Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to _______

Commission File Number 333-255266

UPEXI, INC.

(Exact name of registrant as specified in its charter)

Nevada

83-3378978

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

3030 North Rocky Point Drive

Tampa, Florida

33607

(Address of principal executive offices)

(Zip Code)

(701) 353-5425

(Registrant’s telephone number, including area code)

_______________________________________________________________

(Former name, former address, and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001	UPXI	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ YES ☒ NO

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of July 5, 2024, the registrant had 20,889,384 shares of common stock, par value $0.001 per share, outstanding.

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

Item 1.	Interim Unaudited Condensed Consolidated Financial Statements	4

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	5

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12

Item 4.	Controls and Procedures	13

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	14

Item 1A.	Risk Factors	14

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14

Item 3.	Defaults Upon Senior Securities	14

Item 4.	Mine Safety Disclosures	14

Item 5.	Other Information	14

Item 6.	Exhibits	15

SIGNATURES		16

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

We operate in a rapidly changing environment and new risks emerge from time to time. As a result, it is not possible for our management to predict all risks, such as the COVID-19 outbreak and associated business disruptions including delayed clinical trials and laboratory resources, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Considering these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included in this report speak only as of the date hereof, and except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report to conform these statements to actual results or to changes in our expectations.

Our unaudited condensed consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report, as well as the other risks and uncertainties disclosed under the heading “Item 1A. Risk Factors” in our most recent annual report on Form 10-K.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to shares of our common stock.

As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Upexi, Inc., unless otherwise indicated.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

UPEXI, INC.

Interim Unaudited Condensed Consolidated Financial Statements

For the Three and Nine Month Periods Ended March 31, 2024 and 2023

		Page

Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and June 30, 2023		F-1

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2024 and 2023 (Unaudited)		F-2

Condensed Consolidated Statements of Stockholders’ Equity for the Nine Months Ended March 31, 2024 and 2023 (Unaudited)		F-3

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2024 and 2023 (Unaudited)		F-4

Notes to the Unaudited Condensed Consolidated Financial Statements		F-5

Table of Contents

UPEXI, INC.

CONDENSED CONSOLDIATED BALANCE SHEETS (UNAUDITED)

	March 31,			June 30,
	2024			2023

ASSETS
Current assets
Cash	$	498,287		$	4,492,291
Accounts receivable		4,707,128			6,963,915
Inventory		8,801,901			9,267,892
Due from Bloomios		-			845,443
Prepaid expenses and other receivables		720,582			1,283,617
Current assets of discontinued operations		2,111,952			2,602,556
Total current assets		16,839,850			25,455,714

Property and equipment, net		7,520,005			7,442,623
Intangible assets, net		9,469,923			12,588,124
Goodwill		10,847,791			9,290,501
Deferred tax asset		8,273,049			5,604,056
Other assets		368,004			76,728
Assets held for sale		1,675,112			2,984,868
Right-of-use asset		1,513,693			410,453
Total other assets		39,667,577			38,397,353

Total assets	$	56,507,427		$	63,853,067

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	2,124,024		$	3,930,540
Accrued compensation		841,064			533,842
Deferred revenue		111,519			-
Accrued liabilities		2,551,149			3,350,541
Acquisition payable		300,000			-
Current portion of notes payable		5,473,136			1,302,021
Current portion of convertible notes payable		-			1,254,167
Current portion of acquisition note payable		8,048,562			5,656,620
Current portion of related party note payable		-			1,429,356
Line of Credit		3,938,772			882,845
Current portion of operating lease payable		803,558			419,443
Current liabilities of discontinued operations		-			975,310
Total current liabilities		24,191,784			19,734,685

Operating lease payable, net of current portion		1,055,301			34,684
Related party note payable		1,479,815			-
Convertible notes payable		1,650,000			895,833
Acquisition notes payable, net of current		2,929,393			7,605,085
Notes payable, net of current portion		3,144,327			7,746,157
Total long-term liabilities		10,258,836			16,281,759

Commitments and contingencies

Stockholders' equity
Preferred stock, $0.001 par value, 100,000,000 shares authorized, and 500,000 and 500,000 shares issued and outstanding, respectively		500			500
Common stock, $0.001 par value, 100,000,000 shares authorized, and 20,906,870 and 20,215,961 shares issued and outstanding, respectively		20,909			20,216
Additional paid in capital		53,149,492			51,522,229
Accumulated deficit		(31,114,094	)		(23,201,175	)
Total stockholders' equity attributable to Upexi, Inc.		22,056,807			28,341,770
Non-controlling interest in subsidiary					(505,147	)
Total stockholders' equity		22,056,807			27,836,623

Total liabilities and stockholders' equity	$	56,507,427		$	63,853,067

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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UPEXI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Month's Ended March 31,						Nine Month's Ended March 31,
	2024			2023			2024			2023

Revenue
Revenue	$	14,444,957		$	21,883,445		$	59,586,148		$	56,282,542

Cost of Revenue		11,561,834			14,305,698			42,864,857			35,555,746

Gross profit		2,883,123			7,577,747			16,721,291			20,726,796

Operating expenses
Sales and marketing		1,547,161			2,258,937			5,427,358			5,331,948
Distribution costs		2,291,945			2,352,684			7,516,748			8,010,373
General and administrative expenses		2,399,387			2,602,312			6,685,881			6,807,739
Share-based compensation		212,758			1,146,299			965,229			3,126,472
Amortization of acquired intangible assets		1,062,734			1,124,500			3,188,201			2,709,167
Depreciation		306,185			225,879			901,521			649,883
		7,820,170			9,710,611			24,684,938			26,635,582

Loss from operations		(4,937,047	)		(2,132,864	)		(7,963,647	)		(5,908,786	)

Other income (expense), net
Change in derivative liability		-			-			-			(1,770	)
Interest (expense) income, net		661,878			152,360			2,612,617			2,370,294

Other income (expense), net		661,878			152,360			2,612,617			2,368,524

Income (loss) on operations before income tax		(5,598,925	)		(1,980,504	)		(10,576,264	)		(8,277,310	)
Gain on sale of Infusionz and select assets		-			-			-			7,564,363
Gain (loss) from the sale of Interactive Offers		(103,263	)		-			237,670
Lease settlement, California facility		-			-			-
Lease impairment, Delray Beach facility		-			-			(289,968	)
Income tax benefit (expense)		1,501,595			496,880			2,668,769			449,828

Net income (loss) from continuing operations		(4,200,593	)		(1,483,624	)		(7,959,793	)		(263,119	)

(Loss) income from discontinued operations		81,981			(287,119	)		46,874			(1,663,451	)

Net loss attributable to non-controlling interest		-			124,804			-			358,390

Net income (loss) attributable to Upexi, Inc.	$	(4,118,612	)	$	(1,645,939	)	$	(7,912,919	)	$	(1,568,180	)

Basic and dilutive loss per share:
Income (loss) per share from continuing operations	$	(0.20	)	$	(0.08	)	$	(0.39	)	$	(0.02	)
(Loss) income per share from discontinued operations	$	-		$	(0.02	)	$	0.00		$	(0.10	)
Total income (loss) per share	$	(0.20	)	$	(0.09	)	$	(0.39	)	$	(0.09	)

Basic weighted average shares outstanding		20,723,542			18,015,837			20,423,924			17,418,877
Fully diluted weighted average shares outstanding		20,723,542			18,015,837			20,423,924			17,418,877

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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UPEXI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

	Preferred Stock		Preferred Stock		Common Stock		Common Stock		Additional Paid		Accumulated			Non-controlling			Total Stockholders'
	Shares		Par		Shares		Par		In Capital		Deficit			Interest			Equity

2023
Balance, June 30, 2022		500,000	$	500		16,713,345	$	16,713	$	34,985,597	$	(6,270,886	)	$	54,820		$	28,786,744

Amortization of common stock issuance for services		-		-		-		-		70,350		-			-			70,350

Stock based compensation		-		-		-		-		927,326		-			-			927,326

Net loss for the three months ended September 30, 2022		-		-		-		-		-		(2,597,515	)		(148,005	)		(2,745,520	)

Balance, September 30, 2022		500,000	$	500		16,713,345	$	16,713	$	35,983,273	$	(8,868,401	)	$	(93,185	)	$	27,038,900

Amortization of common stock issuance for services		-		-		-		-		70,350		-			-			70,350

Stock based compensation		-		-		-		-		1,052,847		-			-			1,052,847

Issuance of common stock for acquisition of E-Core		-		-		1,247,403		1,247		5,998,753		-			-			6,000,000

Net loss for the three months ended December 31, 2022		-		-		-		-		-		2,669,679			(85,581	)		2,584,098

Balance, December 31, 2022		500,000	$	500		17,960,748	$	17,960	$	43,105,223	$	(6,198,722	)	$	(178,766	)	$	36,746,195

Stock based compensation		-		-		-		-		1,146,299		-			-			1,146,299

Issuance of common stock for interest on note payable		-		-		134,000		134		606,870		-			-			607,004

Net loss for the three months ended March 31, 2023		-		-		-		-		-		(1,643,884	)		(124,804	)		(1,768,688	)

Balance, March 31, 2023		500,000	$	500		18,094,748	$	18,094	$	44,858,392	$	(7,842,606	)	$	(303,570	)	$	36,730,810

2023

Balance, June 30, 2023		500,000	$	500		20,215,961	$	20,216	$	51,522,229	$	(23,201,175	)	$	(505,147	)	$	27,836,623

Issuance of stock and equity for purchase of Cygnet		-		-		90,909		91		162,636		-			505,147			667,874

Stock based compensation		-		-		-		-		421,887		-			-			421,887

Net loss for the three months ended September 30, 2023		-		-		-		-		-		(1,356,388	)		-			(1,356,388	)

Balance, September 30, 2023		500,000	$	500		20,306,870	$	20,307	$	52,106,752	$	(24,557,563	)	$	-		$	27,569,996

Stock based compensation		-		-		-		-		330,584		-			-			330,584

Net income (loss) for the three months ended December 31, 2023		-		-		-		-		-		(2,437,919	)		-			(2,437,919	)

Balance, December 31, 2023		500,000	$	500		20,306,870	$	20,307	$	52,437,336	$	(26,995,482	)	$	-		$	25,462,661

Issuance of stock for conversion of debt		-		-		500,000		502		499,498		-			-			500,000
					.
Stock based compensation		-		-		100,000		100		212,658		-			-			212,758

Net income (loss) for the three months ended March 31, 2024		-		-		-		-		-		(4,118,612	)		-			(4,118,612	)

Balance, March 31, 2024		500,000	$	500		20,906,870	$	20,909	$	53,149,492	$	(31,114,094	)	$	-		$	22,056,807

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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UPEXI, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Nine Month's Ended March 31,
	2024			2023
Cash flows from operating activities
Net (loss) income from operations	$	(7,912,919	)	$	(1,568,180	)

Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization		4,089,722			3,359,050
Accrued interest on note recievable from Bloomios		-			(141,635	)
Amortization of senior security original issue discount		-			(455,450	)
Unreimburesed transition fees from Bloomios		-			(428,500	)
Amortization of loan costs		50,459			-
Amortization of consideration discount		900,339			-
Non-cash consideration for sale of Infusionz and select assets, net		-			(7,564,363	)
Inventory write-offs		1,812,319			34,328
Gain on sale of interactive offers		(237,670	)		-
Change in deferred tax asset		(2,668,993	)		(515,089	)
Noncontrolling interest		-			(358,390	)
Shares issued for finder fee		-			1,770
Stock based compensation		965,229			3,126,472
Changes in assets and liabilities, net of acquired amounts
Accounts receivable		2,413,987			2,175,850
Inventory		(255,500	)		2,561,502
Prepaid expenses and other assets		492,343			94,178
Operating lease payable		301,492			(22,830	)
Accounts payable and accrued liabilities		(2,775,503	)		1,744,961
Deferred revenue		(22,431	)		-
Net cash provided by operating activities - Continuing Operations		(2,847,126	)		2,043,674
Net cash provided by (used in) operating activities - Discontinued Operations		(187,280	)		190,539
Net cash provided by operating activities		(3,034,406	)		2,234,213

Cash flows from investing activities
Acquisition of Lucky Tail		-			(3,012,327	)
Acquisition of VitaMedica, Inc., net of cash acquired		-			(500,000	)
Acquisition of New England Technology, Inc.		-			(1,698,748	)
Proceeds from the sale of Interactive Offers, net of liabilities paid		940,000			-
Acquisition of patent rights for Tytan Tiles		(70,000	)		-
Acquisition of Cygnet Online LLC, net of cash acquired		(500,000	)		(1,050,000	)
Proceeds from the sale of Infusionz and selected assets		-			5,173,610
Acquisition of property and equipment		(770,721	)		(278,683	)
Net cash provided by (used in) investing activities - Continuing Operations		(400,721	)		(1,366,148	)
Net cash (used in) provided by investing activities - Discontinued Operations		-			-
Net cash provided by (used in) investing activities		(400,721	)		(1,366,148	)

