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Upexi Inc. (UPXI-4.89%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decline in revenue to $4,005,492 from $7,462,880 in the same quarter the previous year. This decrease is attributed to a strategic shift away from the recommerce business and a decline in direct-to-consumer sales.
Cost of revenue for the quarter was $1,031,386, representing 26% of sales, compared to 39% in the same quarter of the previous year. The decrease in cost ratio is due to a focus on branded product sales.
The company reported a gross profit of $2,974,106 for the quarter, compared to $4,567,042 in the previous year, with the decline attributed to reduced sales.
Sales and marketing expenses decreased to $949,963 from $1,486,274, primarily due to a reduction in agency expenses and a focus on core products.
Distribution costs decreased to $1,276,422 from $2,131,892, reflecting the decline in recommerce revenue.
General and administrative expenses were slightly reduced to $1,548,590 from $1,584,339.
Net loss for the quarter was $1,301,310, compared to a loss of $2,438,919 in the previous year. The reduction in loss is attributed to the overall decrease in operating expenses.
Cash used in operating activities was $3,358,636, while cash provided by investing activities was $5,838,106, primarily due to the sale of a building and collection of the purchase price for E-core.
Upexi had a working capital deficit of $4,507,208 as of December 31, 2024. The company acknowledges its need for additional capital to meet long-term operating requirements.
The filing also details various financial agreements, including a promissory note with Allan Marshall, the Company's CEO, and amendments to existing notes with investors.
Upexi continues to focus on the production, sales, and distribution of branded products, following the sale of E-Core Technology, Inc. and its subsidiaries.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Upexi Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.