globalstar Low Earth Orbit satellite network. We own unique network infrastructure devices, known as appliqués, which are located 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. Our ownership of these appliqués provides us with competitive access to the global simplex data service which addresses the market demand for a small and cost-effective 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, we also provide tracking and monitoring solutions using Automatic Identification System (AIS), 2G-5G, Push-to-Talk and two-way radio technology. We generate revenue from both the provision of services and the sale of equipment. Higher margin recurring service revenue from the sale of monthly, annual, and prepaid airtime or messaging plans has historically represented an increasing proportion of our revenue, and we expect that trend to continue as we introduce new products requiring associated airtime or messaging plans. We provide our products and services directly to end users and reseller networks located both in the United States and internationally through our subsidiaries, U.S. based Orbital Satcom Corp (“Orbital Satcom”) and U.K. based Global Telesat Communications Limited (“GTC”). We have a physical presence in the United States and the United Kingdom, as well as an ecommerce storefront presence in 16 countries across 5 continents. We have 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 Our 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, our 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. Our 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. Our range of satellite data products allow users around the world to connect to the internet, stream live video, and communicate via voice and data applications. We are a provider of GPS enabled emergency locator distress beacons that can save lives, on land and at sea. Our distress beacons enable essential communication between our customers and search and rescue organizations during emergency situations and pinpoint locational information to Search and Rescue services, essential during an emergency. We provide a wide range of satellite tracking devices used to monitor the location, movements, and history of almost anything that moves. We specialize 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 we anticipate strong demand from customers looking for a low cost, low maintenance tracking device to monitor remote assets. Mapping and Tracking Portal Our 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 us are available through GTCTrack. Organizational History The Company was originally incorporated in 1997 in Florida. On April 21, 2010, the Company merged with and into a wholly-owned subsidiary for the purpose of changing its state of incorporation to Delaware, effecting a 2:1 forward split Global Telesat Communications Limited (“GTC”) was formed under the laws of England and Wales in 2008. On February 19, 2015, we entered into a share exchange agreement with GTC and all of the holders of the outstanding equity of GTC pursuant to which GTC became a wholly owned subsidiary of ours. On March 28, 2014, we merged with a newly-formed wholly-owned subsidiary of ours solely for the purpose of changing our state of incorporation to Nevada from Delaware, effecting a 1:150 reverse split of our common stock A wholly owned subsidiary, Orbital Satcom Corp. (“Orbital Satcom”), a Nevada corporation was formed on November 14, 2014. On January 22, 2015, we changed our name to “Orbital Tracking Corp” from “Great West Resources, Inc.” pursuant to a merger with a newly formed wholly owned subsidiary. Effective March 8, 2018, following the approval of a majority of our shareholders, we effected a reverse split of our common stock at a ratio of 1 for 150 reverse split of our common stock at a ratio of 1 for 15 Also, on August 19, 2019, we changed our name to “Orbsat Corp” from “Orbital Tracking Corp.” pursuant to a merger with a newly formed wholly owned subsidiary. On March 24, 2021, the Company’s shareholders via majority shareholder consent authorized a stock split not to exceed 1 for 5 reverse stock split. A definitive Information Statement relating to the shareholder consent was filed with the SEC on March 13, 2021. The Company’s Board of Directors subsequently approved a 1-for-5 reverse stock split. The Company has filed a Certificate of Change to its Amended and Restated Articles of Incorporation to effect a reverse stock split of its issued and outstanding common stock, at a ratio of 1-for-5 On January 18, 2022, the Company filed a Certificate of Amendment of the Amended and Restated Articles of Incorporation of the Company with the Secretary of State of the State of Nevada in order to change the Company’s corporate name from Orbsat Corp to NextPlat Corp. This name change was effective as of January 21, 2022. The name change was approved by the Company’s stockholders at the 2021 annual meeting of stockholders held on December 16, 2021. On June 22, 2022, the Company formed NextPlat B.V., a Netherlands limited liability company, as a wholly-owned subsidiary. At present, NextPlat B.V., has no active operations. All information presented in this Quarterly Report on Form 10-Q other than in Company’s consolidated financial statements and the notes thereto assumes a 1-for-5 reverse stock split of Company’s outstanding shares of common stock and unless otherwise indicated, all such amounts and corresponding conversion price or exercise price data set forth in this Quarterly Report on Form 10-Q have been adjusted to give effect to such assumed reverse stock split. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities and common stock issued for services. Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 250,000 19,920,186 Accounts receivable and allowance for doubtful accounts The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are offset against sales and relieved from accounts receivable, after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2022, and December 31, 2021, there were no allowances for doubtful accounts. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Inventories Inventories are valued at the lower of cost or net realizable value, using the first-in first-out cost method. The Company assesses the valuation of its inventories and reduces the carrying value of those inventories that are obsolete or in excess of the Company’s forecasted usage to their estimated net realizable value. The Company estimates the net realizable value of such inventories based on analysis and assumptions including, but not limited to, historical usage, expected future demand and market requirements. A change to the carrying value of inventories is recorded to cost of goods sold. Prepaid expenses Prepaid expenses amounted to $ 106,947 146,935 Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The accounts of one of the Company’s subsidiaries, GTCL, is maintained using the appropriate local currency, Great British Pound, as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the six months ended June 30, 2022, closing rate at 1.2165 1.256640 1.29979 1.382800 1.397146 1.388107 1.353372 1.375083 Revenue Recognition and Unearned Revenue The Company recognizes revenue from satellite services when earned, as services are rendered or delivered to customers. Equipment sales revenue is recognized when the equipment is delivered to and accepted by the customer. Only equipment sales are subject to warranty. Historically, the Company has not incurred significant expenses for warranties. Equipment sales which have been prepaid, before the goods are shipped are recorded as contract liabilities and once shipped is recognized as revenue. The Company also records as contract liabilities, certain annual plans for airtime, which are paid in advance. Once airtime services are incurred, they are recognized as revenue. Unbilled revenue is recognized for airtime plans whereby the customer is invoiced for its data usage the following month after services are incurred. The Company’s customers generally purchase a combination of our products and services as part of a multiple element arrangement. The Company’s assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment. This assessment has a significant impact on the amount and timing of revenue recognition. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. In accordance with ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient Contract liabilities is shown separately in the unaudited condensed consolidated balance sheets as current liabilities. At June 30, 2022 and December 31, 2021, we had contract liabilities of approximately $ 27,110 36,765 Cost of Product Sales and Services Cost of sales consists primarily of materials, airtime and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred to install our products and train customer personnel, and customer service and third-party original equipment manufacturer costs to provide continuing support to our customers. There are certain costs which are deferred and recorded as prepaids, until such revenue is recognized. Refer to revenue recognition above as to what constitutes deferred revenue. Shipping and handling costs are included as a component of costs of product sales in the Company’s consolidated statements of operations because the Company includes in revenue the related costs that the Company bills its customers. Intangible assets Intangible assets include customer contracts purchased and recorded based on the cost to acquire them. These assets are amortized over 10 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Property and equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. Leasehold improvements have an estimated service life of the term of the respective lease. The estimated useful lives of property and equipment are generally as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Years Office furniture and fixtures 4 Computer equipment 4 Rental equipment 4 Leasehold improvements 5 Appliques 10 Website development 2 Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the differen

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 2 - INVENTORIES At June 30, 2022 and December 31, 2021, inventories consisted of the following: SCHEDULE OF INVENTORIES June 30, 2022 December 31, 2021 Finished goods $ 1,370,425 $ 1,019,696 Less reserve for obsolete inventory - - Total $ 1,370,425 $ 1,019,696 For the six months ended June 30, 2022 and the year ended December 31, 2021, the Company did not make any change for reserve for obsolete inventory.

VAT RECEIVABLE

VAT RECEIVABLE	6 Months Ended
	Jun. 30, 2022
Vat Receivable
VAT RECEIVABLE	NOTE 3 – VAT RECEIVABLE On January 1, 2021, VAT rules relating to imports and exports between the UK and EU changed as a result, of the UK’s departure from the EU, (“BREXIT”). For the six months ended June 30, 2022 and the year ended December 31, 2021, the Company recorded a receivable in the amount of $ 459,541 491,417 53,473 64,451 1.2053

PREPAID EXPENSES

PREPAID EXPENSES	6 Months Ended
	Jun. 30, 2022
Prepaid Expenses
PREPAID EXPENSES	NOTE 4 – PREPAID EXPENSES Prepaid expenses amounted to $ 106,947 146,935

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT At June 30, 2022 and December 31, 2021, property and equipment, net of fully depreciated assets, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2022 December 31, 2021 Office furniture and fixtures $ 95,917 $ 16,969 Computer equipment 68,874 67,458 Rental equipment 47,906 53,296 Leasehold improvements 32,118 - Appliques 2,160,096 2,160,096 Website development 519,950 247,541 Less accumulated depreciation (1,681,230 ) (1,502,501 ) Total $ 1,243,631 $ 1,042,859 Depreciation expense was $ 199,065 134,448 292,102

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 6 – INTANGIBLE ASSETS On December 10, 2014, the Company entered the satellite voice and data equipment sales and service business through the purchase of certain contracts from Global Telesat Corp. (“GTC”). These contracts permit the Company to utilize the Globalstar, Inc. and Globalstar LLC (collectively, “Globalstar”) mobile satellite voice and data network. The purchase price for the contracts of $ 250,000 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 6 – INTANGIBLE ASSETS (continued) Included in the purchased assets are: (i) the rights and benefits granted to GTC under each of the Globalstar Contracts, subject to certain exclusions, (ii) account and online access to the Globalstar Cody Simplex activation system, (iii) GTC’s existing customers who are serviced pursuant to the Globalstar Contracts (only as to their business directly and exclusively related to the Globalstar Contracts), and (iv) all of GTC’s rights and benefits directly and exclusively related to the Globalstar Contracts. Amortization of customer contracts are included in depreciation and amortization. For the six months ended June 30, 2022 and 2021, the Company amortized $ 12,500 12,500 SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS 2022 $ 12,500 2023 25,000 2024 25,000 Total $ 62,500 For the six months ended June 30, 2022 and 2021, there were no

ACCOUNTS PAYABLE AND ACCRUED OT

ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES	NOTE 7 - ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES Accounts payable and accrued other liabilities consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES June 30, 2022 December 31, 2021 Accounts payable $ 898,752 $ 846,380 Rental deposits 3,649 2,030 Customer deposits payable 57,976 59,733 Accrued wages & payroll liabilities 17,389 20,107 VAT liability & sales tax payable 12,739 6,203 Pre-merger accrued other liabilities 88,448 88,448 Accrued interest 381 138 Accrued other liabilities 6,364 40,305 Total $ 1,085,698 $ 1,063,344 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

