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Upexi, Inc. ( UPXI), a leading technology company, has released its consolidated financial statements for the year ending June 30, 2023. The company reported a net loss of $16.9 million for the fiscal year, despite achieving robust revenue of $80.7 million. This article will delve into Upexi's financial performance and analyze key factors contributing to its results.
Net Income/Loss Analysis
Net Loss in 2023
Upexi, Inc. faced a challenging fiscal year, reporting a net loss of $16.9 million. This marked a significant decline compared to the previous year when the company reported a net loss of $2.1 million.
Revenue Overview
Impressive Revenue Growth
In contrast to the net loss, Upexi, Inc. experienced remarkable revenue growth. The company reported a total revenue of $80.7 million for the fiscal year ending June 30, 2023. This represents a substantial increase compared to the previous fiscal year's revenue of $23.1 million.
Balance Sheet Snapshot
Total Assets
Upexi's consolidated balance sheet as of June 30, 2023, shows total assets of $63.9 million, signifying a considerable increase from the previous fiscal year's total assets of $48.5 million. The company's assets include current assets, property and equipment, intangible assets, goodwill, deferred tax assets, and more.
The balance sheet also highlights the company's liabilities and stockholders' equity. Total current liabilities amount to $19.6 million, while long-term liabilities stand at $16.4 million. Stockholders' equity, attributable to Upexi, Inc., is reported at $28.3 million, with non-controlling interest in subsidiary accounting for $505,147. The total stockholders' equity is recorded at $27.8 million.
Statement of Operations
Upexi's consolidated statement of operations reveals that the company generated a gross profit of $33.6 million in 2023. However, this was offset by significant operating expenses, including sales and marketing expenses, distribution costs, general and administrative expenses, share-based compensation, and amortization of acquired intangible assets. These expenses totaled $41.1 million.
Net Loss Before Income Tax
After accounting for other income and expenses, the company reported a net loss before income tax of $18.5 million.
Upexi, Inc. benefited from an income tax benefit of $3.0 million, which reduced the net loss from continuing operations to $15.4 million.
The company reported losses from discontinued operations related to Interactive Offers and Infusionz. These operations resulted in a loss of $1.7 million and $338,418, respectively.
Net Loss Attributable to Upexi, Inc
Ultimately, Upexi, Inc. reported a net loss of $16.9 million for the fiscal year 2023, which was partially offset by a net loss (income) attributable to non-controlling interest of $559,967.
Upexi generated net cash provided by operating activities of $517,697 from continuing operations. This figure, when combined with net cash used in operating activities from discontinued operations (-$315,021), resulted in a net cash provided by operating activities of $202,676.
The company engaged in various investing activities, including acquisitions, sales of assets, and purchases of property and equipment. Overall, the net cash used in investing activities amounted to -$2.6 million for continuing operations.
Upexi's financing activities included repayments of notes payable, SBA note payable, and convertible notes payable. Additionally, the company raised funds through the issuance of stock and convertible debt. Net cash used in financing activities from continuing operations was -$285,333.
The company's cash position decreased during the fiscal year, with cash and cash equivalents at $4.5 million at the end of 2023, compared to $7.1 million at the beginning of the year.
Interest paid amounted to $2.3 million, while income tax paid was reported as $0. Additional non-cash financing activities included the issuance of common stock for various purposes.
Upexi, Inc. faced a challenging fiscal year in 2023, reporting a substantial net loss despite achieving significant revenue growth. The company's financial performance reflects the impact of various operating expenses and investments in acquisitions. Going forward, Upexi will likely focus on cost management and strategic initiatives to improve its financial position and drive profitability.