Ispire Technology Growing Despite High Net Loss

Ispire Technology Inc. reported decent growth in its fiscal second quarter ending Dec. 31, 2023, despite facing rising operational costs and a deepening net loss.

The Los Angeles-based vape maker saw its revenue climb 30.7 percent to $41.7 million for the quarter, up from $31.9 million in the same period the previous year, according to media reports. That increase was driven by strong sales in both its tobacco and cannabis vaping products, with tobacco vaping contributing $22.1 million and cannabis vaping products adding $19.5 million.

However, the firm’s financials faced challenges as gross profit marginally rose by 24.1 percent to $6.4 million, with gross margin slightly decreasing to 15.3 percent from 16.1 percent year-over-year. Operating expenses saw a hefty jump, more than doubling to $10.3 million from $4.8 million, largely due to heightened marketing efforts and the costs associated with maintaining its manufacturing plant in Malaysia and navigating its public company status.

Consequently, Ispire reported a net loss of $4 million, a substantial increase from a minor $100,000 loss reported in the same quarter the previous year.

In their statements, Ispire’s leadership focused on the company’s initiatives and expansion efforts.

“This quarter proved to be quite pivotal for not only our product expansions but also our business operations,” CEO Michael Wang said in a statement. “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.”

That includes obtaining ISO and GMP certification for the firm’s Malaysian facility and pursuing premarket tobacco product application (PMTA) authorization in the U.S.