CORONAVIRUS LOANS

CORONAVIRUS LOANS	6 Months Ended
	Jun. 30, 2022
Coronavirus Loans
CORONAVIRUS LOANS	NOTE 8 - CORONAVIRUS LOANS On April 20, 2020, the Board of Directors the Company (the “Board”), approved for its wholly owned UK subsidiary, Global Telesat Communications LTD (“GTC”), to apply for a Coronavirus Interruption Loan, offered by the UK government, for an amount up to £ 250,000 250,000 338,343 1.3533720 3.99 0.1 6 July 15, 2026 4,166.67 Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture. 60,825 56,391 187,544 253,757 On May 8, 2020, NextPlat Corp was approved for the US funded Payroll Protection Program, (“PPP”) loan. The loan was for $ 20,832 2 1 20,832 20,832

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 9 - STOCKHOLDERS’ EQUITY Capital Structure On March 28, 2014, in connection with the Reincorporation (see Note 1), all share and per share values for all periods presented in the accompanying condensed consolidated financial statements are retroactively restated for the effect of the Reincorporation. On March 5, 2016, the Company shareholders voted in favor of an amendment to its Articles of Incorporation to increase the total number of shares of authorized capital stock to 800,000,000 750,000,000 50,000,000 220,000,000 200,000,000 20,000,000 Effective March 8, 2018, we conducted a reverse split of our common stock at a ratio of 1 for 150 On July 24, 2019, the Company filed a Certificate of Change (the “Certificate of Change”) with the Nevada Secretary of State. The Certificate of Change provides for (i) a 1-for-15 reverse split 0.0001 0.0001 750,000,000 50,000,000 50,000,000 3,333,333 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 - STOCKHOLDERS’ EQUITY (continued) On May 28, 2021, the Company effected a reverse stock split of its common stock at a ratio of 1-for-5 1-for-5 reverse stock split Listing on the Nasdaq Capital Market Our common stock and warrants have been trading on the Nasdaq Capital Market under the symbols “NXPL” and “NXPLW,” respectively, since January 21, 2022. Prior to January 21, 2022, our common stock and warrants were traded on the Nasdaq Capital Market under the symbols “OSAT” and “OSATW,” respectively. The authorized capital of the Company consists of 50,000,000 0.0001 3,333,333 0.0001 9,293,096 7,053,146 0 Preferred Stock As of June 30, 2022, there were 3,333,333 As of June 30, 2022, there were no shares of Series A, B, C, D, E, F, G, H, I, J, K and L convertible preferred stock authorized, and no shares issued and outstanding. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 - STOCKHOLDERS’ EQUITY (continued) Warrants As of June 30, 2022, there were 2,836,092 2,530,092 5.00 144,000 5.50 June of 2026 A summary of the status of the Company’s total outstanding warrants and changes during the year ended December 31, 2021 and the six months ended June 30, 2022 is as follows: SCHEDULE OF OUTSTANDING STOCK WARRANTS ACTIVITIES Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2021 800 $ 300.00 1.37 Granted 3,456,000 5.00 - Exercised (925,908 ) 5.00 - Forfeited - - - Cancelled (800 ) 300.00 - Balance outstanding and exercisable at December 31, 2021 2,530,092 $ 5.00 4.42 Balance at January 1, 2022 2,530,092 $ 5.00 4.42 Granted - - - Exercised - - - Forfeited - - - Cancelled - - - Balance outstanding and exercisable at June 30, 2022 2,530,092 $ 5.00 3.93 Common Stock As of June 30, 2022, there were 50,000,000 9,293,096 January 2022 Private Placement of Common Stock On December 31, 2021, after markets closed, a securities purchase agreement (the “Purchase Agreement”) was circulated to, and signatures were received from, certain institutional and accredited investors (the “December Investors”) in connection with the sale in a private placement by the Company of 2,229,950 3.24 The closing of the December Offering occurred on January 5, 2022. The Company received gross proceeds from the sale of the common stock in the December Offering of approximately $ 7.2 The Company intends to use the proceeds from the December Offering for general corporate purposes, including potential acquisitions and joint ventures. 73 In connection with the December Offering, the Company entered into a registration rights agreement with the December Investors (the “Registration Rights Agreement”), pursuant to which, among other things, the Company agreed to prepare and file with the SEC a registration statement to register for resale the shares of the Company’s common stock sold in the Offering. The shares of common stock offered and sold in the December Offering were sold in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated under the Securities Act and corresponding provisions of state securities or “blue sky” laws. The terms of the transaction disclosed above, including the provisions of the Purchase Agreement and Registration Rights Agreement, were approved by the Board of Directors; and because some of the securities were offered and sold to officers and directors of the Company, such terms were separately reviewed and approved by the Audit Committee of the Board of Directors. On January 5, 2022, the Company issued 2,229,950 3.24 7,225,038 220,000 7,005,038 1,400,000 Restricted Stock Award On January 21, 2022, the Company issued 10,000 20,000 3.48 34,800 On May 23, 2021, the Company entered a three ( 3 3,000,000 5 For the six months ended June 30, 2022, pursuant to Mr. Fernandez employment agreement, the “June Agreement”, see Note 12, the Company recorded stock-based compensation and additional paid in capital, in the amount of $ 654,246 297,534 356,712 five years 200,000 200,000 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 9 - STOCKHOLDERS’ EQUITY (continued) Stock Options A summary of the status of the Company’s outstanding stock options and changes during the six months ended June 30, 2022 is as follows: SCHEDULE OF OUTSTANDING STOCK OPTIONS ACTIVITIES Number of Weighted Average Exercise Weighted Balance at January 1, 2021 600,009 $ 2.35 9.91 Granted 400,000 - - Exercised (19,200 ) - - Forfeited (917 ) - - Cancelled (50,000 ) - - Balance outstanding and exercisable at December 31, 2021 929,892 $ 3.53 7.36 Balance at January 1, 2022 929,892 $ 3.53 7.36 Granted - - - Exercised - - - Forfeited (191 ) - - Cancelled - - - Balance outstanding and exercisable at June 30, 2022 929,701 $ 3.42 6.87

STOCK SUBSCRIPTION PAYABLE

STOCK SUBSCRIPTION PAYABLE	6 Months Ended
	Jun. 30, 2022
Stock Subscription Payable
STOCK SUBSCRIPTION PAYABLE	NOTE 10 - STOCK SUBSCRIPTION PAYABLE On December 31, 2021, after markets closed, a securities purchase agreement (the “Purchase Agreement”) was circulated to, and signatures were received from, certain institutional and accredited investors (the “December Investors”) in connection with the sale in a private placement by the Company of 2,229,950 3.24 For the six months ended June 30, 2022 and for the year ended December 31, 2021, the Company received gross proceeds of $ 0 1,400,000 7,225,038 5,825,038 2,229,950