Cash flows from financing activities
Repayment of notes payable		(430,715	)		(470,168	)
Repayment of the senior convertible notes payable		-			(6,307,775	)
Proceeds (payments) on line of credit, net		3,055,927			(6,826,338	)
Payment on acquisition notes payable		(3,184,089	)
Repayment of SBA note payable					(254,804	)
Proceeds from convertible note payable		-			2,650,000
Proceeds on note payable on building		-			3,000,000
Repayment on note payable on building					(97,744	)
Proceeds on note payable, related party		-			1,470,000
Net cash used in financing activities - Continuing Operations		(558,877	)		(6,836,829	)
Net cash (used in) provided by financing activities - Discontinued Operations		-			-
Net cash used in financing activities		(558,877	)		(6,836,829	)

Net decrease in cash - Continuing Operations		(3,806,724	)		(6,159,303	)
Net (decrease) increase in cash - Discontinued Operations		(187,280	)		190,539

Cash, beginning of period		4,492,291			7,149,806
Cash, end of period	$	498,287		$	1,181,042

Supplemental cash flow disclosures
Interest paid	$	1,505,162		$	326,918
Income tax paid	$	-		$	-
Issuance of common stock for acquisition of Cygnet	$	162,727		$	-
Issuance of debt for acquisition of Cygnet	$	300,000		$	-
Bloomios non-cash payment of receivables, net	$	845,443		$	-
Issuance of common stock for the repayment of convertible note payable	$	500,000		$	-
Liabilities assumed from acquisition of E-Core	$	-		$	(7,712,168	)
Issuance of stock for acquisition of E-Core	$	-		$	6,000,000
Assets available for sale	$	-		$	6,446,210

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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UPEXI, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

Note 1. Background Information

Upexi is a multi-faceted brand owner with established brands in health, wellness, pet, beauty, and other growing markets. We operate in emerging industries with high growth trends and look to drive organic growth of our current brands. We focus on direct to consumer and Amazon brands that are scalable and have anticipated, high industry growth trends. Our goal is to continue to accumulate consumer data and build out a significant customer database across all industries we sell into. The growth of our current customer database has been key to the year-over-year gains in sales and profits. To drive additional growth, we have and will continue to acquire profitable Amazon and eCommerce businesses that can scale quickly and reduce costs through corporate synergies. We utilize our in-house SaaS programmatic ad technology to help achieve a lower cost per acquisition and accumulate consumer data for increased cross-selling between our growing portfolio of brands.

Upexi, Inc. (the “Company”) is a Nevada corporation with fourteen active subsidiaries through which the Company primarily conducts its business. The Company’s fourteen active subsidiaries are as follows:

☐	HAVZ, LLC, d/b/a/ Steam Wholesale, a California limited liability company
☐	Trunano Labs, Inc., a Nevada corporation
☐	MW Products, Inc., a Nevada corporation
☐	Upexi Holding, LLC, a Delaware limited liability company
	o	Upexi Pet Products, LLC, a Delaware limited liability company
☐	Upexi Enterprise, LLC, a Delaware limited liability company
	o	Upexi Property & Assets, LLC, a Delaware limited liability company
		■	Upexi 17129 Florida, LLC, a Delaware limited liability company
	o	E-Core Technology, Inc.
	o	Upexi Distribution Management LLC, a Delaware limited liability company
	o	Upexi Distribution LLC, a Delaware limited liability company
☐	Cygnet Online, LLC (“Cygnet”), a Delaware limited liability company.

In addition, the Company has six wholly owned subsidiaries that had no activity during the three and nine months ended March 31, 2024 and March 31, 2023, respectively. All of the entities were dissolved or cancelled in the three months ended March 31, 2024.

	·	Steam Distribution, LLC, a California limited liability company
	·	One Hit Wonder, Inc., a California corporation
	·	One Hit Wonder Holdings, LLC, a California limited liability company
	·	Vape Estate, Inc., a Nevada Corporation
	·	SWCH, LLC, a Delaware limited liability company
	·	Cresco Management, LLC, a California limited liability company

Our products are distributed in the United States of America and internationally through multiple entities and managed through our locations in Florida, California, and Nevada.

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Upexi operates from our corporate location in Tampa, Florida where direct to consumer and Amazon sales are driven by on-site and remote teams for all brands. The Tampa location also supports all the other locations with accounting, corporate oversight, day-to-day finances, business development and operational management operating from this location.

Cygnet Online operates from our Florida warehouse and distribution center, day to day operations of our Amazon liquidation business team from this location with support of remote team members.

Lucky Tail operates from our Florida location with sales and marketing driven by on-site and remote teams that operate the Amazon sales strategy and daily business operations.

HAVZ, LLC, d/b/a/ Steam Wholesale operates manufacturing and/or distribution centers in Henderson, Nevada supporting our health and wellness products, including those products manufactured with hemp ingredients and our overall distribution operations. We have continued to manage these operations with corporate focus on larger opportunities that have warranted the majority of corporate focus and investments for the future.

Business Acquisitions

On April 1, 2022, the Company entered into a securities purchase agreement with a single investor to acquire 55% of the equity interest in Cygnet Online, LLC, a Delaware limited liability corporation. The agreement also enables the Company to purchase the remaining 45% over the following two years. On September 1, 2023, the Company purchased the remaining 45% of Cygnet Online, LLC for $500,000 cash, 90,909 shares of the Company’s common stock and a $300,000 cash payment due on September 1, 2024. The Company has not released the shares to the seller.

On August 12, 2022, the Company entered into an asset purchase agreement with GA Solutions, LLC, a Delaware limited liability company (“LuckyTail”), pursuant to which the Company acquired substantially all the assets of LuckyTail. LuckyTail sells pet nail grinders and other pet products through various sales channels including some international sales channels.

On October 31, 2022, the Company and its wholly owned subsidiary Upexi Enterprise, LLC, entered into a securities purchase agreement to purchase the outstanding stock of E-Core Technology, Inc. d/b/a New England Technology, Inc. (“E-Core”), a Florida corporation. E-Core distributes non-owned branded products to national retail distributors and has branded products in the toy industry that E-Core sells direct to consumers through online sales channels and sells to national retail distributors.

Business Divested

On October 26, 2022, the Company entered into a membership interest purchase agreement to sell 100% of the membership interests of Infusionz LLC, a Colorado limited liability company (“Infusionz”), included in the sale was all the rights to Infusionz brands and the manufacturing of certain private label business. Infusionz was originally purchased by the Company in July of 2020. The divestiture of Infusionz and related private label manufacturing represents a strategic shift in our operations and will allow us to become a predominantly product distribution focused company for both our Company owned brands and non-owned brands. As a result, the results of the business were classified as discontinued operations in our condensed statements of operations and excluded from both continuing operations and segment results for all periods presented.

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On August 31, 2023, Upexi, Inc. (the “Company”) entered into an Equity Interest Purchase Agreement (“EIPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary Interactive Offers, LLC (“Interactive”) to Amplifyir Inc. (the “Buyer”). The purchase price for the Interests was One Million Two Hundred Fifty Thousand Dollars ($1,250,000), subject to certain customary post-closing adjustments. In addition, the Buyer is obligated to pay the Company two-and one- half percent (2.5%) of certain advertising revenues of Interactive for a two-year period post-closing. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.

Basis of Presentation and Principles of Consolidation

The Company’s condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of March 31, 2024, and June 30, 2023.

In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessarily be indicative of annual results.

Discontinued Operations

A discontinued operation is a component of an entity that has either been disposed of or that is classified as held for sale, which represents a separate major line of business or geographic area of options and is part of a single coordinated plan to dispose of a separate line of business or geographical area of operations. In accordance with the rules regarding the presentation of discontinued operations, the assets, liabilities, and activity of Infusionz, Interactive Offers, VitaMedica and certain manufacturing business have been reclassified as discontinued operations for all periods presented.

Fair Value of Financial Instruments

ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguished between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumption about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

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ASC 820 identified fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 established a three-tier fair value hierarchy that distinguishes between the following:

Level 1—Quoted market prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves.

Level 3—Unobservable inputs developed using estimates or assumptions developed by the Company, which reflect those that a market participant would use.

To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying amounts reflected in the balance sheets for cash, prepaid expenses, other current assets, accounts payable and accrued expenses approximate their fair values, due to their short-term nature. For the three months ended September 30, 2022, management believed it necessary to record a reserve against the debt and equity instruments obtained in the sale of Infusionz of $8,500,000.

Reclassification

Certain reclassifications have been made to the condensed consolidated financial statements as of and for the three and nine months ended March 31, 2024, for the three and nine month periods ended March 31, 2023, and as of June 30, 2023 to conform to the presentation as of and for the three and nine months ended March 31, 2024.

Note 2. Acquisitions

Cygnet Online, LLC

The Company acquired 55% of Cygnet Online, LLC, on April 1, 2022. The purchase price was $5,515,756, as amended.

The following table summarizes the consideration transferred to acquire Cygnet Online, LLC and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

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Fair value of consideration transferred:

Cash	$	1,500,000
Convertible note payable, convertible at $6.00 per common share		1,050,000
Earnout payment		-
Common stock, 555,489 shares valued at $5.34 per common share, the closing price on April 1, 2022.		2,965,756
	$	5,515,756

Recognized amounts of identifiable assets acquired and liabilities assumed:

Cash	$	471,237
Accounts receivable		860,882
Inventory		2,337,208
Prepaid expenses		6,900
Property and equipment		7,602
Right to use asset		410,365
Other asset		6,545
Online sales channels		1,800,000
Vendor relationships		6,000,000
Accrued liabilities		(701,606	)
Notes payable		(7,298,353	)
Operating lease		(422,479	)
Total identifiable net assets	$	3,478,301
Goodwill	$	2,037,455

55% of the business was acquired through a stock purchase agreement on April 1, 2022. The purchase agreement provided for an increase in the purchase price of up to $700,000 based on the attainment of certain sales thresholds in the first year. Our management believed that the attainment of those sales threshold at the time of acquisition was unlikely and valued the contingency at $0. The sales thresholds were not met, and no consideration was recorded for the contingency. The equity interest purchase agreement has standard provisions to adjust the purchase price based on the final working capital transferred to the Company. The purchase price was decreased by $950,000 and was repaid to the Company with a reduction in the loan to the seller. The 55% purchase price allocation is final and is no longer subject to change.

On September 1, 2023, the Company completed the acquisition of the remaining 45% interest for structured cash payments equaling $800,000, the forgiveness of advances of $89,416 and 90,909 shares of the Company’s common stock valued at $162,727. As of June 24, 2024, the Company has not released the 90,909 shares or paid the remaining $300,000 owed related to this additional acquisition.

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Fair value of consideration transferred:

Cash	$	800,000
Noncontrolling interest		505,147
Forgiveness of advances		89,416
Common stock, 90,909 shares valued at $1.79 per common share, the closing price on September 1, 2023.		162,727
	$	1,557,290

The additional consideration was recorded as goodwill by management and will be subject to change based on the final purchase price allocation.

The acquisition of Cygnet provided the Company with the opportunity to expand its operations as an Amazon and eCommerce seller. The resulting combination increased Cygnet’s product offerings through the Company’s distributors and partnerships as it continues to focus on over-the-counter supplements and beauty products. Cygnet will be the anchor company for Upexi’s Amazon strategy. These are the factors of goodwill recognized in the acquisition. The Company’s management is evaluating the intangible assets of this acquisition and had not reached a conclusion on any impairment of these intangible assets at the time of this report.

LuckyTail

On August 13, 2022, the Company acquired the pet product brand and the rights to the products of LuckyTail from GA Solutions, LLC.

The following table summarizes the consideration transferred to acquire LuckyTail and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

Fair value of consideration transferred:

Cash	$	2,000,000
Cash payment, 90 days after close		484,729
Cash payment, 180 days after close		469,924
Contingent consideration		112,685
Cash payment, working capital adjustment		460,901
	$	3,528,239

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Inventory	$	460,901
Trade name		383,792
Customer list		1,834,692
Total identifiable net assets	$	2,679,385
Goodwill	$	848,854

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The business was acquired through an asset purchase agreement, that acquired all elements of the business, including all the tangible and intangible assets of the LuckyTail business. The purchase agreement provided for an increase in the purchase price based on the attainment of certain sales thresholds in the first six months. The Company estimated the value of this at approximately $150,000 at the time of purchase. The sales calculated to a $112,685 payout and the purchase price was adjusted. The asset purchase agreement has standard provisions to adjust the purchase price based on the final working capital transferred to the Company. The purchase price was increased by $460,901 for the excess working capital that was transferred in the business and the final purchase price allocation was completed by an independent consulting firm and is no longer subject to change.

