Q2 2024 Results – MJ Shareholders https://mjshareholders.com The Ultimate Marijuana Business Directory Fri, 01 Mar 2024 16:56:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 Hill Incorporated Releases Q2 FY 2024 Results https://mjshareholders.com/hill-incorporated-releases-q2-fy-2024-results/ Fri, 01 Mar 2024 16:56:37 +0000 https://cannabisfn.com/?p=2974281

Ryan Allway

March 1st, 2024

News, Top News, Top Story


  • We Continued toExpand the DehydraTECH Licensee Eco-System, As Leading Multi-StateOperator MariMed Inc. Launched New DehydraTECH-Powered Products inQ2
  • DehydraTECHLicensee 1906 Launched an Exciting New Direct-To-Consumer ProductLine, Produced Using DehydraTECH, Across A Majority of US StatesDuring Q2, Adding to Their Existing Product Lines Already Sold inLicensed Dispensaries
  • We Continued toDrive Marketplace Growth on Vin(Zero) Alcohol-Free Wine, IncreasingShipments to Retailers by 11% in Q2 vs. Year Ago and Adding theLargest Grocery Retailer in Western Canada – Save-On-Foods – to OurBase of Vin(Zero) Customers

FINANCIAL HIGHLIGHTS FOR Q2 FY 2024AND THE SIX MONTHS ENDED DECEMBER 31, 2023

  • We Delivered theSecond-Highest Quarterly Gross Profit in Company History in Q2,Topping $500K For the Second Time
  • We Narrowed theNet Loss for the Six-Month Period by 23% vs. Same Period YearAgo

Toronto, ON. – TheNewswire – March 1, 2024 — Hill Incorporated,formerly Hill Street Beverage Company Inc. ( TSXV:HILL ) ( OTC:HSEEF )(” Hill ” or the ” Company “), is pleased to announce that ithas released its financial results for the three- and six-monthperiods ended December 31, 2023 (“ Q2 ”), which can befound at www.sedarplus.com .  Theprogressive bioscience implementation company is dedicated to buildingpathways to better and healthier living by leveraging deep CPGexpertise to commercialize leading-edge technologies, craftingsuperior cannabis solutions and non-alcoholic beverage productsglobally. The financial information summarized in this press releaseis based on data from Q2 FY2024.

We Continued to Expand theDehydraTECH Licensee Eco-System, As Leading Multi-State OperatorMariMed Inc. Launched New DehydraTECH-Powered Products in Q2 Intensive R&D, product and commercial manufacturingdevelopment led to our November 16, 2023 announcement that leadingmulti-state operator MariMed will use the patented DehydraTECHbiodelivery technology to power the next generation of cannabisedibles sold under several of its award-winning brands.

MariMed has now rolled out improved DehydraTECH-poweredproducts in Massachusetts, Maryland, andDelaware, with Illinois planned to launch in early 2024 aswell. MariMed brands now powered byDehydraTECH include ‘ Vibations™ ’ all-natural,full-spectrum cannabis drink mix, which recently won first place inthe beverages category of the High Times CannabisCup in Massachusetts, ‘ K Fusion™ ’ chewable tablets, and ‘ InHouse TM ’ gummies. More information on MariMedbrands can be found at MariMedBrands .

We anticipate that this major new multi-state,multi-brand licensee will deliver strong incremental licensingrevenues in 2024 as their launches reach full scale and expand acrosstheir state footprint.

The addition of MariMed to our DehydraTECH licenseeecosystem represents continued expansion by Hill on the key factorsdriving the growth agenda of our DehydraTECH licensing business:

1) new licensees –increasing our base of active licensees and brands;

2) new states – newstate launches expanding the geographic coverage for active licenseesor brands;

3) new product form factors – innovation to expand the number of DehydraTECH-poweredconsumer product forms and types in market tofill consumer needs and occasions; and

4) deeper penetration of products acrossoperations – driving deeper penetration of thebreadth of product forms and brands across current and newstates.

The following chart shows the significant advances wehave made in the DehydraTECH licensing business, beginning from theDecember 2020 rights acquisition through December 2023 at the close ofQ2 FY 2024.