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 11 - RELATED PARTY TRANSACTIONS As of June 30, 2022, total related party payments due as of June 30, 2022, and December 31, 2021, are $ 0 and $ 35,308 , respectively. These related party payables were non-interest bearing. The Company’s UK subsidiary, GTC had an over-advance line of credit with HSBC, for working capital needs, which was not renewed by the Company on December 31, 2021. The over-advance limit was £ 25,000 33,834 1.353372 5.50 6.25 The Company employs three individuals who are related to Mr. Phipps. These three individuals earned gross wages totaling $ 71,899 76,416 The Company retained the services of the spouse of Mr. Fernandez for consulting fees of $ 8,960 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 - COMMITMENTS AND CONTINGENCIES COVID-19 The impact of the COVID-19 pandemic has rapidly evolved around the globe, causing disruption in the U.S. and global economies. Although the global economy continued reopening in early 2022 and robust economic activity has supported a continued recovery, certain geographies, most notably China, have experienced setbacks. The uncertainty surrounding the COVID-19 pandemic, including uncertainty regarding new variants of COVID-19 that have emerged and other factors have and may continue to contribute to significant volatility in the global markets. While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries. COVID-19 and the current financial, economic and capital markets environment, and future developments in these and other areas present uncertainty and risk with respect to our performance, financial condition, and results of operations. The ultimate magnitude of COVID-19, including the full extent of the material negative impact on our financial and operational results, will depend on future developments. The resumption of our normal business operations may be delayed or constrained by lingering effects of COVID-19 on our customers, suppliers and/or third-party service providers. Furthermore, the extent to which our mitigation efforts are successful, if at all, is not currently ascertainable. Due to the daily evolution of the COVID-19 pandemic and the responses to curb its spread, we cannot predict the full impact of the COVID-19 pandemic on our business and results of operations, but our business, financial condition, results of operations and cash flows have already been materially adversely impacted, and we anticipate they will continue to be adversely affected by the COVID-19 pandemic and its negative effects on global economic conditions. Any recovery from the COVID-19 pandemic and related economic impact may also be slowed or reversed by a variety of factors, such as any increase in COVID-19 infections. Even after the COVID-19 pandemic has subsided, we may continue to experience adverse impacts to our business as a result of its national and, to some extent, global economic impact, including the current recession and any recession that may occur in the future. The success of our business depends on our global operations, including our supply chain and consumer demand, among other things. As a result of COVID-19, we have experienced shortages in inventory due to manufacturing issues, a reduction in the volume of sales in some parts of our business, such as rental sales and direct website sales, and a reduction in personnel due to lockdown related issues. Our results of operations for the six months ended June 30, 2022 and for the years ended December 31, 2021 and December 31, 2020, reflect this impact; however, we expect that this trend may continue, and the full extent of the impact is unknown. In recent months, some governmental agencies in the US and Europe, where we produce the largest percentage of our sales, have lifted certain restrictions. However, if customer demand continues to be low, our future equipment sales, subscriber activations and sales margin will be impacted. Appointment of Director; Compensatory Arrangements of Director On January 7, 2022, the Board appointed Rodney Barreto as a new director to the Board, effective January 20, 2022. No decision has been made with respect to the naming of Mr. Barreto to any regular committees of the Board. In connection with Mr. Barreto’s appointment to the Board, the Company executed a Director Services Agreement (the “Director Agreement”) with Mr. Barreto on January 11, 2022. The Director Agreement has a two 48,000 20,000 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 - COMMITMENTS AND CONTINGENCIES (continued) Employment Agreements 2021 Phipps Employment Agreement On June 5, 2021, the Company entered into a three year employment agreement with Mr. Phipps that was effective as of June 2, 2021, (the “2021 Phipps Employment Agreement”). Under the terms of the 2021 Phipps Employment Agreement, Mr. Phipps serves as the serve as President of the Company and Chief Executive Officer of Global Operations. The term will be automatically extended for additional one-year terms thereafter unless terminated by the Company or Mr. Phipps by written notice. Mr. Phipps’ annual base compensation under the 2021 Phipps Employment Agreement is an aggregate of $ 350,000 1,000 Fernandez Employment Agreements On May 23, 2021, the Company entered into a three (3) year Employment Agreement (the “May Agreement”) with Mr. Charles M. Fernandez to serve as Chairman of the Board. However, two weeks later on June 2, 2021, the Company entered into a new employment agreement (the “June Agreement”) with Mr. Fernandez, which superseded and replaced “the May Agreement.” The June Agreement has an initial term of 5 350,000 Mr. Fernandez is entitled to participate in such pension, profit sharing, group insurance, hospitalization, and group health and benefit plans and all other benefits and plans, including perquisites, if any, as the Company provides to its senior employees. The June Agreement may be terminated based on death or disability of Mr. Fernandez, for cause or without good reason, for cause or with good reason, as a result of the change of control of the Company and at the option of Mr. Fernandez with or without cause. The June Agreement also contains certain provisions that are customary for agreements of this nature, including, without limitation, non-competition and non-solicitation covenants, indemnification provisions, etc. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 12 - COMMITMENTS AND CONTINGENCIES (continued) The Company will also reimburse Mr. Fernandez for any and all premium payments made by him to obtain and continue personal catastrophe and disability insurance coverages for himself, which policy will have policy limits not to exceed one hundred percent ( 100 10,000 10,000 In addition, the June Agreement (which repeats, but not duplicates, a grant of restricted stock made under the May Agreement), Mr. Fernandez received an award of restricted stock with a grant date fair value equal to $ 3,000,000 5 If Mr. Fernandez’s employment is terminated for any reason at any time by the Company prior to the full vesting of the RSA without “Cause” (as that term is defined in the June Agreement), the RSA will vest and Mr. Fernandez will receive all right, title and interest in the balance of the securities granted to him in the RSA. During the term of the June Agreement and so long as Mr. Fernandez is employed by the Company, he may nominate two directors to the Company’s Board of Directors. The appointment of these directors to the Board is subject to approval by the Board of Directors. On August 7, 2021, the June Agreement was amended in order to, among other things, increase Mr. Fernandez’s compensation by (i) providing for medical plan coverage for Mr. Fernandez and his family at the expense of the Company, and (ii) providing for an auto allowance $ 1,000 Ellenoff Employment Agreement On August 24, 2021, Douglas S. Ellenoff was appointed to the positions of Chief Business Development Strategist of the “Company” and Vice Chairman of the Board of Directors of the Company. The appointment was made on the approval and recommendation of the Nominating Committee of the Board. Mr. Ellenoff was not appointed to any committees of the Board. In connection with Mr. Ellenoff’s appointment to the position of Chief Business Development Strategist of the Company, Mr. Ellenoff and the Company entered into a three year Employment Agreement, dated August 24, 2021 (the “Ellenoff Agreement”). Mr. Ellenoff will be nominated and renominated to serve on the Board during the term of the agreement. Under the terms of the Ellenoff Agreement, Mr. Ellenoff will receive, in lieu of cash compensation: (i) a restricted stock award of 100,000 shares of Common Stock of the Company, 40,000 were issued within 5 business days of the execution of the Ellenoff Employment Agreement and vest immediately, and the remaining 60,000 of which will be issued and vest at the rate of 20,000 shares at the end of each of the next three annual anniversaries of his employment, provided that Mr. Ellenoff serves on the Board at any time during such year; and (ii) options to purchase a total of 1,500,000 shares of the Company’s Common Stock, 300,000 of which were within 5 business days of the execution of the Ellenoff Employment Agreement and vested immediately, 150,000 of which will vest on each of the next three annual anniversaries of the commencement of his employment, and the remaining 750,000 of which will vest at the rate of 250,000 per year on each of the first three anniversaries of the commencement of his employment if during each such year Mr. Ellenoff introduces the Company to twelve (12) or more potential Business Transactions (as defined in the Ellenoff Agreement and which transactions need not be consummated); provided that the Company’s Chief Executive Officer may, in his sole discretion, waive the vesting requirement in any given year. 5.35 5 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 12 - COMMITMENTS AND CONTINGENCIES (continued) Carlise Employment Agreement On June 22, 2021, the Company appointed Theresa Carlise as Controller, Treasurer and Secretary. In connection with Ms. Carlise’s appointment, Ms. Carlise and the Company entered into an employment agreement (the “Carlise Agreement”) with an initial term of one year The term of the Carlise Agreement will be automatically extended for additional one-year terms unless terminated by the Company or Ms. Carlise by written notice. Ms. Carlise’s annual base compensation is $ 180,000 1 3 Thomson Employment Agreement On August 24, 2021, Paul R. Thomson was appointed to the position of Executive Vice President of the Company. Mr. Thomson’s appointment as Executive Vice President was effective on August 24, 2021, the date of that certain Employment Agreement between Mr. Thomson and the Company (the “Thomson Agreement”). The Thomson Agreement has an initial term of three ( 3 250,000 In connection with Mr. Thomson’s employment, and as a material inducement to enter into the Thomson Agreements, Mr. Thomson received (i) immediately vested options to purchase 25,000 shares of Common Stock at a per share price of $5.35, and having a term of 5 years; and (ii) a restricted stock grant of 25,000 shares of Common Stock, 10,000 of which vest immediately, and the remaining 15,000 of which will vest at the rate of 5,000 shares at the end of each of the next three annual anniversaries of his employment. These equity awards to Mr. Thomson were issued outside of a shareholder approved stock or option plan pursuant to the Nasdaq “inducement grant” exception (Nasdaq Listing Rule 5635(c)(4)). On October 7, 2021, the Board of Directors of the Company (the “Board”) appointed Paul R. Thomson, the Executive Vice President of the Company, to the additional position of Chief Financial Officer of the Company effective October 9, 2021. As Chief Financial Officer, Mr. Thomson became the Company’s principal financial officer, effective October 9, 2021. On October 8, 2021, on the approval and recommendation of the Compensation Committee of the Board (the “Compensation Committee”), and following subsequent approval of the Board, the Company entered into an amendment to the Company’s current employment agreement with Mr. Thomson to reflect his new title of “Executive Vice President and Chief Financial Officer” effective October 9, 2021 (the “Thomson Amendment”). NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) NOTE 12 - COMMITMENTS AND CONTINGENCIES (continued) Cohen Employment Agreement On October 7, 2021, the Board appointed Andrew Cohen as Senior Vice President of Operations of the Company, effective October 8, 2021. In connection with Mr. Cohen’s appointment, the Company entered into an employment agreement, dated October 8, 2021 (the “Cohen Agreement”), that sets forth the terms of his employment. The Cohen Agreement has an initial term of three ( 3 250,000 In connection with Mr. Cohen’s employment, and as a material inducement to enter into the Cohen Agreement, Mr. Cohen received (i) immediately vested options to purchase 25,000 shares of Common Stock at a per share price of $5.35, and having a term of 5 years; and (ii) a restricted stock grant of 25,000 shares of Common Stock, 10,000 of which vest immediately, and the remaining 15,000 of which will vest at the rate of 5,000 shares at the end of each of the next three annual anniversaries of his employment. These equity awards to Mr. Cohen were issued outside of a shareholder approved stock or option plan pursuant to the Nasdaq “inducement grant” exception (Nasdaq Listing Rule 5635(c)(4)). On May 2, 2022, the Company amended the Cohen Agreement, “Amendment No.1 Cohen”, as follows: Section 4(a) of the Agreement shall be deleted and replaced to read as follows; the Corporation shall pay the Employee as compensation for his services hereunder, in monthly installments during the Term, the sum of $ 125,000 Base Salary In addition, Section 6(c) of the Agreement shall be deleted and replaced to read as follows: upon termination of the Employee’s employment pursuant to Section 5(a)(v) or other than pursuant to Section 5(a)(i), 5(a)(ii), 5(a)(iii), 5(a)(iv), or 5(a)(vi) (i.e., without “Cause”), in addition to the accrued but unpaid compensation and vacation pay through the end of the Term, or any then applicable extension of the Term, and any other benefits accrued to him under any Benefit Plans outstanding at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date, the Employee shall be entitled to the following severance benefits: (i) a cash payment equal to $75,000, to be paid in a single lump sum payment not later than sixty (60) days following such termination, less withholding of all applicable taxes; (ii) continued provision for a period of twelve (12) months after the date of termination of the benefits under Benefits Plans extended from time to time by the Corporation to its senior Employees; and (iii) payment on a pro-rated basis of any bonus or other payments earned in connection with any bonus plan to which the Employee was a participant as of the date of the Employee’s termination of Employment. In addition, any options or restricted stock shall be immediately vested upon termination of Employee’s employment pursuant to Section 5(a)(v) or by the Corporation without “Cause.” Lease Agreements On December 2, 2021, the Company entered a 62-month lease for 4,141 186,345 3 Effective July 24, 2019, a three-year lease was signed for 2,660 25,536 2,128 2,765 1.299279 The leases do not require any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees. Variable expenses generally represent the Company’s share of the landlord’s operating expenses. The Company does not have any leases classified as financing leases. Future minimum lease payments under these leases are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Minimum Lease Years Ending December 31, Payment 2022 $ 84,848 2023 180,815 2024 194,814 2025 200,659 2026 206,679 2027 122,869 Total undiscounted future non-cancelable minimum lease payments 990,683 Less: Imputed interest (90,696 ) Present value of lease liabilities $ 899,987 Weighted average remaining term 5.24 Amortization expenses for the six months ended June 30, 2022, and 2021 were $ 17,479 15,476 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 12 - COMMITMENTS AND CONTINGENCIES (continued) At June 30, 2022, the Company had current and long-term operating lease liabilities of $ 899,987 909,908 Net rent expense for the six months ended June 30, 2022 and 2021 were $ 17,815 18,933 Litigation On June 22, 2021, Thomas Seifert’s employment as the Company’s Chief Financial Officer was terminated for cause. Mr. Seifert asserts that the termination was not for cause and that he is owed compensation payable under his June 2, 2021 employment agreement. The Company’s position is that Mr. Seifert is not owed any additional compensation relating to his prior service with the Company or arising under any employment agreement. The Company and Mr. Seifert are currently engaged in litigation over the matter of his employment and termination. The Company believes it has adequate defenses to Mr. Seifert’s claims and has asserted affirmative claims for relief against Mr. Seifert including, but not limited to, breach of the employment agreement, breach of the fiduciary, fraud in the inducement in connection with the employment agreement, fraudulent misrepresentation, and constructive fraud. The Company does not expect to seek substantial monetary relief in the litigation. This dispute is pending before the District Court for the Southern District of Florida under Case No. 1:21-cv-22436-DPG. On June 24, 2021, Seifert submitted an online whistleblower complaint to the Occupational Safety and Health Administration (OSHA) alleging that NextPlat engaged in retaliatory employment practices in violation of the Sarbanes-Oxley Act. NextPlat responded by moving to dismiss Seifert’s complaint, citing Seifert’s failure to make a prima facie 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. 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.

