Cash Increased Sequentially by
Plans to Achieve Cash Flow Positive in Second Half of Calendar Year 2026
Business Stabilized Following Strategic Repositioning
Phased Roadmap Targets Billions in Addressable Market, Including
- Our
Malaysia manufacturing is live today, giving us a 25% tariff advantage overChina in a~$73B global vape market.- Supply of nicotine pouches to global customers commenced in
April 2026 .
- Supply of nicotine pouches to global customers commenced in
- Vapor ODM launches in
July 2026 for mid-sized brands, with large brand partnerships targeted for 2027. - Looking further ahead (2027 and beyond):
- Age-gating technology through IKE Tech has the potential to unlock the ~$50–70B US flavored vape market
- G-Mesh glass technology is already drawing interest from big tobacco in a $24B+ legal global market.
"With cash generation this quarter and proprietary technologies in age-gating and G-Mesh that no competitor can replicate, we have multiple shots on goal across billion-dollar markets, and we believe Ispire is uniquely positioned to deliver outsized value for shareholders."
Multiple Growth Catalysts, Each Backed by a Massive Addressable Market
Catalyst | Timeline | Opportunity |
| Now | |
Vapor ODM |
| Mid-sized brands in 2026; large brand partnerships in |
Age-Gating (IKE | 2027+ |
|
G-Mesh Technology | 2027+ | $24B+ legal global vape market; licensing discussions |
Financial Results for the Fiscal Third Quarter Ended
- Revenue was
$18.7 million , compared to$26.2 million in the third quarter of fiscal 2025 and$20.3 million in the prior sequential quarter. The sequential decline of$1.6 million , or 8%, represents the smallest second-to-third quarter decline in the Company's history, reflecting the typical seasonal impact ofChinese New Year -related factory shutdowns. The year-over-year decline reflects the Company's continued strategic shift away from lower-quality cannabis revenue toward regulated nicotine delivery and compliance technologies. Overall, the business continues to stabilize. - Gross profit of
$2.0 million compared to$4.8 million for the third quarter of fiscal 2025 and$3.5 million in the prior sequential quarter. Gross margin was impacted by approximately$2.2 million in one-time product returns from legacy cannabis customers with whom the Company has ceased doing business. Gross margin of 10.7% compared to 18.2% for the third quarter of fiscal 2025, is primarily attributable to the approximately$2.2 million one-time product returns from legacy cannabis customers with whom the Company has ceased doing business. - Total operating expenses excluding bad debt expense of
$5.9 million , a 36% reduction when compared to operating expenses of$9.3 million for the third quarter of fiscal 2025, and a 3.7% reduction when compared to operating expenses of$6.1 million in the prior sequential quarter. Bad debt expense was$5.6 million , which is$0.5 million less than the third quarter of fiscal 2025 and$1.4 million more than the prior quarter. - Net loss of
$9.5 million or ($0.17 ) per share, a 12.3% decrease, compared to net loss of$10.9 million , or ($0.19 ) per share, in the third quarter of fiscal 2025, and a 44.4% increase compared a net loss of$6.6 million in the prior sequential quarter. - Cash: At
March 31, 2026 , the Company held cash of$18.0 million and working capital of$0.9 million .
Conference Call
The Company will conduct a conference call at
To listen to the conference call, please dial in using the information below. When prompted upon dialing-in, please ask for the "Ispire Technology Call."
