UPEXI, INC. Q4 FY2023 earnings call

• Acquired and grew high-growth brands like VitaMetica, Lucky Tail, and Tytan Tiles, with each positioned in high-growth markets. • Leveraged ecosystem driven by data and AI, integrating popular brands and partnerships like Disney. • Executed on business model by optimizing sales performance, expanding margins, and launching complementary products. • Achieved synergies to manage expenses and maximize margins, with plans to continue margin expansion. • Tytan Tiles has a licensing agreement with Disney for branded products to be launched in 2023 holiday season.

In 2023, Upexi's revenue from ecommerce brands and re-commerce was $80.7 million, a 250% increase year-over-year. VitaMetica, acquired in late 2021, has seen 88% organic growth in its product line since acquisition. Lucky Tail, acquired in August 2022, launched new all-natural pet supplements. Tytan Tiles, acquired in October 2022, is available in over 3,900 Walmart stores and has a licensing agreement with Disney. Cygnet Online, acquired in 2022, is now 100% owned. VitaMetica contributed to growth through organic expansion, Lucky Tail via new product launches, Tytan Tiles via retail expansion and Disney licensing, and Cygnet via re-commerce integration.

• 2023 revenues were $80.7 million, up 250% y-o-y. • Q1 2024 revenues expected to be the biggest quarter in company history. • Bloomios manufacturing business remains in-house, but impact on Q1 guidance uncertain due to ongoing cleanup of unresolved matters with Bloomios. • Anticipate holiday quarter to be strong due to historical boosts and ongoing initiatives like Disney partnerships and retail expansions.

• Market conditions including exponential interest rate increases and difficult equity markets for growth companies. • Uncertainties related to ongoing issues with Bloomios affecting operational reporting and revenue recognition. • Risks associated with revenue recognition from discontinued operations, especially with Infusionz and Interactive Offers.

Q: Talk about fiscal 4Q revenue being softer but profitability improving.

A: Revenue softness due to market changes like slower product turnover on Amazon; profitability improved through cost-cutting measures like closing California facility.

Q: Discuss Bloomios business and its impact on P&L and Q1 guidance.

A: Manufacturing business remains in-house, but exact impact on Q1 guidance unclear due to ongoing cleanup of unresolved matters with Bloomios; partial revenue from Bloomios expected in current quarter but exact numbers still uncertain.