Core Insights - Ispire Technology Inc. will participate in the 37th Annual ROTH Conference from March 16-18, 2025, in Dana Point, California, with Co-CEO Michael Wang scheduled for a fireside chat on March 18, 2025 [1] - The company will also hold one-on-one meetings with institutional investors during the conference [2] Company Overview - Ispire Technology Inc. focuses on the research, development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products [3] - The company holds over 200 patents globally, either received or filed, through its operating subsidiaries [3] - Ispire's tobacco products are marketed under the Aspire brand and sold worldwide, excluding the U.S., People's Republic of China, and Russia, primarily through a global distribution network [3] - Cannabis products are marketed under the Ispire brand, primarily on an ODM basis to other cannabis vapor companies, with sales of cannabis vaping hardware limited to the U.S. and recent marketing activities initiated in Canada and Europe [3]

Company Overview - Ispire Technology Inc. is engaged in the research, development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products [4] - The company owns or licenses over 200 patents globally [4] - Ispire's tobacco products are marketed under the Aspire brand and sold worldwide, excluding the U.S., People's Republic of China, and Russia [4] - Cannabis products are marketed under the Ispire brand primarily on an ODM basis to other cannabis vapor companies, with sales in the U.S. and recent marketing activities in Canada and Europe [4] Recent Highlights - On February 10, 2025, Ispire Technology Inc. reported financial results for the fiscal second quarter of 2025 [2] - On January 22, 2025, the company announced a stock repurchase program [2] - On January 15, 2025, Ispire announced a license arrangement and the successful launch of Burna Boy's BrkFst nicotine products into African markets [2] - On November 25, 2024, Ispire launched VLT, a new pod system designed to enhance the 510-thread vaping experience [2] - On November 18, 2024, IKE Tech LLC and Ispire announced a positive pre-PMTA submission meeting with the FDA [2] Upcoming Events - Michael Wang, Co-CEO of Ispire, will present at the Webull Consumer Webinar Series on February 18, 2025, at approximately 3:00 p.m. ET [6]

Financial Data and Key Metrics Changes - For Q2 2025, the company generated revenues of approximately $41.8 million, a slight increase of $100,000 or about 0.3% from $41.7 million in the same period last year [7][27] - Gross margin increased to 18.5% from 15%, with gross profit rising to $7.7 million from $6.3 million in the same quarter of fiscal 2024 [7][30] - The net loss for the quarter was $8 million or $0.14 per share, compared to a net loss of $4 million or $0.07 per share in the prior year [31] Business Line Data and Key Metrics Changes - The nicotine business accounted for $31 million of overall revenue in Q2 2025, performing in line with expectations [9] - Revenue from Europe was approximately $24 million, representing strong growth of $8.3 million or 53.2% year-over-year [28] - North America saw revenues of approximately $10.9 million, a decline of $9 million or 45.3% compared to the previous year, primarily due to decreased sales of cannabis vaping products [28] - Asia Pacific revenues were approximately $3.6 million, a decline of $2.4 million or 39.6% year-over-year [28] - Revenue from Africa increased to $2.7 million, up $2.6 million from the same period last year, attributed to the launch in South Africa [28] Market Data and Key Metrics Changes - The South African tobacco products market is projected to grow annually by over 5% between now and 2029, presenting significant opportunities for the company [13] - The company has established a presence in over 500 retail locations across South Africa and Nigeria, with plans to expand to over 2,000 stores in the next six months [11] Company Strategy and Development Direction - The company is focused on international growth and enhancing financial stability through a better quality of customer portfolio and revenue [6][8] - A stock repurchase program of up to $10 million has been authorized, reflecting the board's confidence in the company's long-term vision [17] - The company is preparing to launch its age-gating GMAS products in the UK market in the first half of calendar 2025, demonstrating commitment to responsible market entry [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing progress in sales and international expansion, particularly in Africa and Malaysia [10][14] - The company anticipates that the regulatory landscape in the UK will favor its open system products as disposable vape devices are set to be banned [47][48] - Management acknowledged the challenges posed by potential tariff increases on imports from China but believes the company is well-positioned to mitigate these risks through its manufacturing operations in Malaysia [60] Other Important Information - The company has implemented cost-saving initiatives expected to generate over $8 million annually, aimed at optimizing its cost structure [24] - The company is on track to submit the age-gating component of PMTA in April 2025, which could open significant revenue opportunities [21][69] Q&A Session Summary Question: Update on cannabis partnerships and pipeline - Management indicated that the cannabis business has pivoted towards larger MSO customers, with three partnerships already established, which could provide roughly one-third of revenue in the near future [40][42] Question: Performance in Europe - Management noted that the UK market is shifting towards open systems due to regulatory changes, which positions the company favorably [46][48] Question: Rationale behind the stock buyback program - The stock buyback program is designed to provide flexibility over a 24-month period, with expectations for cash flow to improve despite some one-time expenses related to cost-saving initiatives [52][54][56] Question: Impact of U.S. tariffs and regulations - Management expects tariff increases on Chinese products but believes the company will benefit from tighter border controls on illegal products [60][62] Question: Modular PMTA opportunity - The PMTA component represents a unique approach to addressing the flavored e-cigarette market, with potential licensing revenue opportunities from other manufacturers [68][70]

