Ispire Technology Inc. Reports Financial Results for Fiscal Third Quarter 2026

Catalyst

Timeline

Opportunity

Malaysia
Manufacturing

Now

~$73B global vape market; 25% tariff advantage over
China

Vapor ODM

July 2026 /
2027

Mid-sized brands in 2026; large brand partnerships in
2027

Age-Gating (IKE
Tech)

2027+

~$50-70B US flavored vape market currently locked;
~6B devices/year US TAM

G-Mesh Technology

2027+

$24B+ legal global vape market; licensing discussions
with big tobacco underway

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In $USD, except share and per share data)

March 31,
2026

June 30,
2025

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 $0.0001 per share; 140,000,000 shares authorized;
     57,399,396 and 57,193,734 shares issued and outstanding as of March 31, 2026
     and June 30, 2025

5,740

5,719

Treasury stock, at cost

(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

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS

(In $USD, except share and per share data)

Three Months Ended
March 31,

Nine Months Ended
March 31,

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

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In $USD, except share and per share data)

Nine Months Ended
March 31,

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

ISPIRE TECHNOLOGY INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In $USD, except share and per share data)

Three Months Ended

March 31,

2026

2025

Net loss

$     (9,522,983)

$       (10,856,495)

Adjustments to reconcile net loss to net cash -used in/provided by operating
activities:

$                       –

$                           –

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
related party

$        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