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Ispire Technology Inc. (ISPR+0.47%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a slight increase in revenue to $41,827,860 from $41,685,561 in the same quarter the previous year. The increase is attributed to higher sales in Europe, Africa, and South America, offset by declines in North America and Asia Pacific.
Cost of revenue for the quarter was $34,105,289, representing 81.5% of sales, compared to 85% in the same quarter of the previous year. This decrease is due to a change in product mix towards higher-margin products.
The company reported a gross profit of $7,722,571 for the quarter, compared to $6,252,898 in the previous year, with the increase attributed to improved product mix.
Sales and marketing expenses increased to $2,061,664 from $1,394,407, primarily due to expanded marketing activities and trade shows.
General and administrative expenses rose to $13,020,962 from $8,778,715, driven by higher bad debt expenses, increased payroll expenses, and professional fees.
Net loss for the quarter was $7,998,643, up from $3,991,912 in the previous year. The increase in net loss is largely due to higher operating expenses.
The company had a working capital of $6,084,000 as of December 31, 2024, down from $16,581,000 as of June 30, 2024, due to increased current liabilities.
Cash provided by operating activities was $428,110, while cash used in investing activities was $1,104,018.
Ispire Technology does not anticipate the need for additional financing in the next 12 months, relying on cash generated from operations and cash on hand.
The filing also discusses the company's regulatory challenges and market risks, particularly in the United States and Europe, where regulatory changes could impact business operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Ispire Technology Inc. quarterly 10-Q report dated February 7, 2025. To report an error, please email earnings@qz.com.