Ispire Technology Inc.

Thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the iSPIRE Technology third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Philip Carlson from KCSA. Please go ahead.

Hello, everyone, and welcome to iSpire Technologies' earnings conference call for the third quarter of fiscal 2025, ended March 31, 2025. 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. Following the company's prepared remarks, we will be facilitating a question-and-answer session Joining us today are Mr. Michael Wong, the company's co-CEO, and Mr. Jim McCormick, the company's CFO. To begin, Mr. Wong will recap the company's key fiscal third quarter financial results and recent corporate highlights, after which Mr. McCormick will discuss the company's fiscal third quarter financial results in more detail. Before we begin, I would like to remind you that this conference call contains four looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact 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 will now turn the call over to Mr. Wang. Mr. Wang, please go ahead.

Thank you, Phil. and thank you to all who have joined us today. I'm glad to be here today to review our fiscal third quarter 2025 results and the recent highlights. As our results over the third quarter demonstrated, we have continued to deliver on our promises across multiple fronts of our business. Our commitment to executing on our strategic roadmap is clear, as we strive towards becoming a leading manufacturer of precision dosing rating technology for global nicotine companies. We made significant progress throughout our fiscal third quarter. One of our main priorities has been on managing our account receivables more tightly. I'm pleased to announce that during the quarter, we were able to reduce our account receivable by approximately $7.3 million from the previous quarter to approximately $60.4 million. This includes a reduction in the underlining account receivable balance of approximately $2.6 million, reverting the trend we have seen with the increase in account receivable during previous quarters. This improvement was due to our team putting in place strict payment and collection policies and further demonstrates our commitment to enhancing our financial stability. We expect to continue making more progress on reducing our account receivable in the coming quarters as we focus on higher quality and the larger customers with improved payment terms. For the third quarter of fiscal 2025, we reported revenues of approximately $26.2 million compared to $30 million even for the same period in fiscal 2024. The pending increase in tariffs on Chinese-made goods has impacted product pricing dynamics in the market. However, we expect to be less impacted given that we also manufacture our products in Malaysia, which I'll talk to shortly. Moving forward, we are optimizing our pricing strategy by shifting more from landed pricing to FOB factory pricing. which will enhance our flexibility and strengthen our market position regardless of the tariff conditions affecting our gross margin. Regarding our Malaysian operation, we have now secured our interim nicotine product manufacturing license as promised on our last earnings call. Our growing business in Malaysia is the central part of our global business strategy of delivering leading vaping and age-gating technology solutions to consumers. The interim license allows us to officially begin marketing our nicotine manufacturing capabilities externally. We anticipate receiving our final manufacturer's license in the coming few months. which will complete our regulatory requirements in Malaysia. Our Malaysian facility will soon feature 80 production lines, that's eight zero, significantly expanding our manufacturing capacity from the current six lines we are running now. This diversification of our production base is strategically important and positions us advantageously in the global marketplace as it lowers the risk of geopolitical factors that increase our pricing. I'm also pleased to report that on May 1st, we announced that iTech LLC, a key joint venture, filed a component PMPA for its blockchain-based point-of-use age-gating system with the FDA, delivering on another key promise. This age verification component is a necessary step towards regulation in our industry. As the traditional systems typically verify the user's age only once at purchase, which offers a lower bar of safety and security. for underage individuals looking for vaping products. This new and innovative platform requires continual real-time verification for device access. This is the type of security that is needed, especially as we aim to curb the issue of youth vaping use. Our joint venture, iTech, requested an expedited review of the PMPA application, citing the system's potential to enhance public health. Furthermore, iSPIRE will benefit from commercial sales of the component, as well as from the rights to integrate the technology into our own devices. These new revenue opportunities will further position iSPIRE as the leading innovator of a regulatory-compliant precision-dosing vaping technology. As we discussed last quarter, our plug-and-play component PMTA strategy through our iExpand venture has transformative potential for the entire nicotine delivery market. If approved, This would be the first component PMPA in FDA history, allowing for modular use in hundreds of ENDS products. In parallel, iSPIRE is also preparing to file its own POP systems and disposable vape PMPAs for flavored ENDS products. that will incorporate the IceTech age-gating system. We are planning to first introduce four flavored products with the potential to increase to between six and 10 flavors. If approved, this would provide adult consumers with safe, regulated alternatives while effectively preventing youth access. This is a much-needed change to the current market, where consumers often endanger their health with risky, unregulated products that continue to flood the marketplace. This technology represents a pioneering approach to expanding adult access to PMTA-authorized flavored products while setting new standards for industry safety and compliance. Another exciting development during the third quarter was the launch of the Sprout, developed in partnership with Raw Garden, a leading California-based cannabis company. Sprout is an advanced all-in-one cannabis vapor device designed for purity, performance, and safety. Sprout is specifically developed to optimize the nuisances and intricacies of sophisticated cannabis oil while eliminating common industry flaws like plastic degradation, clogged air flow, and inconsistent heating. This ensures an experience for consumers as clean as the plant itself. Initially, launching with the raw garden, the Sprout technology is available to cannabis operators across the U.S. Our innovation with the Sprout product underscores our commitment to raising industry standards, prioritizing material safety, and putting consumer well-being first. We continue to engage in discussions with several large global nicotine and tobacco providers who are looking to diversify their supply chain. While we are under NDAs and cannot reveal specific names at this time, we look forward to making announcements as soon as possible. As you can see here, we have made significant progress on our strategic priorities. We have reduced our accounts receivable, secured our interim Malaysian nicotine product manufacturing license, filed the ICTEC PMTA on schedule, and positioned ourselves to capitalize on growing international opportunities. We remain focused on driving a more profitable business model through our Malaysian manufacturing operations, as well as focusing on high-quality customers. All while driving innovative technology solution for the global vaping market. With that, I'll turn the call over to our CFO, Jim McCormick, to review our financial results in more detail. Jim?