The consolidated financial include the actual results of LuckyTail from August 13, 2022 through March 31, 2024. The Company recorded interest on the consideration of $63,282 during the year ended June 30, 2023.

The acquisition of LuckyTail provided the Company with a foothold in the pet care industry and a strong presence on Amazon and its eCommerce store, offering nutritional and grooming products domestically and internationally. The acquisition provided both top line growth and improved EBITDA for the Company. These are the factors of goodwill recognized in the acquisition. The purchase price allocation was performed by a third party and is no longer subject to change.

E-Core, Technology Inc., and its subsidiaries

On October 21, 2022, the Company acquired E-Core Technology, Inc. (“E-Core”) d/b/a New England Technology, Inc., a Florida corporation (“New England Technology”).

The following table summarizes the consideration transferred to acquire E-Core and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

Fair value of consideration transferred:

Cash	$	100,000
Cash payment, 120 days		3,000,000
Note payable		5,189,718
Note payable 2		4,684,029
Convertible note payable, convertible at $4.81 per common share		2,418,860
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.		6,000,000
	$	21,039,765

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Cash	$	1,014,610
Accounts receivable		6,699,945
Inventory		7,750,011
Prepaid expenses		75,721
Trade name		1,727,249
Customer relationships		5,080,305
Accrued liabilities		(192,051	)
Line of credit		(7,201,079	)
Total identifiable net assets	$	14,635,673
Goodwill	$	6,404,092

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The business was acquired through a membership interest purchase agreement on October 21, 2022. There was no contingent consideration payable under the asset purchase agreement, although a provision was used to adjust the purchase price based on the final working capital transferred to the Company. The purchase price was decreased by $33,803, net and was repaid to the Company with an adjustment to the $3,000,000 cash payment. The final purchase price allocation was completed by an independent consulting firm and is no longer subject to change.

The Company’s consolidated financial statements include the actual results of E-Core from November 1, 2022 to March 31, 2024. The Company recorded interest on the consideration of $969,098 during the year ended June 30, 2023 and $900,339 during the nine months ended March 31, 2024. At June 30, 2023 there was $1,738,295 of unamortized debt discount that will be expensed over the next two years. At March 31, 2024 there was $810,545 of unamortized debt discount that will be expensed over the following nineteen months.

The acquisition of E-Core provided the Company with an entrance into the children’s toy sector as well as national retail distribution for owned and non-owned branded products. The acquisition expands the Company’s ability to leverage direct-to-consumer distribution and further develops the broad distribution capabilities of E-Core. These are the factors of goodwill recognized in the acquisition. The purchase price allocation was performed by a third party and is no longer subject to change.

Revenue from acquisitions included in the financial statements.

	Nine months ended March 31,
	2024		2023
Cygnet	$	10,629,121	$	20,806,317
LuckyTail		2,219,111		3,573,727
E-Core		38,625,335		25,822,931

	$	51,473,567	$	50,202,975

	Three months ended March 31,
	2024		2023
Cygnet		1,956,310		7,359,955
LuckyTail		673,738		1,394,459
E-Core		9,221,715		13,647,412

	$	11,851,763	$	22,401,826

Consolidated pro-forma unaudited financial statements.

The following unaudited pro forma combined financial information is based on the historical financial statements of the Company, LuckyTail and E-Core after giving effect to the Company’s acquisitions as if the acquisitions occurred on July 1, 2022.

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The following unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisitions occurred on July 1, 2022, nor is the financial information indicative of the results of future operations. The following table represents the unaudited consolidated pro forma results of operations for the nine months ended March 31, 2023, as if the acquisitions occurred on July 1, 2022. The results of operations for Cygnet, LuckyTail and E-Core are included in the three and nine months ended March 31, 2024. The results of operations for include LuckyTail from August 13, 2022 to March 31, 2023 and E-Core from October 21, 2022 to March 31, 2023.

Operating expenses for the nine months ended March 31, 2023 have been increased for the amortization expense associated with the fair value adjustment of definite lived intangible assets of LuckyTail and E-Core by approximately $44,619, and $134,625, per month respectively and $363,415 of interest expense.

Pro Forma, Unaudited								Proforma
Nine months ended March 31, 2023	Upexi, Inc.			LuckyTail		E-Core		Adjustments			Proforma

Net sales	$	56,282,542		$	892,270	$	12,905,836	$	-		$	70,080,648
Cost of sales	$	35,555,746		$	137,088	$	11,177,032	$	-		$	46,869,866
Operating expenses	$	26,635,582		$	383,476	$	1,050,602	$	567,721		$	28,637,381
Net income (loss) from continuing operations	$	(263,119	)	$	371,706	$	660,860	$	(567,721	)	$	201,726
Basic income (loss) per common share	$	(0.02	)	$	-	$	0.53	$	-		$	0.01
Weighted average shares outstanding		17,418,877			-		1,247,402		(693,001	)		17,973,278

Note 3. Inventory

Inventory consisted of the following:

	March 31, 2024		June 30, 2023
Raw materials	$	1,007,749	$	-
Finished goods		7,794,152		11,557,128
	$	8,801,901	$	11,557,128

The Company writes off the value of inventory deemed excessive or obsolete.

During the three and nine months ended March 31, 2024, the Company wrote off inventory valued at $1,722,289 and $1,812,319, respectively. During the three and nine months ended March 31, 2023, the Company wrote off inventory valued none and $34,328, respectively.

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Note 4. Property and Equipment

Property and equipment consist of the following:

	March 31, 2024			June 30, 2023
Furniture and fixtures	$	216,143		$	172,663
Computer equipment		166,569			155,506
Internal use software		570,645			541,705
Manufacturing equipment		3,495,666			3,291,557
Leasehold improvements		1,554,771			-
Building		4,923,464			4,923,464
Vehicles		261,362			261,362
Property and equipment, gross		10,325,160			9,346,256
Less accumulated depreciation		(2,805,155	)		(1,903,633	)
	$	7,520,005		$	7,442,623

Depreciation expense for the three months ended March 31, 2024, and 2023 was $264,817 and $225,879, respectively.

Depreciation expense for the nine months ended March 31, 2024, and 2023 was $901,521 and $649,883, respectively.

Note 5. Intangible Assets

Intangible assets as of March 31, 2024:

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	2,597,503	$	4,317,394
Trade name, amortized over five years	5 years		2,111,041		628,512		1,482,529
Online sales channels	2 years		1,800,000		1,800,000		-
Vender relationships	5 years		6,000,000		2,400,000		3,600,000
Tytan Tiles Patents	15 years		70,000		-		70,000
		$	16,825,938	$	7,426,015	$	9,469,923

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For the three months ended March 31, 2024 and 2023, the Company amortized approximately $1,062,734 and $1,124,500, respectively.

For the nine months ended March 31, 2024 and 2023, the Company amortized approximately $3,188,201 and $2,709,167, respectively.

The following intangible asset was added during the nine months ended March 31, 2024:

Patent

70,000

Intangible assets as of June 30, 2023:

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	1,300,958	$	5,613,939
Trade name, amortized over five years	5 years		2,111,041		311,856		1,799,185
Online sales channels	2 years		1,800,000		1,125,000		675,000
Vender relationships	5 years		6,000,000		1,500,000		4,500,000

		$	16,825,938	$	4,237,814	$	12,588,124

The following intangible assets were added during the year ended June 30, 2023, from the acquisitions noted below:

LuckyTail

Customer relationships	$	1,834,692
Trade name		383,792
Intangible Assets from Purchase	$	2,218,484
E-Core:
Customer relationships	$	5,080,205
Trade name		1,727,249
Intangible Assets from Purchase	$	6,807,454

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Future amortization of intangible assets at March 31, 2024 are as follows:

June 30, 2024	$	838,900
June 30, 2025		3,355,599
June 30, 2026		3,355,599
June 30, 2027		1,754,640
June 30, 2028		115,018
June 30, 2029		4,667
Thereafter		45,500
	$	9,469,923

Note 6. Prepaid Expense and Other Current Assets

Prepaid and other receivables consist of the following:

	March 31, 2024		June 30, 2023
Insurance	$	84,249	$	187,949
Prepayment to vendors		68,143		239,970
Deposits on services		21,000		45,678
Prepaid monthly rent		22,500		27,813
Prepaid sales tax		-		70,021
Other deposits		-		70,826
Stock issued for prepaid interest on convertible note payable		161,189		465,595
Other prepaid expenses		155,946		31,000
Other receivables		207,555		144,765
Total	$	720,582	$	1,307,299

All prepaid expenses will be expensed in the following 12 months.

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Note 7. Operating Leases

The Company has operating leases for corporate offices, warehouses and office equipment that have remaining lease terms of 1 year to 5 years.

The table below reconciles the undiscounted future minimum lease payments (displayed by fiscal year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized in the condensed consolidated balance sheet as of March 31, 2024:

2024	$	131,679
2025		508,665
2026		529,284
2027		268,530
2028		246,013
Thereafter		21,114
Total undiscounted future minimum lease payments		1,705,285
Less: Imputed interest		(137,670	)
Accrued adverse lease obligation		291,244
Present value of operating lease obligation	$	1,858,859

In October 2023, the Company consolidated its Delray Beach facility with the Tampa facility and recognized a lease impairment of 291,244, which is accrued as part of the $803,558 current portion of operating lease payable.

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2024 are:

Weighted average remaining lease term		43 Months
Weighted average incremental borrowing rate			5.0	%

For the three and nine months ended March 31, 2024, the components of lease expense, included in general and administrative expenses and interest expense in the condensed consolidated statement of operations, are as follows:

	Three Months Ended March 31, 2024		Nine Months Ended March 31, 2024
Operating lease cost:
Operating lease cost	$	148,794	$	462,496
Amortization of ROU assets		144,983		455,006
Interest expense		19,587		66,832
Total lease cost	$	313,364	$	984,334

For the three and nine months ended March 31, 2023, the components of lease expense, included in general and administrative expenses and interest expense in the condensed consolidated statement of operations, are as follows:

	Three Months Ended March 31, 2023		Nine Months Ended March 31, 2023
Operating lease cost:
Operating lease cost	$	99,101	$	285,855
Amortization of ROU assets		67,088		233,409
Interest expense		4,595		25,030
Total lease cost	$	170,784	$	544,294

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Note 8. Accrued Liabilities and Acquisition Payable

Accrued liabilities consist of the following:

	March 31, 2024		June 30, 2023
Accrued interest	$	876,775		655,187
Accrued vendor liabilities		278,689		861,664
Accrued sales tax		35,491		47,070
Accrued expenses from sale of manufacturing operations		1,191,423		1,360,000
Other accrued liabilities		168,771		441,641

	$	2,551,149	$	3,365,562

Acquisition Payable consists of the following:

March 31,

2024

June 30,

2023

Payments related to the acquisition of Cygnet

300,000

These payables are amounts estimated by management that are due to the sellers of and acquisition and include the original purchase price installment payments not represented with a debt, equity, or other instrument, estimates of excess or deficiencies in working capital and estimates of future earnout payments.

