Overall Revenue Increased 59.1% to
$42.9 Million; Gross Profit Increased
43.7% to $6.9 Million.
Revenue from cannabis vaping products up
116.8% to $17.3 Million
Revenue from tobacco vaping products up
34.8% to $25.5 Million.
LOS
ANGELES, Nov. 14, 2023 /PRNewswire/ -- Ispire
Technology Inc. ("Ispire" or "the Company") (NASDAQ: ISPR), a
leader in vapor technology, providing high-quality, innovative
products, announced today reported financial results for the fiscal
first quarter 2024, which ended on September
30, 2023, and filed its quarterly report on Form 10-Q on
November 14, 2023.
Fiscal First Quarter 2024 Financial Results
- Revenue increased 59.1% to $42.9 million as compared to $26.9 million in the same period of 2023. Tobacco
vaping products contributed $25.5
million and cannabis vaping products contributed
$17.3 million to revenue during the
fiscal first quarter 2024;
- Gross profit increased 43.7% to $6.9
million as compared to $4.8
million in the same period of 2023;
- Gross margin decreased to 16.1% as compared to
17.8% in the same period of 2023;
- Total operating expenses increased 29.8% to
$7.8 million as compared to
$6.0 million in the same period of
2023; and
- Net loss of $1.4
million as compared to net loss of $2.0 million in the same period of 2023.
Michael Wang, Co-Chief Executive
Officer of Ispire commented, "For the fiscal first quarter of 2024,
we continued to deliver strong financial results as our overall
revenues increased 59.1% year-over-year with cannabis and tobacco
vaping product revenues increasing 116.8% and 34.8% as compared to
the same periods the previous year. This increase reflects our
strategic U.S. market expansion and the market's warm reception to
our best-in-class products. Our active presence at industry trade
shows has been highlighted by the unveiling of our latest
innovative product, the Ispire ONE™ which has transformed vaping
experiences and set new standards in consumer safety and
operational efficiency. Our business strategy has clearly
manifested as we continue to redefine the vaping experience,
consistently delivering high-quality and groundbreaking products
that align with customer preferences."
"We remain confident in our ability to maintain our position as
the leading premier precision dosing technology company as we've
not only secured our position in existing markets but have also
made inroads into new geographies, adapting swiftly to increased
market demands. The establishment of a new manufacturing facility
in Malaysia marks a strategic step
into the Southeast Asian market, signaling our readiness for
scalable operations. As we progress through the fiscal year, we are
on track to not only meet but also exceed our revenue projections
for both cannabis and tobacco vaping products." concluded Wang.
Daniel Machock, Chief Financial
Officer of Ispire, added, "In the fiscal first quarter of 2024,
Ispire's revenue trajectory continued to ascend, with cannabis
vaping products generating $17.3
million, up from $8.0 million
for the same period last year, and tobacco vaping products revenues
climbing to $25.5
million from $18.9
million for the same period last year. The continued
successful execution of our business strategy has yielded fruitful
results both financially and operationally that reflect our brand's
growing prominence as well as the strategic moves we've undertaken.
As we continue to balance growth with operational efficiency, we
remain committed to financial discipline while further driving
shareholder value."
Liquidity and Capital Resources
As of September 30, 2023, Ispire
had cash and cash equivalents of $25.7
million and working capital of $27.6
million.
The Company believes that its current cash and cash flows
provided by operating activities, and the net proceeds from the
initial public offering will be sufficient to meet its working
capital needs in the next 12 months.
Fiscal Year 2024 Outlook
Ispire is providing the following outlook for the cannabis and
tobacco vaping products for fiscal year 2024, which ends on
June 30, 2024. Revenue for cannabis vaping products for
fiscal year 2024 is projected at somewhere between $80 million and $90
million, representing growth between 100% and 125% from
fiscal year 2023. Revenue for tobacco vaping products for fiscal
year 2024 is projected at somewhere between $100 million and
$110 million, representing growth
between 33% and 47% from fiscal year 2023.
Conference Call
The Company will conduct a conference call at 8:00 a.m. Eastern time on Tuesday, November 14,
2023, to discuss the results.
Ispire management will host the conference call, followed by a
question-and-answer period.
Date: Tuesday, November 14,
2023
Time: 8:00 a.m. Eastern time
Toll-free dial-in number:
United States:
1-888-346-8982
Mainland China: 4001-201203
Hong Kong: 800-905945
International: 1-412-902-4272
Webcast:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=pzOaTzRt
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.
To be added to the Ispire Technology email distribution list,
please email ispire@kcsa.com with ISPR in the subject
line.