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2022
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 13 - CONCENTRATIONS Customers: Amazon accounted for 49.5 64.6 10% NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 13 – CONCENTRATIONS (continued) Suppliers: The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the six months ended June 30, 2022 and 2021. SCHEDULE OF CONCENTRATION RISK June 30, 2022 June 30, 2021 Globalstar Europe $ 212,488 4.2 % $ 565,207 10.3 % Garmin $ 999,101 19.7 % $ 1,051,557 19.2 % Network Innovations $ 521,142 10.3 % $ 343,801 6.3 % Cygnus Telecom $ 1,195,597 23.6 % $ 772,478 14.1 % Satcom Global $ 477,998 9.4 % $ 851,314 15.5 % The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended June 30, 2022 and 2021. June 30, 2022 June 30, 2021 Globalstar Europe $ 119,687 5.7 % $ 162,313 8.2 % Garmin $ 583,136 27.8 % $ 304,638 15.5 % Network Innovations $ 200,626 9.6 % $ 189,984 9.6 % Cygnus Telecom $ 254,683 12.2 % $ 271,971 13.8 % Satcom Global $ 195,168 9.3 % $ 349,046 17.7 % Geographic The following table sets forth revenue as to each geographic location, for the six months ended June 30, 2022 and 2021: SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION June 30, 2022 June 30, 2021 Europe $ 5,064,843 78.5 % $ 2,361,328 69.1 % North America 899,958 14.0 % 709,797 20.8 % South America 22,306 0.3 % 15,839 0.5 % Asia & Pacific 397,540 6.2 % 290,582 8.5 % Africa 64,610 1.0 % 40,142 1.2 % Revenue $ 6,449,257 $ 3,417,688 The following table sets forth revenue as to each geographic location, for the three months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Europe $ 2,165,445 75.4 % $ 1,357,596 69.4 % North America 462,742 16.1 % 395,832 20.2 % South America 10,533 0.4 % 7,825 0.4 % Asia & Pacific 201,371 7.0 % 182,985 9.4 % Africa 31,388 1.1 % 12,022 0.6 % Revenue $ 2,871,479 $ 1,956,260

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 - SUBSEQUENT EVENTS On July 12, 2022, the Company hired Lauren Sturges Fernandez, the spouse of Mr. Fernandez, as Manager of Digital Assets. Mrs. Fernandez is an at-will employee with an annual salary of $ 95,000 Restricted Stock Award On July 22, 2022, the Company issued 200,000 Stock Option Agreement On July 1, 2022, the Company granted Charles Fernandez, 70,000 2.13 10 Resignation On July 29, 2022, Andrew Cohen resigned his position as Senior Vice President of Operations. Pursuant to the amendment to the Cohen Agreement on May 2, 2022, Mr. Cohen received $ 75,000 15,000 71,250 4.75