Revenue and Profitability - Revenue for the fiscal second quarter 2025 was $41.8 million, a slight increase of 0.3% from $41.7 million in the same quarter of fiscal 2024[4]. - Gross profit increased by 23.5% to $7.7 million, up from $6.3 million in the prior year, resulting in a gross margin of 18.5%, compared to 15.0% in the second quarter of fiscal 2024[4][8]. - Revenue for Q4 2024 was $41,827,860, a slight increase from $41,685,561 in Q4 2023, while revenue for the first half of 2024 decreased to $81,166,173 from $84,550,208 in the same period last year[24]. - Gross profit increased to $7,722,571 in Q4 2024, compared to $6,252,898 in Q4 2023, and for the first half of 2024, gross profit rose to $15,396,949 from $13,097,746[24]. Operating Expenses - Total operating expenses rose by 48.0% to $15.1 million, compared to $10.2 million in the same quarter of fiscal 2024[4][9]. - Total operating expenses for Q4 2024 were $15,082,626, up from $10,173,122 in Q4 2023, with a significant increase in general and administrative expenses from $8,778,715 to $13,020,962[24]. Net Loss - The net loss for the quarter was $8.0 million, or ($0.14) per share, compared to a net loss of $4.0 million, or ($0.07) per share in the second quarter of fiscal 2024[10]. - The net loss for Q4 2024 was $7,998,643, compared to a net loss of $3,991,912 in Q4 2023, and for the first half of 2024, the net loss increased to $13,593,659 from $5,333,499[24]. - Net loss per share for Q4 2024 was $0.14, compared to $0.07 in Q4 2023, and for the first half of 2024, it was $0.24 versus $0.10 in the same period last year[24]. - The company reported a loss before income taxes of $7,538,612 in Q4 2024, compared to a loss of $3,639,732 in Q4 2023[24]. - Comprehensive loss for Q4 2024 was $7,925,173, compared to a comprehensive loss of $3,877,585 in Q4 2023[24]. Cash Position and Financial Strategy - Cash position as of December 31, 2024, was $34.4 million, with working capital of $6.1 million[11]. - The company has authorized a stock repurchase program of up to $10 million, reflecting confidence in its long-term potential[6]. Business Expansion and Market Strategy - The company plans to expand its BrkFst brand into over 2,000 retail locations in Africa within the next six months, having already established a presence in over 500 locations[3]. - Ispire's joint venture's component PMTA strategy is expected to tap into a legal U.S. market for electronic nicotine delivery systems valued at approximately $11 billion, with an additional $7 billion potential in alternative markets[5]. - Ispire has made significant regulatory progress in Malaysia, obtaining critical nicotine import and export licenses and preparing for a manufacturer's license to scale operations to 70 production lines[6]. Other Financial Metrics - Interest income decreased to $59,755 in Q4 2024 from $203,101 in Q4 2023, reflecting a decline in interest-earning assets[24]. - The company experienced a foreign currency translation adjustment gain of $73,470 in Q4 2024, compared to a gain of $114,327 in Q4 2023[24]. - Weighted average shares outstanding increased to 56,658,012 in Q4 2024 from 54,270,236 in Q4 2023, indicating a dilution effect on earnings per share[24]. - The increase in gross profit and margin was primarily due to a favorable product mix with higher margin products sold during the quarter[8].