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Note 9. Convertible Promissory Notes and Notes Payable

Convertible promissory notes and notes payable outstanding as of March 31, 2024 and June 30, 2023 are summarized below:

	Maturity	March 31,			June 30,
	Date	2024			2023
Convertible Notes:
Promissory Note, 21- month term note, 18.11% interest payable with common stock and subordinate to the Convertible Notes	June 1, 2026	$	1,650,000		$	2,150,000
Less current portion of notes payable			-			1,254,167
Notes payable, net of current portion		$	1,650,000		$	895,833

Acquisition Notes:
Convertible Notes, 36-month term notes, 0% cash interest, collateralized with all the assets of the Company	October 31, 2025		3,500,000			3,500,000
Subordinated Promissory Notes, 24-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		5,750,000			5,750,000
Subordinated Promissory Notes, 12-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		2,538,500			5,750,000
Total		$	11,788,500		$	15,000,000

Acquisition notes payable			8,288,500			5,750,000
Discount on acquisition notes payable, current			(239,938	)		(93,380	)
Acquisition notes payable, current			8,048,562			5,656,620

			3,500,000			9,250,000
Discount on acquisition notes payable, long-term			(507,607	)		(1,644,915	)
Acquisition notes payable, net of current and discount		$	2,929,393		$	7,605,085

Notes Payable:
Mortgage Loan, 10-year term note, 4.8% interest, collateralized by land and warehouse building	September 26, 2032	$	2,660,679		$	2,841,566
Promissory Note, 21-month term note, 10% cash interest and subordinate to the Convertible Notes	November 22, 2024		560,000			560,000
SBA note payable, 30-year term note, 6% interest rate and collateralized with all assets of the Company	October 6, 2021		3,729,096			3,910,767
Inventory consignment note, 60 monthly payments, with first payment due June 30, 2022, 3.5% interest rate and no security interest in the assets of the business	June 30, 2027		1,000,290			1,099,592
GF Note, 6 annual payments, with first payment due December 31, 2022, 3.5% interest rate and no security interest in the assets of the business	November 7, 2026		683,968			683,968
Total notes payable			8,715,063			9,095,893

Notes payable, current			5,473,136			1,326,214
Discount on notes payable, current			-			(24,193	)
Notes payable, current net of discount		$	5,473,136		$	1,302,021

Notes payable, long-term			3,160,450			7,769,679
Discount on notes payable, long-term			(16,123	)		(23,522	)
Notes payable, long-term, net		$	3,144,327		$	7,746,157

Related Notes Payable:
Marshall Loan, 2-year term note, 8.5% cash interest, 3.5% PIK interest and subordinate to the Convertible Notes. November of 2023 extended to 2.5 year term note	December 28, 2026	$	1,500,000		$	1,500,000

Discount on related party note payable, current			-			(70,644	)
Notes payable, current, net of discount		$	-		$	1,429,356

Discount on related party note payable, long term			(20,185	)		-
Notes payable, long term net		$	1,479,815		$	-

Total convertible notes payable, acquisition notes payable, notes payable and related party note payable		$	22,725,233		$	25,889,239

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Future payments on notes payable are as follows:

2024	$	6,399,920
2025		11,946,259
2026		3,766,391
2027		279,649
2028		293,565
2029		307,961
Thereafter		578,341
	$	23,572,086

Convertible notes, original discount and related fees and costs		(846,853	)
	$	22,725,233

On April 15, 2022, the Company entered into a non-negotiable convertible promissory note in the original principal amount of $1,050,000, as adjusted, (“Cygnet Note”) which can be converted into common stock of the Company at a price of $6.00 per share and is payable in full, to the extent not previously converted, on April 15, 2023.

In June 2022, the Company entered into a securities purchase agreement with two accredited investors pursuant to which the Company could receive up to $15,000,000 during the following twelve months of the agreement. The Company received $6,678,506 for Convertible Notes in the original principal amount of $7,500,000 (the “Convertible Notes”), representing the original purchase amount, less fees, costs, and a $500,000 holdback by the investors. In addition to the Convertible Notes, the investors received Common Stock Purchase Warrants (the “Warrants”) to acquire an aggregate of 56,250 shares of common stock. The Warrants are exercisable for five years at an exercise price of $4.44 per share, provide for customary anti-dilution protection, and an investor put right to require the Company to redeem the Warrants for a total of $250,000. There was a loss of $3,540 for the change in the derivative liability for the period ended December 31, 2022. On October 31, 2022, the Company entered into a letter agreement with the accredited investors in which all amounts owed were paid in full, and the related convertible notes and all security interests were canceled. Additionally, the Company terminated the related Form S-3 registration statement.

In June 2022, the Company executed a promissory note with Allan Marshall, the Company’s Chief Executive Officer, in the original principal amount of $1,500,000 (“Marshall Loan”). The promissory note has a 2-year term and bears cash interest at the rate of 8.5% per annum with an additional PIK of 3.5% per annum. The promissory note provides for monthly payments of principal, on an even line 36-month basis, plus cash interest, with a balloon payment of all outstanding principal, cash interest, and PIK interest at maturity. The Company received and deposited the principal amount on July 31, 2022. On November 15, 2023, the Company executed an amendment to the promissory note with Mr. Marshall, providing for the payment of interest only for 18 months at an interest rate of 12% per annum and thereafter the amortization of the note over a 12 month period, starting in June of 2025. The principal currently outstanding is $1,500,000. In addition to this, the Company issued Mr. Marshall a warrant to purchase up to 375,000 shares of the Company’s common stock at a per share price of $1.10. The note has been classified as long-term in the financial statements.

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On October 19, 2022, Upexi, Inc. (the “Company”) and its indirect wholly owned subsidiary, Upexi 17129 Florida, LLC entered into a loan agreement, promissory note and related agreements with Professional Bank, a Florida state-chartered bank, providing for a mortgage on the Company’s principal office in N. Clearwater, Florida. The Company received $3,000,000 in connection with the transaction. The principal is to be repaid to Professional Bank over a term of ten years. The proceeds of the loan were utilized by the Company to pay down its loan facility with Acorn Capital, LLC in the amount of $2,780,200. As of March 31, 2023, the Company was not in compliance with the debt service ratio. The Company received a forbearance agreement from the bank until June 30, 2024 to return to compliance of the debt service ratio of 1.25 to 1, until that time the Company will pay an interest rate of 10% instead of the contractual terms of 4.8% and has paid the original principal and adjusted interest through this report. The building is currently under contract to sell for a sales price of $4,300,000 and is expected to close on or about July 8, 2024.

On October 31, 2022, the Company and its wholly owned subsidiary, Upexi Enterprises, LLC entered into a securities purchase agreement with E-Core Technology, Inc. d/b/a New England Technology, Inc., a Florida corporation, and its three principals. The Company entered into a series of promissory notes with the principal parties: (a) promissory notes in the total original principal amount of $5,750,000 payable upon maturity with a term of 12 months at an interest rate of 4%, $600,000 of which shall be satisfied through the cancellation of an equal amount owed by one of the principals to the Company; (b) promissory notes in the total original principal amount of $5,750,000 payable upon maturity with a term of 24 months at an interest rate of 4%; and (c) promissory notes in the original principal amounts of $3,500,000 with a term of 36 months at an interest rate of 0.0%. The principals may convert the notes into shares of the Company’s restricted common stock at a conversion price equal to $4.81. If the principals do not exercise their conversion rights, the principal balance of the notes will be paid in 12 equal monthly payments commencing on the two-year anniversary of the issuance of the notes, subject to adjustments based on the Company’s EBITDA over the term of the notes.

On February 22, 2023, the Company executed a promissory note with an investor, in the original principal amount of $560,000. On November 15, 2023, the Company executed an amendment to the promissory note with the investor, providing for the payment of interest only for 18 months at 12% per annum and thereafter the amortization of the note over a 12-month period, starting in June of 2025. The principal currently outstanding is $560,000. In addition to this, the Company issued the investor a warrant to purchase up to 125,000 shares of the Company’s common stock at a per share price of $1.10. The note has been classified as long-term in the financial statements.

On February 22, 2023, the Company executed a promissory note with an investor, in the original principal amount of $2,150,000. In November of 2023, the Company executed an amendment to the promissory note with the investor, providing for the payment of interest only for 18 months at 12% per annum and thereafter the amortization of the note over a 12-month period, starting in June of 2025. The principal currently outstanding is $2,150,000. In addition to this, the Company issued the investor a warrant to purchase up to 500,000 shares of the Company’s common stock at a per share price of $1.10. The note has been classified as long-term in the financial statements.

Note 10. Related Party Transactions

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. The proceeds of the transaction will be used for working capital, the reduction of debt and the reduction of other liabilities currently outstanding.

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In June 2022, the Company entered into a promissory note with a member of management. The loan was for $1,500,000 and has a two-year term with an interest rate of 8.5% per annum with an additional PIK of 3.5% per annum. On November 15, 2023, the Company executed an amendment to the promissory note with Mr. Marshall, providing for the payment of interest only for 18 months at an interest rate of 12% per annum and thereafter, the amortization of the note over a 12-month period, starting in June of 2025. The principal currently outstanding is $1,500,000. In addition to this, the Company issued Mr. Marshall a warrant to purchase up to 375,000 shares of the Company’s common stock at a per share price of $1.10. The note has been classified as long-term in the financial statements.

Note 11. Equity Transactions

Convertible Preferred Stock

The Company has 500,000 shares of Preferred Stock issued and outstanding to Allan Marshall, CEO. The preferred stock is convertible into the Company’s common stock at a ratio of 1.8 shares of preferred stock for a single share of the Company’s common stock at the holder’s option, has preferential liquidation rights and the preferred stock shall vote together with the common stock as a single class on all matters to which shareholders of the Company are entitled to vote at the rate of ten votes per share of preferred stock.

Common Stock

On October 31, 2022, the Company issued 1,247,403 shares of common stock for the acquisition of E-Core Technologies Inc., a Florida corporation, valued at $6,000,000.

On September 1, 2023, the Company issued 90,909 shares of common stock for the acquisition of the remaining 45% of Cygnet Online, LLC. The shares were valued at $162,727 or $1.79 per common share. The Company has not released these to the seller as of this report.

On January 18, 2024, the Company issued 501,605 shares of common stock as repayment of $500,000 of the Company’s long-term debt. The shares were valued at 500,000 or .09868 per common share.

On March 18, 2024, the Company issued 100,000 shares of common stock as an incentive-restricted stock grant to certain employees. The shares were valued at $85,000 or $0.85 per common share.

Note 12. Stock Based Compensation

The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares. The options are exercisable for a period of up to 10 years from the date of the grant.

The following table reflects the continuity of stock options for the nine months ended March 31, 2024:

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A summary of stock option activity during the nine months ended March 31, 2024 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2023		4,839,278		$	3.31		6.23	$	1,342,280
Forfeited		(532,000	)		4.34		-		-
Granted		400,000			1.47		1		32,000
Options outstanding at March31, 2024		4,791,278		$	3.36		5.44	$	-
Options exercisable at March 31, 2024 (vested)		4,557,361		$	2.92		5.50		-

A summary of stock option activity during the nine months ended March 31, 2023 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2022		4,279,888		$	3.05		7.42	$	4,919,182
Forfeited		(143,613	)		1.21		-		-
Granted		897,000			2.52		10		-
Options outstanding at March31, 2023		5,033,275		$	3.38		6.42	$	4,724,980
Options exercisable at March 31, 2023 (vested)		3,894,776		$	3.04		6.72		4,550,343

Stock-based compensation expense attributable to stock options was $212,758 and $1,146,299 for the three months ended March 31, 2024, and 2023, respectively. Stock-based compensation expense attributable to stock options was $965,229 and $3,126,472 for the nine months ended March 31, 2024, and 2023, respectively. As of March 31, 2024, there was $330,455 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was approximately year.

The value of each grant is estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the nine months ended March31, 2024 and March 31, 2023:

	March 31, 2024			March 31, 2023
Dividend rate		-			-
Risk free interest rate		3.95	%		2.07-4.06	%
Expected term		1			1
Expected volatility		63	%	70-77		%
Grant date stock price	$	1.47		$	3.87-5.30

The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated based upon historical trends in the Company’s stock prices.

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on historical experience of forfeitures, the Company estimated forfeitures at 0% for each of the nine months ended March 31, 2024 and 2023.

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Note 13. Income Taxes

The Company computed the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income and adjusted for discrete tax items in the period. The Company’s income tax benefit was $1,501,595 and $2,668,769 for the three and nine months ended March 31, 2024, respectively, and $496,880 and $449,828 for the three and nine months ended March 31, 2023, respectively.

The income tax expense for the three and nine months ended March 31, 2024, was primarily attributable to federal and state income taxes and nondeductible expenses for an effective tax rate of approximately 29%. For the three and nine months ended March 31, 2023, the difference between the U.S. statutory rate and the Company’s effective tax rate is due to the full valuation allowance on the Company’s deferred tax assets.

Future realization of the tax benefits of existing temporary differences and net operating loss carryforwards ultimately depends on the existence of sufficient taxable income within the carryforward period. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The Company also considered whether there was any currently available information about future years. The Company determined that it is more likely than not that the Company will have future taxable income to fully realize the Company’s deferred tax asset.

As of March 31, 2024, there was approximately $10,472,757 of losses available to reduce federal taxable income in future years and can be carried forward indefinitely.

Note 14. Risks and Uncertainties

There is substantial uncertainty and different interpretations among federal, state, and local regulatory agencies, legislators, academics, and businesses as to the scope of operation of Farm Bill-compliant hemp programs relative to the emerging regulation of cannabinoids. These different opinions include, but are not limited to, the regulation of cannabinoids by the U.S. Drug Enforcement Administration, or DEA, and/or the FDA and the extent to which manufacturers of products containing Farm Bill-compliant cultivators and processors may engage in interstate commerce. The uncertainties cannot be resolved without further federal, and perhaps even state-level, legislation, regulation or a definitive judicial interpretation of existing legislation and rules. If these uncertainties continue, they may have an adverse effect upon the introduction of our products in different markets.

Note 15. Discontinued Operations – Sale of Infusionz to Bloomios

On October 28, 2022, the Company determined that the best course of action related to Infusionz, LLC and certain manufacturing business was to accept an offer to sell those operations.