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 from a related party 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 United States, People's Republic of China, and Russia) primarily through its distribution
network. Ispire's cannabis products are marketed under the Ispire
brand name primarily on an original design manufacturer (ODM) basis
to other cannabis vapor companies. Ispire currently sells its
cannabis vaping hardware only in the
United States, and it recently commenced marketing
activities in Canada and
Europe, primarily in the European
Union.
Please visit www.ispiretechnology.com and follow us on
Facebook, Twitter, Instagram, Linkedin, Pinterest, and
YouTube. Any information contained on, or that can be accessed
through, the Company's website, any other website or any social
media, is not a part of this press release.
Forward Looking Statements
This press release and the
conference call described in this press release contains and will
contain 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: the Company's
ability to collect its accounts receivable in a timely manner, the
Company's business strategies, the ability of the Company to market
to the Ispire ONE™, Ispire ONE™'s success if meeting its goals, the
ability of its customers to derive the anticipated benefits of the
Ispire ONE™ and the success of their products on the markets; the
Ispire ONE™ proving to be safe, and the risk and uncertainties
described in "Risk Factors," "Management's Discussion and Analysis
of Financial Condition and Results of Operations," "Cautionary Note
on Forward-Looking Statements" and the additional risk described in
Ispire's Annual Report on Form 10-K for the fiscal year ended
June 30, 2023 and any subsequent
filings which Ispire makes with the Securities and Exchange
Commission. You should not rely upon forward-looking statements as
predictions of future events. The forward-looking statements made
in the press release relate only to events or information as of the
date on which the statements are made in the press release. We
undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, after the date on which the statements are made or to
reflect the occurrence of unanticipated events except as required
by law. You should read this press release with the understanding
that our actual future results may be materially different from
what we expect.
Investor Relations Contact:
Sherry Zheng
718.213.7386
ir@ispiretechnology.com
ISPIRE TECHNOLOGY
INC.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
June 30,
|
|
|
September 30,
|
|
|
|
2023
|
|
|
2023
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
40,300,573
|
|
|
$
|
25,686,052
|
|
Accounts receivable,
net
|
|
|
24,526,262
|
|
|
|
39,160,751
|
|
Inventories,
net
|
|
|
7,472,108
|
|
|
|
5,609,028
|
|
Prepaid expenses and
other current assets
|
|
|
3,378,617
|
|
|
|
1,964,822
|
|
Held-to-maturity
investment
|
|
|
9,133,707
|
|
|
|
9,192,746
|
|
Total current
assets
|
|
|
84,811,267
|
|
|
|
81,613,399
|
|
Other
assets:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
1,088,131
|
|
|
|
1,592,092
|
|
Intangible
assets
|
|
|
-
|
|
|
|
255,650
|
|
Rental
deposit
|
|
|
732,334
|
|
|
|
660,282
|
|
Right-of-use assets –
operating leases
|
|
|
4,061,617
|
|
|
|
4,285,182
|
|
Total other
assets
|
|
|
5,882,082
|
|
|
|
6,793,206
|
|
Total assets
|
|
$
|
90,693,349
|
|
|
$
|
88,406,605
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,274,391
|
|
|
$
|
170,507
|
|
Accounts payable –
related party
|
|
|
51,698,588
|
|
|
|
50,504,883
|
|
Contract
liabilities
|
|
|
988,556
|
|
|
|
1,290,061
|
|
Accrued liabilities and
other payables
|
|
|
281,361
|
|
|
|
273,745
|
|
Due to related
parties
|
|
|
710,910
|
|
|
|
-
|
|
Income tax payable -
current
|
|
|
63,853
|
|
|
|
559,991
|
|
Operating lease
liabilities – current portion
|
|
|
944,525
|
|
|
|
1,207,234
|
|
Total current
liabilities
|
|
|
55,962,184
|
|
|
|
54,006,421
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease
liabilities – net of current portion
|
|
|
3,356,232
|
|
|
|
3,387,844
|
|
Total
liabilities
|
|
$
|
59,318,416
|
|
|
$
|
57,394,265
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common stock, par value
