TAREN POINT, Australia, April 03, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (the “Company”), an online retailer of gym and fitness equipment in Australia, today announced that on April 2, 2025, it has received a letter (the "Notification Letter") from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”), notifying the Company that for the last 30 consecutive business days the closing bid price of the Company’s ordinary shares was below $1.00 per share, which is th ...

TAREN POINT, Australia, March 26, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (“Fitell” or the “Company”), an online retailer of gym and fitness equipment in Australia, announced on March 24, 2025 that it will hold its Extraordinary General Meeting of Shareholders (the “EGM”) on April 9, 2025 at 10:00 a.m., local time, at Level 17, Tower 2, Lumia International Building, No.181 YanjiangXi Rd, Guangzhou, People’s Republic of China. In connection with the contemplated EGM, on March 24, 2025, the ...

$4.0 million upfront with up to an additional $6.0 million of gross proceeds upon the exercise in full for cash of warrants TAREN POINT, Australia, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (“Fitell” or the “Company”), an online retailer of gym and fitness equipment in Australia, today announced the closing of its previously announced registered direct offering of 796,813 ordinary shares and an additional investment right to purchase up to 1,195,220 ordinary shares in the form of w ...

$4.0 million upfront with up to an additional $6.0 million of gross proceeds upon the exercise in full for cash of warrants TAREN POINT, Australia, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (“Fitell” or the “Company”), an online retailer of gym and fitness equipment in Australia, today announced that it has revised certain terms of its previously announced registered direct offering. Pursuant to the revised terms, the Company has agreed to issue and sell an aggregate of 796,813 ord ...

TAREN POINT, Australia, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) (“Fitell” or the “Company”), an online retailer of gym and fitness equipment in Australia, today announced that it has entered into a definitive agreement with an institutional investor for the issuance and sale in a registered direct offering of an aggregate of 1,992,032 ordinary shares and warrants to purchase up to 1,992,032 ordinary shares, at a purchase price of $5.02 per ordinary share and associated warrant. T ...

