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On May 16th, Ispire technology Inc. (NASDAQ: ISPR), a leading vape supplier in vaping technology, reported its financial results for the third quarter of 2023. The third report ends on March 31, 2023.
In addition, it has files its Quarterly Report on Form 10-Q to the SEC on May 15, 2023. The company’s fiscal year ends June 30, 2023.
During the third quarter, this vape supplier gets a 26.9% revenue growth and 51.9% profit growth. It is because of a favorable product mix and the realization of economies of scale on higher sales volume.
Michael Wang also said, “We look forward to a strong finish to the fiscal year with a projected sequential revenue increase for cannabis vaping products of between 58% and 98% during our fourth quarter,”
According to Michael Wang, since this vape supplier begin its journey as a public company, it has focused on a multi-prong strategy. Its strategy directs at increasing sales of the vape products technology and developing the cannabis vape technology products. What’s more, the strategy mainly focus on both medical and recreational usages. Moreover, this vape supplier continues to seek to remain at the forefront of technology so that they can adapt to emerging trends. Thereby enhance value for all of their shareholders.
Firstly, compare to $19.0 million in the same period of 2022, Ispire’s revenue gets a 26.9% large increase to $24.1 million. During the third quarter, tobacco vaping products contributed $16.5 million. And cannabis vaping products contributed $7.6 million to revenue.
Secondly, the gross profit of this vape supplier increased 51.9% to $4.5 million. Comparing with the same period of 2022, it was $3.0 million.
Thirdly, the gross margin increased to 18.7% as compared to 15.7% in the same period of 2022.
Fourthly, the total operating expenses of this vape supplier increased 106.2% to $8.0 million. It was $3.9 million in the same period of 2022.
Fifthly, net loss of $3.1 million as compared to net loss of $1.0 million in the same period of 2022.
Ispire has $24.0 million cash and cash equivalents and $5.2 million working capital. The data calculates by the end of March 31, 2023, and prior to the closing of its initial public offering. These capitals includes current cash and cash flows provided by operating activities, and the net proceeds from the initial public offering.
Therefore, the Company believes that these cash and working capital is sufficient to meet its working capital needs in the next 12 months.
In April 2023, Ispire closed on its initial public offering of 3,105,000 shares of common stock. Among these shares, there are 405,000 shares issued pursuant to the full exercise by the underwriters of their overallotment option. And the initial public offering price is at $7.00 per share. The common stock began trading on the NASDAQ Capital Market on April 4, 2023.
The following outlook for the cannabis vaping products for the fourth quarter 2023 is provided by Ispire. And this quarter will ends on June 30, 2023.
Since the middle of 2020, Ispire has start to marketing cannabis vaping products. At the end of third quarter of 2023, its revenue from cannabis vaping products was $7.6 million. Therefore, Ispire projects its revenue for cannabis vaping products for the fourth quarter is $12 million to $15 million. It is a representing growth of 58% to 98% from the third quarter 2023.