DehydraTECH Licensee 1906 Launched anExciting New Direct-To-Consumer Product Line, Produced UsingDehydraTECH, Across A Majority of US States During Q2, Adding to TheirExisting Product Lines Already Sold in Licensed Dispensaries

1906 also launched an exciting new direct-to-consumer(DTC) product line across a majority of US states, offeringhemp-derived Delta-9 THC micro-dose versions of their popular‘Drops’ products, which are also produced using DehydraTECH. This DTC launch expanded access of 1906 Drops varieties to a muchbroader footprint of consumers, adding DTC distribution acrossapproximately 36 states.  This new initiative adds to the dispensaryavailability in several legal adult-use states of the higher dose,marijuana-derived delta-9 THC 1906 Drops.  1906 has announced thatthey will be streamlining the dispensary availability of the higherdose, marijuana-derived delta-9 THC 1906 Drops to Illinois,Massachusetts, Missouri, New Jersey, New York and Pennsylvania. Moreinformation on 1906’s products can be found at https://1906.shop/.

We Continued to Drive MarketplaceGrowth on Vin(Zero) Alcohol-Free Wine, Increasing Shipments toRetailers by 11%  in Q2 vs. Year Ago and Adding the Largest GroceryRetailer in Western Canada – Save-On-Foods – to Our Base of Vin(Zero)Customers

As communicated, the new streamlined commercial modelon our alcohol-free business creates a new and different cadence tothe business, where dramatic quarter-to-quarter swings on therecognized revenues are planned based on inventory efficiencies. Therefore, the business must be looked at across longer time framesand through different operational lenses.  As we adapt to the newcadence of supply shipments and recognized revenues, a key measure ofthe underlying business in this new model is our case depletions,which represents the shipment figures from our distributor toretailers.  Our shipments from warehouses to retail customersincreased by a strong 11% during the quarter vs. year ago, showingstrength of support for the 2023 holiday period.

In addition, we secured a major new account during theperiod that added to the strong shipments to retail, addingSave-On-Foods to our customer base.  Save-On-Foods is WesternCanada’s largest grocery retailer , with a dynamic history dating back to 1915.  TheirWholesale Division also services ChoiceMarkets , Quality Foods , Georgia Main , AG Foods , Buy-LowFoods & CalgaryCo-Op .  In total, this placement provides newconsumer access to Vin(Zero) through approximately 165 Save-On-Foodsstores across British Columbia , Alberta , Saskatchewan , Manitoba and the YukonTerritory .  We are excited about this newadditional business and its impact in 2024, on top of our strongexisting base of customers.

We Delivered the Second-HighestQuarterly Gross Profit in Company History, Topping $500K for theSecond Time

Consolidated net revenue for Q2 was a very strong$982,773 – the third highest ever – and our Q2 gross profit of$537,218 was the second highest in history, trailing only the recordQ2 year ago.  The year ago quarter had extraordinarily high revenuesfor the Company due to significant inventory building on thealcohol-free wine business for the first winter of the new businessmodel.  Our subsequently improved forecasting and inventoryefficiency planning, as we’ve executed themodel, resulted in a less significant inventorybuild-up for this winter season; however, alcohol-free wine netrevenue in Q2 was still a very strong $671,201.

We Narrowed the Net Loss for theSix-Month Period by 23% vs. Same Period Year Ago

As reported, gross profit of $537,218 was the secondhighest level reached in company history, trailing only the recordyear ago Q2. Yet, on a consolidated basis, gross profit declined 30%for the six-month period vs. year ago that included the record Q2. As discussed, the variance is due to the changes in alcohol-freewine inventory buildup and resulting recognized revenue between thetwo years. Despite this decline in consolidated revenue and grossprofit for the six-month period, the significant cost reductionmeasures we have taken have resulted in the net loss for the periodimproving a full 23% vs. year ago, decreasing from $856,925 to$650,614.

For the Company’s full financial statements and acomprehensive Company update by way of its Management Discussion andAnalysis, please visit the Company’s profile at www.sedarplus.com .

