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Ispire Technology (ISPR) - 2025 Q2 - Quarterly Results
ISPRIspire Technology (ISPR)2025-02-10 12:00

Revenue and Profitability - Revenue for the fiscal second quarter 2025 was 41.8million,aslightincreaseof0.341.8 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 7.7million,upfrom7.7 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,aslightincreasefrom41,827,860, a slight increase from 41,685,561 in Q4 2023, while revenue for the first half of 2024 decreased to 81,166,173from81,166,173 from 84,550,208 in the same period last year[24]. - Gross profit increased to 7,722,571inQ42024,comparedto7,722,571 in Q4 2024, compared to 6,252,898 in Q4 2023, and for the first half of 2024, gross profit rose to 15,396,949from15,396,949 from 13,097,746[24]. Operating Expenses - Total operating expenses rose by 48.0% to 15.1million,comparedto15.1 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,upfrom15,082,626, up from 10,173,122 in Q4 2023, with a significant increase in general and administrative expenses from 8,778,715to8,778,715 to 13,020,962[24]. Net Loss - The net loss for the quarter was 8.0million,or(8.0 million, or (0.14) per share, compared to a net loss of 4.0million,or(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,comparedtoanetlossof7,998,643, compared to a net loss of 3,991,912 in Q4 2023, and for the first half of 2024, the net loss increased to 13,593,659from13,593,659 from 5,333,499[24]. - Net loss per share for Q4 2024 was 0.14,comparedto0.14, compared to 0.07 in Q4 2023, and for the first half of 2024, it was 0.24versus0.24 versus 0.10 in the same period last year[24]. - The company reported a loss before income taxes of 7,538,612inQ42024,comparedtoalossof7,538,612 in Q4 2024, compared to a loss of 3,639,732 in Q4 2023[24]. - Comprehensive loss for Q4 2024 was 7,925,173,comparedtoacomprehensivelossof7,925,173, 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 34.4million,withworkingcapitalof34.4 million, with working capital of 6.1 million[11]. - The company has authorized a stock repurchase program of up to 10million,reflectingconfidenceinitslong−termpotential[6].BusinessExpansionandMarketStrategy−ThecompanyplanstoexpanditsBrkFstbrandintoover2,000retaillocationsinAfricawithinthenextsixmonths,havingalreadyestablishedapresenceinover500locations[3].−Ispire′sjointventure′scomponentPMTAstrategyisexpectedtotapintoalegalU.S.marketforelectronicnicotinedeliverysystemsvaluedatapproximately10 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 7billionpotentialinalternativemarkets[5].−IspirehasmadesignificantregulatoryprogressinMalaysia,obtainingcriticalnicotineimportandexportlicensesandpreparingforamanufacturer′slicensetoscaleoperationsto70productionlines[6].OtherFinancialMetrics−Interestincomedecreasedto7 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 203,101inQ42023,reflectingadeclineininterest−earningassets[24].−Thecompanyexperiencedaforeigncurrencytranslationadjustmentgainof203,101 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].