Financial Performance - Fitell Corporation reported a financial year 2023 (FY2023) revenue of AUD 10 million, representing a 25% increase compared to FY2022[10]. - The company anticipates a revenue growth target of 30% for FY2024, driven by increased consumer demand and market expansion efforts[12]. - Fitell's gross margin for FY2023 was reported at 45%, a slight decrease from 48% in FY2022, attributed to rising material costs[11]. - The company expects existing cash and cash equivalents to meet anticipated cash needs for the foreseeable future, but may require additional capital for growth[85]. - The company does not intend to pay dividends for the foreseeable future, opting to retain earnings for business operations and expansion[139]. Market and Product Development - Fitell's online platform has seen a 40% increase in user registrations year-over-year, indicating strong consumer interest in fitness and wellness products[18]. - The company plans to launch two new proprietary fitness equipment lines in Q1 FY2024, aiming to capture a larger market share[13]. - The company has initiated the development of new interactive fitness equipment and platforms with subscription services, including smart cardio equipment and an AI-powered interactive platform[39]. - The company anticipates further expansion into international markets, which may present challenges in attracting and retaining subscribers[41]. Operational Challenges - Fitell's operating expenses increased by 20% in FY2023, primarily due to investments in marketing and technology[19]. - The company is closely monitoring macroeconomic conditions, as fluctuations in consumer spending could impact future performance[17]. - The gym and fitness equipment industry is highly competitive and fragmented, which may limit the company's growth and profitability[22]. - Labor shortages in the transportation industry could adversely affect the company's ability to deliver products to customers in a timely manner[27]. - The company faces potential negative impacts on sales and profitability due to fluctuations in product costs, including increases in raw material prices and transportation costs[25][26]. Strategic Initiatives - The company is exploring strategic partnerships to enhance its supply chain efficiency and reduce costs by 15% over the next fiscal year[14]. - The company has identified potential acquisition targets in the fitness technology sector to bolster its product offerings and market presence[20]. - The company may pursue acquisitions or joint ventures, but integration challenges could strain resources and impact operating results[68]. Customer Engagement and Retention - Fitell's customer retention rate improved to 75% in FY2023, reflecting successful engagement strategies[21]. - Future subscriber retention levels for the new interactive fitness offerings are uncertain and could significantly impact the company's financial condition[40]. Risk Factors - Approximately 85% of the products purchased in the fiscal year ended June 30, 2024, were manufactured abroad, primarily in China, exposing the company to international risks and costs[28][29]. - Negative publicity or reputational risks could adversely impact the company's ability to attract and retain customers, affecting overall business performance[44]. - Cyber incidents and data security breaches are increasing risks that could disrupt business operations and negatively impact financial results[48]. - The company is subject to risks from unauthorized disclosure of sensitive information, which could result in substantial costs and reputational damage[50]. - The company faces challenges in maintaining compliance with evolving data privacy and cybersecurity regulations, which may require significant effort and cost[53]. - The company is subject to warranty claims that could result in significant costs and adversely affect financial condition[79]. - Product safety concerns could adversely affect sales, costs, and expose the company to legal risks[104]. - The company faces risks related to the protection of its intellectual property, which could impact brand value and revenue[106]. Regulatory and Compliance Issues - The company operates in a complex regulatory environment, which exposes it to compliance and litigation risks that could materially affect operations[98]. - Compliance with anti-bribery and anti-corruption laws is critical, as violations could lead to significant penalties and impact business operations[108]. - The company is subject to new climate-related disclosure obligations proposed by the SEC, which could increase reporting costs[118]. - The management team has limited experience in managing a public company, which could impact regulatory compliance and operational focus[122]. - The company is classified as an "emerging growth company," allowing it to take advantage of reduced disclosure requirements, potentially affecting share attractiveness[126]. Financial Instruments and Market Risks - The company utilizes derivative instruments to hedge against foreign currency exchange rate fluctuations, but these may not fully offset adverse financial effects[88]. - The market price of the Ordinary Shares may be highly volatile, influenced by various factors including economic conditions and company performance[140][142]. - The company may be classified as a passive foreign investment company (PFIC), which could result in adverse U.S. federal income tax consequences for U.S. holders of Ordinary Shares[146]. - Nasdaq may delist the company's securities, leading to limited market quotations and reduced trading activity[158]. Internal Control and Governance - A material weakness in internal control over financial reporting was identified, which could adversely affect the accuracy of financial statements and investor confidence[137]. - Attracting and retaining key personnel is critical for the company's long-term success, with competitive labor market pressures affecting operational efficiency[57]. - Effective succession planning for executive management is vital to ensure long-term strategic direction and success[60]. - Concentration of ownership by a single director could lead to conflicts of interest and adversely affect the market price of the company's shares[130]. - Flying Height Consulting Services Limited owns approximately 44.7% of the company's outstanding shares, which may lead to a material decline in the value of the Ordinary Shares[131].

TAREN POINT, Australia, March 05, 2024 (GLOBE NEWSWIRE) -- Fitell Corporation (NASDAQ:FTEL) ("Fitell" or the "Company"), an online retailer of gym and fitness equipment in Australia, today announced its half-year financial results for the six months ended December 31, 2023. Six-month Period ended December 31, 2023 Financial Highlights Revenue was $2.1 million, a decrease of $0.9 million or 30.5% compared to the same period in 2022.Gross profit was $0.85 million, a decrease of $745,555 or 46.8% from the same ...

FITELL CORPORATION Disclaimer This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forwardlooking statements are characterized by future or conditional verbs such as "may," "will," "expect," "intend," "anticipate," believe," "estimate" and "continue" or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, ...