$0.0001 per share; 140,000,000 shares authorized;
54,222,420 and 54,268,992 shares issued and outstanding
as of June 30, 2023
and September 30, 2023
|
|
|
5,422
|
|
|
|
5,427
|
|
Preferred stock, par
value $0.0001 per share, 10,000,000 shares authorized, no
shares issued at June 30, 2023 and September 30,
2023
|
|
|
-
|
|
|
|
-
|
|
Equity
reserve
|
|
|
-
|
|
|
|
641,943
|
|
Additional paid-in
capital
|
|
|
25,685,475
|
|
|
|
26,011,086
|
|
Accumulated other
comprehensive loss
|
|
|
(163,768)
|
|
|
|
(119,305)
|
|
Retained
earnings
|
|
|
5,847,804
|
|
|
|
4,473,189
|
|
Total stockholders'
equity
|
|
|
31,374,933
|
|
|
|
31,012,340
|
|
Total liabilities and
stockholders' equity
|
|
$
|
90,693,349
|
|
|
$
|
88,406,605
|
|
ISPIRE TECHNOLOGY
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
2022
|
|
|
2023
|
|
Revenue
|
|
$
|
26,943,050
|
|
|
$
|
42,864,647
|
|
Cost of
revenue
|
|
|
22,150,947
|
|
|
|
35,976,355
|
|
Gross profit
|
|
|
4,792,103
|
|
|
|
6,888,292
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses
|
|
|
1,501,156
|
|
|
|
1,068,663
|
|
General and
administrative expenses
|
|
|
4,505,815
|
|
|
|
6,730,902
|
|
Total operating
expenses
|
|
|
6,006,971
|
|
|
|
7,799,565
|
|
Loss from
operations
|
|
|
(1,214,868)
|
|
|
|
(911,273)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
510
|
|
|
|
72,246
|
|
Exchange gain (loss),
net
|
|
|
(500,794)
|
|
|
|
3,661
|
|
Other income
(expenses), net
|
|
|
(19,201)
|
|
|
|
(43,204)
|
|
Total other income
(expense), net
|
|
|
(519,485)
|
|
|
|
32,703
|
|
Loss before income
taxes
|
|
|
(1,734,353)
|
|
|
|
(878,570)
|
|
Income taxes -
current
|
|
|
(267,401)
|
|
|
|
(496,045)
|
|
Net loss
|
|
$
|
(2,001,754)
|
|
|
$
|
(1,374,615)
|
|
Other comprehensive
(loss) income
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(6,876)
|
|
|
|
44,463
|
|
Comprehensive
loss
|
|
|
(2,008,630)
|
|
|
|
(1,330,152)
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.04)
|
|
|
$
|
(0.03)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
50,000,000
|
|
|
|
54,246,212
|
|
ISPIRE TECHNOLOGY
INC.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Three Months
ended
September 30,
|
|
|
|
2022
|
|
|
2023
|
|
|
|
|
|
|
|
|
Net loss:
|
|
$
|
(2,001,754
|
)
|
|
$
|
(1,374,615
|
)
|
Adjustments to
reconcile net income from operations to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
6,553
|
|
|
|
29,161
|
|
Depreciation of
right-of-use assets
|
|
|
256,655
|
|
|
|
312,938
|
|
Accounts receivable
impairment
|
|
|
-
|
|
|
|
225,487
|
|
Stock-based
compensation expenses
|
|
|
-
|
|
|
|
967,559
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(5,917,620
|
)
|
|
|
(14,710,476
|
)
|
Inventories
|
|
|
(4,780,043
|
)
|
|
|
1,863,080
|
|
Prepaid expenses and
other current assets
|
|
|
(24,810
|
)
|
|
|
1,603,180
|
|
Accounts
payable
|
|
|
15,442,733
|
|
|
|
(2,449,276
|
)
|
Contract
liabilities
|
|
|
(997,912
|
)
|
|
|
281,529
|
|
Accrued liabilities and
other payables
|
|
|
(13,887
|
)
|
|
|
(124,950
|
)
|
Income tax
payable
|
|
|
265,925
|
|
|
|
496,138
|
|
Net cash provided by
(used in) operating activities
|
|
$
|
2,235,840
|
|
|
$
|
(12,880,245
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property, plant
and equipment
|
|
|
(324,747
|
)
|
|
|
(533,122
|
)
|
Acquisition of
intangible assets
|
|
|
-
|
|
|
|
(255,650
|
)
|
Net cash used in
investing activities
|
|
$
|
(324,747
|
)
|
|
$
|
(788,772
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Advances to related
parties
|
|
|
(105,752
|
)
|
|
|
(703,322
|
)
|
Principal portion of
lease payment
|
|
|
(185,600
|
)
|
|
|
(242,182
|
)
|
Net cash used in
financing activities
|
|
$
|
(291,352
|
)
|
|
$
|
(945,504
|
)
|
|
|
|
|
|
|
|
|
|
Net increase(decrease)
in cash and cash equivalents
|
|
|
1,619,741
|
|
|
|
(14,614,521
|
)
|
Cash and cash
equivalents - beginning of period
|
|
|
74,480,651
|
|
|
|
40,300,573
|
|
Cash and cash
equivalents - end of period
|
|
$
|
76,100,392
|
|
|
$
|
25,686,052
|
|
View original
content:https://www.prnewswire.com/news-releases/ispire-technology-inc-reports-financial-results-for-the-fiscal-first-quarter-2024-301986488.html
SOURCE Ispire Technology Inc.