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). The consolidated financial statements of the Company include the Company and its wholly-owned subsidiaries, Orbital Satcom Corp, Global Telesat Communications Ltd and NextPlat B.V. All material intercompany balances and transactions have been eliminated in consolidation. .
Description of Business	Description of Business Overview 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 a state-of-the-art 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 we expect will become the focus of the Company’s 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 such as Alibaba, Amazon and Walmart. These e-commerce venues form an effective global network serving thousands of consumers, enterprises, and governments. NextPlat has announced its intention to broaden its e-commerce platform and is implementing comprehensive systems upgrade to support this initiative. The Company has also begun the design and development of a next generation platform for digital assets built for Web3 (an internet service built using decentralized blockchains). This new platform (“NextPlat Digital”) is currently in the design and development phase and will enable the use of a range of digital assets, such as non-fungible tokens (“NFTs”), in e-commerce and in community-building activities. Online Storefronts and E-Commerce Platforms We operate two e-commerce websites offering a range of MSS products and solutions through our subsidiaries, Orbital Satcom, which targets customers in North and South America, and GTC which targets customers in the UK, EU, Middle East, Asia and 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, we plan to develop additional country-specific websites to target customers in South America, Asia and Europe where we anticipate there will be substantial further demand for our products. In addition to our two main e-commerce websites, we make portable satellite voice, data and tracking solutions easier to find and buy online through our various third-party e-commerce storefronts such as Alibaba, Amazon and Walmart. We currently operate 25 storefronts across various countries in 5 continents. We have invested in personnel to translate our listings correctly in the different countries we are represented in and intend to regularly improve and increase our listings on all e-commerce sites. We currently have more than 9,000 product listings on all third-party sites and invest 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. Our Amazon Marketplaces represented approximately 49.5 64.6 63.6 73.3 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 U.K. consumers electing to shop online. During 2021, senior management of the Company determined to invest in a comprehensive systems upgrade project which commenced in September with the goal of building a state-of-the-art e-commerce platform. This implementation is anticipated to be substantially complete within the next six to nine months, and the Company intends 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. NextPlat Digital We intend to develop a next generation platform for digital assets built for Web3, an internet service built using decentralized blockchains. Our new platform (“NextPlat Digital”), which is currently in the design and development phase in collaboration with consultants and contracted developers, will initially enable the use of non-fungible tokens (“NFTs”), in e-commerce and in community-building activities. NextPlat Digital may in the future also enable the posting and use of other digital or “crypto” assets once applicable legal and regulatory requirements are addressed. As currently contemplated, NextPlat Digital will facilitate the creation/minting, purchase and sale of a broad range of non-yield-generating and non-fractionalized NFT products, including, but not limited to, art, music, collectables, digital real estate, video games, game items and certificates of authenticity. We also anticipate developing and deploying NFTs for use in tokenizing data for use in brand loyalty programs. NextPlat Digital, as currently planned, will be used by us to create both (a) public marketplaces, for us and third-parties, where anyone with a crypto wallet or credit card can buy an NFT from an authorized user, or, if authorized, sell their own NFTs, and (b) private market places that only allow a particular company or entity to sell their own NFTs within a branded market (such as for the promotion of a particular brand or product). We anticipate that NextPlat Digital will be substantially complete within the next six to nine months. The legal status of NFTs under a myriad of state and federal laws and regulatory regimes (including securities, banking, and commodities laws) is highly uncertain and unresolved, and the applicability of various of those regimes to any NFTs that we may propose to post on our platform is also unresolved. Our creation and operation of NextPlat Digital will present a number of new regulatory and legal compliance obligations for the Company. As an initial matter we will need to make a determination whether a particular NFT could reasonably be considered a security for federal and state law purposes, and if so we would be required to comply with the applicable securities registration requirements or obtain comfort that our activities would fall within applicable exemptions from registration. To the extent that we determine that a particular NFT could be deemed a “security” within the meaning of the U.S. federal and/or securities laws, we intend to obtain contractual comfort from licensed broker-dealer authorized to act as a trading system for those digital assets that such broker-dealer will comply with the applicable “Know Your Customer” (“KYC”) rules and custom and practice, as well as with the applicable Anti-Money Laundering laws and regulations (“AML”) and Combating the Financing of Terrorism (“CFT”), administered and enforced by the U.S. Treasury Financial Crimes and Enforcement Network discussed below, among others. We may have legal exposure for any alleged failures on the part of such licensed broker-dealer to fulfil its obligations under its contracts with us. With respect to the securities status of an NFT that we propose to post to our platform, we will follow an internally developed model that will permit us to make a risk-based assessment regarding the likelihood that a particular NFT could be deemed a “security” within the meaning of the U.S. federal and/or state securities laws in determining if and how an NFT can be posted on our platform. This process will involve employees trained to identify the indicia of a “security” who will also work with outside legal counsel experienced in crypto asset regulatory matters to make a determination with respect to each NFT, or category of NFT, proposed to be posted on our platform. These processes and procedures are risk-based assessments and are not a legal standard or binding on regulators or courts. In the event an NFT or other digital asset is deemed by us, pursuant to the above analysis, to possess a reasonable likelihood of being deemed a security, we will (a) comply with applicable laws and regulations by forming, acquiring or engaging a licensed broker-dealer authorized to act as an trading system for those digital assets, or (b) transact in such digital assets offshore in a way that complies with applicable laws and regulations; or (c) not transact in the subject NFT. We expect our risk assessment policies will continuously evolve to take into account developments in case law, applicable facts, developments in technology, and changes in applicable regulatory schemes. We do not currently intend to undertake or participate in “initial coin offerings”, the minting of “coins” or the mining of cryptocurrencies. Irrespective of a particular NFT’s status as a security, we will need to assess whether we needed to comply with other applicable regulations and laws (including but not limited to AML and CFT regulations). If we are deemed to be involved in the exchange or transmission of value that substitutes for currency, or fall under other evolving requirements, we may be deemed to be a “money transmitter” and will be subject to AML and CFT regulations. Depending on the particular attributes of an NFT, the manner in which it is marketed, and the nature of the clientele, we could be subject to other legal and regulatory regimes as well. We will endeavor to comply with all applicable laws in connection with our NextPlat Digital business, but the uncertain application of those laws to our proposed business may create substantial risk to the Company. When onboarding new users, we intend to utilize third-party tools to proactively screen for high-risk crypto wallets, including explicitly sanctioned addresses and addresses associated with sanctioned entities. Crypto wallets protect the identity of the owner of the wallet, store the owner’s private keys, secure and provide access by the owner to the cryptocurrency owned by it and allow the owner to send, receive, and transact business with cryptocurrencies. Such wallets by their nature obfuscate the identity of the owner of the wallet and limit access to the transaction history of that wallet and its owner. Consequently, crypto wallets and cryptocurrencies may be used by persons seeking to avoid legal oversight and to violate the law. For example, they can be used to launder money and to promote terrorism. The applicable legal requirements and our compliance obligations will vary depending on the nature of the client, the service or product provided and jurisdiction. For example, if we engage, form or acquire a broker dealer in order to post, trade or sell NFTs or other digital assets that are securities, we will attempt to fully comply with all applicable KYC, AML and CFT compliance requirements. If, on the other hand, we facilitate the distribution of free promotional corporate collectable NFTs that are not deemed to be securities, our compliance requirements will be significantly less. In either event there can be no assurance that our efforts to fully comply with applicable law will be successful. In determining to engage in transactions in an NFT, we will attempt to comply with all applicable laws. However, given the substantial legal uncertainties that may presented by those laws and given the informational constraints presented by crypto wallets we may not be successful in our efforts. As a consequence, we may be exposed to regulatory enforcement and civil or criminal sanction should a legal authority determine that our approach is inadequate or inappropriate, as well as to claims asserting civil liability. Moreover, governmental agencies may seek to apply laws to our NextPlat Digital business that we believe are inapplicable and may seek sanctions relating to our alleged failure to comply with those laws. Communications Services Through our Global Telesat Communications Ltd and Orbital Satcom Corp business units, we provide 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. We provide 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. We provide 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. We have expertise and long-term experience in providing tracking and monitoring services via satellite, specifically through the Globalstar Low Earth Orbit satellite network. We own unique network infrastructure devices, known as appliqués, which are located 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. Our ownership of these appliqués provides us with competitive access to the global simplex data service which addresses the market demand for a small and cost-effective 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, we also provide tracking and monitoring solutions using Automatic Identification System (AIS), 2G-5G, Push-to-Talk and two-way radio technology. We generate revenue from both the provision of services and the sale of equipment. Higher margin recurring service revenue from the sale of monthly, annual, and prepaid airtime or messaging plans has historically represented an increasing proportion of our revenue, and we expect that trend to continue as we introduce new products requiring associated airtime or messaging plans. We provide our products and services directly to end users and reseller networks located both in the United States and internationally through our subsidiaries, U.S. based Orbital Satcom Corp (“Orbital Satcom”) and U.K. based Global Telesat Communications Limited (“GTC”). We have a physical presence in the United States and the United Kingdom, as well as an ecommerce storefront presence in 16 countries across 5 continents. We have 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 Our 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, our 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. Our 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. Our range of satellite data products allow users around the world to connect to the internet, stream live video, and communicate via voice and data applications. We are a provider of GPS enabled emergency locator distress beacons that can save lives, on land and at sea. Our distress beacons enable essential communication between our customers and search and rescue organizations during emergency situations and pinpoint locational information to Search and Rescue services, essential during an emergency. We provide a wide range of satellite tracking devices used to monitor the location, movements, and history of almost anything that moves. We specialize 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 we anticipate strong demand from customers looking for a low cost, low maintenance tracking device to monitor remote assets. Mapping and Tracking Portal Our 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 us are available through GTCTrack. Organizational History The Company was originally incorporated in 1997 in Florida. On April 21, 2010, the Company merged with and into a wholly-owned subsidiary for the purpose of changing its state of incorporation to Delaware, effecting a 2:1 forward split Global Telesat Communications Limited (“GTC”) was formed under the laws of England and Wales in 2008. On February 19, 2015, we entered into a share exchange agreement with GTC and all of the holders of the outstanding equity of GTC pursuant to which GTC became a wholly owned subsidiary of ours. On March 28, 2014, we merged with a newly-formed wholly-owned subsidiary of ours solely for the purpose of changing our state of incorporation to Nevada from Delaware, effecting a 1:150 reverse split of our common stock A wholly owned subsidiary, Orbital Satcom Corp. (“Orbital Satcom”), a Nevada corporation was formed on November 14, 2014. On January 22, 2015, we changed our name to “Orbital Tracking Corp” from “Great West Resources, Inc.” pursuant to a merger with a newly formed wholly owned subsidiary. Effective March 8, 2018, following the approval of a majority of our shareholders, we effected a reverse split of our common stock at a ratio of 1 for 150 reverse split of our common stock at a ratio of 1 for 15 Also, on August 19, 2019, we changed our name to “Orbsat Corp” from “Orbital Tracking Corp.” pursuant to a merger with a newly formed wholly owned subsidiary. On March 24, 2021, the Company’s shareholders via majority shareholder consent authorized a stock split not to exceed 1 for 5 reverse stock split. A definitive Information Statement relating to the shareholder consent was filed with the SEC on March 13, 2021. The Company’s Board of Directors subsequently approved a 1-for-5 reverse stock split. The Company has filed a Certificate of Change to its Amended and Restated Articles of Incorporation to effect a reverse stock split of its issued and outstanding common stock, at a ratio of 1-for-5 On January 18, 2022, the Company filed a Certificate of Amendment of the Amended and Restated Articles of Incorporation of the Company with the Secretary of State of the State of Nevada in order to change the Company’s corporate name from Orbsat Corp to NextPlat Corp. This name change was effective as of January 21, 2022. The name change was approved by the Company’s stockholders at the 2021 annual meeting of stockholders held on December 16, 2021. On June 22, 2022, the Company formed NextPlat B.V., a Netherlands limited liability company, as a wholly-owned subsidiary. At present, NextPlat B.V., has no active operations. All information presented in this Quarterly Report on Form 10-Q other than in Company’s consolidated financial statements and the notes thereto assumes a 1-for-5 reverse stock split of Company’s outstanding shares of common stock and unless otherwise indicated, all such amounts and corresponding conversion price or exercise price data set forth in this Quarterly Report on Form 10-Q have been adjusted to give effect to such assumed reverse stock split. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Use of Estimates	Use of Estimates In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the assumptions used to calculate stock-based compensation, derivative liabilities and common stock issued for services.
Reclassification	Reclassification Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $ 250,000 250,000 19,920,186
Accounts receivable and allowance for doubtful accounts	Accounts receivable and allowance for doubtful accounts The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are offset against sales and relieved from accounts receivable, after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2022, and December 31, 2021, there were no allowances for doubtful accounts. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value, using the first-in first-out cost method. The Company assesses the valuation of its inventories and reduces the carrying value of those inventories that are obsolete or in excess of the Company’s forecasted usage to their estimated net realizable value. The Company estimates the net realizable value of such inventories based on analysis and assumptions including, but not limited to, historical usage, expected future demand and market requirements. A change to the carrying value of inventories is recorded to cost of goods sold.
Prepaid expenses	Prepaid expenses Prepaid expenses amounted to $ 106,947 146,935
Foreign Currency Translation	Foreign Currency Translation The Company’s reporting currency is U.S. Dollars. The accounts of one of the Company’s subsidiaries, GTCL, is maintained using the appropriate local currency, Great British Pound, as the functional currency. All assets and liabilities are translated into U.S. Dollars at balance sheet date, shareholders’ equity is translated at historical rates and revenue and expense accounts are translated at the average exchange rate for the year or the reporting period. The translation adjustments are reported as a separate component of stockholders’ equity, captioned as accumulated other comprehensive (loss) gain. Transaction gains and losses arising from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the statements of operations. The relevant translation rates are as follows: for the six months ended June 30, 2022, closing rate at 1.2165 1.256640 1.29979 1.382800 1.397146 1.388107 1.353372 1.375083
Revenue Recognition and Unearned Revenue	Revenue Recognition and Unearned Revenue The Company recognizes revenue from satellite services when earned, as services are rendered or delivered to customers. Equipment sales revenue is recognized when the equipment is delivered to and accepted by the customer. Only equipment sales are subject to warranty. Historically, the Company has not incurred significant expenses for warranties. Equipment sales which have been prepaid, before the goods are shipped are recorded as contract liabilities and once shipped is recognized as revenue. The Company also records as contract liabilities, certain annual plans for airtime, which are paid in advance. Once airtime services are incurred, they are recognized as revenue. Unbilled revenue is recognized for airtime plans whereby the customer is invoiced for its data usage the following month after services are incurred. The Company’s customers generally purchase a combination of our products and services as part of a multiple element arrangement. The Company’s assessment of which revenue recognition guidance is appropriate to account for each element in an arrangement can involve significant judgment. This assessment has a significant impact on the amount and timing of revenue recognition. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, we perform the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. The five-step model is applied to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services transferred to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize revenue in the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. In accordance with ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient Contract liabilities is shown separately in the unaudited condensed consolidated balance sheets as current liabilities. At June 30, 2022 and December 31, 2021, we had contract liabilities of approximately $ 27,110 36,765
Cost of Product Sales and Services	Cost of Product Sales and Services Cost of sales consists primarily of materials, airtime and overhead costs incurred internally and amounts incurred to contract manufacturers to produce our products, airtime and other implementation costs incurred to install our products and train customer personnel, and customer service and third-party original equipment manufacturer costs to provide continuing support to our customers. There are certain costs which are deferred and recorded as prepaids, until such revenue is recognized. Refer to revenue recognition above as to what constitutes deferred revenue. Shipping and handling costs are included as a component of costs of product sales in the Company’s consolidated statements of operations because the Company includes in revenue the related costs that the Company bills its customers.
Intangible assets	Intangible assets Intangible assets include customer contracts purchased and recorded based on the cost to acquire them. These assets are amortized over 10 NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Property and equipment	Property and equipment Property and equipment are carried at historical cost less accumulated depreciation. Depreciation is based on the estimated service lives of the depreciable assets and is calculated using the straight-line method. Expenditures that increase the value or productive capacity of assets are capitalized. Fully depreciated assets are retained in the property and equipment, and accumulated depreciation accounts until they are removed from service. When property and equipment are retired, sold or otherwise disposed of, the asset’s carrying amount and related accumulated depreciation are removed from the accounts and any gain or loss is included in operations. Repairs and maintenance are expensed as incurred. Leasehold improvements have an estimated service life of the term of the respective lease. The estimated useful lives of property and equipment are generally as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Years Office furniture and fixtures 4 Computer equipment 4 Rental equipment 4 Leasehold improvements 5 Appliques 10 Website development 2
Impairment of long-lived assets	Impairment of long-lived assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable, or at least annually. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company did not consider it necessary to record any impairment charges during the periods ended June 30, 2022 and June 30, 2021, respectively.
Accounting for Derivative Instruments	Accounting for Derivative Instruments Derivatives are required to be recorded on the balance sheet at fair value. These derivatives, including embedded derivatives in the Company’s structured borrowings, are separately valued and accounted for on the Company’s balance sheet. Fair values for exchange traded securities and derivatives are based on quoted market prices. Where market prices are not readily available, fair values are determined using market-based pricing models incorporating readily observable market data and requiring judgment and estimates. The Company did not identify any assets or liabilities that are required to be presented on the consolidated balance sheets at fair value in accordance with the accounting guidance. The carrying amounts reported in the balance sheet for cash, accounts payable, and accrued expenses approximate their estimated fair market value based on the short-term maturity of the instruments. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Stock Based Compensation	Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 718, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the vesting period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. Further, ASC Topic 718, provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718, such as the repricing of share options, which would revalue those options and the accounting for the cancellation of an equity award whether a replacement award or other valuable consideration is issued in conjunction with the cancellation. If not, the cancellation is viewed as a replacement and not a modification, with a repurchase price of $ 0
Income Taxes	Income Taxes The Company accounts for income taxes pursuant to the provision of ASC 740-10, “Accounting for Income Taxes” (“ASC 740-10”) which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach require the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized. The Company follows the provision of ASC 740-10 related to Accounting for Uncertain Income Tax Positions. When tax returns are filed, there may be uncertainty about the merits of positions taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more likely than not recognition threshold is measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The Company believes its tax positions are all more likely than not to be upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits. The Company has adopted ASC 740-10-25, “Definition of Settlement,” which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion and examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. The federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for three years after they are filed.
Leases	Leases Effective January 1, 2019, the Company accounts for its leases under ASC 842, Leases In calculating the right of use asset and lease liability, the Company has elected to combine lease and non-lease components. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term. At June 30, 2022 and December 31, 2021, the Company had aggregated current and long-term operating lease liabilities of $ 899,987 19,763 909,908 22,643 The Company continues to account for leases in the prior period financial statements under ASC Topic 840. NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Research and Development	Research and Development The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and development costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. For the six months ended June 30, 2022 and the June 30, 2021, there were no
Earnings per Common Share	Earnings per Common Share Net income (loss) per common share is calculated in accordance with ASC Topic 260: Earnings per Share (“ASC 260”). Basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net loss per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. In periods where the Company has a net loss, all dilutive securities are excluded. The following are dilutive common stock equivalents during the year ended: SCHEDULE OF DILUTIVE COMMON STOCK EQUIVALENTS June 30, 2022 June 30, 2021 Stock Options 929,701 550,009 Stock Warrants 2,530,092 3,455,000 Total 3,459,793 4,005,009
Related Party Transactions	Related Party Transactions A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party, (see Note 11).
Recent Accounting Pronouncements	Recent Accounting Pronouncements NEXTPLAT CORP AND SUBSIDIARIES FKA: ORBSAT CORP NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Accounting Pronouncements Recently Adopted In May 2021, the FASB issued ASU 2021-04, Earnings Per Share In October 2021, the FASB issued guidance which requires companies to apply Topic 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. Public entities must adopt the new guidance for fiscal years beginning after December 15, 2022 and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact and timing of adoption of this guidance Any new accounting standards, not disclosed above, that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. Other accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2022
Accounting Policies [Abstract]
SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT	The estimated useful lives of property and equipment are generally as follows: SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Years Office furniture and fixtures 4 Computer equipment 4 Rental equipment 4 Leasehold improvements 5 Appliques 10 Website development 2
SCHEDULE OF DILUTIVE COMMON STOCK EQUIVALENTS	The following are dilutive common stock equivalents during the year ended: SCHEDULE OF DILUTIVE COMMON STOCK EQUIVALENTS June 30, 2022 June 30, 2021 Stock Options 929,701 550,009 Stock Warrants 2,530,092 3,455,000 Total 3,459,793 4,005,009

