340B Contract Service Revenue Grows 110% as New Contract Momentum Continues MIAMI, May 15, 2024 /PRNewswire/ -- Progressive Care Inc. (OTCQB:RXMD) ("Progressive Care" or the "Company"), a personalized healthcare services and technology provider, today announced financial results for its first quarter ended March 31, 2024. The Company reported record first quarter revenues of approximately $14.6 million, a 28% increase compared to revenues reported in the first quarter of 2023. The results reflect continues increases in prescription volumes and revenue generated from multiple 340B service contracts secured late last year. "First quarter results clearly demonstrate the continued positive momentum in our business, highlighted by considerable growth in our 340B contract services segment. Our ability to deliver highly specialized care for patients and create enhanced value for providers remains critical to our success, attributes we believe will allow us to further expand our long-term care and OTC business going forward," said Charles M. Fernandez, Chairman and CEO of Progressive Care Inc. "Furthermore, through the recently proposed merger with NextPlat Corp, we believe that Progressive Care will have the opportunity to leverage additional capabilities and resources, further supporting its growth into new and existing healthcare markets throughout the remainder of 2024 and beyond." First Quarter 2024 Financial Highlights: Total revenues increased by approximately $3.2 million, or 28%, to approximately $14.6 million during the three months ended March 31, 2024, compared to approximately $11.4 million in the prior year period. Prescription revenue, net of PBM fees, increased by approximately $1.6 million, or 16%, to approximately $11.3 million during the first quarter of 2024, compared to approximately $9.8 million in the prior year period. 340B contract revenue was approximately $3.3 million during the first quarter of 2024, an increase of approximately $1.7 million, compared to approximately $1.6 million in the prior year period. The increase was attributable to an increase in our existing 340B contracts of approximately $1.1 million and an increase in new 340B contract revenue of approximately $0.6 million. Overall gross profit margin in the first quarter of 2024 was approximately 27% versus approximately 28% in the first quarter of 2023. The unfavorable significant increase in drug costs per prescription negatively impacted our overall gross profit margin. Cash balance as of March 31, 2024 was approximately $5.5 million as compared to approximately $7.9 million as of December 31, 2023. Organizational Highlights and Recent Business Developments: On April 12, 2024, NextPlat Corp (NASDAQ:NXPL, NXPLW)) ("NextPlat") announced a proposed business combination with Progressive Care in an all-stock transaction which is expected to provide revenue synergies and significant initial annual operating cost reductions. The transaction has been unanimously approved by the Board of Directors of both NextPlat and Progressive Care and is expected to close in the third quarter of 2024, subject to regulatory and stockholder approvals, and other customary closing conditions. On July 1, 2023, NextPlat, Mr. Fernandez, Chairman and Chief Executive Officer of the Company, and Mr. Rodney Barreto, Vice-Chairman of the Company, exercised their common stock purchase warrants in Progressive Care and collectively owned 53% of Progressive Care's voting common stock. PharmcoRx added several additional 340B contracts during late fiscal 2023 as it continued to support the unique needs of 340B covered entities. For the quarter ended March 31, 2024, approximately $0.9 million of the $1.7 million increase in 340B contract revenue was attributable to new 340B contracts, with the remaining $0.8 million increase attributable to existing 340B contracts. During the first quarter of 2024, the Company began ramping-up additional sales and marketing activities targeting the long-term care market in South Florida, engaging a team of dedicated sales personnel. Summary Financials for the Three Months Ended March 31, 2024 and 2023 Note on Financial Presentation In connection with the change in control on July 1, 2023, the application of push-down accounting created a new basis of accounting for all assets and liabilities based on their fair value at the date of acquisition. As a result, our financial results of operations subsequent to the acquisition on July 1, 2023 have been segregated to indicate pre-acquisition and post-acquisition periods. The pre-acquisition period through June 30, 2023 is referred to as the "Predecessor". The post-acquisition period, July 1, 2023 and forward, includes the impact of push-down accounting and is referred to as the "Successor". Successor Predecessor Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 $ Change % Change Total revenues, net $ 14,628 $