The Company received from Bloomios, Inc., (OTCQB:BLMS), the purchaser (i) $5,500,000 paid at closing; (ii) a convertible secured subordinated promissory note in the original principal amount of $5,000,000; (iii) 85,000 shares of Series D convertible preferred stock, with a total stated value of $8,500,000; (iv) a senior secured convertible debenture with a subscription amount of $4,500,000, after original issue discount of $779,117; and (v) a common stock purchase warrant to purchase up to 2,853,910 shares of Bloomios’s common stock. The Company recorded the consideration received at the estimated value at the time of the transaction and as part of that estimate valued the additional warrants to purchase Bloomios shares of common stock at $8,500,000 and a valuation allowance of $8,500,000.

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The assets transferred were recorded at their respective book values, the accrued and incurred expenses estimated by management were recorded and the consideration received was recorded at management's estimated fair value based on the balance sheet on October 26, 2022, the effective closing date.

Tangible assets, inventory / working capital*	$	(1,344,000	)
Tangible assets, warehouse and manufacturing equipment, net of accumulated depreciation*		(679,327	)
Goodwill		(2,413,814	)
Intangible assets, net of accumulated amortization		(946,996	)
Accrued and incurred expenses related to the transaction and additional working capital*		(2,051,500	)
Consideration received, including cash, debt and equity, net		15,000,000
Total gain recognized	$	7,564,363

*During the continuing transition period, all of the inventory or working capital has not been transferred to the buyer.

At closing, the Company provided working capital, in the form of inventory, in excess of the working capital agreement and during the transition period, there are certain expenses and purchases incurred that are to be netted against funds collected on behalf of the buyer. June 30, 2023, there was a receivable balance from the buyer of $845,443, net of a reserve of $931,613.

Advance for payroll	$	50,000
Operating expense		652,891
Management fees		685,600
Excess working capital		388,565
Accrued Interest		247,885
Subtotal due from Bloomios	$	2,024,941
Reserve		1,179,498
Total due from Bloomios	$	845,443

Note 16. Discontinued Operations – Sale of Interactive Offers

On August 31, 2023, the Company sold Interactive offers to Amplifyir Inc. The purchase price is $1,250,000 with a provision to adjust the final purchase price based on the business being transferred to Amplifyer Inc. with a net zero working capital. In addition, the Buyer is obligated to pay the Company two-and-one-half percent (2.5%) of certain advertising revenues of Interactive for a two-year period post-closing. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.

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Summary of discontinued operations:

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	-	$	604,625
Cost of sales	$	-	$	230,967
Sales, general and administrative expenses	$	-	$	971,657
Depreciation and amortization	$	-	$	1,798
Loss from discontinued operations	$	-	$	(928,215	)
Accounts receivable net of allowance for doubtful accounts	$	-	$	56,961
Fixed assets, net of accumulated depreciation	$	-	$	5,195
Total assets	$	-	$	405,721
Total liabilities	$	-	$	562,953

	Nine months ended March 31,
	2024			2023
Discontinued Operations
Revenue	$	158,147		$	1,054,935
Cost of sales	$	11,982		$	254,028
Sales, general and administrative expenses	$	339,205		$	1,646,949
Depreciation and amortization	$	-		$	455,357
Loss from discontinued operations	$	(193,040	)	$	(1,305,261	)
Accounts receivable net of allowance for doubtful accounts	$	-		$	45,314
Fixed assets, net of accumulated depreciation	$	-		$	3,593
Total assets	$	-		$	4,843,723
Total liabilities	$	-		$	415,660

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Note 17. Discontinued Operations – Sale of VitaMedica

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officer. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.

Summary of discontinued operations:

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	2,673,744	$	1,491,373
Cost of sales	$	587,142	$	201,409
Sales, general and administrative expenses	$	1,888,490	$	1,536,773
Depreciation and amortization	$	115,896	$	151,599
Income (loss) from discontinued operations	$	81,978	$	(149,966	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

	Nine months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	6,708,021	$	5,525,651
Cost of sales	$	1,480,486	$	1,094,753
Sales, general and administrative expenses	$	4,694,350	$	4,342,632
Depreciation and amortization	$	353,646	$	389,349
Income (loss) from discontinued operations	$	239,908	$	(307,899	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

Note 18. Subsequent Events

On May 28, 2024, the Company entered into an agreement to sell its Clearwater warehouse for a sale price of 4,300,000. The Company expects to receive approximately $1,350,000 after repayment of the mortgage and transaction expenses. The $1,350,000 will be used for working capital and the repayment of other outstanding debts. The transaction is expected to close on or around July 8, 2024.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

General Overview

As used in this quarterly report and unless otherwise indicated, the terms “we”, “us” and “our” mean Upexi, Inc.

For the nine months ended March 31, 2023 the condensed consolidated financial statements of Upexi, Inc. include the accounts of the Company and its wholly-owned subsidiaries; Trunano Labs, Inc., a Nevada corporation, Steam Distribution, LLC, a California limited liability company; One Hit Wonder, Inc., a California corporation; HAVZ, LLC, d/b/a Steam Wholesale, a California limited liability company, One Hit Wonder Holdings, LLC a California corporation; SWCH LLC, a Delaware limited liability company; Cresco Management LLC, a California limited liability company; VitaMedica, Inc., a Nevada corporation, Cygnet Online, LLC a Delaware limited liability corporation; Upexi Pet Products, LLC (“LuckyTail”), a Delaware limited liability corporation as of August 12, 2022; and E-Core Technology, Inc. (“E-core”) a Florida Corporation as of October 21, 2022

For the three months ended March 31, 2023, the condensed consolidated financial statements of Upexi, Inc. include all of the subsidiary accounts included in the condensed consolidated financial statements for the three and nine months ended March 31, 2024.

All intercompany accounts and transactions have been eliminated as a result of the consolidation.

Operating Segments

The Company’s financial reporting is organized into two segments: Our Branded Product segment and our Recommerce segment. Our Branded Product segment is focused on the development, growth, and distribution of the branded products that we own. Our Recommerce segment is focused on the purchase and sale of new and used products through channels such as Amazon and wholesale distributors. Other sources of revenue and related costs are aggregated and viewed by management as immaterial or have similar economic characteristics, product production, distribution processes and regulatory environment as the other product sales.

For the three months ended March 31, 2024 and March 31, 2023, the share-based compensation of 212,758 and $1,146,299, respectively was allocated to the Branded Product segment. For the nine months ended March 31, 2024 and March 31, 2023, the share-based compensation of $965,299 and 3,126,472, respectively was allocated to the Branded Product segment.

All indirect corporate and public company general and administrative expenses are allocated to the Branded Product Segment.

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Segment Information

The Company provides the following segments: (a) branded products segment and (b) recommerce segment.

For the three months ended March 31, 2024:

	Branded Products			Recommerce			Total

Revenue	$	4,888,666		$	9,560,291		$	14,444,957
Loss from operations	$	(3,066,816	)	$	(1,870,231	)	$	(4,937,047	)
Other expense	$	(471,788	)	$	(190,090	)	$	(661,878	)
Depreciation expense	$	306,185		$	-		$	306,185
Income tax benefit	$	820,351		$	681,244		$	1,501,595
Segment assets:
Additions to property, plant, and equipment	$	498,448						498,448
Total assets	$	22,418,439		$	34,088,988		$	56,507,427

For the three months ended March 31, 2023:

	Branded Products			Recommerce			Total

Revenue	$	4,339,750		$	17,543,695		$	21,883,445
Loss from operations	$	(1,700,804	)	$	(432,060	)	$	(2,132,864	)
Other expense	$	(40,177	)	$	(112,183	)	$	(152,360	)
Depreciation expense	$	225,879		$	-		$	225,879
Income tax benefit	$	379,689		$	117,191		$	496,880
Segment assets:
Additions to property, plant, and equipment	$	97,910		$	-		$	97,910
Total assets	$	27,560,849		$	36,292,218		$	63,853,067

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For the nine months ended March 31, 2024:

	Branded Products			Recommerce			Total

Revenue	$	15,072,684		$	44,513,464		$	59,586,148
Loss from operations	$	(5,307,384	)	$	(2,656,263	)	$	(7,963,647	)
Other expense	$	(2,118,982	)	$	(493,635	)	$	(2,612,617	)
Depreciation expense	$	901,521		$	-		$	901,521
Income tax benefit	$	1,701,208		$	967,561		$	2,668,769
Segment assets:
Additions to property, plant, and equipment	$	978,904		$	-		$	978,904
Total assets	$	22,418,439		$	34,088,988		$	56,507,427

For the nine months ended March 31, 2023:

	Branded Products			Recommerce			Total

Revenue	$	12,850,078		$	43,432,464		$	56,282,542
Loss from operations	$	(5,215,259	)	$	(693,527	)	$	(5,908,786	)
Other expense	$	(2,031,513	)	$	(337,011	)	$	(2,368,524	)
Depreciation expense	$	649,883		$	-		$	649,883
Income tax benefit	$	264,656		$	185,172		$	449,828
Segment assets:
Additions to property, plant, and equipment	$	281,879		$	-		$	281,879
Total assets	$	27,560,849		$	36,292,218		$	63,853,067

Results of Operations

The following summary of the Company’s operations should be read in conjunction with its unaudited condensed consolidated financial statements for the three months ended March 31, 2024, and 2023, which are included herein.

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Three Months Ended March 31, 2024, Compared to Three Months Ended March 31, 2023

	March 31,
	2024			2023			Change
Revenue	$	14,444,957		$	21,883,445		$	(7,438,488	)
Cost of revenue	$	11,561,834		$	14,305,698		$	(2,743,864	)
Sales and marketing expenses	$	1,547,161		$	2,258,937		$	(711,776	)
Distribution costs	$	2,291,945		$	2,352,684		$	(60,739	)
General and administrative expenses	$	2,399,387		$	2,602,312		$	(202,925	)
Other operating expenses	$	1,581,677		$	2,496,678		$	(915,001	)
Other expenses	$	661,878		$	152,360		$	509,518
Net loss attributable to Upexi, Inc.	$	4,118,612	)	$	(1,645,939	)	$	(2,472,673	)

Revenues decreased by $7,438,488 or 34% to $14,444,957 compared with revenue of $21,883,445 in the same period last year. The revenue decline was primarily the result of lower recommerce revenue through both Amazon channels and wholesale. Management made a decision to discontinue sales of electronic products in its Amazon channels after analyzing the high rate of returned products, lower margins after thirty to sixty days and the low liquidation value of Amazon returns. Branded Product sales increased slightly with increases in both the pet care products, children’s toy product and other branded products that are not heavily reliant on the Amazon sales channel. Management is focused on restructuring the Company to have more consistent sales from both product sales revenue and adding service revenue.

Cost of revenue decreased by $2,743,864 or 19% to $11,561,834 compared with cost of revenue of $14,305,698 in the same period last year. The cost of revenue decline was primarily related to the lower recommerce revenue. Gross profit decreased by approximately $1.7 million compared to the same period in the previous form significant write offs of inventory that was obsolete or unsellable. These products that were written off were primarily related to the recommerce business with many of them being Amazon returns or bulk products that could no longer be sold.

Sales and marketing expenses decreased by $711,776 or 32% compared with the same period in the prior year. The decreased in sales and marketing expenses was primarily related to management’s efforts to refine sales strategies to focus on long-term recurring sales growth through subscription revenue and sales channel expansion. Management will continue to manage the sales and marketing expenses on branded product sales and expects the overall sales and marketing to revenue to decrease and improve profitability.

Distribution costs decreased $60,739 or 3% compared with the same period in the prior year. The decrease in distribution costs was not related to sales and is expected to decrease overall as management has completed the consolidation of facilities and the distribution network at the end of June 2024.

General and administrative expenses decreased by $202,925 or 8% compared with the same period in the prior year. With the consolidation of facilities and ongoing adjustments for the sale of VitaMedica, Infusionz and Interactive Offers, management has managed the general and administrative costs and will continue to implement strategies to decrease the percentage of general and administrative costs when compared to total sales.

Other operating expenses decreased by $915,001 or 37% compared with the same period in the prior year. These expenses are primarily non-cash expenses and have decreased based on the decreased amortization of stock compensation and offset by increases in depreciation.

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During the three months ended March 31, 2024, the Company had other expense of $661,878 compared to expense of $152,360 during the same period in the prior year. The increase is primarily related to the interest on debt. Management is working on eliminated this high interest debt as it restructures the Company.

The Company had a net loss of $4,118,612 compared a loss of $1,645,939 in the same period in the prior year. The decrease in net income is related to the decreased sales, the non-cash write off of 1.7 million in inventory and the costs associated with the distribution network until it was consolidated in June of 2024. Management expects additional administrative expenses related to the consolidation of the distribution network through June of 2024 and will then be able to recognize the improvements in fiscal year 2025.

