NextPlat Corp Debt Disclosure

Note 14. Notes Payable

 

Notes payable consisted of the following (in thousands):

 

		December 31, 2025				December 31, 2024
A. Mortgage note payable - commercial bank - collateralized		$	956			$	1,050
B. Note payable - uncollateralized			25				25
C. Notes payable - collateralized			78				234
Insurance premiums financing			233				103
Subtotal			1,292				1,412
Less: current portion of notes payable			(416	)			(380	)
Long-term portion of notes payable		$	876			$	1,032

 

(A) Mortgage Note Payable – collateralized

 

In 2018, Pharmco closed on the purchase of land and building located at 400 Ansin Boulevard, Hallandale Beach, Florida. The purchase price was financed in part through a mortgage note and security agreement entered into with a commercial lender in the amount of $1,530,000. The promissory note is collateralized by the land and building, bears interest at a fixed rate of 4.75% per annum, matures on December 14, 2028 and is subject to a prepayment penalty. Principal and interest are repaid through 119 regular payments of $11,901 that began in January 2019, with the final payment of all principal and accrued interest not yet paid on December 14, 2028. Note repayment is guaranteed by Progressive Care. The carrying value of the land and building was approximately $2.2 million as of December 31, 2025.

 

(B) Note Payable – Uncollateralized

 

As of  December 31, 2025, the uncollateralized note payable represents a non-interest-bearing loan that is due on demand from an investor.

 

(C) Notes Payable – Collateralized

 

On July 16, 2020 (the “Issue Date”), GTC, entered into a Coronavirus Interruption Loan Agreement (“Debenture”) by and among the Company and HSBC UK Bank PLC (the “Lender”) for an amount of £250,000, or USD $338,343 at an exchange rate of GBP: USD of 1.3533720. The Debenture bears interest beginning July 16, 2021, at a rate of 4.0% per annum over the Bank of England Base Rate (0.1% as of July 16, 2020), payable monthly on the outstanding principal amount of the Debenture. The Debenture has a term of six years from the drawdown date and is scheduled to mature on July 15, 2026 (the “Maturity Date”). Voluntary prepayments are allowed with five 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. The Debenture is secured by all GTC’s assets as well as a guarantee by the UK government. The Debenture includes customary events of default, including, among others: (i) non-payment of amounts due thereunder, (ii) non-compliance with covenants thereunder, (iii) bankruptcy or insolvency (each, an “Event of Default”). Upon the occurrence of an Event of Default, the Debenture becomes payable upon demand. The balance outstanding on the note payable was approximately $39,000 and $132,000 as of  December 31, 2025 and 2024, respectively.

 

In July 2022, Progressive Care entered into a note obligation with a commercial lender, the proceeds from which were used to purchase pharmacy equipment in the amount of approximately $90,000. The terms of the promissory note payable require 60 monthly payments of $1,859, including interest at 8.78% starting January 2023. The balance outstanding on the note payable was approximately $39,000 and $58,000 as of  December 31, 2025 and 2024, respectively.

 

Principal outstanding as of  December 31, 2025, is expected to be repayable as follows (in thousands):

 

Year		Amount
2026		$	416
2027			123
2028			753
Thereafter			—
Total		$	1,292