Ispire Technology Inc.

Hello, everyone, and welcome to today's conference call to discuss iSpire's financial results for the fiscal year 2024 and to June 30th, 2024. At this time, I'd like to inform you that this conference call is being recorded and that all participants are in a listen-only mode. We will be facilitating a question-and-answer session following prepared remarks from the company. Joining us today are Mr. Michael Wang, the company's co-CEO, and Mr. Jim McCormick, the company's CFO. First, Mr. Wang will brief you on the company's key highlights, and then Mr. McCormick will review the company's financial results. Before we begin, I would like to remind you that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than the statements of historical facts in its announcement are forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the company in terms of its experience and its perception of historical trends, current conditions, and expected future developments, as well as other factors that the company believes are relevant. These forward-looking statements involve known and unknown risks and uncertainties, and many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. Further information regarding this and other risk factors are included in the company's filings with the SEC. The company undertakes no obligation to update forward-looking statements to reflect subsequent or current events or circumstances or to changes in its expectation except as may be required by law. I would now like to turn the call over to Mr. Michael Wang. Mr. Wang, please go ahead.

Thank you, Officer, and thank you all for joining us this morning. Fiscal year 2024 was a foundational year for I-SPAR as we achieved strong results with record-breaking revenue and sustainable margin expansion. We reported record revenue of $151.9 million. a 31.4% year-over-year growth, of which was organic growth. This organic growth was primarily driven by an increase in sales in the United States, Europe, and South Africa. This increase in revenue was accompanied by notable margin expansion. and we reported a gross margin of 19.6%, an increase from 18.0% in the previous fiscal year, mainly driven by product mix and the sales leverage as well as the beginning effect of our Malaysian operations. Throughout the year, we also made significant advancements across the company, that have positioned us for future margin expansion, improved profitability, and increased the revenue generation. Those highlights, which I will go into in more detail shortly, include one, our Malaysian operation as we aim to drive down internal product costs, two, our investment in the point-of-use age verification technology joint venture. Three, our intentional focus on cannabis multi-state operators or MSOs.

And four, increased partnership in the global nicotine space.