Company Returns to OTC PinkMarkets

On or around March 1, 2024, the Company’s stock willreturn to the OTC Pink Market from the OTCQB Venture Market(“OTCQB”) where its shares are currently traded.  In the pastyear since we listed on the OTCQB, we have observed that there isminimal trading volume on that marketplace of the Company’s commonshares.  As a result, we believe that the value in maintaining itsOTCQB listing does not substantiate the cost.  The ticker symbol willbe unchanged and investors will still be able to purchase Hill commonshares via its OTC Pink listing in the United States (under the symbol“HSEEF”) or under its TSX-V listing in Canada (under the symbol“HILL”).

About Hill Incorporated (TSXV: HILL)/ (OTCQB: HSEEF)

Hill Incorporated is a progressive bioscienceimplementation company that is dedicated to building pathways tobetter and healthier living by leveraging our deep CPG expertise tocommercialize leading-edge technologies to craft superior cannabissolutions and non-alcoholic beverage products globally. Our HillAvenue Cannabis business unit is pioneering the space where craftconsumer products meet bioscience by combining our deep CPGcommercialization expertise with our rights to use LexariaBioscience Corp’s ground-breaking DehydraTECH patentportfolio for product development, licensing and B2B and B2C salesof cannabis ingredients or products on a global scale. Our Hill StreetBeverages business unit represents theCompany’s legacy alcohol-free consumer beverage marketing anddistribution business.

For more information on our business activities visit www.hillincorporated.com , tolearn more about our DehydraTECH cannabis biodelivery technology, goto www.dehydratech-thc.com , orto check out Hill Street Beverage’s award-winning alcohol-free wineline-up and order product to be delivered straight to your home, go to www.hillstreetbeverages.com .

If you wish to sign up for the Hill Incorporatedmailing list, click HERE .

For more information, contact:

Craig Binkley, Chief Executive Officer

Email: craig@hillincorporated.com

Phone: 604-609-6154

FORWARD-LOOKING STATEMENTS

Statements in this press release may containforward-looking information. Any statements in this press release thatare not statements of historical fact may be deemed to beforward-looking statements. Forward-looking statements are oftenidentified by terms such as “may”, “should”, “would”,“anticipate”, “expects”, and similar expressions. The readeris cautioned that assumptions used in the preparation of anyforward-looking information may prove to be incorrect. Events orcircumstances, such as future availability of capital on favourableterms, may cause actual results to differ materially from thosepredicted, as a result of numerous known and unknown risks,uncertainties, and other factors, many of which are beyond the controlof the Company. The reader is cautioned not to place undue reliance onany forward-looking information. Such information, although consideredreasonable by management at the time of preparation, may prove to beincorrect and actual results may differ materially from thoseanticipated. Forward-looking statements contained in this pressrelease are expressly qualified by this cautionary statement. Theforward-looking statements contained in this press release are made asof the date of this press release. The Company does not undertake anyobligation to update publicly or to revise any of the includedforward-looking statements, whether as a result of new information,future events or otherwise, except as required by securitieslaw.

Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.

Source:Save-On-Foods

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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Ispire Technology Inc. Reports Financial Results for the Fiscal Second Quarter 2024 https://mjshareholders.com/ispire-technology-inc-reports-financial-results-for-the-fiscal-second-quarter-2024/ Tue, 20 Feb 2024 16:48:42 +0000 https://cannabisfn.com/?p=2974265

Ryan Allway

February 20th, 2024

News, Top News, Top Story


Total Revenue Increased 30.7% to $41.7 Million

Gross Profit Increased 24.1% to $6.4 Million

North American Cannabis Vaping Hardware Revenue Increased 149% to
$19.5 Million  

LOS ANGELESFeb. 20, 2024 /PRNewswire/ — Ispire Technology Inc. (“Ispire” or “the Company”) (NASDAQ: ISPR), a leader in vapor technology, providing high-quality, innovative products with first-class performance, today reported results for the fiscal second quarter, which ended December 31, 2023, and filed its quarterly report on Form 10-Q on February 20, 2024.

