Upexi(US:UPXI)2024-02-14 21:41Revenue Performance - For the three months ended December 31, 2023, total revenue was $21,827,827, a decrease of $4,913,735 or 18% compared to $26,741,562 in the same period last year [141]. - For the six months ended December 31, 2023, total revenue increased by $11,215,108 or 30% to $49,175,469 compared to $37,960,361 in the same period last year, driven by the acquisition of E-core [151]. - The Branded Products segment generated revenue of $7,659,684 for the three months ended December 31, 2023, while the Recommerce segment generated $14,168,143 [135]. Cost and Expenses - The cost of revenue decreased by $3,098,543 or 19% to $13,556,574, primarily due to lower recommerce revenue [142]. - Sales and marketing expenses decreased by $605,776 or 18% to $2,691,368 for the three months ended December 31, 2023, reflecting a strategic focus on long-term recurring sales growth [143]. - General and administrative expenses decreased by $214,431 or 9% to $2,303,220 for the three months ended December 31, 2023, due to consolidation efforts [145]. - Cost of revenue increased by $10,139,934 or 46% to $32,196,367 compared to $22,056,433 in the same period last year [152]. - Sales and marketing expenses rose by $515,422 or 10%, primarily due to the increase in the Branded Products segment [153]. - General and administrative expenses decreased by $86,349 or 2% compared to the same period last year [155]. Profit and Loss - The net loss for the three months ended December 31, 2023, was $2,437,919, compared to a net income of $2,669,679 in the same period last year [149]. - The company reported a net loss of $3,794,307 compared to net income of $72,164 in the same period last year [158]. Assets and Liabilities - Total assets as of December 31, 2023, were $62,122,599, with Branded Products segment assets at $26,893,877 and Recommerce segment assets at $35,228,722 [135]. - Current assets decreased to $22,583,131 from $25,455,714, while current liabilities increased to $24,256,069 from $19,606,010, resulting in negative working capital of $1,672,938 [159]. Cash Flow - Cash flows provided by operating activities were $(2,120,077) compared to $3,851,106 in the previous year [160]. - Net cash used in investing activities was $902,864, primarily for the acquisition of the remaining 45% of Cygnet Online LLC [162]. - Net cash provided by financing activities was $599,027, a significant improvement from the use of $9,464,945 in the same period last year [163]. Management Outlook - Management plans to improve gross profit and reduce general and administrative expenses as a percentage of sales in the upcoming year [150]. - Gross profit increased by over $1 million compared to the same period in the previous year, with management aiming to improve gross margin in the next 12 months [152].