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2022
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	At June 30, 2022 and December 31, 2021, inventories consisted of the following: SCHEDULE OF INVENTORIES June 30, 2022 December 31, 2021 Finished goods $ 1,370,425 $ 1,019,696 Less reserve for obsolete inventory - - Total $ 1,370,425 $ 1,019,696

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY AND EQUIPMENT	At June 30, 2022 and December 31, 2021, property and equipment, net of fully depreciated assets, consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, 2022 December 31, 2021 Office furniture and fixtures $ 95,917 $ 16,969 Computer equipment 68,874 67,458 Rental equipment 47,906 53,296 Leasehold improvements 32,118 - Appliques 2,160,096 2,160,096 Website development 519,950 247,541 Less accumulated depreciation (1,681,230 ) (1,502,501 ) Total $ 1,243,631 $ 1,042,859

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS	SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS 2022 $ 12,500 2023 25,000 2024 25,000 Total $ 62,500

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2022
Payables and Accruals [Abstract]
SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES	Accounts payable and accrued other liabilities consisted of the following: SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES June 30, 2022 December 31, 2021 Accounts payable $ 898,752 $ 846,380 Rental deposits 3,649 2,030 Customer deposits payable 57,976 59,733 Accrued wages & payroll liabilities 17,389 20,107 VAT liability & sales tax payable 12,739 6,203 Pre-merger accrued other liabilities 88,448 88,448 Accrued interest 381 138 Accrued other liabilities 6,364 40,305 Total $ 1,085,698 $ 1,063,344

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2022
Equity [Abstract]
SCHEDULE OF OUTSTANDING STOCK WARRANTS ACTIVITIES	A summary of the status of the Company’s total outstanding warrants and changes during the year ended December 31, 2021 and the six months ended June 30, 2022 is as follows: SCHEDULE OF OUTSTANDING STOCK WARRANTS ACTIVITIES Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Balance at January 1, 2021 800 $ 300.00 1.37 Granted 3,456,000 5.00 - Exercised (925,908 ) 5.00 - Forfeited - - - Cancelled (800 ) 300.00 - Balance outstanding and exercisable at December 31, 2021 2,530,092 $ 5.00 4.42 Balance at January 1, 2022 2,530,092 $ 5.00 4.42 Granted - - - Exercised - - - Forfeited - - - Cancelled - - - Balance outstanding and exercisable at June 30, 2022 2,530,092 $ 5.00 3.93
SCHEDULE OF OUTSTANDING STOCK OPTIONS ACTIVITIES	A summary of the status of the Company’s outstanding stock options and changes during the six months ended June 30, 2022 is as follows: SCHEDULE OF OUTSTANDING STOCK OPTIONS ACTIVITIES Number of Weighted Average Exercise Weighted Balance at January 1, 2021 600,009 $ 2.35 9.91 Granted 400,000 - - Exercised (19,200 ) - - Forfeited (917 ) - - Cancelled (50,000 ) - - Balance outstanding and exercisable at December 31, 2021 929,892 $ 3.53 7.36 Balance at January 1, 2022 929,892 $ 3.53 7.36 Granted - - - Exercised - - - Forfeited (191 ) - - Cancelled - - - Balance outstanding and exercisable at June 30, 2022 929,701 $ 3.42 6.87

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS	Future minimum lease payments under these leases are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Minimum Lease Years Ending December 31, Payment 2022 $ 84,848 2023 180,815 2024 194,814 2025 200,659 2026 206,679 2027 122,869 Total undiscounted future non-cancelable minimum lease payments 990,683 Less: Imputed interest (90,696 ) Present value of lease liabilities $ 899,987 Weighted average remaining term 5.24

CONCENTRATIONS (Tables)

CONCENTRATIONS (Tables)	6 Months Ended
	Jun. 30, 2022
Risks and Uncertainties [Abstract]
SCHEDULE OF CONCENTRATION RISK	The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the six months ended June 30, 2022 and 2021. SCHEDULE OF CONCENTRATION RISK June 30, 2022 June 30, 2021 Globalstar Europe $ 212,488 4.2 % $ 565,207 10.3 % Garmin $ 999,101 19.7 % $ 1,051,557 19.2 % Network Innovations $ 521,142 10.3 % $ 343,801 6.3 % Cygnus Telecom $ 1,195,597 23.6 % $ 772,478 14.1 % Satcom Global $ 477,998 9.4 % $ 851,314 15.5 % The following table sets forth information as to each supplier that accounted for 10% or more of the Company’s purchases for the three months ended June 30, 2022 and 2021. June 30, 2022 June 30, 2021 Globalstar Europe $ 119,687 5.7 % $ 162,313 8.2 % Garmin $ 583,136 27.8 % $ 304,638 15.5 % Network Innovations $ 200,626 9.6 % $ 189,984 9.6 % Cygnus Telecom $ 254,683 12.2 % $ 271,971 13.8 % Satcom Global $ 195,168 9.3 % $ 349,046 17.7 %
SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION	The following table sets forth revenue as to each geographic location, for the six months ended June 30, 2022 and 2021: SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION June 30, 2022 June 30, 2021 Europe $ 5,064,843 78.5 % $ 2,361,328 69.1 % North America 899,958 14.0 % 709,797 20.8 % South America 22,306 0.3 % 15,839 0.5 % Asia & Pacific 397,540 6.2 % 290,582 8.5 % Africa 64,610 1.0 % 40,142 1.2 % Revenue $ 6,449,257 $ 3,417,688 The following table sets forth revenue as to each geographic location, for the three months ended June 30, 2022 and 2021: June 30, 2022 June 30, 2021 Europe $ 2,165,445 75.4 % $ 1,357,596 69.4 % North America 462,742 16.1 % 395,832 20.2 % South America 10,533 0.4 % 7,825 0.4 % Asia & Pacific 201,371 7.0 % 182,985 9.4 % Africa 31,388 1.1 % 12,022 0.6 % Revenue $ 2,871,479 $ 1,956,260

SCHEDULE OF ESTIMATED USEFUL LI

SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT (Details)	6 Months Ended
	Jun. 30, 2022
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Appliques [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Software and Software Development Costs [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years

SCHEDULE OF DILUTIVE COMMON STO

SCHEDULE OF DILUTIVE COMMON STOCK EQUIVALENTS (Details) - shares	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	3,459,793	4,005,009
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	929,701	550,009
Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,530,092	3,455,000

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)								6 Months Ended		12 Months Ended
	May 28, 2021	Aug. 19, 2019	Jul. 24, 2019	Mar. 08, 2018	Mar. 08, 2018	Mar. 28, 2014	Apr. 21, 2010	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Product Information [Line Items]
Reverse stock split issued and outstanding	ratio of 1-for-5	reverse split of our common stock at a ratio of 1 for 15	1-for-15 reverse split	ratio of 1 for 150	ratio of 1 for 150
Cash, FDIC insured amount								$ 250,000
Cash, uninsured amount								19,920,186
Prepaid expenses								106,947		$ 146,935
Contract liabilities								$ 27,110		36,765
Intangible asset, amortization period								10 years
Share-based payment award, replacement, repurchase price								$ 0
Income tax examination, description								Tax positions that meet the more likely than not recognition threshold is measured at the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.
Long term operating lease liabilities								$ 899,987		19,763
Operating lease right use of asset								909,908		$ 22,643
Research and development								$ 0	$ 0
US$: GBP [Member] | Closing Rate [Member]
Product Information [Line Items]
Foreign currency translation rate								1.2165	1.382800	1.353372
US$: GBP [Member] | Quarterly Average Rate [Member]
Product Information [Line Items]
Foreign currency translation rate								1.256640	1.397146
US$: GBP [Member] | Yearly average rate [Member]
Product Information [Line Items]
Foreign currency translation rate								1.29979	1.388107	1.375083
Maximum [Member]
Product Information [Line Items]
Cash, FDIC insured amount								$ 250,000
EClips Media Technologies, Inc [Member]
Product Information [Line Items]
Reverse stock split issued and outstanding							effecting a 2:1 forward split
Great West Resources Inc [Member]
Product Information [Line Items]
Reverse stock split issued and outstanding						1:150 reverse split of our common stock
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Amazon [Member]
Product Information [Line Items]
Concentration risk percentage								49.50%	64.60%	63.60%	73.30%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 1,370,425	$ 1,019,696
Less reserve for obsolete inventory
Total	$ 1,370,425	$ 1,019,696

VAT RECEIVABLE (Details Narrati

VAT RECEIVABLE (Details Narrative)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 EUR (€)	Dec. 31, 2021 USD ($)
Vat Receivable
Value added tax receivables	$ 459,541		$ 491,417
Grants receivable current	$ 64,451	€ 53,473
Exchange rate	1.2053	1.2053

PREPAID EXPENSES (Details Narra

PREPAID EXPENSES (Details Narrative) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Prepaid Expenses
Prepaid expenses	$ 106,947	$ 146,935

SCHEDULE OF PROPERTY AND EQUIPM

SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Office furniture and fixtures	$ 95,917	$ 16,969
Computer equipment	68,874	67,458
Rental equipment	47,906	53,296
Leasehold improvements	32,118
Appliques	2,160,096	2,160,096
Website development	519,950	247,541
Less accumulated depreciation	(1,681,230)	(1,502,501)
Total	$ 1,243,631	$ 1,042,859

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 199,065	$ 134,448	$ 292,102

SCHEDULE OF FUTURE AMORTIZATION

SCHEDULE OF FUTURE AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 12,500
2023	25,000
2024	25,000
Total	$ 62,500	$ 75,000

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)		6 Months Ended
	Dec. 10, 2014	Jun. 30, 2022	Jun. 30, 2021
Goodwill [Line Items]
Amortization of intangible assets		$ 12,500	$ 12,500
Research and Development Expense [Member]
Goodwill [Line Items]
Additional expenditures		$ 0	$ 0
Purchase Agreement [Member] | Global Telesat Corp [Member]
Goodwill [Line Items]
Indefinite-lived intangible assets acquired	$ 250,000

SCHEDULE OF ACCOUNTS PAYABLE AN

SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED OTHER LIABILITIES (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Accounts payable	$ 898,752	$ 846,380
Rental deposits	3,649	2,030
Customer deposits payable	57,976	59,733
Accrued wages & payroll liabilities	17,389	20,107
VAT liability & sales tax payable	12,739	6,203
Pre-merger accrued other liabilities	88,448	88,448
Accrued interest	381	138
Accrued other liabilities	6,364	40,305
Total	$ 1,085,698	$ 1,063,344

