Upexi(UPXI) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended December 31, 2024, decreased by $3,457,388 or 46$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$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$1,223,790 or 49%, primarily related to the decline in recommerce revenue[146]. - General and administrative expenses decreased by $35,749 or 2$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].