Fiscal Second Quarter 2024 Financial Results

  • Revenue increased 30.7% to $41.7 million as compared to $31.9 million in the same period of 2023. Tobacco vaping products contributed $22.1 million and cannabis vaping products contributed $19.5 million to revenue during the fiscal second quarter 2024;
  • Gross profit increased 24.1% to $6.4 million as compared to $5.1 million in the same period of 2023;
  • Gross margin decreased to 15.3% as compared to 16.1% in the same period of 2023;
  • Total operating expenses increased 114% to $10.3 million as compared to $4.8 million in the same period of 2023; and
  • Net loss of $4.0 million as compared to net loss of $0.1 million in the same period of 2023.

Michael Wang, Co-Chief Executive Officer of Ispire commented, “This quarter proved to be quite pivotal for not only our product expansions but also our business operations. We commenced several strategic initiatives, including ISO and GMP certification for our Malaysian facility and a path to receive Pre-market Tobacco Product Application approval in the U.S. After seeing such remarkable growth trends related to our cannabis vaping hardware sales, we aim to intensify our presence and further expand our footprint in this domestic market.”

“As we further execute on our growth strategy, we continue to expand our footprint in existing and new markets, which helps to grow our diverse customer base. This quarter we launched a key celebrity partnership with Nigerian Afrobeats star, Burna Boy, highlighting our BRKFST-branded products and fortifying our global brand presence. We anticipate that our strategic initiatives this quarter will position Ispire to capitalize on emerging opportunities as well as drive sustainable and future growth across our key markets,” concluded Wang.

Daniel Machock, Chief Financial Officer of Ispire, added, “In the fiscal second quarter of 2024, Ispire’s key growth metrics highlighted rapid expansion for our cannabis vaping hardware business. Overall revenues increased 30% to $41.7 million for the fiscal second quarter while cannabis vaping products increased 149% to $19.5 million for the same period last year. This significant growth in cannabis vaping hardware revenues is a testament to our commitment to innovation and the immense potential of our industry. Looking ahead, we remain steadfast in our commitment to driving sustainable growth, maximizing shareholder value, and solidifying our position as a leader in the industry.”

Financial Results for the Three and Six-Month Periods Ended December 31, 2023

Revenue increased 30% to $41.7 million for the fiscal second quarter ended December 31, 2023, compared to $31.9 million for the second quarter of fiscal 2023. The increase in the second quarter of fiscal 2024, was primarily attributable to an increase in North American cannabis vaping hardware sales which increased 149% year over year from $7.8 million to $19.5 million.

For the six-month period ended December 31, 2023, Ispire reported revenue of $84.5 million, compared to $58.8 million during the same period last year, an increase of 43.7%. The increase in revenue was primarily attributable an increase in North American cannabis vaping hardware sales which increased 133% from $15.8 million for the first six-months of fiscal 2023 to $36.9 million for the first six-months of fiscal 2024.

Gross Profit increased by 24.1% to $6.4 million for the three-month period ended December 31, 2023, compared to $5.1 million in the second quarter of fiscal 2023. Gross Profit for the six-month period ended December 31, 2023, was $13.3 million, compared to $10.0 million for the same period in fiscal 2023.

Gross Margin for the three months ended December 31, 2023, was 15.3% compared to 16.1% for the same period in fiscal 2023. For the six-month period ended December 31, 2023, gross margin was 15.7%, compared to 16.9% during the same period in the prior fiscal year.

Total Operating Expenses increased by 114% to $10.3 million for the second quarter in fiscal 2024, compared to $4.8 million for the same period of fiscal 2023. This increase was primarily due to marketing expenses and working capital related to maintain our manufacturing plant in Malaysia and increased professional fees for expenses incurred as a public company. Total Operating Expenses for the six-months ended December 31, 2023, were $18.1 million as compared to $10.8 million in the same period in fiscal 2023.

Net loss was $4.0 million, or $(0.07) per share, for the second quarter of fiscal 2024, compared to a net loss of $130 thousand, or $(0.01) per share for the second quarter of fiscal 2023. For the first six-months of fiscal 2024, net loss was approximately $5.4 million, or $(0.10) per share, compared to a net loss of approximately $2.1 million, or $(0.04) per share for the first six-months of fiscal 2023.

