Ispire Technology Inc. Reports Financial Results for Fiscal Second Quarter 2025

Gross Profit Increased 23.5% from the Previous Year to $7.7 million

Gross Margins Increased to 18.5%, up from 15.0% the Previous Year

Revenue Increased 0.3% Year-Over-Year to $41.8 Million

Ispire Technology Inc. (NASDAQ: ISPR)(“Ispire,” the “Company,” “we,” “us,” or “our”), an innovator in vaping technology and precision dosing, today reported results for the fiscal second quarter 2025, which ended on December 31, 2024.

Fiscal Second Quarter 2025 Financial Results

— Revenue of $41.8 million, compared to $41.7 million for the fiscal second quarter of 2024.

— Gross profit of $7.7 million, an increase of 23.5% compared to $6.3 million in the fiscal second quarter of 2024.

— Gross margin of 18.5%, an increase of 23% compared to 15.0% second quarter of fiscal 2024.

— Total operating expenses of $15.1 million, an increase of 48.0% as compared to $10.2 million for second quarter of fiscal 2024.

— Net loss of ($8.0) million, compared to net loss of ($4.0) million in the second quarter of fiscal 2024.

“Despite challenging macroeconomic conditions, we had strong results for the quarter given the strategic advances we made in becoming a leading global innovative vaping technology and precision dosing solutions company,” said Michael Wang, Co-Chief Executive Officer of Ispire. “This is particularly evident as we further expanded into international markets. Our BrkFst brand recently launched in Africa, marking our first international nicotine license arrangement and product launch. The BrkFst brand has seen early success as we have quickly established a presence in over 500 retail locations across South Africa and Nigeria, including major chains like Pick n Pay and Forecourts. We've implemented a sweeping market activation strategy with brand ambassadors conducting daily events in major metropolitan areas, which has been instrumental in building strong relationships with both retailers and consumers. We now plan to accelerate our expansion strategy to reach more than 2,000 stores in the next six months through additional strategic partnerships.”

“Furthermore, our IKE Tech joint venture's component PMTA strategy represents a groundbreaking opportunity. We've completed a successful pre-PMTA meeting with the FDA, who indicated they would accept our component PMTA submission and consider our priority review. The legal U.S. market for electronic nicotine delivery systems is approximately $11 billion, with an additional $7 billion potential in alternative markets. This is a significant opportunity for our potentially industry changing blockchain-based age verification technology which could help prevent youth access,” Mr. Wang concluded.

Jim McCormick, Chief Financial Officer of Ispire, added, “Our financial performance this quarter demonstrates our ability to execute on our strategic priorities for growth and financial management. The authorization by the Board of up to a $10 million stock repurchase program underscores our confidence in Ispire's long-term potential and our commitment to creating value for shareholders. In Malaysia, we've made significant regulatory progress, obtaining critical nicotine import and export licenses and preparing for our manufacturer's license, which we expect will enable us to scale our operations to 70 production lines in our new facility. Also, subsequent to quarter end, the Company moved certain daily roles and functions to our Malaysian operations to help further streamline our overall business and to reduce operating expenses by an anticipated $8 million annually. This balanced approach allows us to simultaneously invest in our growth strategies and return value to our shareholders, which we believe positions us for continued success in the evolving global nicotine product market.”

Financial Results for the Fiscal Second Quarter Ended December 31, 2024

Ispire reported revenue of $41.8 million for the fiscal second quarter ended December 31, 2024, compared to $41.7 million for the prior comparable period, an increase of $0.1 million. The growthin revenue is largely due to the increase in contribution of sales from expansion overseas.

Gross profit for the second quarter of fiscal 2025, was $7.7 million compared to $6.3 million in the year-ago period. Gross margin increased to 18.5% from 15.0% in the second quarter of fiscal 2024. The increase in gross profit and gross margin was primarily due to changes in product mix with more higher margin products being sold during the three months ended December 31, 2024.

Total operating expenses for the second fiscal quarter of 2025 were $15.1 million, compared to $10.2 million for second fiscal quarter of 2024. The increase in operating expenses was primarily due to increased expenses associated with our increased revenue generation, continued investment in Malaysia, and increased expenses related to our product development function.

Net loss was $8.0 million or ($0.14) per share for the fiscal second quarter of 2025, versus a net loss of $4.0 million, or ($0.07) per share for the fiscal second quarter of 2024.

At December 31, 2024, Ispire hada cash position of $34.4 million, as well as working capital of $6.1 million.

Conference Call

The Company will conduct a conference call at 8:00am Eastern Timeon Monday, February 10, 2025, to discuss the results. Ispire management will host the conference call, followed by a question-and-answer period.

Please call the conference call dial-in 5-10 minutes prior to the start time and ask for the “Ispire Technology Call.” An operator will register your name and organization.

— Date:Monday, February 10, 2025

— Time:8:00am ET

— Dial-In Numbers:United States877-451-6152 or International+1 201-389-0879

This conference call will be broadcast live on the Internet and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1705094&tp_key=6946006674.

Please access the link at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software.

A playback will be available from11:00 am ETonFebruary 10, 2025, throughFebruary 24, 2025. To listen, please dial +1 844-512-2921 or +1 412-317-6671. Use the passcode 13751256 to access the replay.

AboutIspire Technology Inc.