Core Insights - Ispire Technology Inc. reported a gross profit increase of 23.5% year-over-year to $7.7 million, with gross margins rising to 18.5% from 15.0% [1][6] - Revenue for the fiscal second quarter of 2025 was $41.8 million, reflecting a slight increase of 0.3% compared to the previous year [1][5] - The company is expanding its international presence, particularly with the BrkFst brand in Africa, aiming to reach over 2,000 retail locations in the next six months [3] Financial Performance - Gross profit for the second quarter was $7.7 million, up from $6.3 million in the same period last year, indicating a strong performance despite challenging macroeconomic conditions [6][19] - Total operating expenses increased by 48% to $15.1 million, primarily due to investments in revenue generation and product development [8][19] - The net loss for the quarter was $8.0 million, compared to a net loss of $4.0 million in the prior year [9][19] Strategic Initiatives - The company has made significant regulatory progress in Malaysia, obtaining critical nicotine import and export licenses, which will enable scaling operations to 70 production lines [4] - A stock repurchase program of up to $10 million has been authorized by the Board, reflecting confidence in the company's long-term potential [4] - The IKE Tech joint venture's component PMTA strategy has received positive feedback from the FDA, indicating potential for future growth in the U.S. market [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 (Exact name of registrant as specified in its charter) Delaware 93-1869878 (I.R.S. Employer (State or other jurisdiction of incorporation or organization) 19700 Magellan Drive Los Angeles, California 90502 (Address of principal executive offices) (Zip Code) (310) 742-9975 OR ☐ TRANSITION RE ...

Core Viewpoint - Ispire Technology Inc. will host an earnings conference call on February 10, 2025, to discuss its financial results for the fiscal second quarter ended December 31, 2024 [1]. Company Overview - Ispire Technology Inc. is involved in the research, development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products [4]. - The company holds or licenses over 200 patents globally [4]. - Ispire's tobacco products are marketed under the Aspire brand and sold worldwide, excluding the U.S., People's Republic of China, and Russia [4]. - Cannabis products are marketed under the Ispire brand, primarily on an ODM basis to other cannabis vapor companies, with sales of cannabis vaping hardware limited to the U.S. and recent marketing activities initiated in Canada and Europe [4]. Conference Call Details - The earnings conference call is scheduled for February 10, 2025, at 8:00 am ET [6]. - Participants can join the call by dialing the provided numbers and are encouraged to access the online broadcast at least fifteen minutes prior to the start [2][6]. - A playback of the conference call will be available from 11:00 am ET on February 10, 2025, through February 24, 2025 [3].

Group 1 - DocShah Financial, LLC is a full-service registered investment advisory firm [1] - The firm offers portfolio creation and review services [1] - The article emphasizes that the content is for entertainment purposes and not financial advice [2][3] Group 2 - The article highlights that the information is based on publicly available data [2] - It notes that conflicts of interest may exist regarding stock holdings [2] - The firm advises readers to conduct their own research and consult with a qualified financial advisor before making investment decisions [2]

Core Viewpoint - Ispire Technology Inc. has announced a stock repurchase program authorizing the repurchase of up to $10 million of its common stock over the next 24 months, reflecting confidence in the company's growth and strategic investments [1][2]. Company Overview - Ispire Technology Inc. is engaged in the research, development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products, owning or licensing over 400 patents worldwide [3]. - The company's e-cigarette products are marketed under the Aspire name and sold globally, excluding the U.S., People's Republic of China, and Russia, primarily through a global distribution network [3]. - Ispire also engages in original design manufacturing (ODM) relationships with e-cigarette brands and retailers worldwide, and its cannabis products are marketed under the Ispire brand name [3]. Stock Repurchase Program Details - The stock repurchase program allows the company to repurchase shares through open market transactions, accelerated share buyback programs, tender offers, privately negotiated transactions, or other means [2]. - The timing and amount of repurchase transactions will be determined by the company's board based on market conditions, share price, legal requirements, and other factors [2]. - The program does not have a set expiration date and may be suspended, modified, or discontinued at any time without prior notice [2].

Core Insights - Ispire Technology Inc. has successfully launched its BrkFst nicotine products in South Africa and Nigeria, marking its first international nicotine license arrangement and product launch [1][4] - The initial market response has been positive, with BrkFst products available in over 500 retail locations, including major chains [2] - Ispire plans to expand its retail presence in Africa to over 2,000 stores within the next six months, partnering with additional major retailers [3] Company Strategy - The launch of BrkFst in Africa is a significant milestone for Ispire, showcasing its ability to execute on its international expansion strategy [4] - The company aims to replicate its success in other markets through partnerships with local brands and comprehensive market rollouts [4] - Ispire's local brand partners are actively engaging consumers and retailers through daily activation events in major metropolitan areas [3] Product and Market Presence - BrkFst is co-created by GRAMMY-Award winner Burna Boy, aiming to redefine the nicotine product market in South Africa and Nigeria [1] - The company is involved in the research, development, and commercialization of branded e-cigarettes and cannabis vaping products, holding over 400 patents worldwide [5] - Ispire's products are marketed under the Aspire name and are sold globally, excluding the U.S., People's Republic of China, and Russia [5]