Revenue Performance - Merchandise revenue decreased by 44.3% or $3,210,541 to $4,036,047, primarily due to a 42.6% decrease in sales orders and a 3.0% decrease in average revenue per order[4] - Total revenue for FY 2023 was $4.8 million, a year-to-year decrease of 41.2% or $3,356,512, attributed to reduced consumer spending from inflation and rising interest rates[5] - Sales of consumable products increased by 11.6% or $23,239 to $223,343, due to efforts to diversify revenue streams[5][11] - Revenue from licensing customers decreased by 23.9% or $169,216 to $539,832, impacted by the temporary suspension of overseas expansions[11] Profit and Loss - Gross profit was $2.2 million, a decrease of 40.2% or $1,462,255, with a gross margin of 45.3%, reflecting a slight increase of 0.7% from the previous year[5][7] - The company reported a net loss of $1,593,394 for FY 2023, compared to a net income of $12,602 in FY 2022[18] - Net income for the year ended June 30, 2023, was a loss of $1,593,394 compared to a net income of $12,602 for the previous year[22] Assets and Liabilities - Total assets increased to $9,037,948 as of June 30, 2023, compared to $5,431,720 in the previous year[17] - Total liabilities decreased to $2,621,025 from $2,994,340 in FY 2022[17] - Total cash and cash equivalents at the end of the period decreased to $236,821 from $716,052, reflecting a change of $479,231[22] - The bad debt provision increased significantly to $426,971 from zero in the previous year[22] - Accounts payable and accrued expenses increased by $363,694, while deferred revenue decreased by $263,625[22] Cash Flow and Investments - The company experienced a cash outflow from operating activities of $373,104, compared to an outflow of $131,781 in the previous year[22] - The foreign currency translation adjustment resulted in a loss of $27,063 for the year[22] - The company did not engage in any purchases of investments or property and equipment during the year[22] Stock and Market Activities - Fitell successfully listed on Nasdaq on August 8, 2023, raising approximately $13.6 million from the issuance of 3,000,000 shares of common stock[12] - The company issued stock for services amounting to $5,600,000 during the year[22] - The total stock issued for prepaid IPO services was valued at $5,040,000[22] Future Plans - The company plans to expand its services, particularly in the Asia market, when market conditions improve[11]
Fitell (FTEL) - 2022 Q4 - Annual Report