California-based Ispire Technology (NASDAQ:ISPR), innovator in vaping technology and precision dosing, reported a $5.9 million net loss for the third fiscal quarter as the company's losses continue to trend upwards.
Michael Wang, Ispire's co-CEO said the company's new business partnerships solidified during the recent quarter, which he expected would help propel Ispire into profitable territory.
"The third quarter was important for Ispire as it demonstrated our continued ability to add new strategic partners and expand within existing market sectors as we execute on our mission to be an innovator and a leader in our markets," Wang said.
Fiscal Third Quarter 2024 Financial Results
Revenue increased 24% to $30.0 million as compared to $24.1 million in the same period of 2023. Tobacco vaping products contributed $18.1 million and cannabis vaping products contributed $11.9 million to revenue during the fiscal third quarter 2024;
Gross profit increased 35% to $6.1 million for the three-month period ended March 31, 2024, compared to $4.5 million in the third quarter of fiscal 2023. Gross profit for the nine-month period ended March 31, 2024, was $19.2 million, compared to $14.3 million for the same period in fiscal 2023.
Gross margin increased to 20.4% as compared to 18.7% in the same period of 2023;
Total operating expenses increased 63.7% to $11.8 million as compared to $7.2 million in the same period of 2023
Net loss of $5.9 million as compared to net loss of $2.3 million in the same period of 2023.
Wang noted that Ispire entered into a joint venture with Berify and Chemular and later in the quarter announced a partnership with a subsidiary of Acreage Holdings (OTCQX:ACRHF). "These partnerships will allow us to continue to expand our market share as we offer our cutting-edge products and technology globally."
As of March 31, 2024, Ispire had approximately $39.5 million in cash and cash equivalents. As of March 31, 2024, and June 30, 2023, the company had working capital of $28.9 million and $28.8 million respectively.
"Also during the quarter, we successfully closed on a $12.3 million public offering. This additional capital will allow us to help fund our joint venture with our partners and also ramp up our operations at our Malaysian manufacturing facility. This facility will play an important part in our operational and financial performance as it further streamlines our supply chain which will lead to improved gross margins and profitability," Wang concluded.