Nine Months Ended March 31, 2024, Compared to Nine Months Ended March 31, 2023

	March 31,
	2024			2023			Change
Revenue	$	59,586,148		$	56,282,542		$	3,303,606
Cost of revenue	$	42,864,857		$	35,555,746		$	7,309,111
Sales and marketing expenses	$	5,427,358		$	5,331,948		$	95,410
Distribution costs	$	7,516,748		$	8,010,373		$	(493,625	)
General and administrative expenses	$	6,685,881		$	6,807,739		$	(121,858	)
Other operating expenses	$	5,054,951		$	6,485,522		$	(1,430,571	)
Other expenses	$	2,612,617		$	2,368,524		$	244,093
Net loss attributable to Upexi, Inc.	$	(7,912,919	)	$	(1,568,180	)	$	(6,344,739	)

Revenues increased by $3,303,606 or 6% to $59,586,148 compared with revenue of $56,282,542 in the same period in the prior year. The revenue growth is based on the full nine months of E-core and Luckytail revenue in the current period compared to the prior year as those two entities were acquired during the prior year. Overall, the revenue has declined in the recommerce business in both Amazon channels and wholesale channels. Branded Product sales increased slightly with increases in both the pet care products, children’s toy product and other branded products that are not heavily reliant on the Amazon sales channel. Management is focused on restructuring the Company to have more consistent sales from both product sales revenue and adding service revenue.

Cost of revenue increased by $7,309,111 or 21% to $42,864,857 compared with cost of revenue of $35,555,746 in the same period in the prior year. Gross profit decreased by approximately $1.8 million compared to the same period in the previous form significant write-offs of inventory that was obsolete or unsellable. These products that were written off were primarily related to the recommerce business with many of them being Amazon returns or bulk products that could no longer be sold. Management will seek to improve the gross profit and the overall gross margin in the next 12 months as we are able to leverage the consolidate our operations and restructuring management is currently in process of.

Sales and marketing expenses increased by $95,410 or 10% compared with the same period in the previous year. The increase in sales and marketing expenses was primarily related to the increase in the Branded Products segment, although the trend of these expenses is declining and the increase was primarily during the first two quarters of the year. Management will continue to manage the sales and marketing expenses on branded product sales and expects the overall sales and marketing to revenue to decrease and improve profitability.

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Distribution costs decreased $493,625 or 6% compared with the same period in the previous year. Distribution costs are expected to continue to decrease as the consolidation efforts are completed and these operational improvements are expected to improve the Company’s profitability in fiscal year 2025. Management will continue its efforts to consolidate and streamline our distribution network and decrease the costs as a percentage of revenue.

General and administrative expenses decreased by $121,858 or 2% compared with the same period in the previous year. As the Company has consolidated the acquisitions and adjusted for the sale of Infusionz and Interactive Offers, management has controlled the general and administrative costs and will continue to implement strategies to decrease the percentage of general and administrative costs when compared to total sales.

Other operating expenses decreased by $1,430,571 or 22% compared with the same period in the previous year. These expenses are primarily non-cash and decreased based on the lower amortization of stock compensation offset by increases in depreciation.

During the nine months ended March 31, 2024, the Company had other expense of $2,612,617 compared to expense of $2,224,547 during the nine months ended March 31, 2023. .

In addition, during the nine months ended March 31, 2023, the Company recognized a gain on the sale of Interactive Offers, and an impairment on the Delray Beach facility, that was consolidated into the Tampa facility. These were offset by the gain on the lease settlement for the California facility and an income tax benefit. During the nine months ended March 31, 2024, the Company recognized a gain on the sale of Infusionz and select assets, which was later adjusted for lack of payment from the buyer and an income tax expense.

The Company had a net loss of $7,912,919 compared to $1,568,180 in the same period in the previous year. The decrease in net income is primarily related to the items mentioned above.

We will continue to improve the gross profit, while reducing the general and administrative expenses as compared to the sales as the Company continues to focus on sales growth while continuing to improve net income through the consolidation of operations.

Liquidity and Capital Resources

Working Capital

	As of March 31, 2024			As of June 30, 2023
Current assets	$	16,839,850		$	25,455,714
Current liabilities		24,191,784			19,734,685
Working capital	$	(7,351,934	)	$	5,721,029

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Cash Flows

	Nine Months Ended March 31,
	2024			2023
Cash flows provided by operating activities – continuing operations	$	(2,847,126	)	$	2,043,674
Cash flows used in investing activities – continuing operations		(400,721	)		(1,166,148	)
Cash flows used in financing activities – continuing operations		(558,877	)		(6,836,829	)

Cash flows used by operating activities – discontinued operations		(187,280	)		(190,539	)
Cash flows provided by (used by) investing activities – discontinued operations
Cash flows provided by (used by) financing activities – discontinued operations

Net decrease in cash during the period	$	(3,994,004	)	$	(5,968,764	)

On March 31, 2024, the Company had cash of $498,287, a decrease of $3,994,004 from June 30, 2023.

Net cash from operating activities benefited from non-cash expenses of $4,911,405, a $2,413,987 decrease in accounts receivable, which were offset $2,775,503 paydown of accounts payable and accrued liabilities.

Net cash used in investing activities for the nine months ended March 31, 2024 was $400,721 and was primarily related to the $500,000 paid for the remaining 45% of Cygnet Online LLC and the acquisition of property and equipment, which was offset by the proceeds from the sale of interactive offers. The acquisition of property and equipment primarily related to equipment and leasehold improvement for the final phase of our consolidation strategy, which was completed in June 2024.

Net cash used by financing activities for the nine months ended March 31, 2024, was $558,877 compared to the use of $6,836,829 during the nine months ended March 31, 2023. The cash used in financing activities during the nine months ended March 31, 2024 related to the repayment of notes payable and acquisition notes payable and was offset by the Company’s line of credit.

For the nine months ended March 31, 2023 used by financing activities was the repayment of $7,201,079 to the line of credit, the repayment and termination of the senior convertible note and the installment payments of several other notes. The Company obtained a note from a related party and a mortgage on the building purchased in the prior year. The funds obtained were used for investing activities and the repayment of the senior convertible note.

On October 19, 2022, the Company and its indirect wholly owned subsidiary, Upexi 17129 Florida, LLC entered into a loan agreement with Professional Bank, a Florida state-chartered bank, providing for a mortgage on the Company’s principal office in N. Clearwater, Florida. The company received $3,000,000 in connection with the transaction. The principal is to be paid back to Professional Bank over a term of ten years. The proceeds of the loan were utilized by the Company to pay down its loan facility with Acorn Capital, LLC in the amount of $2,780,200, net of fees and other expenses. There is a contract to sell this property that would repay this loan and provided approximately $1,350,000 of working capital.

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On October 31, 2022, Upexi, Inc. (the “Company”), paid $4,275,071 in principal, $613,466 in accrued interest, $250,000 for settlement of a put option and $7,900 in miscellaneous fees for a total of $5,146,437 to the holders of the $15 million senior secured convertible notes entered into on June 28, 2022. The payment terminated the agreement with the noteholders. The Company also terminated the registration statement covering the senior secured notes payable.

On April 1, 2024, the Company entered into a lease agreement with MFA 2510 Merchant LLC. The lease is a for approximately 10,000 square feet of warehouse and office space, located in Odessa, Florida for $20,060 per month on a triple net basis. The initial term is five years. The estimated cost of this facility is a reduction of overall facility costs of approximately $220,000 in rent and approximately $138,000 per year in utilities, repairs and maintenance. Management also expects to have additional savings in labor and administrative costs, which is expected to add additional cash flow for fiscal year 2025.

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement. The Company estimates the fees from these services provided to VitaMedica will be approximately $300,000 annually.

We estimate that we will have sufficient working capital to fund our operations over the twelve months following the date of the issuance of these condensed consolidated financial statements and meet all our debt obligations.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our senior management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of March 31, 2024 (the “Evaluation Date”). Based on this evaluation, our principal executive officer and principal financial and accounting officer concluded as of the Evaluation Date that our disclosure controls and procedures were not effective such that the information relating to us required to be disclosed in our Securities and Exchange Commission (“SEC”) reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer, as appropriate to allow timely decisions regarding required disclosure. This conclusion is based on findings that constituted material weaknesses. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s interim financial statements will not be prevented or detected on a timely basis.

In performing the above-referenced assessment, our management identified the following material weaknesses:

	(i)	inadequate segregation of duties consistent with control objectives; and

	(ii)	lack of multiple levels of supervision and review.

We believe the weaknesses and their related risks are not uncommon in a company of our size because of the limitations in the size and number of staff. Due to our size and nature, segregation of all conflicting duties has not always been possible and may not be economically feasible. However, we plan to take steps to enhance and improve the design of our internal control over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the appointment of additional qualified personnel to address inadequate segregation of duties and implement modifications to our financial controls to address such inadequacies, by the end of our 2024 fiscal year as resources allow.

We are currently reviewing our disclosure controls and procedures related to these material weaknesses and expect to implement changes in the current fiscal year, including identifying specific areas within our governance, accounting, and financial reporting processes to add adequate resources to potentially mitigate these material weaknesses.

Our management will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and is committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

Because of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting (as defined in Rules 12a-15(f) and 15d-15(f) under Exchange Act) that occurred during the quarter ended March 31, 2024, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting. The Company has added significant qualified resources to ensure proper segregation of duties and proper review of the financial reporting policies and procedures.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may become involved in litigation relating to claims arising out of its operations in the normal course of business. The Company is not involved in any pending legal proceeding or litigation, and, to the best of its knowledge, no governmental authority is contemplating any proceeding to which we are a party or to which any of its properties is subject, which would reasonably be likely to have a material adverse effect on the Company.

Item 1A. Risk Factors

As a "smaller reporting company", the Company is not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

All of the securities issued by the Company as described above were issued pursuant to the exemption for transactions by an issuer not involved in any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D promulgated thereunder and corresponding state securities laws. For more information regarding the foregoing transaction, see Note 11 to our Unaudited Condensed Consolidated Financial Statements included herein.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit Number		Description
31.1*		Certification of Principal Executive Officer, pursuant to Rule 13a-14a and 15-d-14a of the Securities Exchange Act of 1934
31.2*		Certification of Principal Financial Officer, pursuant to Rule 13a-14a and 15-d-14a of the Securities Exchange Act of 1934
32.1*		Certification of Principal Executive Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of Principal Financial Officer, pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**		Interactive Data File
101.INS		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

__________

*	Filed herewith.
**	Furnished herewith.

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SIGNATURES

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		UPEXI, INC.

Dated: July 5, 2024		/s/ Allan Marshall
		Allan Marshall
		President, Chief Executive Officer, and Director
		(Principal Executive Officer)

Dated: July 5, 2024		/s/ Andrew J. Norstrud
		Andrew J. Norstrud
		Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

nullnullnullnull

Cover - shares	9 Months Ended
Cover - shares	Mar. 31, 2024	Jul. 05, 2024
Cover [Abstract]
Entity Registrant Name	UPEXI, INC.
Entity Central Index Key	0001775194
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2024
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024
Entity Ex Transition Period	true
Entity Common Stock Shares Outstanding		20,889,384
Entity File Number	333-255266
Entity Incorporation State Country Code	NV
Entity Tax Identification Number	83-3378978
Entity Address Address Line 1	3030 North Rocky Point Drive
Entity Address Address Line 2	Suite 420
Entity Address City Or Town	Tampa
Entity Address State Or Province	FL
Entity Address Postal Zip Code	33607
City Area Code	701
Local Phone Number	353-5425
Security 12b Title	Common Stock, par value $0.001
Trading Symbol	UPXI
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes

