TAMPA, FL - Upexi, Inc. (NASDAQ:UPXI), an aggregator of Amazon (NASDAQ:AMZN) and Direct-to-Consumer brands, announced significant progress in its restructuring efforts, having reduced its debt by $16.1 million and accrued interest. The company has also increased its working capital, with $7.4 million in cash now bolstering its balance sheet and approximately $1.5 million in operational costs saved.
CEO Allan Marshall expressed confidence in Upexi's ability to grow and innovate following the restructuring, which included the sale of assets and consolidation of operations.
The recent transactions include the sale of E-core/Neti and Tytan Tiles on August 1, which cut debt by roughly $12 million and added $2 million in cash. In July, Upexi closed two Las Vegas sites and consolidated operations in Florida, reducing the workforce by 30% and saving over $1.5 million in annual operational costs.
The sale of a Clearwater, Florida warehouse on July 9 eliminated around $2.6 million in debt and contributed $1.4 million in cash to working capital. On June 13, the company sold a wholly-owned subsidiary, securing $4 million in immediate cash and up to $2 million in the next fifteen months.
Upexi is set to file its Form 10-K for the fiscal year ended June 30, 2024, in September, which will provide a more detailed financial and business overview.
Upexi, Inc. has been dealing with a Nasdaq compliance issue due to a delay in filing its quarterly financial report but anticipates regaining compliance by submitting the required Form 10-Q before the end of June. The company also announced a strategic initiative to consolidate operations, expecting to cut annual operating expenses by $2 to $3 million.
Furthermore, Upexi is prioritizing debt reduction and maintaining profitability in its core business areas, with plans for future expansion. To ensure financial transparency, the company has appointed GBQ Partners LLC to audit its financial statements for the fiscal years ending June 30, 2023, and 2024.
InvestingPro Insights
As Upexi, Inc. (NASDAQ:UPXI) continues its restructuring efforts, real-time data and analysis from InvestingPro provide additional context for investors assessing the company's financial health and market position. With a market capitalization of just $5.79 million, Upexi is navigating a challenging phase characterized by significant debt and liquidity concerns.
InvestingPro data highlights a Price / Book ratio for the last twelve months as of Q3 2024 at a low 0.26, suggesting that the company's stock may be undervalued relative to its book value. This could potentially attract investors looking for bargain opportunities. However, the company's financial performance indicators raise caution. The P/E Ratio for the same period stands at -0.5, reflecting the company's lack of profitability in recent times. Furthermore, Upexi has experienced a substantial 27.11% growth in revenue over the last twelve months as of Q3 2024, indicating some positive momentum in terms of sales.
InvestingPro Tips for Upexi paint a picture of a company facing serious financial challenges. With a significant debt burden and difficulties in making interest payments, as well as a stock price that has been in a steep decline over various time frames—including a 76.12% drop year-to-date as of 2024—the company's financial stability is in question. Additionally, the company's stock is trading near its 52-week low, which could be a sign of investor pessimism about its prospects.
For investors looking for more in-depth analysis, there are over 16 additional InvestingPro Tips available, which could provide further insights into Upexi's financial situation and future outlook. These tips and more detailed financial metrics can be accessed through InvestingPro's dedicated page for Upexi at https://www.investing.com/pro/UPXI.
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