HENDERSON, Nev., Nov. 14, 2022 /PRNewswire/ --
Upexi, Inc. (NASDAQ: UPXI) (the "Company" or
"Upexi"), a multi-faceted Amazon and Direct to Consumer
brand owner and innovator in aggregation, today announced its
financial results for the fiscal 2023 first quarter ending
September 30, 2022.
Fiscal 2023 First Quarter
Financial Highlights:
- Revenue totaled $11.6 million, an
increase of 199% year-over-year.
- Gross profit totaled $6 million,
an increase of 132% year-over-year.
- Gross profit margin was 52%.
- Net loss from continued operations was $2.7 million compared to net income of
approximately $512,000 for the same
period in the prior year.
- Cash and cash equivalents totaled $3.3
million as of September 30,
2022.
"Our revenue growth year-over-year was predominantly driven by
multiple accretive acquisitions. Moving forward, our growth
strategy will continue to focus on both acquisitions and organic
growth, while also expanding to international markets," said
Allan Marshall, Upexi's Chief
Executive Officer. "During the quarter we entered the more than
$200 billion pet market through the
acquisition of LuckyTail, a balanced business, with
direct-to-consumer and Amazon distribution, and double-digit
year-over-year growth. Going forward, our acquisition pipeline
remains robust with valuations in line with our strategic
guidelines. We have made significant strides over the last two
years and the Company today is in the best position for growth and
profitability in its history, with approximately $100 million in sales projected for calendar
2023."
Fiscal 2023 First Quarter and
Subsequent Operational Highlights:
- Acquired international pet care brand, LuckyTail, Inc.
- Saas ad-tech division, Interactive Offers, filed a patent for
its single click-to-opt-in technology.
- Closed on sale of select CBD assets for $23.5 million.
- Closed on acquisition of E-Core and its subsidiaries, Tytan
Products, a children's toy brand and maker of popular magnetic
tiles and building blocks, and New England Technology, Inc., a
national distributor for branded consumer products.
- Eliminated outstanding balance of $15
million senior secured debt facility with expectation to
reduce annualized interest expense by approximately $900,000.
Financial Highlights for Fiscal
2023 First Quarter
Revenue for the three months ended September 30, 2022 totaled $11.6 million, an increase of 199% as compared to
$3.9 million for the same period the
year prior. The revenue growth was primarily driven by four
acquisitions, including VitaMedica, Interactive, Cygnet, and
LuckyTail, and offset by the sale of Infusionz. The Company's
growth strategy will continue to focus on both acquisition and
organic growth, while also expanding to international markets.
Cost of revenue during the quarter totaled $5.5 million, an increase of 334% as compared to
$1.3 million for the same period the
prior year. The cost of revenue increase was primarily related to
the acquisition of four companies and offset with the sale of
Infusionz.
Gross profit for the quarter was $6
million, an increase of $3.4
million compared to the same period in the prior year. Gross
margins declined to 52% as a result of significant increases in
lower margin sales to distributors and the use of third-party
distribution of our direct-to-consumer sales.
Operating expenses totaled $9
million, an increase of 159% as compared to $3.5 million for the same period in the prior
fiscal year. This was primarily related to a $ 1 million increase in sales, an increase in
distribution costs, including the use of third-party distributors
of $2.4 million, an increase in
general and administrative costs of $900,000 to support the growth of the business,
and an increase of $1.2 million
increase in non-cash expenses of share-based compensation, the
amortization of acquired intangible assets and depreciation. These
costs were offset by the sale of Infusionz and the classification
of these expenses as part of discontinued operations.
The Company had a net loss from continued operations of
$2.7 million compared to net income
of approximately $512,000 for the
three months ended September 30, 2022
and 2021, respectively. The decrease in net income is primarily
related to the above-mentioned changes.
The Company had cash and cash equivalents of $3.3 million and stockholders' equity of
$27 million as of September 30, 2022. As of November 11, 2022 there were 17,960,748 shares of
common stock outstanding.
Financial Results Conference
Call
Event:
|
Upexi Fiscal 2023 First
Quarter Financial Results Conference Call
|
Date:
|
Monday, November 14,
2022
|
Time:
|
4:30 p.m. Eastern
Time
|
Live
Call:
|
1-877-550-1707
(U.S. Toll-Free) or 1-848-488-9020 (International)
|
Webcast:
|
https://viavid.webcasts.com/starthere.jsp?ei=1580183&tp_key=e897d16fbb
|
For interested individuals unable to join the conference call, a
dial-in replay of the call will be available until November 28, 2022 and can be accessed by dialing
+ 1-844-512-2921 (U.S. Toll Free) or + 1-412-317-6671
(International) and entering replay pin number: 11152754.