CONDENSED CONSOLDIATED BALANCE SHEETS - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Current assets
Cash	$ 498,287	$ 4,492,291
Accounts receivable	4,707,128	6,963,915
Inventory	8,801,901	9,267,892
Due from Bloomios	0	845,443
Prepaid expenses and other receivables	720,582	1,283,617
Current assets of discontinued operations	2,111,952	2,602,556
Total current assets	16,839,850	25,455,714
Property and equipment, net	7,520,005	7,442,623
Intangible assets, net	9,469,923	12,588,124
Goodwill	10,847,791	9,290,501
Deferred tax asset	8,273,049	5,604,056
Other assets	368,004	76,728
Assets held for sale	1,675,112	2,984,868
Right-of-use asset	1,513,693	410,453
Total other assets	39,667,577	38,397,353
Total assets	56,507,427	63,853,067
Current liabilities
Accounts payable	2,124,024	3,930,540
Accrued compensation	841,064	533,842
Deferred revenue	111,519	0
Accrued liabilities	2,551,149	3,350,541
Acquisition payable	300,000	0
Current portion of notes payable	5,473,136	1,302,021
Current portion of convertible notes payable	0	1,254,167
Current portion of acquisition note payable	8,048,562	5,656,620
Current portion of related party note payable	0	1,429,356
Line of Credit	3,938,772	882,845
Current portion of operating lease payable	803,558	419,443
Current liabilities of discontinued operations	0	975,310
Total current liabilities	24,191,784	19,734,685
Operating lease payable, net of current portion	1,055,301	34,684
Related party note payable	1,479,815	0
Convertible notes payable	1,650,000	895,833
Acquisition notes payable, net of current	2,929,393	7,605,085
Notes payable, net of current portion	3,144,327	7,746,157
Total long-term liabilities	10,258,836	16,281,759
Stockholders' equity
Preferred stock, $0.001 par value, 100,000,000 shares authorized, and 500,000 and 500,000 shares issued and outstanding, respectively	500	500
Common stock, $0.001 par value, 100,000,000 shares authorized, and 20,906,870 and 20,215,961 shares issued and outstanding, respectively	20,909	20,216
Additional paid in capital	53,149,492	51,522,229
Accumulated deficit	(31,114,094)	(23,201,175)
Total stockholders' equity attributable to Upexi, Inc.	22,056,807	28,341,770
Non-controlling interest in subsidiary		(505,147)
Total stockholders' equity	22,056,807	27,836,623
Total liabilities and stockholders' equity	$ 56,507,427	$ 63,853,067

CONDENSED CONSOLDIATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2024	Jun. 30, 2023
CONDENSED CONSOLDIATED BALANCE SHEETS
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	500,000	500,000
Preferred stock, shares outstanding	500,000	500,000
Common stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	20,906,870	20,215,961
Common Stock, shares outstanding	20,906,870	20,215,961

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Revenue	$ 14,444,957	$ 21,883,445	$ 59,586,148	$ 56,282,542
Cost of Revenue	11,561,834	14,305,698	42,864,857	35,555,746
Gross profit	2,883,123	7,577,747	16,721,291	20,726,796
Operating expenses
Sales and marketing	1,547,161	2,258,937	5,427,358	5,331,948
Distribution costs	2,291,945	2,352,684	7,516,748	8,010,373
General and administrative expenses	2,399,387	2,602,312	6,685,881	6,807,739
Share-based compensation	212,758	1,146,299	965,229	3,126,472
Amortization of acquired intangible assets	1,062,734	1,124,500	3,188,201	2,709,167
Depreciation	306,185	225,879	901,521	649,883
Total Operating expenses	7,820,170	9,710,611	24,684,938	26,635,582
Loss from operations	(4,937,047)	(2,132,864)	(7,963,647)	(5,908,786)
Other income (expense), net
Change in derivative liability	0	0	0	(1,770)
Interest (expense) income, net	661,878	152,360	2,612,617	2,370,294
Other income (expense), net	661,878	152,360	2,612,617	2,368,524
Income (loss) on operations before income tax	(5,598,925)	(1,980,504)	(10,576,264)	(8,277,310)
Gain on sale of Infusionz and select assets	0	0	0	7,564,363
Gain (loss) from the sale of Interactive Offers	(103,263)	0	237,670
Lease settlement, California facility	0	0	0
Lease impairment, Delray Beach facility	0	0	(289,968)
Income tax benefit (expense)	1,501,595	496,880	2,668,769	449,828
Net income (loss) from continuing operations	(4,200,593)	(1,483,624)	(7,959,793)	(263,119)
(Loss) income from discontinued operations	81,981	(287,119)	46,874	(1,663,451)
Net loss attributable to non-controlling interest	0	124,804	0	358,390
Net income (loss) attributable to Upexi, Inc.	$ (4,118,612)	$ (1,645,939)	$ (7,912,919)	$ (1,568,180)
Basic and dilutive loss per share:
Income (loss) per share from continuing operations	$ (0.20)	$ (0.08)	$ (0.39)	$ (0.02)
(Loss) income per share from discontinued operations	0	(0.02)	0.00	(0.10)
Total income (loss) per share	$ (0.20)	$ (0.09)	$ (0.39)	$ (0.09)
Basic weighted average shares outstanding	20,723,542	18,015,837	20,423,924	17,418,877
Fully diluted weighted average shares outstanding	20,723,542	18,015,837	20,423,924	17,418,877

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($)	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Accumulated Deficit	Noncontrolling Interest
Balance, shares at Jun. 30, 2022		16,713,345	500,000
Balance, amount at Jun. 30, 2022	$ 28,786,744	$ 16,713	$ 500	$ 34,985,597	$ (6,270,886)	$ 54,820
Amortization of common stock issuance for services	70,350	0	0	70,350	0	0
Stock based compensation	927,326	0	0	927,326	0	0
Net loss for the three months ended September 30, 2022	(2,745,520)	$ 0	$ 0	0	(2,597,515)	(148,005)
Balance, shares at Sep. 30, 2022		16,713,345	500,000
Balance, amount at Sep. 30, 2022	27,038,900	$ 16,713	$ 500	35,983,273	(8,868,401)	(93,185)
Balance, shares at Jun. 30, 2022		16,713,345	500,000
Balance, amount at Jun. 30, 2022	28,786,744	$ 16,713	$ 500	34,985,597	(6,270,886)	54,820
Stock based compensation	3,126,472
Balance, shares at Mar. 31, 2023		18,094,748	500,000
Balance, amount at Mar. 31, 2023	36,730,810	$ 18,094	$ 500	44,858,392	(7,842,606)	(303,570)
Balance, shares at Sep. 30, 2022		16,713,345	500,000
Balance, amount at Sep. 30, 2022	27,038,900	$ 16,713	$ 500	35,983,273	(8,868,401)	(93,185)
Amortization of common stock issuance for services	70,350	0	0	70,350	0	0
Stock based compensation	1,052,847	0	0	1,052,847	0	0
Net loss for the three months ended September 30, 2022	2,584,098	$ 0	0	0	2,669,679	(85,581)
Issuance of common stock for acquisition of E-Core, shares		1,247,403
Issuance of common stock for acquisition of E-Core, amount	6,000,000	$ 1,247	$ 0	5,998,753	0	0
Balance, shares at Dec. 31, 2022		17,960,748	500,000
Balance, amount at Dec. 31, 2022	36,746,195	$ 17,960	$ 500	43,105,223	(6,198,722)	(178,766)
Stock based compensation	1,146,299	0	0	1,146,299	0	0
Net loss for the three months ended September 30, 2022	(1,768,688)	$ 0	0	0	(1,643,884)	(124,804)
Issuance of common stock for interest on note payable, shares		134,000
Issuance of common stock for interest on note payable, amount	607,004	$ 134	$ 0	606,870
Balance, shares at Mar. 31, 2023		18,094,748	500,000
Balance, amount at Mar. 31, 2023	36,730,810	$ 18,094	$ 500	44,858,392	(7,842,606)	(303,570)
Balance, shares at Jun. 30, 2023		20,215,961	500,000
Balance, amount at Jun. 30, 2023	27,836,623	$ 20,216	$ 500	51,522,229	(23,201,175)	(505,147)
Stock based compensation	421,887	0	0	421,887	0	0
Net loss for the three months ended September 30, 2022	(1,356,388)	$ 0	$ 0	0	(1,356,388)
Issuance of stock and equity for purchase of Cygnet, shares		90,909
Issuance of stock and equity for purchase of Cygnet, amount	667,874	$ 91		162,636		505,147
Balance, shares at Sep. 30, 2023		20,306,870	500,000
Balance, amount at Sep. 30, 2023	27,569,996	$ 20,307	$ 500	52,106,752	(24,557,563)	0
Balance, shares at Jun. 30, 2023		20,215,961	500,000
Balance, amount at Jun. 30, 2023	27,836,623	$ 20,216	$ 500	51,522,229	(23,201,175)	(505,147)
Stock based compensation	965,229
Balance, shares at Mar. 31, 2024		20,906,870	500,000
Balance, amount at Mar. 31, 2024	22,056,807	$ 20,909	$ 500	53,149,492	(31,114,094)	0
Balance, shares at Sep. 30, 2023		20,306,870	500,000
Balance, amount at Sep. 30, 2023	27,569,996	$ 20,307	$ 500	52,106,752	(24,557,563)	0
Stock based compensation	330,584	0	0	330,584	0	0
Net loss for the three months ended September 30, 2022	(2,437,919)	$ 0	$ 0	0	(2,437,919)	0
Balance, shares at Dec. 31, 2023		20,306,870	500,000
Balance, amount at Dec. 31, 2023	25,462,661	$ 20,307	$ 500	52,437,336	(26,995,482)	0
Stock based compensation	212,758
Net loss for the three months ended September 30, 2022	(4,118,612)	$ 0	0	0	(4,118,612)	0
Issuance of stock for conversion of debt, shares		500,000
Issuance of stock for conversion of debt, amount	500,000	$ 502		499,498
Stock based compensation, shares		100,000
Stock based compensation, amount	212,758	$ 100	$ 0	212,658	0	0
Balance, shares at Mar. 31, 2024		20,906,870	500,000
Balance, amount at Mar. 31, 2024	$ 22,056,807	$ 20,909	$ 500	$ 53,149,492	$ (31,114,094)	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net (loss) income from operations	$ (7,912,919)	$ (1,568,180)
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	4,089,722	3,359,050
Accrued interest on note recievable from Bloomios	0	(141,635)
Amortization of senior security original issue discount	0	(455,450)
Unreimburesed transition fees from Bloomios	0	(428,500)
Amortization of loan costs	50,459	0
Amortization of consideration discount	900,339	0
Non-cash consideration for sale of Infusionz and select assets, net	0	(7,564,363)
Inventory write-offs	1,812,319	34,328
Gain on sale of interactive offers	(237,670)	0
Change in deferred tax asset	(2,668,993)	(515,089)
Noncontrolling interest	0	(358,390)
Shares issued for finder fee	0	1,770
Stock based compensation	965,229	3,126,472
Changes in assets and liabilities, net of acquired amounts
Accounts receivable	2,413,987	2,175,850
Inventory	(255,500)	2,561,502
Prepaid expenses and other assets	492,343	94,178
Operating lease payable	301,492	(22,830)
Accounts payable and accrued liabilities	(2,775,503)	1,744,961
Deferred revenue	(22,431)	0
Net cash provided by operating activities - Continuing Operations	(2,847,126)	2,043,674
Net cash provided by (used in) operating activities - Discontinued Operations	(187,280)	190,539
Net cash provided by operating activities	(3,034,406)	2,234,213
Cash flows from investing activities
Acquisition of Lucky Tail	0	(3,012,327)
Acquisition of VitaMedica, Inc., net of cash acquired	0	(500,000)
Acquisition of New England Technology, Inc.	0	(1,698,748)
Proceeds from the sale of Interactive Offers, net of liabilities paid	940,000	0
Acquisition of patent rights for Tytan Tiles	(70,000)	0
Acquisition of Cygnet Online LLC, net of cash acquired	(500,000)	(1,050,000)
Proceeds from the sale of Infusionz and selected assets	0	5,173,610
Acquisition of property and equipment	(770,721)	(278,683)
Net cash provided by (used in) investing activities - Continuing Operations	(400,721)	(1,366,148)
Net cash (used in) provided by investing activities - Discontinued Operations	0	0
Net cash provided by (used in) investing activities	(400,721)	(1,366,148)
Cash flows from financing activities
Repayment of notes payable	(430,715)	(470,168)
Repayment of the senior convertible notes payable	0	(6,307,775)
Proceeds (payments) on line of credit, net	3,055,927	(6,826,338)
Payment on acquisition notes payable	(3,184,089)
Repayment of SBA note payable		(254,804)
Proceeds from convertible note payable	0	2,650,000
Proceeds on note payable on building	0	3,000,000
Repayment on note payable on building		(97,744)
Proceeds on note payable, related party	0	1,470,000
Net cash used in financing activities - Continuing Operations	(558,877)	(6,836,829)
Net cash (used in) provided by financing activities - Discontinued Operations	0	0
Net cash used in financing activities	(558,877)	(6,836,829)
Net decrease in cash - Continuing Operations	(3,806,724)	(6,159,303)
Net (decrease) increase in cash - Discontinued Operations	(187,280)	190,539
Cash, beginning of period	4,492,291	7,149,806
Cash, end of period	498,287	1,181,042
Supplemental cash flow disclosures
Interest paid	1,505,162	326,918
Income tax paid	0	0
Issuance of common stock for acquisition of Cygnet	162,727	0
Issuance of debt for acquisition of Cygnet	300,000	0
Bloomios non-cash payment of receivables, net	845,443	0
Issuance of common stock for the repayment of convertible note payable	500,000	0
Liabilities assumed from acquisition of E-Core	0	(7,712,168)
Issuance of stock for acquisition of E-Core	0	6,000,000
Assets available for sale	$ 0	$ 6,446,210

Background Information

9 Months Ended

Mar. 31, 2024

Background Information

Background Information

Note 1. Background Information

☐	HAVZ, LLC, d/b/a/ Steam Wholesale, a California limited liability company
☐	Trunano Labs, Inc., a Nevada corporation
☐	MW Products, Inc., a Nevada corporation
☐	Upexi Holding, LLC, a Delaware limited liability company
	o	Upexi Pet Products, LLC, a Delaware limited liability company
☐	Upexi Enterprise, LLC, a Delaware limited liability company
	o	Upexi Property & Assets, LLC, a Delaware limited liability company
		■	Upexi 17129 Florida, LLC, a Delaware limited liability company
	o	E-Core Technology, Inc.
	o	Upexi Distribution Management LLC, a Delaware limited liability company
	o	Upexi Distribution LLC, a Delaware limited liability company
☐	Cygnet Online, LLC (“Cygnet”), a Delaware limited liability company.

