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Fitell Corporation Announces Fiscal 2023 Financial Results

TAREN POINT, Australia, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Fitell Corporation (Nasdaq: FTEL) ("Fitell" or the "Company"), an online retailer of gym and fitness equipment in Australia, today announced its 2023 annual financial results for the fiscal year ended June 30, 2023.

Fitell’s Chief Executive Officer, Yinying “Sam” Lu commented, “Fitell’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology. This mission guides our strategic decisions and underscores our commitment to creating value for our shareholders.

Furthering this perspective, Jamarson Kong, Fitell’s Chief Financial Officer, noted, “Throughout fiscal year 2023, we navigated several economic headwinds, notably the challenges posed by inflation and the rise in interest rates in Australia. Consequently, our financial results for the year reflect some of these challenges. As we look to fiscal year 2024, we stand firm in our commitment to overcoming these challenges and advancing our growth trajectory. He further reported, “We’re focused on executing our long-term strategy, including expanding our business offerings and market footprint. Fitell's successful listing on Nasdaq on August 8, 2023, instills confidence in our ability to deliver on our growth strategies."

FY 2023 Financial Highlights

  • Revenue was $4.8 million, a year-to-year decrease of $3,356,512 or 41.2%, primarily due to reduced consumer spending from inflation and raising of interest rates in Australia.
  • Gross profit was $2.2 million, a year-to-year decrease of $1,462,255 or 40.2%.
  • Gross margin was 45.3%, a year-to-year increase of 0.7%.
  • Sales of consumable products was $223,343, a year-to-year increase of 11.6% or $23,239, due to efforts to diversify revenue streams.

Revenue by Categories vs. Prior Year

 RevenueChange from FY 2022
Merchandise revenue4,036,04784.1%(3,210,541)-44.3%
Sales of consumable products223,3434.7%23,23911.6%
Revenue from licensing customers539,83211.2%(169,210)-23.9%

  • Merchandise revenue decreased significantly by 44.3% or $3,210,541 to $4,036,04. The decrease was primarily attributable to: (i) a 42.6% decrease in sales order, primarily due to inflation and raising of interest rates in Australia; (ii) a decrease of 3.0% in the average revenue per order. Despite the consumer confidences in Australia is week recently, but the management has devoted a lot of marketing efforts in promoting our products and have successfully retained many loyal customers.
  • Sales of consumable products represents the revenue generated by selling various lifestyle products. The sales of consumable products have increased 11.6% or $23,239 to $223,343 from $200,104 in FY 2022. The increase was due to our additional efforts to diversify our revenue streams, to mitigate the negative financial impact attributed to the decline in merchandise revenue.
  • Revenue from licensing customers represents licensing, management consultant income, and some agency fee for distributing other miscellaneous items. Revenue from licensing customers has decreased by 23.9% or $169,216 to $539,832 in FY 2023 from $709,042 in FY 2022. The decrease was due to the temporarily suspension of the overseas expansions recently, because the market sentiments are negatively affected by the inflations and the rising in interest rate in the global market. Nevertheless, we will expand these services again, especially to the Asia market, when the time is right.

Cost of goods sold decreased by approximately $1.9 million, or 41.9%, from $4,520,078 in FY 2022 to $2,625,821.

Gross profit was $2,173,401 for the fiscal year ended June 30, 2023 and $3,635,656 for the fiscal year ended June 30, 2022, a decrease of $1,462,255, or 40.2%. The decrease was a combined result of the decrease in merchandise revenues and service revenue.

The gross profit margin increased 0.7% from 44.6% in FY 2022, to 45.3. The slight increase is mainly due to the change in revenue mix, as we have generated relatively more services revenue.

The IPO related expenses were $662,418 for consulting fee which is related to the Initial Public Offering project.