- Date:
Thursday, May 7, 2026 - Time: 8:00 am ET
- Dial-In Numbers: United States 844-826-3033 or International + 1-412-317-5185
This conference call will be webcast live and can be accessed by all interested parties at https://viavid.webcasts.com/starthere.jsp?ei=1761477&tp_key=3958311007
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 until
About
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 400 patents worldwide. Ispire's branded e-cigarette products are marketed under the Aspire 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 also engages in original design manufacture (ODM) relationships with e-cigarette brands and retailers worldwide. The Company's cannabis products are marketed under the Ispire brand name primarily on an ODM basis to other cannabis vapor companies. Ispire sells its cannabis vaping hardware in the US, Europe and South Africa and it recently commenced marketing activities and customer engagement in
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
Contact:
HAYDEN IR:
James Carbonara
(646)-755-7412
james@haydenir.com
(646) 536-7331
brett@haydenir.com
-- Tables Follow –
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In $USD, except share and per share data) | ||||||||
|
| |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 18,033,652 | $ | 24,351,765 | ||||
Restricted cash | 50,000 | - | ||||||
Accounts receivable, net | 28,651,558 | 39,664,145 | ||||||
Inventories | 5,480,044 | 6,647,970 | ||||||
Prepaid expenses and other current assets | 3,523,741 | 2,244,505 | ||||||
Total current assets | 55,738,995 | 72,908,385 | ||||||
Non-current assets: | ||||||||
Accounts receivable, net of current portion | - | 7,367,158 | ||||||
Property, plant and equipment, net | 2,665,534 | 2,952,800 | ||||||
Intangible assets, net | 2,601,408 | 2,232,620 | ||||||
Right-of-use assets – operating leases | 3,855,373 | 5,030,005 | ||||||
Other investment | 2,000,000 | 2,000,000 | ||||||
Equity method investment | 8,839,130 | 9,515,546 | ||||||
Other non-current assets | 210,617 | 210,617 | ||||||
Total non-current assets | 20,172,062 | 29,308,746 | ||||||
Total assets | $ | 75,911,057 | $ | 102,217,131 | ||||
Liabilities and stockholders' (deficit)/equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 5,005,033 | $ | 4,172,476 | ||||
Accounts payable – related party | 38,159,288 | 52,420,256 | ||||||
Contract liabilities | 3,043,470 | 4,861,250 | ||||||
Accrued liabilities and other payables | 6,003,509 | 8,099,991 | ||||||
Borrowing – current portion | 1,092,052 | 1,146,766 | ||||||
Operating lease liabilities – current portion | 1,546,770 | 1,838,815 | ||||||
Total current liabilities | 54,850,122 | 72,539,554 | ||||||
Non-current liabilities: | ||||||||
Amount due to a related party | 35,000,000 | 25,000,000 | ||||||
Borrowing – net of current portion | - | 805,361 | ||||||
Operating lease liabilities – net of current portion | 2,265,347 | 3,267,522 | ||||||
Total non-current liabilities | 37,265,347 | 29,072,883 | ||||||
Total liabilities | 92,115,469 | 101,612,437 | ||||||
Commitments and contingencies | ||||||||
Stockholders' (deficit)/equity: | ||||||||
Common stock, par value | 5,740 | 5,719 | ||||||
(60,488) | (60,488) | |||||||
Additional paid-in capital | 51,541,046 | 48,833,601 | ||||||
Accumulated deficit | (67,450,024) | (48,065,267) | ||||||
Accumulated other comprehensive loss | (240,686) | (108,871) | ||||||
Total stockholders' (deficit)/equity | (16,204,412) | 604,694 | ||||||
Total liabilities and stockholders' (deficit)/equity | $ | 75,911,057 | $ | 102,217,131 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND (In $USD, except share and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 18,685,501 | $ | 26,190,725 | $ | 69,322,941 | $ | 107,356,898 | ||||||||