International Operations and Risks - Approximately 53% of the products purchased in the fiscal year ended June 30, 2023, were manufactured abroad, primarily in China, exposing the company to international risks and costs[48]. - The company does not have direct exposure to Russia, Ukraine, or Belarus, and the invasion has not directly affected its business operations[54]. - Less than 16% of the company's revenue is derived from China, while approximately 53% of products purchased in the fiscal year ended June 30, 2023, were manufactured in China[93]. - The company faces significant risks due to limited control over suppliers, manufacturers, and logistics partners, which could lead to inability to satisfy product demand and increased costs[92]. - The evolving regulatory environment in China may impose additional costs on suppliers and licensees, potentially affecting the company's operations[94]. Economic and Market Conditions - The company is dependent on macroeconomic conditions and consumer discretionary spending, which could adversely affect its business and financial results[37]. - Uncertain global economic conditions, including inflation and potential recessions, could materially affect the company's business prospects and financial condition[38]. - The ongoing COVID-19 pandemic has significantly affected consumer shopping patterns and the overall health of the economy, impacting the company's operations and financial results[42]. - Labor shortages in the transportation industry could adversely affect the company's ability to transport products to customers in a timely manner[47]. - The company faces intense competition in the gym and fitness equipment industry, which is highly fragmented and continually evolving, potentially limiting growth and profitability[40]. Financial Performance and Revenue - Total revenue for the fiscal year ended June 30, 2023, was $4,799,222, a decrease of $3,356,512 or 41.2% compared to $8,155,734 in 2022[217]. - Merchandise revenue decreased by 42.6% in fiscal year ended June 30, 2023, primarily due to inflation exceeding 6% and the cash rate target rising from 0.10% to 4.10%[206]. - Service revenue fell by 16.1%, from $7,246,588 in fiscal year ended June 30, 2022, to $4,036,047 in fiscal year ended June 30, 2023, due to a temporary suspension of overseas expansions[207]. - Revenue from licensing customers decreased by 23.9% to $539,832, attributed to a temporary suspension of overseas expansions due to negative market sentiments[222]. - The company forecasts significant uncertainty in market growth, particularly in the connected fitness and wellness market, and cannot assure similar growth rates for its business even if the market grows as expected[111]. Inventory and Supply Chain Management - Inventory levels in excess of demand may lead to write-downs or increased holding costs, negatively impacting liquidity and financial condition[51]. - The company must manage a large volume of inventory effectively, as mismanagement could lead to significant adverse effects on its financial condition and results of operations[50]. - Supply chain challenges due to the COVID-19 pandemic have made it difficult to obtain in-demand products, potentially leading to significant markdowns and lower margins[56]. - The company has a broad network of 35 suppliers, including 14 Australian and 21 overseas suppliers, to mitigate supply chain risks[154]. Strategic Initiatives and Growth Plans - The company began developing new interactive fitness equipment and platforms with subscription services in 2021, including smart cardio equipment and an AI-powered training platform[57]. - The company plans to launch interactive gym equipment commercially in March 2024, which includes interactive exercise bikes and workout mirrors[181]. - The company intends to explore opportunities for expanding into used fitness equipment sales and health supplement products targeting health-conscious consumers[170]. - The company plans to open 5 to 10 more mYSTEPS fitness centers in the next 6 months, expanding its licensing business in Southeast Asia[142]. - The company is investing significantly in its online platform and digital capabilities, which involves substantial risks including cost overruns and technology disruptions[59]. Customer Engagement and Marketing - The company’s marketing strategy includes a mix of digital and social media channels to enhance brand awareness and attract customers[148]. - The company has served over 100,000 customers, with a large portion of sales coming from repeat customers, indicating strong brand loyalty[137]. - The e-commerce conversion rate decreased by 14.91% from 1.61% in fiscal year 2022 to 1.37% in fiscal year 2023, with approximately 26.6% of orders coming from existing customers[158]. - The company is developing a native mobile application to enhance customer shopping experiences and track consumer trends, with beta versions in trial stages since March 2022[164]. Compliance and Regulatory Risks - The company is subject to complex regulatory compliance costs, which could materially affect operations and financial results[96]. - Proposed SEC rule amendments regarding climate-related disclosures could impose additional reporting obligations and increase costs for the company[109]. - The company has implemented policies to ensure compliance with anti-corruption laws, but violations could result in significant penalties and affect business operations[105]. - The company's foreign private issuer status allows it to follow home country corporate governance practices, which may provide less investor protection compared to U.S. domestic issuers[108]. Personnel and Management Challenges - The company must attract and retain key personnel to implement strategic initiatives, with competitive labor market pressures affecting its ability to do so[68]. - The company relies on a small number of key management employees and third parties, which poses a risk to its performance if these personnel are lost[71]. - The inability to hire and maintain suitable personnel could materially affect the company's ability to pursue its business plan and operate profitably[72]. - The management team has limited experience in managing a public company, which may adversely affect business operations and financial results due to regulatory oversight and reporting obligations[112]. Financial Health and Expenses - Net income for the fiscal year ended June 30, 2023, was a loss of $1,593,394, compared to a profit of $12,602 in 2022, marking a decline of 10077.7%[217]. - Total operating expenses increased by 19.1% to $2,519,713, with general and administrative expenses rising by 76.5% to $888,141 due to a doubtful debt provision[226]. - Personnel expenses increased to 24.8% of revenue for the fiscal year ended June 30, 2023, compared to 12.0% in 2022, reflecting plans for business expansion[210]. - IPO related expenses increased to $662,418 in fiscal year 2023 from $605,950 in fiscal year 2022, a change of $56,468 or 9.3%[231].

