Fitell Corporation (FTEL) investor relations material

Executive summary

• Revenue for the six months ended December 31, 2024, increased 24.7% year-over-year to $2.65 million, driven by higher merchandise sales and improved average revenue per order.

• Net loss narrowed by 36.9% to $1.68 million, reflecting revenue growth and significant reductions in consulting and general administrative expenses.

• The company completed a $13.6 million IPO in August 2023 and a $4.0 million direct offering in February 2025, strengthening liquidity.

Financial highlights

• Merchandise revenue rose 31.9% to $2.65 million, offsetting the absence of licensing income, which was $115,557 in the prior year.

• Gross profit increased 19.8% to $1.01 million, with gross margin stable at 38.3% versus 39.9% a year ago.

• Operating expenses fell 33.2% to $2.19 million, mainly due to lower consulting and administrative costs.

• Interest income surged to $129,292 from $764, reflecting returns from note receivables.

• Net cash used in operations was $743,957, a significant improvement from $7.1 million used in the prior year.

Outlook and guidance

• Management expects to resume overseas licensing expansion, particularly in Asia, when market conditions improve.

• Future capital requirements will depend on revenue generation, operational cash flow, and potential capital raises.

• Proceeds from the February 2025 offering will fund smart fitness equipment development and general corporate purposes.