Core Viewpoint - Upexi, Inc. will present at the iAccess Alpha Virtual Best Ideas Summer Investment Conference on June 24-25, 2025, highlighting its focus on consumer products and cryptocurrency diversification [1][2]. Group 1: Company Overview - Upexi, Inc. specializes in the development, manufacturing, and distribution of consumer products [3]. - The company has diversified into the cryptocurrency industry, managing assets through a Cryptocurrency Portfolio [3]. Group 2: Conference Details - The iAccess Alpha Virtual Conference will take place on June 24-25, 2025, with Upexi's presentation scheduled for June 24 at 12:30 p.m. ET [2]. - A webcast of the presentation will be available at Upexi's investor relations website [2].

Core Insights - Upexi, Inc. has partnered with GMI Digital to enhance its marketing and design efforts in the cryptocurrency space, particularly focusing on its Solana-first strategy [1][2][3] - The collaboration aims to improve Upexi's brand identity, digital presence, and engagement with both institutional and crypto-native audiences [2][4] Company Overview - Upexi, Inc. specializes in the development, manufacturing, and distribution of consumer products and has diversified into the cryptocurrency industry [5] - The company is focused on providing scalable, transparent, and compliant exposure to Solana ($SOL) [2] Partnership Details - GMI Digital is a full-service crypto-native marketing and design firm that will lead initiatives for Upexi, leveraging its expertise in crypto culture and public company communication [3][4] - The partnership aims to refine Upexi's messaging strategy and enhance its connection with relevant communities [3][4] Strategic Goals - Upexi's goal is to become the premier public company for Solana exposure, necessitating a partner with deep understanding of the cryptocurrency ecosystem [3] - GMI Digital's track record includes working with various crypto projects and institutions, which aligns with Upexi's vision [4][6]

Core Insights - Upexi, Inc. has purchased 77,879 locked SOL at a price of $151.50 each, totaling $11.8 million, which has resulted in a built-in gain of $2.1 million or 17.7% based on the current price of $178.26 [1][2][3] - The company now holds a total of 679,677 SOL, acquired for $96.5 million, with a current valuation of $121.2 million, reflecting a gain of $24.5 million from both appreciation and discounts [2][3] - CEO Allan Marshall emphasized the strategic nature of this purchase, highlighting its potential to provide investors access to discounted locked Solana and effectively double the staking yield [3] Company Overview - Upexi, Inc. specializes in the development, manufacturing, and distribution of consumer products and has diversified into the cryptocurrency sector through a cryptocurrency portfolio [4] - The company is focused on acquiring and holding SOL to benefit its shareholders [3][4]

Financial Results - Upexi, Inc. reported financial results for the quarter ended March 31, 2025, highlighting significant operational achievements[4]. - A press release detailing the financial and operational results was issued on May 16, 2025[4]. - The financial statements and exhibits related to the earnings report are included in the filing[6]. Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[3]. Report Signing - The Chief Financial Officer, Andrew J. Norstrud, signed the report on behalf of Upexi, Inc.[9].

Revenue Performance - Revenue for the three months ended March 31, 2025, decreased by $2,062,762 or 39% to $3,160,480 compared to $5,223,242 in the same period last year, primarily due to a strategic shift away from the recommerce business[164] - For the nine months ended March 31, 2025, revenue declined by $9,438,325 or 45% to $11,522,487, with approximately $8,277,000 of the decline related to the strategic shift away from recommerce[173] Cost and Profitability - Cost of revenue decreased by $2,354,185 or 60%, leading to a gross profit increase of approximately $290,000 and a gross profit margin increase to 49% from 24% year-over-year[165] - The net loss for the three months ended March 31, 2025, was $3,831,660, a decrease from a loss of $4,118,612 in the same period last year[172] Expenses - General and administrative expenses increased by $828,028 or 46%, attributed to legal and auditing costs, with expectations for normalization post-restructuring[168] Cash Flow and Working Capital - Cash flows used in operating activities for continuing operations were $(4,137,346) for the nine months ended March 31, 2025, compared to $(3,700,706) in the prior year[184] - The company had current assets of $3,968,157 and current liabilities of $10,796,201 as of March 31, 2025, resulting in a working capital deficit of $(6,828,044)[183] - Management expects sufficient working capital to fund operations and meet debt obligations over the next twelve months following the issuance of the financial statements[189] Investment Activities - Net cash provided by investing activities for the nine months ended March 31, 2025, was $5,757,517, primarily from the sale of a building and collection of the purchase price for E-core[186] - On April 24, 2025, the company closed a private placement offering, selling 35,970,383 shares at $2.28 per share, raising approximately $92,586,000 net[188]