Subsequent Events

  • On August 8, 2023, the Company has successfully listed on Nasdaq and has raised a net proceed of approximately $13.6 million for the issuance of 3,000,000 shares of common stock.
  • Subsequent to June 30, 2023, the Company has entered into a consulting agreement with a third party, for future capital market and fund-raising consulting services. The consideration of the contract is $1.8 million.
  • On October 23, 2023, at the recommendation of the Nominating Committee, the Board appointed Yinying “Sam” Lu, a member of the Board, to serve as Chief Executive Officer beginning as of October 23, 2023.

Investor Conference Call and Webcast

The company will host an investor conference call and webcast to discuss the results at 8:30 a.m. (Eastern Time) on Tuesday, October 31, 2023, before the market opens.

A live webcast of the conference call will be available on the company’s investor relations website at, along with the company's earnings press release and slide presentation. To access the call by phone, dial in at 1-877-270-2148 (U.S. Toll Free) or 1-412-902-6510 (International Toll). The webcast also can be accessed by using the direct link:

If you are unable to participate during the live webcast, the webcast of this call will also be archived and available for three months at the company’s investor relations website.

About Fitell Corporation

Fitell Corporation, through GD Wellness Pty Ltd (“GD”), its wholly owned subsidiary, is an online retailer of gym and fitness equipment both under its proprietary brands and other brand names in Australia. The company’s mission is to build an ecosystem with a whole fitness and wellness experience powered by technology to our customers. GD has served over 100,000 customers with large portions of sales from repeat customers over the years. The Company’s brand portfolio can be categorized into three proprietary brands under its Gym Direct brand: Muscle Motion, Rapid Motion, and FleetX, in over 2,000 stock-keeping units (SKUs). For additional information, please visit the Company’s website at

Forward-Looking Statements

This press release contains “forward-looking statements”. Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

For more information, please contact:

Chief Financial Officer
Jamarson Kong

Investor Relations


 June 30,  June 30, 
 2023  2022 
Current assets       
Cash and cash equivalents$236,821  $716,052 
Investment in marketable securities 494,275   1,023,763 
Accounts net receivable 174,341   41,097 
Inventory, at cost 525,786   919,422 
Deposits and prepaids 13,412   6,872 
Prepaid IPO costs 5,317,866   223,229 
Total current assets 6,762,501   2,930,435 
Property and equipment, net 38,743   51,011 
Operating right of use asset 605,794   840,123 
Deferred tax asset 132,354   111,595 
Brand names 337,504   337,504 
Goodwill 1,161,052   1,161,052 
Total assets$9,037,948  $5,431,720 
Current liabilities       
Accounts payable and accrued expenses$1,168,723  $805,029 
Deferred revenue 238,351   501,976 
Income tax payable 486,058   655,673 
Due to related parties 24,386   103,450 
Current portion of operating lease liability 212,062   206,690 
Total current liabilities 2,129,580   2,272,818 
Accrued employee benefits, non-current 18,430   5,283 
Operating lease liability, less current portion 473,015   716,239 
Total liabilities 2,621,025   2,994,340 
Commitments and contingencies (Note 6)       
Stockholders’ equity:       
Common stock, $0.0001 par value; 500,000,000 shares authorized, 8,120,000 and 7,000,000 shares issued and outstanding at June 30, 2023 and 2022, respectively 812   700 
Subscription receivable -   (56)
Additional paid-in capital 7,097,822   1,497,990 
Accumulated other comprehensive income (loss) (64)  26,999 
Retained earnings (accumulated deficit) (681,647)  911,747 
Total stockholders’ equity 6,416,923   2,437,380 
Total liabilities and stockholders’ equity$9,037,948  $5,431,720 


