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].
Upexi(UPXI) - 2024 Q4 - Annual Report