Revenue Performance - Revenue for the three months ended December 31, 2024, decreased by $3,457,388 or 46% to $4,005,492 compared to $7,462,880 in the same period last year[141]. - Revenue for the six months ended December 31, 2024, declined by $7,375,563 or 47% to $8,362,007 compared to $15,737,570 in the same period last year[153]. Cost Management - Cost of revenue decreased by $1,864,452 or 64%, leading to a gross profit margin increase to approximately 74% from 61% in the same period last year[144]. - Cost of revenue for the six months decreased by $3,283,206 or 57%, with a gross profit margin increase to 71% from 64% in the same period last year[154]. - Sales and marketing expenses decreased by $536,311 or 36% due to a reduction in unnecessary agency expenses[145]. - Distribution costs decreased by $1,223,790 or 49%, primarily related to the decline in recommerce revenue[146]. - General and administrative expenses decreased by $35,749 or 2%, with expectations for continued declines in future periods[147][148]. Financial Position - The company had cash of $406,347 as of December 31, 2024, a decrease of $255,068 from June 30, 2024, primarily due to operating losses and increases in accounts receivable and inventory[161]. - Management expects to finance operating costs over the next twelve months through existing cash, cash flow from operations, and potential short-term debt financing if necessary[167]. - The company has no off-balance sheet arrangements that materially affect its financial condition or results of operations[169]. Strategic Outlook - Management has determined that additional capital will be required in the near term to support its strategic plan[170]. - The financial statements have been prepared assuming the company will continue as a going concern, indicating confidence in asset realization and liability satisfaction[170]. Loss Performance - The net loss for the three months ended December 31, 2024, was $1,301,310, a decrease from a loss of $2,438,919 in the same period last year[151].

Financial Results - The company announced its financial results for the year ended June 30, 2024, and the first quarter ending September 30, 2024[8]. - The company has filed its Annual Report on Form 10-K for the year ended June 30, 2023, and Quarterly Reports on Form 10-Q for the periods ended September 30, 2023, December 31, 2023, and March 31, 2024[4]. Compliance and Regulations - The company regained compliance with Nasdaq Listing Rule 5250(c)(1) as of December 20, 2024[8]. - The company is classified as an emerging growth company under the Securities Act of 1933[15]. - The report does not include any written communications or soliciting materials under the Exchange Act[9]. - The company has not indicated any changes in its financial accounting standards compliance transition period[16]. Forward-Looking Statements - The financial statements and exhibits are subject to forward-looking statements, which include risks and uncertainties that could materially affect future results[4]. Executive Information - The company’s Chief Financial Officer, Andrew J. Norstrud, signed the report on December 23, 2024[20]. - The company’s principal executive offices are located at 3030 N. Rocky Point Drive, Suite 420, Tampa, FL 33607[21]. - The report includes a press release dated December 23, 2024, which is attached as Exhibit 99.1[17].

Revenue Performance - Revenue for the three months ended September 30, 2024, decreased by $3,918,175 or 47% to $4,356,515 compared to $8,274,690 in the same period last year[160]. Cost Management - Cost of revenue decreased by $1,418,754 or 50% compared to the same period last year, with gross margin remaining stable with less than a 2% change[161]. - Sales and marketing expenses decreased by $775,277 or 43% compared to the same period last year, primarily due to the reduction of unnecessary agency expenses[162]. - Distribution costs decreased by $676,167 or 32% compared to the same period last year, attributed to the decline in recommerce revenue[163]. - General and administrative expenses decreased by $210,660 or 13% compared to the same period last year, with expectations for continued declines post-December 31, 2024[165]. - Other operating expenses decreased by $957,965 or 71% compared to the same period last year, mainly due to changes in amortization of acquired intangible assets[166]. Financial Loss - The company reported a net loss of $1,625,577 for the three months ended September 30, 2024, compared to a loss of $1,333,388 for the same period in 2023[168]. Asset and Liability Overview - As of September 30, 2024, current assets were $6,790,280, down from $11,419,918 as of June 30, 2024, while current liabilities decreased to $9,771,401 from $12,655,152[169]. Cash Flow and Working Capital - Net cash provided by investing activities for the three months ended September 30, 2024, was $5,838,106, significantly higher than $145,324 in the same period last year[174]. - The company estimates sufficient working capital to fund operations over the next twelve months and meet all debt obligations[176].