CORONAVIRUS LOANS (Details Narr

CORONAVIRUS LOANS (Details Narrative)	Dec. 31, 2021 USD ($)	May 23, 2021 USD ($)	Jul. 16, 2020 USD ($)	Jul. 16, 2020 EUR (€)	May 08, 2020 USD ($)	Apr. 20, 2020 EUR (€)	Jun. 30, 2022 USD ($)
Exchange rate							1.2053
Long term notes payable	$ 253,757						$ 187,544
Note payable coronavirus loans current portion	56,391						$ 60,825
Debt forgiveness	$ 20,832
Coronavirus Loans [Member]
Interest rate				0.10%
Coronavirus Loans [Member] | Payroll Protection Program [Member]
Proceeds from notes payable					$ 20,832
Interest rate					1%
Debt instrument term					2 years
Debt instrument decrease forgiveness		$ 20,832
Coronavirus Loans [Member] | First Repayment [Member]
Prepayment of balances of debentures			Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture.	Voluntary prepayments are allowed with 5 business days’ written notice and the amount of the prepayment is equal to 10% or more of the limit or, if less, the balance of the debenture.
Coronavirus Loans [Member] | Lenders [Member]
Interest rate				3.99%
Debt instrument term			6 years	6 years
Maturity date			Jul. 15, 2026	Jul. 15, 2026
Coronavirus Loans [Member] | GBP [Member] | First Repayment [Member]
Long term notes payable | €				€ 4,166.67
Coronavirus Loans [Member] | HSBC UK Bank PLC [Member]
Proceeds from notes payable			$ 338,343
Coronavirus Loans [Member] | HSBC UK Bank PLC [Member] | GBP [Member]
Proceeds from notes payable | €				€ 250,000
Coronavirus Loans [Member] | HSBC UK Bank PLC [Member] | US$: GBP [Member]
Exchange rate				1.3533720
Coronavirus Loans [Member] | Global Telesat Communications Limited [Member] | Maximum [Member]
Proceeds from notes payable | €						€ 250,000

SCHEDULE OF OUTSTANDING STOCK W

SCHEDULE OF OUTSTANDING STOCK WARRANTS ACTIVITIES (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Number of warrants, beginning balance	2,530,092	800
Weighted average exercise price, beginning balance	$ 5	$ 300
Weighted average remaining contractual life (years), beginning balance	4 years 5 months 1 day	1 year 4 months 13 days
Number of warrants, granted		3,456,000
Weighted average exercise price, granted		$ 5
Number of warrants, exercised		(925,908)
Weighted average exercise price, exercised		$ 5
Number of warrants, forfeited
Weighted average exercise price, forfeited
Number of warrants, cancelled		(800)
Weighted average exercise price, cancelled		$ 300
Number of warrants, ending balance	2,530,092	2,530,092
Weighted average exercise price, ending balance	$ 5	$ 5
Weighted average remaining contractual Llfe (Years), ending balance	3 years 11 months 4 days	4 years 5 months 1 day
Number of warrants, exercised		925,908
Weighted average exercise price, exercised		$ (5)
Number of warrants, cancelled		800

SCHEDULE OF OUTSTANDING STOCK O

SCHEDULE OF OUTSTANDING STOCK OPTIONS ACTIVITIES (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Equity [Abstract]
Number of options, outstanding balance beginning	929,892	600,009
Weighted average exercise price, outstanding balance beginning	$ 3.53	$ 2.35
Weighted average remaining contractual life (years), ending outstanding and exercisable	6 years 10 months 13 days	7 years 4 months 9 days	9 years 10 months 28 days
Number of options, granted		400,000
Weighted average exercise price, granted
Number of options, exercised		(19,200)
Weighted average exercise price, exercised
Number of options, forfeited	(191)	(917)
Weighted average exercise price, forfeited
Number of options, cancelled		(50,000)
Weighted average exercise price, cancelled
Number of options, outstanding and exercisable balance ending	929,701	929,892	600,009
Weighted average exercise price, outstanding and exercisable balance ending	$ 3.42	$ 3.53	$ 2.35
Number of options, exercised		19,200
Number of options, cancelled		50,000

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)															3 Months Ended	6 Months Ended		12 Months Ended
	Aug. 04, 2022	Jul. 22, 2022	May 28, 2022	Jan. 21, 2022	Jan. 05, 2022	Jun. 02, 2021	May 28, 2021	May 28, 2021	May 23, 2021	Mar. 11, 2021	Aug. 19, 2019	Jul. 24, 2019	Mar. 08, 2018	Mar. 08, 2018	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Mar. 05, 2016	Mar. 04, 2016
Class of Stock [Line Items]
Authorized capital																			800,000,000	220,000,000
Common stock, shares authorized												750,000,000			50,000,000	50,000,000		50,000,000	750,000,000	200,000,000
Preffered stock, shares authorized												50,000,000			3,333,333	3,333,333		3,333,333	50,000,000	20,000,000
Reverse stock split							ratio of 1-for-5				reverse split of our common stock at a ratio of 1 for 15	1-for-15 reverse split	ratio of 1 for 150	ratio of 1 for 150
Common stock, par value												$ 0.0001			$ 0.0001	$ 0.0001		$ 0.0001
Preferred stock, par value												$ 0.0001			$ 0.0001	$ 0.0001		$ 0.0001
Common stock, shares issued															9,293,096	9,293,096		7,053,146
Common stock, shares outstanding															9,293,096	9,293,096		7,053,146
Preferred stock, shares issued															0	0		0
Preferred stock, shares outstanding															0	0		0
Description of warrant expiration																June of 2026
Gross proceeds					$ 5,825,038											$ 5,605,038	$ 12,661,984
Potential acquisitions percentage					73%
Issuance of common stock, shares					2,229,950
Issuance of restricted common stock, shares																34,800
Adjustments to additional paid in capital stock based compensation															$ 654,246	654,246
Subsequent Event [Member]
Class of Stock [Line Items]
Share issued price per share	$ 4.75
Stock issued during period shares restricted award gross	15,000
Stock issued during period value restricted award gross	$ 71,250
Purchase Agreement [Member]
Class of Stock [Line Items]
Proceeds from sale of common stock																		2,229,950
Employment Agreements [Member] | David Phipps [Member]
Class of Stock [Line Items]
Employment agreement term										3 years
Fernandez Agreement [Member] | Charles M. Fernandez [Member]
Class of Stock [Line Items]
Restricted stock fair value									$ 3,000,000
Fernandez Agreement [Member] | Charles M. Fernandez [Member] | Maximum [Member]
Class of Stock [Line Items]
Warrants exercise price									$ 5
June Agreement [Member] | Charles M. Fernandez [Member]
Class of Stock [Line Items]
Stock issued during period shares restricted award gross			200,000
Employment agreement term						5 years
Restricted stock fair value						$ 3,000,000
Adjustments to additional paid in capital stock based compensation																654,246
Stock issued during period value restricted award gross																$ 297,534		$ 356,712
Share based payment award requiste service period								5 years
June Agreement [Member] | Charles M. Fernandez [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Stock issued during period shares restricted award gross		200,000
Unregistered Underwriter Warrants [Member]
Class of Stock [Line Items]
Warrants exercise price															$ 5.50	$ 5.50
Restricted Stock [Member]
Class of Stock [Line Items]
Issuance of common stock, shares				10,000
Share issued price per share				$ 3.48
Stock issued during period shares restricted award gross				20,000
Issuance of restricted common stock, shares				$ 34,800
Restricted Stock [Member] | Charles M. Fernandez [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Issuance of common stock, shares		200,000
Registered Warrant [Member]
Class of Stock [Line Items]
Common stock, shares authorized															2,836,092	2,836,092
Common stock, shares issued															2,530,092	2,530,092
Common stock, shares outstanding															2,530,092	2,530,092
Warrants exercise price															$ 5	$ 5
Unregistered Underwriter Warrants [Member]
Class of Stock [Line Items]
Common stock, shares issued															144,000	144,000
Common stock, shares outstanding															144,000	144,000
Private Placement [Member]
Class of Stock [Line Items]
Gross proceeds					$ 7,225,038
Issuance of common stock, shares					2,229,950
Share issued price per share					$ 3.24
Legal fees					$ 220,000
Net proceeds					$ 7,005,038
Subscription payable																		$ 1,400,000
Private Placement [Member] | Purchase Agreement [Member]
Class of Stock [Line Items]
Sale of stock price per share																		$ 3.24
Common Stock [Member]
Class of Stock [Line Items]
Reverse stock split							reverse stock split of its common stock at a ratio of 1-for-5
Common Stock [Member] | Reverse Split [Member]
Class of Stock [Line Items]
Reverse stock split							1-for-5 reverse stock split

STOCK SUBSCRIPTION PAYABLE (Det

STOCK SUBSCRIPTION PAYABLE (Details Narrative) - USD ($)		6 Months Ended		12 Months Ended
	Jan. 05, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Shares issued	2,229,950
Stock subscription payable				$ 1,400,000
Proceeds from issuance of common stock	$ 5,825,038	$ 5,605,038	$ 12,661,984
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Shares issued	2,229,950
Proceeds from issuance of common stock	$ 7,225,038
Private Placement [Member] | Accredited Investors [Member]
Subsidiary, Sale of Stock [Line Items]
Shares issued				2,229,950
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock price per share				$ 3.24
Proceeds from issuance of common stock				$ 7,225,038

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2022 GBP (£)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Due to related parties						$ 35,308
Exchange rate	1.2053		1.2053
Consulting fees	$ 156,990	$ 256,034	$ 483,203		$ 548,916
Three Individuals Related To Mr Phipps [Member]
Related Party Transaction [Line Items]
Gross wages			71,899		$ 76,416
Charles M. Fernandez [Member]
Related Party Transaction [Line Items]
Consulting fees			8,960
HSBC [Member]
Related Party Transaction [Line Items]
Over advance limit			$ 33,834	£ 25,000
Exchange rate	1.353372		1.353372
Interest rate	5.50%		5.50%
Base rate			6.25%	6.25%

SCHEDULE OF FUTURE MINIMUM LEAS

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details)	Jun. 30, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2022	$ 84,848
2023	180,815
2024	194,814
2025	200,659
2026	206,679
2027	122,869
Total undiscounted future non-cancelable minimum lease payments	990,683
Less: Imputed interest	(90,696)
Present value of lease liabilities	$ 899,987
Weighted average remaining term	5 years 2 months 26 days

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative)

3 Months Ended

6 Months Ended

May 28, 2022 shares

May 02, 2022 USD ($)

Jan. 11, 2022 USD ($) shares

Dec. 02, 2021 USD ($) ft²

Oct. 08, 2021

Oct. 08, 2021 USD ($)

Aug. 24, 2021 USD ($) $ / shares

Aug. 07, 2021 USD ($)

Jun. 22, 2021 USD ($)

Jun. 05, 2021 USD ($)