Additional details are available under the Investor Relations
section of the Company's
website: https://upexi.com/investors.
About Upexi, Inc.:
Upexi is a multi-faceted brand owner with established brands in
the health, wellness, pet, beauty and other growing markets. We
operate in emerging industries with high growth trends and look to
drive organic growth of our current brands. We focus on direct to
consumer and Amazon brands that are scalable and have anticipated,
high industry growth trends. Our goal is to continue to accumulate
consumer data and build out a significant customer database across
all industries we sell into. The growth of our current database has
been key to the year over year gains in sales and profits. To drive
additional growth, we have and will continue to acquire profitable
Amazon and eCommerce businesses that can scale quickly and reduce
costs through corporate synergies. We utilize our in-house, SaaS
programmatic ad technology to help achieve a lower cost per
acquisition and accumulate consumer data for increased
cross-selling between our growing portfolio of brands.
FORWARD LOOKING
STATEMENTS:
This news release contains "forward-looking statements" as that
term is defined in Section 27A of the United States Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
business strategy, potential acquisitions, revenue guidance,
product development, integration and synergies of acquiring
companies and personnel. These forward-looking statements are made
as of the date of this news release, and we assume no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although we believe that the beliefs,
plans, expectations and intentions contained in this press release
are reasonable, there can be no assurance that such beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should
also refer to the risk factors disclosure outlined in our annual
report on Form 10-K and other periodic reports filed from
time-to-time with the Securities and Exchange Commission.
Company Contact
Andrew
Norstrud, Chief Financial Officer
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591
Investor Relations Contact
KCSA Strategic
Communications
Valter Pinto or Jack Perkins
Email: Upexi@KCSA.com
Phone: (212) 896-1254
UPEXI,
INC.
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2022
|
|
|
2021
|
|
Revenue
|
|
|
|
|
|
|
Revenue
|
|
$
|
11,557,011
|
|
|
$
|
3,870,110
|
|
|
|
|
|
|
|
|
|
|
Cost of
Revenue
|
|
|
5,516,280
|
|
|
|
1,271,729
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
6,040,731
|
|
|
|
2,598,381
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
2,025,460
|
|
|
|
1,000,064
|
|
Distribution
costs
|
|
|
2,487,834
|
|
|
|
111,833
|
|
General and
administrative expenses
|
|
|
2,498,869
|
|
|
|
1,582,432
|
|
Share-based
compensation
|
|
|
927,326
|
|
|
|
626,838
|
|
Amortization of
acquired intangible assets
|
|
|
880,896
|
|
|
|
68,834
|
|
Depreciation
|
|
|
194,497
|
|
|
|
87,506
|
|
|
|
|
9,014,882
|
|
|
|
3,477,507
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,974,151)
|
|
|
|
(879,126)
|
|
|
|
|
|
|
|
|
|
|
Other expense (income),
net
|
|
|
|
|
|
|
|
|
Change in derivative
liability
|
|
|
(1,770)
|
|
|
|
-
|
|
Interest expense,
net
|
|
|
435,829
|
|
|
|
15,538
|
|
|
|
|
|
|
|
|
|
|
Other expense
(income), net
|
|
|
434,059
|
|
|
|
15,538
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
before income tax
|
|
|
(3,408,210)
|
|
|
|
(894,664)
|
|
(Loss) income from
discontinued operations
|
|
|
(45,511)
|
|
|
|
1,147,472
|
|
Income tax
benefit
|
|
|
708,201
|
|
|
|
258,903
|
|
Net (loss) income from
continuing operations
|
|
|
(2,745,520)
|
|
|
|
511,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interest
|
|
|
148,005
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Upexi, Inc.