Financial Performance - Revenues decreased 34% to $14.4 million compared to $21.9 million in the same period last year, primarily due to lower recommerce revenue through Amazon channels and wholesale [3]. - The company reported a net loss of $4.1 million, compared to a loss of $1.7 million in the same period last year, driven by decreased sales and significant inventory write-offs [9]. - Net cash provided by operating activities decreased to $(3,034,406) compared to $2,234,213 in the previous period, indicating a significant decline in operational cash flow [21]. - The company experienced a net decrease in cash of $(3,806,724) for continuing operations, down from $(6,159,303) in the previous period [21]. - The total interest paid during the period was $1,505,162, compared to $326,918, indicating increased borrowing costs [21]. Cost Management - Cost of revenue decreased 19% to $11.6 million from $14.3 million in the same period last year, attributed to the decline in recommerce revenue [4]. - Sales and marketing expenses decreased 32% year-over-year, reflecting management's focus on long-term recurring sales growth through subscription revenue [5]. - General and administrative expenses decreased 8% compared to the same period last year, due to facility consolidation and adjustments related to the sale of subsidiaries [6]. - Other operating expenses decreased 37% year-over-year, primarily due to reduced amortization of stock compensation [7]. - Stock-based compensation expenses totaled $965,229, a decrease from $3,126,472, suggesting a potential shift in compensation strategy [21]. Strategic Initiatives - Management is restructuring the company to improve its balance sheet and focus on profitable growth opportunities without the burden of high debt [2]. - The company anticipates recognizing improvements in fiscal year 2025 following the consolidation of its distribution network [9]. - Upexi aims to continue acquiring profitable Amazon and eCommerce businesses to drive growth and reduce costs through corporate synergies [11]. - The company issued common stock for the acquisition of Cygnet, valued at $162,727, reflecting strategic growth through acquisitions [21]. Cash Flow and Investments - The company had cash of $498,287 as of March 31, 2024, down from $4.5 million a year earlier, but expects sufficient working capital to fund operations for the next twelve months [10]. - Cash flows from investing activities included the acquisition of Lucky Tail for $(3,012,327) and VitaMedica, Inc. for $(500,000), indicating ongoing investment in growth [21]. - Proceeds from the sale of Infusionz and selected assets amounted to $5,173,610, contributing positively to cash flow [21]. - The cash balance at the end of the period was $498,287, a significant decrease from $4,492,291 at the beginning of the period [21]. Asset Management - The company reported a total depreciation and amortization expense of $4,089,722, up from $3,359,050, reflecting increased asset utilization [21]. - The company reported a significant inventory write-off of $1,812,319, which may impact future inventory management strategies [21].

Revenue Performance - Revenue for the three months ended March 31, 2024, decreased by $7,438,488 or 34% to $14,444,957 compared to $21,883,445 in the same period last year [239]. - For the nine months ended March 31, 2024, total revenue increased by $3,303,606 to $59,586,148 compared to $56,282,542 in the same period in 2023 [244]. Operational Loss - The loss from operations for the three months ended March 31, 2024, was $(3,066,816), compared to $(1,870,231) for the same period in 2023 [238]. Expense Management - Sales and marketing expenses decreased by $711,776 or 32% compared to the same period in the prior year, reflecting management's refined sales strategies [240]. - General and administrative expenses decreased by $202,925 or 8% compared to the same period in the prior year, due to facility consolidation and adjustments related to divested operations [241]. - Distribution costs decreased by $493,625 or 6% compared to the same period in the previous year, with expectations for continued reductions [246]. Cash Position - Cash on hand as of March 31, 2024, was $498,287, a decrease of $3,994,004 from June 30, 2023 [250]. - The company expects to receive approximately $1,350,000 from the sale of its Clearwater warehouse, which will be used for working capital and debt repayment [255]. Internal Controls - The company's disclosure controls and procedures were found to be ineffective as of March 31, 2024, due to material weaknesses identified in internal control over financial reporting [281]. - The identified weaknesses include inadequate segregation of duties, which is common in companies of this size [282]. - The company plans to appoint additional qualified personnel and modify financial controls to address these inadequacies by the end of the 2024 fiscal year [282]. - Management is committed to ongoing monitoring and evaluation of internal controls and will implement further enhancements as resources allow [283]. Securities Issuance - The company issued securities under the exemption for transactions not involving a public offering, as per Section 4(a)(2) of the Securities Act [285].