Jun. 02, 2021 USD ($) $ / shares

Mar. 11, 2021

Jul. 24, 2019 USD ($) ft²

Jul. 24, 2019 GBP (£) ft²

Jun. 30, 2022 USD ($)

Jun. 30, 2021 USD ($)

Jun. 30, 2022 USD ($)

Jun. 30, 2021 USD ($)

Dec. 31, 2021 USD ($)

Loss Contingencies [Line Items]

Professional fees

$ 156,990

$ 256,034

$ 483,203

$ 548,916

Amortization expenses

17,479

15,476

Long-term operating lease liabilities

899,987

899,987

$ 19,763

Right of use assets

$ 909,908

909,908

$ 22,643

Net rent expense

$ 17,815

$ 18,933

Director Service Agreement [Member]

Loss Contingencies [Line Items]

Agreement term

2 years

Cash retainer

$ 48,000

Stock issued during period, shares, restricted stock award, gross | shares

20,000

Employment Agreements [Member] | David Phipps [Member]

Loss Contingencies [Line Items]

Annual base compensation

$ 350,000

Additional compensation

$ 1,000

Employment agreement term

3 years

Employment Agreements [Member] | Ellenoff [Member]

Loss Contingencies [Line Items]

Employment agreement description

Mr. Ellenoff will receive, in lieu of cash compensation: (i) a restricted stock award of 100,000 shares of Common Stock of the Company, 40,000 were issued within 5 business days of the execution of the Ellenoff Employment Agreement and vest immediately, and the remaining 60,000 of which will be issued and vest at the rate of 20,000 shares at the end of each of the next three annual anniversaries of his employment, provided that Mr. Ellenoff serves on the Board at any time during such year; and (ii) options to purchase a total of 1,500,000 shares of the Company’s Common Stock, 300,000 of which were within 5 business days of the execution of the Ellenoff Employment Agreement and vested immediately, 150,000 of which will vest on each of the next three annual anniversaries of the commencement of his employment, and the remaining 750,000 of which will vest at the rate of 250,000 per year on each of the first three anniversaries of the commencement of his employment if during each such year Mr. Ellenoff introduces the Company to twelve (12) or more potential Business Transactions (as defined in the Ellenoff Agreement and which transactions need not be consummated); provided that the Company’s Chief Executive Officer may, in his sole discretion, waive the vesting requirement in any given year.

Exercise price | $ / shares

$ 5.35

Vested years

5 years

Employment Agreements [Member] | Thomson [Member]

Loss Contingencies [Line Items]

Annual base compensation

$ 250,000

Employment agreement term

3 years

Employment agreement description

Mr. Thomson received (i) immediately vested options to purchase 25,000 shares of Common Stock at a per share price of $5.35, and having a term of 5 years; and (ii) a restricted stock grant of 25,000 shares of Common Stock, 10,000 of which vest immediately, and the remaining 15,000 of which will vest at the rate of 5,000 shares at the end of each of the next three annual anniversaries of his employment. These equity awards to Mr. Thomson were issued outside of a shareholder approved stock or option plan pursuant to the Nasdaq “inducement grant” exception (Nasdaq Listing Rule 5635(c)(4)). On October 7, 2021, the Board of Directors of the Company (the “Board”) appointed Paul R. Thomson, the Executive Vice President of the Company, to the additional position of Chief Financial Officer of the Company effective October 9, 2021. As Chief Financial Officer, Mr. Thomson became the Company’s principal financial officer, effective October 9, 2021. On October 8, 2021, on the approval and recommendation of the Compensation Committee of the Board (the “Compensation Committee”), and following subsequent approval of the Board, the Company entered into an amendment to the Company’s current employment agreement with Mr. Thomson to reflect his new title of “Executive Vice President and Chief Financial Officer” effective October 9, 2021 (the “Thomson Amendment”).

Employment Agreements [Member] | Cohen [Member]

Loss Contingencies [Line Items]

Annual base compensation

$ 125,000

$ 250,000

Employment agreement term

3 years

Employment agreement description

In addition, Section 6(c) of the Agreement shall be deleted and replaced to read as follows: upon termination of the Employee’s employment pursuant to Section 5(a)(v) or other than pursuant to Section 5(a)(i), 5(a)(ii), 5(a)(iii), 5(a)(iv), or 5(a)(vi) (i.e., without “Cause”), in addition to the accrued but unpaid compensation and vacation pay through the end of the Term, or any then applicable extension of the Term, and any other benefits accrued to him under any Benefit Plans outstanding at such time and the reimbursement of documented, unreimbursed expenses incurred prior to such date, the Employee shall be entitled to the following severance benefits: (i) a cash payment equal to $75,000, to be paid in a single lump sum payment not later than sixty (60) days following such termination, less withholding of all applicable taxes; (ii) continued provision for a period of twelve (12) months after the date of termination of the benefits under Benefits Plans extended from time to time by the Corporation to its senior Employees; and (iii) payment on a pro-rated basis of any bonus or other payments earned in connection with any bonus plan to which the Employee was a participant as of the date of the Employee’s termination of Employment. In addition, any options or restricted stock shall be immediately vested upon termination of Employee’s employment pursuant to Section 5(a)(v) or by the Corporation without “Cause.”

Mr. Cohen received (i) immediately vested options to purchase 25,000 shares of Common Stock at a per share price of $5.35, and having a term of 5 years; and (ii) a restricted stock grant of 25,000 shares of Common Stock, 10,000 of which vest immediately, and the remaining 15,000 of which will vest at the rate of 5,000 shares at the end of each of the next three annual anniversaries of his employment. These equity awards to Mr. Cohen were issued outside of a shareholder approved stock or option plan pursuant to the Nasdaq “inducement grant” exception (Nasdaq Listing Rule 5635(c)(4)).

June Agreement [Member] | Charles M. Fernandez [Member]

Loss Contingencies [Line Items]

Stock issued during period, shares, restricted stock award, gross | shares

200,000

Annual base compensation

$ 350,000

Additional compensation

$ 1,000

Employment agreement term

5 years

Annual cash bonus percentage

100%

Professional fees

$ 10,000

Grant date fair value

$ 3,000,000

Offering price | $ / shares

$ 5

Carlise Employment Agreement [Member] | Theresa Carlise [Member]

Loss Contingencies [Line Items]

Annual base compensation

$ 180,000

Carlise Employment Agreement [Member] | Theresa Carlise [Member] | Minimum [Member]

Loss Contingencies [Line Items]

Employment agreement term

1 year

Carlise Employment Agreement [Member] | Theresa Carlise [Member] | Maximum [Member]

Loss Contingencies [Line Items]

Employment agreement term

3 years

Lease Agreement [Member]

Loss Contingencies [Line Items]

Area of square feet | ft²

4,141

2,660

2,660

Annual Rent

$ 186,345

£ 25,536

Annual lease percentage

3%

Facilities rent per month

$ 2,765

£ 2,128

Average conversion rate

1.299279

1.299279

SCHEDULE OF CONCENTRATION RISK

SCHEDULE OF CONCENTRATION RISK (Details) - Revenue Benchmark [Member] - Supplier Concentration Risk [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Globalstar Europe [Member]
Concentration Risk [Line Items]
Satcom Global	$ 119,687	$ 162,313	$ 212,488	$ 565,207
Concentration risk percentage	5.70%	8.20%	4.20%	10.30%
Garmin [Member]
Concentration Risk [Line Items]
Satcom Global	$ 583,136	$ 304,638	$ 999,101	$ 1,051,557
Concentration risk percentage	27.80%	15.50%	19.70%	19.20%
Network Innovations [Member]
Concentration Risk [Line Items]
Satcom Global	$ 200,626	$ 189,984	$ 521,142	$ 343,801
Concentration risk percentage	9.60%	9.60%	10.30%	6.30%
Cygnus Telecom [Member]
Concentration Risk [Line Items]
Satcom Global	$ 254,683	$ 271,971	$ 1,195,597	$ 772,478
Concentration risk percentage	12.20%	13.80%	23.60%	14.10%
Satcom Global [Member]
Concentration Risk [Line Items]
Satcom Global	$ 195,168	$ 349,046	$ 477,998	$ 851,314
Concentration risk percentage	9.30%	17.70%	9.40%	15.50%

SCHEDULE OF REVENUE FROM EACH G

SCHEDULE OF REVENUE FROM EACH GEOGRAPHIC LOCATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Concentration Risk [Line Items]
Revenue	$ 2,871,479	$ 1,956,260	$ 6,449,257	$ 3,417,688
Revenue Benchmark [Member] | Geographic Concentration Risk [Member]
Concentration Risk [Line Items]
Revenue	2,871,479	1,956,260	6,449,257	3,417,688
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Europe [Member]
Concentration Risk [Line Items]
Revenue	$ 2,165,445	$ 1,357,596	$ 5,064,843	$ 2,361,328
Concentration risk percentage	75.40%	69.40%	78.50%	69.10%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | North America [Member]
Concentration Risk [Line Items]
Revenue	$ 462,742	$ 395,832	$ 899,958	$ 709,797
Concentration risk percentage	16.10%	20.20%	14%	20.80%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | South America [Member]
Concentration Risk [Line Items]
Revenue	$ 10,533	$ 7,825	$ 22,306	$ 15,839
Concentration risk percentage	0.40%	0.40%	0.30%	0.50%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Asia Pacific [Member]
Concentration Risk [Line Items]
Revenue	$ 201,371	$ 182,985	$ 397,540	$ 290,582
Concentration risk percentage	7%	9.40%	6.20%	8.50%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Africa [Member]
Concentration Risk [Line Items]
Revenue	$ 31,388	$ 12,022	$ 64,610	$ 40,142
Concentration risk percentage	1.10%	0.60%	1%	1.20%

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative) - Revenue Benchmark [Member] - Customer Concentration Risk [Member]	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Amazon [Member]
Concentration Risk [Line Items]
Concentration risk percentage	49.50%	64.60%	63.60%	73.30%
Other Customer [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Aug. 04, 2022	Jul. 29, 2022	Jul. 22, 2022	Jul. 12, 2022	Jul. 01, 2022	Jan. 21, 2022	Jan. 05, 2022
Subsequent Event [Line Items]
Issuance of common stock, shares							2,229,950
Restricted Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock, shares						10,000
Stock issued during period, shares, restricted stock award, gross						20,000
Shares issued price per share						$ 3.48
Subsequent Event [Member]
Subsequent Event [Line Items]
Share-based payment award, options, vested in period		$ 75,000
Stock issued during period, shares, restricted stock award, gross	15,000
Stock issued during period, value, restricted stock award, gross	$ 71,250
Shares issued price per share	$ 4.75
Charles M. Fernandez [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Salaries and wages				$ 95,000
Charles M. Fernandez [Member] | Subsequent Event [Member] | Stock Option Agreement [Member]
Subsequent Event [Line Items]
Vested options					70,000
Exercise price					$ 2.13
Term years					10 years
Charles M. Fernandez [Member] | Subsequent Event [Member] | Restricted Stock [Member]
Subsequent Event [Line Items]
Issuance of common stock, shares			200,000