As of December 31, 2023, Ispire had approximately $17.5 million of cash and cash equivalents. As of December 31, 2023, and June 30, 2023, we had working capital of $24.8 million and $28.8 million, respectively.

Fiscal Year 2024 Outlook

Ispire is providing the following outlook for the cannabis and tobacco vaping products for fiscal year 2024, which ends on June 30, 2024.  Revenue for cannabis vaping products for fiscal year 2024 is projected to be in the range of $80 million to $90 million, representing growth of 100% to 125% from fiscal year 2023. Revenue for tobacco vaping products for fiscal year 2024 is projected to be in the range of $95 million to $105 million, representing growth in the range of 33% to 47% from fiscal year 2023.

Conference Call

The Company will conduct a conference call at 8:00 a.m. Eastern time on Wednesday, February 21, 2024, to discuss the results.

Ispire management will host the conference call, followed by a question-and-answer period.

Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the “Ispire Technology Call.” An operator will register your name and organization.

Date: Wednesday, February 21, 2024
Time: 8:00 am ET
Dial-In Numbers: United States: 1-877-451-6152

or 1-201-389-0879

This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1655325&tp_key=b746afb9b3

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available through 11:00 am ET on February 21, 2024, to March 6, 2024. To listen, please dial 1-844-512-2921 or 1-412-317-6671. Use the passcode 13744317 to access the replay.

About Ispire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company’s operating subsidiaries own or license from a related party more than 200 patents received or filed globally. Ispire’s tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the United StatesPeople’s Republic of China, and Russia) primarily through its distribution network. Ispire’s cannabis vaping hardware products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire currently sells its cannabis vaping hardware only in the United States, and it recently commenced marketing activities in Canada and Europe, primarily in the European Union.

Please visit www.ispiretechnology.com and follow us on Facebook, Twitter, Instagram, Linkedin, Pinterest, and YouTube. Any information contained on, or that can be accessed through, the Company’s website, any other website or any social media, is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company’s strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: the Company’s business strategies, the ability of the Company to market to the Ispire ONE™, Ispire ONE™’s success if meeting its goals, the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of their products on the markets; the Ispire ONE™ proving to be safe, and the risk and uncertainties described in “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Ispire’s Form 10-K annual report for the year ended June 30, 2023 and any subsequent filings which Ispire makes with the Securities and Exchange Commission. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in the press release relate only to events or information as of the date on which the statements are made in the press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

IR Contact:

For more information, kindly contact:
Investor Relations
Sherry Zheng
718.213.7386
ir@ispiretechnology.com

KCSA Strategic Communications
212.896.1233
ispire@kcsa.com

PR Contact:
Ellen Mellody
570.209.2947
EMellody@kcsa.com

ISPIRE TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2023
(Note 2)
2023
Assets
Current assets:
Cash $ 40,300,573 $ 17,502,989
Accounts receivable, net 24,526,262 45,454,998
Inventories 7,472,108 7,548,086
Prepaid expenses and other current assets 3,378,617 3,183,215
Investment – other 9,133,707 9,318,480
Total current assets 84,811,267 83,007,768
Other assets:
Property, plant and equipment, net 1,088,131 2,148,206
Intangible assets, net 726,978
Rental deposit 732,334 727,766
Right-of-use assets – operating leases 4,061,617 3,969,437
Total other assets 5,882,082 7,572,387
Total assets $ 90,693,349 $ 90,580,155
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 1,274,391 $ 5,972,530
Accounts payable – related party 51,698,588 48,999,001
Contract liabilities 988,556 1,705,171
Accrued liabilities and other payables 281,361 603,715
Due to a related party 710,910
Income tax payable – current 63,853
Operating lease liabilities – current portion 944,525 1,244,565
Total current liabilities 55,962,184 58,524,982
Other liabilities:
Operating lease liabilities – net of current portion 3,356,232 3,067,909
Total liabilities 59,318,416 61,592,891
Commitments and contingencies
Stockholders’ equity:
Common stock, par value $0.0001 per share; 140,000,000 shares
authorized; 54,222,420 and 54,279,396 shares issued and outstanding as
of June 30, 2023 and December 31, 2023
5,422 5,428
Preferred stock, par value $0.0001 per share, 10,000,000 shares
authorized, no shares issued at June 30, 2023 and December 31, 2023
Additional paid-in capital 25,685,475 28,535,949
Retained earnings 5,847,804 450,865
Accumulated other comprehensive loss (163,768) (4,978)
Total stockholders’ equity 31,374,933 28,987,264
Total liabilities and stockholders’ equity $ 90,693,349 $ 90,580,155