|
|
$
|
(2,597,515)
|
|
|
$
|
511,711
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) income
per share:
|
|
|
|
|
|
|
|
|
(Loss) income per
share from continuing operations
|
|
$
|
(0.16)
|
|
|
$
|
0.03
|
|
(Loss) income per
share from discontinued operations
|
|
$
|
(0.00)
|
|
|
$
|
0.07
|
|
Total (loss) income
per share
|
|
$
|
(0.16)
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per share:
|
|
|
|
|
|
|
|
|
(Loss) income per
share from continuing operations
|
|
$
|
(0.16)
|
|
|
$
|
0.03
|
|
(Loss) income per
share from discontinued operations
|
|
$
|
(0.00)
|
|
|
$
|
0.07
|
|
Total (loss) income
per share
|
|
$
|
(0.16)
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
|
|
16,713,345
|
|
|
|
15,452,453
|
|
Fully diluted weighted
average shares outstanding
|
|
|
16,713,345
|
|
|
|
17,220,564
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements.
UPEXI,
INC.
|
CONDENSED CONSOLDIATED BALANCE
SHEETS (UNAUDITED)
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2022
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash
|
|
$
|
3,298,663
|
|
|
$
|
7,149,806
|
|
Accounts
receivable
|
|
|
1,315,933
|
|
|
|
1,137,637
|
|
Inventory
|
|
|
6,090,242
|
|
|
|
4,725,685
|
|
Deferred tax asset,
current
|
|
|
462,070
|
|
|
|
462,070
|
|
Prepaid expenses and
other receivables
|
|
|
1,231,941
|
|
|
|
840,193
|
|
Assets of discontinued
operations, net
|
|
|
6,404,209
|
|
|
|
6,157,543
|
|
Total current
assets
|
|
|
18,803,058
|
|
|
|
20,472,934
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
7,367,844
|
|
|
|
7,343,783
|
|
Intangible assets,
net
|
|
|
12,716,153
|
|
|
|
10,933,049
|
|
Goodwill
|
|
|
6,223,393
|
|
|
|
5,887,393
|
|
Deferred tax
asset
|
|
|
2,732,242
|
|
|
|
2,002,759
|
|
Other
assets
|
|
|
413,956
|
|
|
|
100,372
|
|
Right-of-use
asset
|
|
|
843,901
|
|
|
|
926,570
|
|
Total other
assets
|
|
|
30,297,489
|
|
|
|
27,193,926
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
49,100,547
|
|
|
$
|
47,666,860
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,092,122
|
|
|
$
|
2,018,541
|
|
Accrued
compensation
|
|
|
695,278
|
|
|
|
531,259
|
|
Deferred
revenue
|
|
|
120,973
|
|
|
|
105,848
|
|
Accrued
liabilities
|
|
|
1,769,989
|
|
|
|
955,327
|
|
Acquisition
payable
|
|
|
1,351,589
|
|
|
|
-
|
|
Current portion of
notes payable
|
|
|
5,424,752
|
|
|
|
5,424,752
|
|
Current portion of
operating lease payable
|
|
|
274,847
|
|
|
|
257,029
|
|
Total current
liabilities
|
|
|
11,729,550
|
|
|
|
9,292,756
|
|
|
|
|
|
|
|
|
|
|
Notes payable, net of
current portion
|
|
|
9,743,104
|
|
|
|
8,886,949
|
|
Operating lease
payable, net of current portion
|
|
|
588,993
|
|
|
|
700,411
|
|
Total long-term
liabilities
|
|
|
10,332,097
|
|
|
|
9,587,360
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 100,000,000 shares authorized, and 500,000 and
500,000 shares issued and outstanding, respectively
|
|
|
500
|
|
|
|
500
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, and 16,713,345 and
16,713,345 shares issued and outstanding, respectively
|
|
|
16,713
|
|
|
|
16,713
|
|
Additional paid in
capital
|
|
|
35,983,273
|
|
|
|
34,985,597
|
|
Accumulated
deficit
|
|
|
(8,868,401)
|
|
|
|
(6,270,886)
|
|
Total stockholders'
equity attributable to Upexi, Inc.
|
|
|
27,132,085
|
|
|
|
28,731,924
|
|
Non-controlling
interest in subsidiary
|
|
|
(93,185)
|
|
|
|
54,820
|
|
Total stockholders'
equity
|
|
|
27,038,900
|
|
|
|
28,786,744
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
49,100,547
|
|
|
$
|
47,666,860
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements.
View original
content:https://www.prnewswire.com/news-releases/upexi-revenue-increases-199-year-over-year-to-11-6-million-for-fiscal-2023-first-quarter-301677382.html
SOURCE Upexi, Inc.