Ispire is engaged in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The Company's operating subsidiaries own or license more than 200 patents received or filed globally. Ispire's tobacco products are marketed under the Aspire brand name and are sold worldwide (except in the U.S., People's Republic of China and Russia) primarily through its global distribution network. The Company's cannabis products are marketed under the Ispire brand name primarily on an original design manufacturer (ODM) basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware only in the U.S., and it recently commenced its marketing activities inCanada andEurope. For more information, visitwww.ispiretechnology.comor follow Ispire on Instagram,LinkedIn,Twitter andYouTube. Any information contained on, or that can be accessed through, the Company's website, any other website or any social media, is not a part of this press release.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”) as well as Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, that are intended to be covered by the safe harbor created by those sections. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “would,” “could,” “seek,” “intend,” “plan,” “goal,” “project,” “estimate,” “anticipate,” “strategy,” “future,” “likely” or other comparable terms, although not all forward-looking statements contain these identifying words. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements include, but are not limited to, risks and uncertainties including those regarding: whether the Company may be successful in re-entering the U.S. ENDS market; the approval or rejection of anyPMTA submitted by the Company; whether the Company will be successful in its plans to further expand into the African market; whether the Company's joint venture with Touch Point Worldwide Inc. d/b/a/ Berify and Chemular Inc. (the “Joint Venture”) may be successful in achieving its goals as currently contemplated, with different terms, or at all; the Joint Venture's ability to innovate in the e-cigarette technology space or develop age gating or age verification technologies for nicotine vaping devices; the Company's ability to collect its accounts receivable in a timely manner; the Company's business strategies; the ability of the Company to market to the Ispire ONE™; Ispire ONE™'s success in meeting its goals; the ability of its customers to derive the anticipated benefits of the Ispire ONE™ and the success of its products on the markets; the Ispire ONE™ proving to be safe; and the risk and uncertainties described in “Risk Factors,” “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Cautionary Note on Forward-Looking Statements” and the additional risk described in Ispire's Annual Report on Form 10-K for the year endedJune 30, 2024 and any subsequent filings which Ispire makes with the SEC. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events except as required by applicable law. You should read this press release with the understanding that our actual future results may be materially different from what we expect.

ISPIRE TECHNOLOGY INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In $USD, except share and per share data) December31, June 30, 2024 2024AssetsCurrent assets:Cash $ 34,372,851 $ 35,071,294Restricted cash 22,535 -Accounts receivable, net 67,700,463 59,734,765Inventories, net 7,900,110 6,365,394Prepaid expenses and other current assets 2,324,245 1,400,152Total current assets 112,320,204 102,571,605Non-current assets:Property, plant and equipment, net 2,365,115 2,582,457Intangible assets, net 2,120,367 1,375,666Right-of-use assets – operating leases 2,949,756 3,579,140Other investment 2,000,000 2,000,000Equity method investment 10,071,380 10,248,048Other non-current assets 215,612 284,050Total non-current assets 19,722,230 20,069,361Total assets $ 132,042,434 $ 122,640,966Liabilities and stockholders' equityCurrent liabilitiesAccounts payable $ 5,156,302 $ 3,779,723Accounts payable – related party 86,375,645 67,046,472Contract liabilities 1,882,743 2,218,166Accrued liabilities and other payables 11,576,021 11,738,339Operating lease liabilities – current portion 1,245,061 1,207,832Total current liabilities 106,235,772 85,990,532Non-current liabilities:Operating lease liabilities – net of current portion 1,572,574 2,194,094Total liabilities 107,808,346 88,184,626Commitments and contingenciesStockholders' equity:Common stock, par value $0.0001 per share; 140,000,000 shares authorized; 5,668 5,64756,677,982 and 56,470,636 sharesissued and outstanding as of December31,2024 and June30, 2024Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized, no – -sharesissued at December31, 2024 and June 30, 2024Additional paid-in capital 46,670,244 43,217,391Accumulated deficit (22,418,700) (8,825,041)Accumulated other comprehensive (loss) income (23,124) 58,343Total stockholders' equity 24,234,088 34,456,340Total liabilities and stockholders' equity $ 132,042,434 $ 122,640,966ISPIRE TECHNOLOGY INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(In $USD, except share and per share data) ThreeMonthsEnded SixMonthsEnded December 31, December 31, 2024 2023 2024 2023Revenue $ 41,827,860 $ 41,685,561 $ 81,166,173 $ 84,550,208Cost of revenue 34,105,289 35,432,663 65,769,224 71,452,462Gross profit 7,722,571 6,252,898 15,396,949 13,097,746Operating expenses:Sales and marketing expenses 2,061,664 1,394,407 5,053,911 2,419,626General and administrative expenses 13,020,962 8,778,715 22,965,962 15,476,589Total Operating expenses 15,082,626 10,173,122 28,019,873 17,896,215Loss from operations (7,360,055) (3,920,224) (12,622,924) (4,798,469)Other income (expense):Interest income, net 59,755 203,101 59,841 275,347Exchange gain (loss), net (245,173) 30,856 (127,588) 34,517Other income (expense), net 6,861 46,535 13,796 3,331Total Other income (expense), net (178,557) 280,492 (53,951) 313,195Loss before income taxes (7,538,612) (3,639,732) (12,676,875) (4,485,274)Income taxes – current (460,031) (352,180) (916,784) (848,225)Net loss $ (7,998,643) $ (3,991,912) $ (13,593,659) $ (5,333,499)Other comprehensive lossForeign currency translation adjustments 73,470 114,327 (81,467) 158,790Comprehensive income (loss) $ (7,925,173) $ (3,877,585) $ (13,675,126) $ (5,174,709)Net loss per shareBasic and diluted $ (0.14) $ (0.07) $ (0.24) $ (0.10)Weighted average shares outstanding:Basic and diluted 56,658,012 54,270,236 56,629,666 54,258,224

For more information, kindly contact:

IR Contacts:Investor RelationsSherry Zheng718-213-7386ir@ispiretechnology.com

KCSA Strategic CommunicationsPhil Carlson212-896-1233ispire@kcsa.com

PR Contact:Ellen Mellody570-209-2947EMellody@kcsa.com

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SOURCE Ispire Technology Inc.

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