Ispire Technology (NasdaqCM:ISPR) Conference Transcript

Summary of Ispire Technology Conference Call (October 21, 2025) Company Overview - Company: Ispire Technology (NasdaqCM:ISPR) - Industry: Vaping devices, including e-cigarettes and cannabis-related products - Revenue: $127 million for the last fiscal year ending June [3] Core Business Focus - Key Areas: - Global e-cigarette industry - Vaping devices related to cannabis and CBD [2] - Market Position: Historically, the company was the number one selling brand in the U.S. until 2016 [4] Revenue Distribution - Geographic Revenue Breakdown: - Europe: ~50% - North America: ~40% - Rest of the World: Remaining revenue [5] Key Pillars of Business Strategy 1. Age Verification Technology: - Developed a blockchain-based age verification system to prevent underage access to e-cigarettes [14] - FDA has shown strong interest in this technology, suggesting it could be a solution for flavored e-cigarettes [19][21] - The technology has a 100% success rate in age verification trials [20] 2. Manufacturing in Malaysia: - Established factories in Malaysia to mitigate trade barriers and secure a nicotine manufacturing license [28] - Plans for a third factory to expand production capacity [27] 3. Innovative Product Development: - Introduced "g mesh technology" to replace ceramic cores in e-cigarettes, enhancing safety by preventing particle breakdown [32] - Engaging with major tobacco companies for potential manufacturing deals [33] 4. Focus on High-Quality Cannabis Clients: - Shifted strategy to prioritize financially stable cannabis customers amid regulatory uncertainties [34] Regulatory Environment - FDA Involvement: - The FDA's PMTA process requires products to meet safety and marketing standards before sale [11] - Current legal e-cigarette products account for less than 10% of total sales, with the majority coming from the illicit market [13][37] Market Dynamics - Illicit Market Concerns: - The illicit market for e-cigarettes is nine times larger than the legal market in the U.S. [37] - The age verification technology aims to address both adult consumer needs for flavored products and prevent youth access [38] Global Expansion Efforts - International Engagement: - Actively pursuing age verification technology adoption in various countries, including potential mandates in the UK [25] - Engaging with democratic countries for faster implementation of age gating [24] Conclusion - Outlook: The company is optimistic about the FDA's fast-tracked review of its age verification technology and is actively engaging with major tobacco players for licensing opportunities [22][23]