Cost of revenue | 16,694,576 | 21,414,820 | 58,710,643 | 87,184,044 | ||||||||||||
Gross profit | 1,990,925 | 4,775,905 | 10,612,298 | 20,172,854 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing expenses | 1,091,907 | 1,656,527 | 4,133,079 | 6,710,438 | ||||||||||||
Credit loss expenses | 5,564,497 | 6,103,688 | 11,537,950 | 13,389,767 | ||||||||||||
General and administrative expenses | 4,818,256 | 7,601,131 | 13,995,180 | 23,281,014 | ||||||||||||
Total Operating expenses | 11,474,660 | 15,361,346 | 29,666,209 | 43,381,219 | ||||||||||||
Loss from operations | (9,483,735) | (10,585,441) | (19,053,911) | (23,208,365) | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest income | 52,971 | 3,480 | 253,365 | 63,321 | ||||||||||||
Interest expense | (87,215) | (35,646) | (299,582) | (60,183) | ||||||||||||
Exchange (loss) gain, net | (30,294) | 24,341 | 269,745 | (103,247) | ||||||||||||
Other income (expense), net | 202,697 | (86,239) | 215,688 | (47,906) | ||||||||||||
Total Other income (expense), net | 138,159 | (94,064) | 439,216 | (148,015) | ||||||||||||
Loss before income taxes | (9,345,576) | (10,679,505) | (18,614,695) | (23,356,380) | ||||||||||||
Income taxes | (177,407) | (176,990) | (770,062) | (1,093,774) | ||||||||||||
Net loss | $ | (9,522,983) | $ | (10,856,495) | $ | (19,384,757) | $ | (24,450,154) | ||||||||
Other comprehensive loss | ||||||||||||||||
Foreign currency translation adjustments | (10,490) | (2,860) | (131,815) | (84,327) | ||||||||||||
Comprehensive loss | $ | (9,533,473) | $ | (10,859,355) | $ | (19,516,572) | $ | (24,534,481) | ||||||||
Net loss per share | ||||||||||||||||
Basic and diluted | $ | (0.17) | $ | (0.19) | $ | (0.34) | $ | (0.43) | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic and diluted | 57,293,826 | 57,003,488 | 57,269,726 | 56,752,454 | ||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In $USD, except share and per share data) | ||||||||
Nine Months Ended | ||||||||
2026 | 2025 | |||||||
Net loss | $ | (19,384,757) | $ | (24,450,154) | ||||
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||||||
Depreciation and amortization | 691,894 | 592,280 | ||||||
Credit loss expenses | 11,537,950 | 13,389,767 | ||||||
Right-of-use assets amortization | 1,172,118 | 1,001,101 | ||||||
Stock-based compensation expenses | 2,752,467 | 4,923,751 | ||||||
Inventory impairment | 2,386,751 | 73,692 | ||||||
Loss from equity method investment | 676,416 | 407,028 | ||||||
Debt issuance cost amortization | 96,937 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 6,841,795 | (14,080,837) | ||||||
Inventories | (1,218,825) | (1,485,433) | ||||||
Prepaid expenses and other current assets | (1,332,448) | (715,969) | ||||||
Accounts payable and accounts payable – related party | (3,428,411) | 10,962,439 | ||||||
Contract liabilities | (1,817,780) | (756,872) | ||||||
Accrued liabilities and other payables | (876,774) | (969,068) | ||||||
Operating lease liabilities | (1,291,706) | (961,244) | ||||||
Net cash used in operating activities | (3,194,373) | (12,069,519) | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment | (324,225) | (140,956) | ||||||
Capitalized costs for patents | (449,191) | (781,254) | ||||||
Investment in joint venture | (1,298,311) | (767,285) | ||||||
Net cash used in investing activities | (2,071,727) | (1,689,495) | ||||||
Cash flows from financing activities: | ||||||||
Common stock repurchase | (45,001) | (60,488) | ||||||
Proceeds from long term debt | - | 2,339,362 | ||||||
Repayment of borrowing | (957,012) | - | ||||||
Net cash (used in)/provided by financing activities | (1,002,013) | 2,278,874 | ||||||
Net decrease in cash | (6,268,113) | (11,480,140) | ||||||
Cash – beginning of period | 24,351,765 | 35,071,294 | ||||||
Cash and restricted cash– end of period | $ | 18,083,652 | $ | 23,591,154 | ||||
