Ispire Technology Banks $24 Million in 3Q 2023
Ispire Technology Inc. released its financial results for the third quarter of the fiscal year 2023 ended March 31. The China-based company reported revenue of $24.1 million, an increase of 26.9 percent compared to $19.0 million in Q3 2022.
Q3 FY 2023 Financial Highlights
- Regarding its revenue increase to $24.1 million, tobacco vaping products contributed $16.5 million and cannabis vaping products contributed $7.6 million to revenue during the third quarter of 2023;
- Gross profit increased 51.9% to $4.5 million as compared to $3.0 million in the same period of 2022;
- Gross margin increased to 18.7% as compared to 15.7% in the same period of 2022.
- Total operating expenses increased 106.2% to $8.0 million as compared to $3.9 million in the same period of 2022; and
- Net loss of $3.1 million as compared to net loss of $1.0 million in the same period of 2022.
“We are very pleased with our financial results during our third quarter. Revenue growth was a robust 26.9 percent while gross profit grew 51.9 percent due to a favorable product mix and the realization of economies of scale on higher sales volume,” said Michael Wang, Ispire CFO. “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.”
Liquidity and capital resources: As of March 31, 2023, Ispire had $24.0 million in cash and cash equivalents and $5.2 million in working capital, according to a press release.
Initial public offering: In April 2023, Ispire completed its initial public offering, selling 3.1 million shares of common stock at $7.00 per share, including the overallotment option.
The stock began trading on NASDAQ on April 4, 2023. The offering generated gross proceeds of approximately $21.7 million, with net proceeds of $18.5 million after deducting expenses and underwriting discounts.