Ispire Technology Inc. Reports Financial Results for Fiscal First Quarter 2025
Rhea-AI Summary
Ispire Technology (NASDAQ: ISPR) reported its fiscal Q1 2025 results, ending September 30, 2024.
Revenue was $39.3 million, down from $42.9 million in Q1 2024, an 8.2% decrease.
Gross profit increased 13.2% to $7.7 million, with margins rising from 16.0% to 19.5%.
Total operating expenses rose 67.0% to $12.9 million, attributed to increased marketing, stock-based compensation, and bad debt expenses.
Net loss widened to ($5.6) million or ($0.10) per share, compared to ($1.3) million or ($0.02) per share in Q1 2024.
The company expanded its global reach through a 5-year master distributor agreement with ANDS for MENA and global duty-free markets.
As of September 30, 2024, Ispire had $37.7 million in cash and working capital of $16.6 million.
Positive
- Gross profit increased 13.2% to $7.7 million.
- Gross margin improved from 16.0% to 19.5%.
- Expanded global reach through a 5-year master distributor agreement with ANDS.
Negative
- Revenue decreased 8.2% to $39.3 million.
- Total operating expenses increased 67.0% to $12.9 million.
- Net loss widened to ($5.6) million from ($1.3) million.
News Market Reaction 1 Alert
On the day this news was published, ISPR declined 5.91%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Gross Profit Increased
Gross Margins increased to
Expanded Global Reach through 5-Year Master Distributor Agreement with ANDS for MENA and Global Duty-Free Markets
Fiscal First Quarter 2025 Financial Results
- Revenue was
$39.3 million as compared to$42.9 million in the fiscal first quarter of 2024. - Gross profit increased
13.2% to$7.7 million compared to$6.8 - Gross margin increased to
19.5% as compared to16.0% in the fiscal first quarter of 2024 - Total operating expenses increased
67.0% to$12.9 million as compared to$7.7 million in the fiscal first quarter of 2024. - Net loss of (
$5.6 $1.3
Michael Wang, Co-Chief Executive Officer of Ispire, commented, "Our results from the fiscal first quarter of 2025 reflect our commitment to our growth strategy of becoming the leading innovative vaping technology and precision dosing solutions company worldwide. While our financial results were slightly impacted due to the strategic shifts we have made in our US business to focus on high quality customers and to improve payment terms and gross profit, I am pleased with our team's overall performance given the challenging macroeconomic environment and look forward to the remainder of fiscal 2025 and the opportunities that lay ahead."
Mr. Wang continued, "Additionally, we have continued to make progress with the point-of-use age-gating technology and have begun the initial phase of commercialization worldwide. Also, our recently launched 'I-80' is set to revolutionize the cannabis industry given its production efficiency and cost effectiveness and we continue to see increased adoption of our machine from leading players in the industry. Lastly, we are excited to have recently expanded our global reach through a landmark 5-year master distributor agreement with ANDS for the
Jim McCormick, Chief Financial Officer of Ispire, stated, "The results from our fiscal first quarter were in line with our internal projections as we shifted our
Financial Results for the Fiscal First Quarter Ended September 30, 2024
For the fiscal first quarter ended September 30, 2024, Ispire reported revenue of
Gross profit for the fiscal first quarter ended September 30, 2024, was
Total operating expenses for the fiscal first quarter ended September 30, 2024 were
For the fiscal first quarter ended September 30, 2024, net loss was
As of September 30, 2024, Ispire had
Conference Call
The Company will conduct a conference call at 8:00 am Eastern Time on Monday, November 11, 2024, to discuss the results. Ispire management will host the conference call, followed by a question-and-answer period.
Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the "Ispire Technology Call." An operator will register your name and organization.
- Date: Monday, November 11, 2024
- Time: 8:00 am ET
- Dial-In Numbers:
United States 844-826-3033 or International +1 412-317-5185
This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1693594&tp_key=0c7f927f41
Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.
A playback will be available from 11:00 am ET on November 11, 2024 through November 25, 2024. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 10193803 to access the replay.
About Ispire Technology Inc.
Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act") as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "would," "could," "seek," "intend," "plan," "goal," "project," "estimate," "anticipate," "strategy," "future," "likely" or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the
ISPIRE TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In $USD, except share and per share data) | ||||||||
September 30, | June 30, | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 37,731,954 | $ | 35,071,294 | ||||
Restricted cash | 24,280 | - | ||||||
Accounts receivable, net | 62,359,322 | 59,734,765 | ||||||
Inventories, net | 6,992,025 | 6,365,394 | ||||||
Prepaid expenses and other current assets | 1,406,822 | 1,400,152 | ||||||
Total current assets | 108,514,403 | 102,571,605 | ||||||
Other assets: | ||||||||
Property, plant and equipment, net | 2,662,714 | 2,582,457 | ||||||
Intangible assets, net | 2,015,805 | 1,375,666 | ||||||
Right-of-use assets – operating leases | 3,295,952 | 3,579,140 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 10,172,075 | 10,248,048 | ||||||
Other non-current assets | 291,699 | 284,050 | ||||||
Total other assets | 20,438,245 | 20,069,361 | ||||||
Total assets | $ | 128,952,648 | $ | 122,640,966 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,341,642 | $ | 3,779,723 | ||||
Accounts payable – related party | 76,001,622 | 67,046,472 | ||||||
Contract liabilities | 2,245,505 | 2,218,166 | ||||||
Accrued liabilities and other payables | 12,139,232 | 11,738,339 | ||||||
Income tax payable | 399,995 | - | ||||||
Operating lease liabilities – current portion | 1,240,726 | 1,207,832 | ||||||
Total current liabilities | 96,368,722 | 85,990,532 | ||||||
Other liabilities: | ||||||||
Operating lease liabilities – net of current portion | 1,869,951 | 2,194,094 | ||||||
Total liabilities | 98,238,673 | 88,184,626 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, par value | 5,664 | 5,647 | ||||||
Preferred stock, par value | - | - | ||||||
Additional paid-in capital | 45,224,962 | 43,217,391 | ||||||
Accumulated deficit | (14,420,057) | (8,825,041) | ||||||
Accumulated other comprehensive (loss) income | (96,594) | 58,343 | ||||||
Total stockholders' equity | 30,713,975 | 34,456,340 | ||||||
Total liabilities and stockholders' equity | $ | 128,952,648 | $ | 122,640,966 | ||||
ISPIRE TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||
(In $USD, except share and per share data) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenue | $ | 39,338,313 | $ | 42,864,647 | ||||
Cost of revenue | 31,663,935 | 36,019,799 | ||||||
Gross profit | 7,674,378 | 6,844,848 | ||||||
Operating expenses: | ||||||||
Sales and marketing expenses | 2,992,247 | 1,025,219 | ||||||
General and administrative expenses | 9,904,539 | 6,697,874 | ||||||
Total operating expenses | 12,896,786 | 7,723,093 | ||||||
Loss from operations | (5,222,408) | (878,245) | ||||||
Other income (expense): | ||||||||
Interest income | 86 | 72,246 | ||||||
Exchange gain, net | 117,585 | 3,661 | ||||||
Other income (expenses), net | 6,935 | (43,204) | ||||||
Total other income, net | 124,606 | 32,703 | ||||||
Loss before income taxes | (5,097,802) | (845,542) | ||||||
Income taxes - current | (497,214) | (496,045) | ||||||
Net loss | $ | (5,595,016) | $ | (1,341,587) | ||||
Other comprehensive (loss) income | ||||||||
Foreign currency translation adjustments | (154,937) | 44,463 | ||||||
Comprehensive loss | (5,749,953) | (1,297,124) | ||||||
Net loss per share | ||||||||
Basic and diluted | $ | (0.10) | $ | (0.02) | ||||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 56,601,320 | 54,246,212 | ||||||
ISPIRE TECHNOLOGY INC. | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(In $USD, except share and per share data) | ||||||||
Three Months ended | ||||||||
2024 | 2023 | |||||||
Net loss: | $ | (5,595,016) | $ | (1,341,587) | ||||
Adjustments to reconcile net income from operations to net cash provided by | ||||||||
Depreciation and amortization | 204,807 | 29,161 | ||||||
Credit loss expenses | 3,102,081 | 225,487 | ||||||
Right-of-use assets amortization | 283,188 | 287,481 | ||||||
Stock-based compensation expenses | 2,007,588 | 967,560 | ||||||
Inventory impairment | 73,692 | - | ||||||
Loss from equity method investment | 75,973 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable, net | (5,726,638) | (14,710,476) | ||||||
Inventories | (700,323) | 1,863,080 | ||||||
Other current and non-current assets | (14,319) | 1,603,180 | ||||||
Accounts payable | 9,517,069 | (2,449,276) | ||||||
Contract liabilities | (87,402) | 281,529 | ||||||
Accrued liabilities and other payables | 360,697 | (124,950) | ||||||
Income tax payable | 399,995 | 496,138 | ||||||
Lease liabilities | (291,249) | (249,753) | ||||||
Net cash provided by (used in) operating activities | $ | 3,610,143 | $ | (13,122,426) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (268,781) | (533,122) | ||||||
Acquisition of intangible assets | (656,422) | (255,650) | ||||||
Net cash used in investing activities | $ | (925,203) | $ | (788,772) | ||||
Cash flows from financing activities: | ||||||||
Repayments of advances from a related party | - | (703,323) | ||||||
Net cash used in financing activities | $ | - | $ | (703,323) | ||||
Net increase (decrease) in cash and cash equivalents | 2,684,940 | (14,614,521) | ||||||
Cash and cash equivalents - beginning of period | 35,071,294 | 40,300,573 | ||||||
Cash and cash equivalents - end of period | $ | 37,756,234 | $ | 25,686,052 | ||||
Supplemental non-cash investing and financing activities | ||||||||
Leased assets obtained in exchange for operating lease liabilities | - | 537,307 | ||||||
For more information, kindly contact:
IR Contacts:
Investor Relations
Sherry Zheng
718-213-7386
ir@ispiretechnology.com
KCSA Strategic Communications
Phil Carlson
212-896-1233
ispire@kcsa.com
PR Contact:
Ellen Mellody
570-209-2947
EMellody@kcsa.com
View original content:https://www.prnewswire.com/news-releases/ispire-technology-inc-reports-financial-results-for-fiscal-first-quarter-2025-302300568.html
SOURCE Ispire Technology Inc.
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