Reconciliation of cash and restricted cash | ||||||||
Cash | 18,033,652 | 23,518,560 | ||||||
Restricted cash | 50,000 | 72,594 | ||||||
Total cash and restricted cash | $ | 18,083,652 | $ | 23,591,154 | ||||
Supplemental non-cash investing and financing activities | ||||||||
Reclassification of accounts receivable – noncurrent to accounts receivable | $ | 6,934,364 | $ | - | ||||
Reclassification of accounts payable – related party to amount due to a related party | $ | 10,000,000 | $ | - | ||||
Leased assets obtained in exchange for operating lease liabilities | $ | - | $ | 2,771,082 | ||||
Unpaid long term investment in accrued liabilities and other payables | $ | - | $ | 8,232,715 | ||||
Supplemental disclosures | ||||||||
Cash paid for income taxes | $ | 1,614,273 | $ | 1,413,533 | ||||
Cash paid for interest | $ | 299,582 | $ | 60,183 | ||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In $USD, except share and per share data) | ||||
Three Months Ended | ||||
2026 | 2025 | |||
Net loss | $ (9,522,983) | $ (10,856,495) | ||
Adjustments to reconcile net loss to net cash -used in/provided by operating | $ - | $ - | ||
Depreciation and amortization | $ 210,652 | $ 198,955 | ||
Credit loss expenses | $ 5,564,497 | $ 6,103,688 | ||
Right-of-use assets amortization | $ 479,982 | $ 371,717 | ||
Stock-based compensation expenses | $ 992,478 | $ 1,470,877 | ||
Inventory impairment | $ 849,313 | $ - | ||
Loss from equity method investment | $ 290,083 | $ 230,360 | ||
Debt issuance cost amortization | $ 32,312 | $ - | ||
Changes in operating assets and liabilities: | $ - | $ - | ||
Accounts receivable | $ 3,662,298 | $ 1,170,940 | ||
Inventories | $ (1,291,943) | $ 181,075 | ||
Prepaid expenses and other current assets | $ (363,641) | $ 139,686 | ||
Accounts payable and accounts payable – related party | $ 3,582,462 | $ (9,743,313) | ||
Contract liabilities | $ (1,927,665) | $ (549,992) | ||
Accrued liabilities and other payables | $ (99,500) | $ (838,174) | ||
Operating lease liabilities | $ (489,737) | $ (376,953) | ||
Income tax payable | $ (12,590) | $ - | ||
Net cash provided by operating activities | $ 1,956,018 | $ (12,497,629) | ||
$ - | ||||
Cash flows from investing activities: | $ - | |||
Purchase of property, plant and equipment | $ (247,347) | $ 181,808 | ||
Capitalized costs for patents | $ (156,349) | $ - | ||
Investment in joint venture | $ (765,000) | $ (767,285) | ||
Net cash used in investing activities | $ (1,168,696) | $ (585,477) | ||
$ - | ||||
Cash flows from financing activities: | $ - | |||
Common stock repurchase | $ - | $ (60,488) | ||
Proceeds from long term debt | $ - | $ 2,339,362 | ||
Repayment of borrowing | $ (319,004) | $ - | ||
Net cash used in financing activities | $ (319,004) | $ 2,278,874 | ||
$ - | ||||
Net increase in cash | $ 468,318 | $ (10,804,232) | ||
Cash – beginning of period | $ 17,615,334 | $ 34,395,386 | ||
Cash and restricted cash– end of period | $ 18,083,652 | $ 23,591,154 | ||
Reconciliation of cash and restricted cash | ||||
Cash | $ 18,033,652 | $ 23,518,560 | ||
Restricted cash | $ 50,000 | $ 72,594 | ||
Total cash and restricted cash | $ 18,083,652 | $ 23,591,154 | ||
Supplemental non-cash investing and financing activities | ||||
Reclassification of accounts receivable – noncurrent to accounts receivable | $ - | $ - | ||
Reclassification of accounts payable – related party to amount due to a | $ 6,000,000 | $ - | ||
Leased assets obtained in exchange for operating lease liabilities | $ - | $ 2,771,082 | ||
Unpaid long term investment in accrued liabilities and other payables | $ - | $ 8,232,715 | ||
Supplemental disclosures | $ - | $ - | ||
Cash paid for income taxes | $ 3,081 - | $ - | ||
Cash paid for interest | $ 87,215 | $ 35,646 | ||
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