Tue, May 14, 8:46 PM (73 days ago)
Ispire Technology Inc. reported a revenue increase of 24.4% year-over-year for the quarter ended March 31, 2024, reaching $30 million. This growth was driven by a significant rise in cannabis vaping product sales in North America. Cost of revenue also increased by 21.8%, resulting in a gross profit of $6.1 million, up 35.4% from the previous year. However, operating expenses surged by 63.7% due to higher marketing costs and stock-based compensation, leading to a net loss of $5.9 million, compared to a $2.3 million loss in the same quarter last year. The company’s cash flow from operations turned negative, primarily due to increased accounts receivable and inventory levels. The restatement of financials for the nine months ended March 31, 2023, included reclassification of operating lease payments and shipping costs. The company anticipates that its current cash and working capital will be sufficient for the next 12 months but acknowledges potential future financing needs.