 For the years ended 
 June 30, 
 2023  2022 
Merchandise revenue$4,036,047  $7,246,588 
Sales of consumable products 223,343   200,104 
Revenue from licensing customers 539,832   709,042 
Total revenues 4,799,222   8,155,734 
Cost of goods sold (2,625,821)  (4,520,078)
Gross profit 2,173,401   3,635,656 
Operating expenses:       
Personnel expenses 965,395   981,711 
General and administrative expenses 888,141   503,269 
Sales and marketing expenses 454,995   604,200 
Operating lease expense 198,914   213,490 
Depreciation expense 12,268   730 
Total operating expenses 2,519,713   2,303,400 
Income from operations (346,312)  1,332,256 
Other income (expenses):       
IPO related expenses (662,418)  (605,950)
Unrealized loss on investments (529,488)  (466,478)
Other income (expenses) 9,885   (54)
Interest income 1,978   99 
Interest expense (92,800)  (27,419)
Total other income (expenses) (1,272,843)  (1,099,802)
Income (loss) before taxes (1,619,155)  232,454 
Income tax expense (benefit) (25,761)  219,852 
Net income (loss) (1,593,394)  12,602 
Foreign currency translation adjustment (27,063)  (66,949)
Comprehensive loss$(1,620,457) $(54,347)
Basic and diluted earnings (loss) per share on net income (loss)$(0.21) $0.00 
Weighted average shares outstanding - basic and diluted 7,714,959   7,000,000 


 Common Stock Subscription Receivable Additional Paid-in Accumulated Other Comprehensive Retained Earnings (Accumulated   
 Shares Amount Shares Amount Capital Income (Loss) Deficit) Total 
Balance July 1, 20217,000,000 $700  - $(56)$1,497,990 $93,948 $899,145 $2,491,727 
Foreign currency translation adjustment-  -  -  -  -  (66,949) -  (66,949)
Net income-  -  -  -  -  -  12,602  12,602 
Balance June 30, 20227,000,000 $700  - $(56)$1,497,990 $26,999 $911,747 $2,437,380 
Stock issued for services1,120,000  112  -  -  5,599,888  -  -  5,600,000 
Settlement of stock subscription-  -  -  56  (56) -  -  - 
Foreign currency translation adjustment-  -  -  -  -  (27,063) -  (27,063)
Net loss-  -  -  -  -  -  (1,593,394) (1,593,394)
Balance June 30, 20238,120,000 $812  -  - $7,097,822 $(64)$(681,647)$6,416,923 


 For the years ended 
 June 30, 
 2023  2022 
Cash Flows from Operating Activities       
Net income (loss)$(1,593,394) $12,602 
Adjustments to reconcile net income (loss) to net cash from operating activities:       
Depreciation 12,268   730 
Bad debt provision 426,971   - 
Unrealized loss on investments 529,488   466,478 
Stock issued for services 560,000   - 
Changes in operating assets and liabilities       
Accounts receivable, net (560,215)  (27,996)
Inventory, at cost 393,636   (4,352)
Deposits and prepaids (61,177)  74,394 
Right of use activity (3,523)  (4,454)
Deferred tax asset (20,759)  (61,533)
Other non-current assets -   42,010 
Accounts payable and accrued expenses 363,694   (198,755)
Deferred revenue (263,625)  (662,743)
Income tax payable (169,615)  235,920 
Accrued employee benefits, non-current 13,147   (4,082)
Net cash from activities (373,104)  (131,781)
Cash Flows from Investing Activities       
Purchase of investments -   (1,490,241)
Purchase of property and equipment -   (51,741)
Net activity on amount due from related party -   1,076,687 
Net cash from investing activities -   (465,295)
Cash Flows from Financing Activities       
Net activity on due to related parties (79,064)  93,915 
Net cash from financing activities (79,064)  93,915 
Foreign currency translation adjustment (27,063)  (66,949)
Change in cash and cash equivalents (479,231)  (570,110)
Cash and cash equivalents at beginning of period 716,052   1,286,162 
Cash and cash equivalents at end of period$236,821  $716,052 
Supplemental Cash Flow Information       
Cash paid for interest$-  $- 
Cash paid for income taxes$80,375  $547,118 
 Non-Cash Investing and Financing Activities       
Stock issued for prepaid IPO services$5,040,000  $- 

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