Revenue Performance - Merchandise revenue decreased by 44.3% or $3,210,541 to $4,036,047, primarily due to a 42.6% decrease in sales orders and a 3.0% decrease in average revenue per order[4] - Total revenue for FY 2023 was $4.8 million, a year-to-year decrease of 41.2% or $3,356,512, attributed to reduced consumer spending from inflation and rising interest rates[5] - Sales of consumable products increased by 11.6% or $23,239 to $223,343, due to efforts to diversify revenue streams[5][11] - Revenue from licensing customers decreased by 23.9% or $169,216 to $539,832, impacted by the temporary suspension of overseas expansions[11] Profit and Loss - Gross profit was $2.2 million, a decrease of 40.2% or $1,462,255, with a gross margin of 45.3%, reflecting a slight increase of 0.7% from the previous year[5][7] - The company reported a net loss of $1,593,394 for FY 2023, compared to a net income of $12,602 in FY 2022[18] - Net income for the year ended June 30, 2023, was a loss of $1,593,394 compared to a net income of $12,602 for the previous year[22] Assets and Liabilities - Total assets increased to $9,037,948 as of June 30, 2023, compared to $5,431,720 in the previous year[17] - Total liabilities decreased to $2,621,025 from $2,994,340 in FY 2022[17] - Total cash and cash equivalents at the end of the period decreased to $236,821 from $716,052, reflecting a change of $479,231[22] - The bad debt provision increased significantly to $426,971 from zero in the previous year[22] - Accounts payable and accrued expenses increased by $363,694, while deferred revenue decreased by $263,625[22] Cash Flow and Investments - The company experienced a cash outflow from operating activities of $373,104, compared to an outflow of $131,781 in the previous year[22] - The foreign currency translation adjustment resulted in a loss of $27,063 for the year[22] - The company did not engage in any purchases of investments or property and equipment during the year[22] Stock and Market Activities - Fitell successfully listed on Nasdaq on August 8, 2023, raising approximately $13.6 million from the issuance of 3,000,000 shares of common stock[12] - The company issued stock for services amounting to $5,600,000 during the year[22] - The total stock issued for prepaid IPO services was valued at $5,040,000[22] Future Plans - The company plans to expand its services, particularly in the Asia market, when market conditions improve[11]