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Upexi Inc. (UPXI-2.87%) has submitted its 10-K filing for the fiscal year ended June 30, 2024.
The filing reports a decrease in revenue to $26,000,652 from $36,441,695 in the previous year. The decline is attributed to a decrease in product sales, particularly through third-party channels.
Cost of revenue decreased to $13,176,073, resulting in a gross profit of $12,824,579, down from $21,019,980 in the prior year. The gross margin declined due to inventory write-offs and changes in strategic focus.
Operating expenses totaled $35,287,018, with significant contributions from sales and marketing, distribution costs, and general administrative expenses. Impairments of intangible assets and goodwill were recorded at $7,869,425.
The company reported a net loss of $23,658,438, compared to a net loss of $16,930,289 in the previous year. This increase in net loss is due to the aforementioned revenue decline and impairments.
Cash used in operating activities was $4,894,751, while cash provided by discontinued operations was $4,793,374. The company ended the year with $661,415 in cash.
Upexi sold its subsidiaries VitaMedica and E-Core Technology, Inc., contributing to changes in its strategic focus and financial performance.
The company continues to focus on its direct-to-consumer business model, emphasizing brand portfolio expansion and supply chain optimization.
Upexi's management identified material weaknesses in its internal controls over financial reporting, which it plans to address in the coming fiscal year.
The company does not anticipate paying cash dividends in the near future, opting to reinvest earnings into business development and expansion.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Upexi Inc. annual 10-K report dated December 16, 2024. To report an error, please email earnings@qz.com.