See notes to unaudited condensed consolidated financial statements.

ISPIRE TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
Three Months Ended
December 31,
Six Months Ended
December 31,
2022 2023 2022 2023
(Restated) (Restated)
Revenue $ 31,897,399 $ 41,685,561 $ 58,840,449 $ 84,550,208
Cost of revenue 26,758,821 35,309,355 48,909,768 71,285,710
Gross profit 5,138,578 6,376,206 9,930,681 13,264,498
Operating expenses:
Sales and marketing expenses 906,372 1,517,715 2,407,528 2,586,378
General and administrative expenses 3,922,363 8,809,127 8,428,178 15,540029
Total Operating expenses 4,828,735 10,326,842 10,835,706 18,126,407
Income (loss) from operations 309,843 (3,950,636) (905,025) (4,861,909)
Other income (expense):
Interest income, net 76,301 198,619 76,811 270,865
Exchange gain (loss), net 23,212 30,856 (477,582) 34,517
Other income (expense), net (21,286) 51,017 (40,487) 7,813
Total Other income (expense), net 78,227 280,492 (441,258) 313,195
Income (loss) before income taxes 388,070 (3,670,144) (1,346,283) (4,548,714)
Income taxes – current (518,312) (352,180) (785,713) (848,225)
Net loss $ (130,242) $ (4,022,324) $ (2,131,996) $ (5,396,939)
Other comprehensive loss
Foreign currency translation adjustments 149,306 114,327 142,430 158,790
Comprehensive income (loss) $ 19,064 $ (3,907,997) $ (1,989,566) $ (5,238,149)
Net loss per share
Basic and diluted $ (0.01) $ (0.07) $ (0.04) $ (0.10)
Weighted average shares outstanding:
Basic and diluted 50,000,000 54,270,236 50,000,000 54,258,224

See notes to unaudited condensed consolidated financial statements.

ISPIRE TECHNOLOGY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months ended
December 31,
2022 2023
Net loss $ (2,131,996) $ (5,396,939)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 13,660 75,160
Credit loss expenses 1,029,655 2,126,284
Stock-based compensation expenses 2,850,480
Inventory impairment expenses 130,452
Changes in operating assets and liabilities:
Accounts receivable (10,818,728) (22,762,155)
Inventories (5,724,630) (206,430)
Prepaid expenses and other current assets 134,307 199,970
Accounts payable and accounts payable – related party 25,487,786 1,759,301
Contract liabilities (665,242) 629,430
Accrued liabilities and other payables 159,577 322,354
Operating lease liabilities 102,375 103,897
Income tax payable 788,866 (63,853)
Net cash provided by (used in) operating activities $ 8,375,630 $ (20,232,049)
Cash flows from investing activities:
Purchase of property, plant and equipment (478,473) (1,130,620)
Acquisition of intangible assets (731,593)
Net cash used in investing activities $ (478,473) $ (1,862,213)
Cash flows from financing activities:
Advances from related parties 1,934,855
Repayments of advances from a related party (45,509) (703,322)
Net cash used in financing activities $ 1,889,346 $ (703,322)
Net increase (decrease) in cash 9,786,503 (22,797,584)
Cash – beginning of period 74,480,651 40,300,573
Cash – end of period $ 84,267,154 $ 17,502,989
Supplemental non-cash investing and financing activities
Leased assets obtained in exchange for operating lease liabilities 3,714,979 507,292

See notes to unaudited condensed consolidated financial statements.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


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