	·	Steam Distribution, LLC, a California limited liability company
	·	One Hit Wonder, Inc., a California corporation
	·	One Hit Wonder Holdings, LLC, a California limited liability company
	·	Vape Estate, Inc., a Nevada Corporation
	·	SWCH, LLC, a Delaware limited liability company
	·	Cresco Management, LLC, a California limited liability company

Our products are distributed in the United States of America and internationally through multiple entities and managed through our locations in Florida, California, and Nevada.

Cygnet Online operates from our Florida warehouse and distribution center, day to day operations of our Amazon liquidation business team from this location with support of remote team members.

Lucky Tail operates from our Florida location with sales and marketing driven by on-site and remote teams that operate the Amazon sales strategy and daily business operations.

Business Acquisitions

Business Divested

Basis of Presentation and Principles of Consolidation

Discontinued Operations

Fair Value of Financial Instruments

Level 1—Quoted market prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves.

Level 3—Unobservable inputs developed using estimates or assumptions developed by the Company, which reflect those that a market participant would use.

Reclassification

Acquisition

9 Months Ended

Mar. 31, 2024

Acquisition

Acquisition

Note 2. Acquisitions

Cygnet Online, LLC

The Company acquired 55% of Cygnet Online, LLC, on April 1, 2022. The purchase price was $5,515,756, as amended.

The following table summarizes the consideration transferred to acquire Cygnet Online, LLC and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

Fair value of consideration transferred:

Cash	$	1,500,000
Convertible note payable, convertible at $6.00 per common share		1,050,000
Earnout payment		-
Common stock, 555,489 shares valued at $5.34 per common share, the closing price on April 1, 2022.		2,965,756
	$	5,515,756

Recognized amounts of identifiable assets acquired and liabilities assumed:

Cash	$	471,237
Accounts receivable		860,882
Inventory		2,337,208
Prepaid expenses		6,900
Property and equipment		7,602
Right to use asset		410,365
Other asset		6,545
Online sales channels		1,800,000
Vendor relationships		6,000,000
Accrued liabilities		(701,606	)
Notes payable		(7,298,353	)
Operating lease		(422,479	)
Total identifiable net assets	$	3,478,301
Goodwill	$	2,037,455

Fair value of consideration transferred:

Cash	$	800,000
Noncontrolling interest		505,147
Forgiveness of advances		89,416
Common stock, 90,909 shares valued at $1.79 per common share, the closing price on September 1, 2023.		162,727
	$	1,557,290

The additional consideration was recorded as goodwill by management and will be subject to change based on the final purchase price allocation.

LuckyTail

On August 13, 2022, the Company acquired the pet product brand and the rights to the products of LuckyTail from GA Solutions, LLC.

The following table summarizes the consideration transferred to acquire LuckyTail and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

Fair value of consideration transferred:

Cash	$	2,000,000
Cash payment, 90 days after close		484,729
Cash payment, 180 days after close		469,924
Contingent consideration		112,685
Cash payment, working capital adjustment		460,901
	$	3,528,239

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Inventory	$	460,901
Trade name		383,792
Customer list		1,834,692
Total identifiable net assets	$	2,679,385
Goodwill	$	848,854

E-Core, Technology Inc., and its subsidiaries

On October 21, 2022, the Company acquired E-Core Technology, Inc. (“E-Core”) d/b/a New England Technology, Inc., a Florida corporation (“New England Technology”).

The following table summarizes the consideration transferred to acquire E-Core and the amount of identified assets acquired, and liabilities assumed at the acquisition date.

Fair value of consideration transferred:

Cash	$	100,000
Cash payment, 120 days		3,000,000
Note payable		5,189,718
Note payable 2		4,684,029
Convertible note payable, convertible at $4.81 per common share		2,418,860
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.		6,000,000
	$	21,039,765

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Cash	$	1,014,610
Accounts receivable		6,699,945
Inventory		7,750,011
Prepaid expenses		75,721
Trade name		1,727,249
Customer relationships		5,080,305
Accrued liabilities		(192,051	)
Line of credit		(7,201,079	)
Total identifiable net assets	$	14,635,673
Goodwill	$	6,404,092

Revenue from acquisitions included in the financial statements.

	Nine months ended March 31,
	2024		2023
Cygnet	$	10,629,121	$	20,806,317
LuckyTail		2,219,111		3,573,727
E-Core		38,625,335		25,822,931

	$	51,473,567	$	50,202,975

	Three months ended March 31,
	2024		2023
Cygnet		1,956,310		7,359,955
LuckyTail		673,738		1,394,459
E-Core		9,221,715		13,647,412

	$	11,851,763	$	22,401,826

Consolidated pro-forma unaudited financial statements.

Pro Forma, Unaudited								Proforma
Nine months ended March 31, 2023	Upexi, Inc.			LuckyTail		E-Core		Adjustments			Proforma

Net sales	$	56,282,542		$	892,270	$	12,905,836	$	-		$	70,080,648
Cost of sales	$	35,555,746		$	137,088	$	11,177,032	$	-		$	46,869,866
Operating expenses	$	26,635,582		$	383,476	$	1,050,602	$	567,721		$	28,637,381
Net income (loss) from continuing operations	$	(263,119	)	$	371,706	$	660,860	$	(567,721	)	$	201,726
Basic income (loss) per common share	$	(0.02	)	$	-	$	0.53	$	-		$	0.01
Weighted average shares outstanding		17,418,877			-		1,247,402		(693,001	)		17,973,278

Inventory

9 Months Ended

Mar. 31, 2024

Inventory

Inventory

Note 3. Inventory

Inventory consisted of the following:

	March 31, 2024		June 30, 2023
Raw materials	$	1,007,749	$	-
Finished goods		7,794,152		11,557,128
	$	8,801,901	$	11,557,128

The Company writes off the value of inventory deemed excessive or obsolete.

Property and Equipment

9 Months Ended

Mar. 31, 2024

Property and Equipment

Property and Equipment

Note 4. Property and Equipment

Property and equipment consist of the following:

	March 31, 2024			June 30, 2023
Furniture and fixtures	$	216,143		$	172,663
Computer equipment		166,569			155,506
Internal use software		570,645			541,705
Manufacturing equipment		3,495,666			3,291,557
Leasehold improvements		1,554,771			-
Building		4,923,464			4,923,464
Vehicles		261,362			261,362
Property and equipment, gross		10,325,160			9,346,256
Less accumulated depreciation		(2,805,155	)		(1,903,633	)
	$	7,520,005		$	7,442,623

Depreciation expense for the three months ended March 31, 2024, and 2023 was $264,817 and $225,879, respectively.

Depreciation expense for the nine months ended March 31, 2024, and 2023 was $901,521 and $649,883, respectively.

Intangible Assets

9 Months Ended

Mar. 31, 2024

Intangible Assets

Intangible Assets

Note 5. Intangible Assets

Intangible assets as of March 31, 2024:

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	2,597,503	$	4,317,394
Trade name, amortized over five years	5 years		2,111,041		628,512		1,482,529
Online sales channels	2 years		1,800,000		1,800,000		-
Vender relationships	5 years		6,000,000		2,400,000		3,600,000
Tytan Tiles Patents	15 years		70,000		-		70,000
		$	16,825,938	$	7,426,015	$	9,469,923

For the three months ended March 31, 2024 and 2023, the Company amortized approximately $1,062,734 and $1,124,500, respectively.

For the nine months ended March 31, 2024 and 2023, the Company amortized approximately $3,188,201 and $2,709,167, respectively.

The following intangible asset was added during the nine months ended March 31, 2024:

Patent

70,000

Intangible assets as of June 30, 2023:

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	1,300,958	$	5,613,939
Trade name, amortized over five years	5 years		2,111,041		311,856		1,799,185
Online sales channels	2 years		1,800,000		1,125,000		675,000
Vender relationships	5 years		6,000,000		1,500,000		4,500,000

		$	16,825,938	$	4,237,814	$	12,588,124

The following intangible assets were added during the year ended June 30, 2023, from the acquisitions noted below:

LuckyTail

Customer relationships	$	1,834,692
Trade name		383,792
Intangible Assets from Purchase	$	2,218,484
E-Core:
Customer relationships	$	5,080,205
Trade name		1,727,249
Intangible Assets from Purchase	$	6,807,454

Future amortization of intangible assets at March 31, 2024 are as follows:

June 30, 2024	$	838,900
June 30, 2025		3,355,599
June 30, 2026		3,355,599
June 30, 2027		1,754,640
June 30, 2028		115,018
June 30, 2029		4,667
Thereafter		45,500
	$	9,469,923

Prepaid Expense and Other Current Assets

9 Months Ended

Mar. 31, 2024

Prepaid Expense and Other Current Assets

Prepaid Expense and Other Current Assets

Note 6. Prepaid Expense and Other Current Assets

Prepaid and other receivables consist of the following:

	March 31, 2024		June 30, 2023
Insurance	$	84,249	$	187,949
Prepayment to vendors		68,143		239,970
Deposits on services		21,000		45,678
Prepaid monthly rent		22,500		27,813
Prepaid sales tax		-		70,021
Other deposits		-		70,826
Stock issued for prepaid interest on convertible note payable		161,189		465,595
Other prepaid expenses		155,946		31,000
Other receivables		207,555		144,765
Total	$	720,582	$	1,307,299

All prepaid expenses will be expensed in the following 12 months.

Operating Leases

9 Months Ended

Mar. 31, 2024

Operating Leases

Operating Leases

Note 7. Operating Leases

The Company has operating leases for corporate offices, warehouses and office equipment that have remaining lease terms of 1 year to 5 years.

2024	$	131,679
2025		508,665
2026		529,284
2027		268,530
2028		246,013
Thereafter		21,114
Total undiscounted future minimum lease payments		1,705,285
Less: Imputed interest		(137,670	)
Accrued adverse lease obligation		291,244
Present value of operating lease obligation	$	1,858,859

The Company’s weighted average remaining lease term and weighted average discount rate for operating leases as of March 31, 2024 are:

Weighted average remaining lease term		43 Months
Weighted average incremental borrowing rate			5.0	%

	Three Months Ended March 31, 2024		Nine Months Ended March 31, 2024
Operating lease cost:
Operating lease cost	$	148,794	$	462,496
Amortization of ROU assets		144,983		455,006
Interest expense		19,587		66,832
Total lease cost	$	313,364	$	984,334

	Three Months Ended March 31, 2023		Nine Months Ended March 31, 2023
Operating lease cost:
Operating lease cost	$	99,101	$	285,855
Amortization of ROU assets		67,088		233,409
Interest expense		4,595		25,030
Total lease cost	$	170,784	$	544,294

Accrued Liabilities and Acquisition Payable

9 Months Ended

Mar. 31, 2024

Accrued Liabilities and Acquisition Payable

Accrued Liabilities and Acquisition Payable

Note 8. Accrued Liabilities and Acquisition Payable

Accrued liabilities consist of the following:

	March 31, 2024		June 30, 2023
Accrued interest	$	876,775		655,187
Accrued vendor liabilities		278,689		861,664
Accrued sales tax		35,491		47,070
Accrued expenses from sale of manufacturing operations		1,191,423		1,360,000
Other accrued liabilities		168,771		441,641

	$	2,551,149	$	3,365,562

Acquisition Payable consists of the following:

March 31,

2024

June 30,

2023

Payments related to the acquisition of Cygnet

300,000

Convertible Promissory Notes and Notes Payable

9 Months Ended

Mar. 31, 2024

Convertible Promissory Notes and Notes Payable

Convertible Promissory Notes and Notes Payable

Note 9. Convertible Promissory Notes and Notes Payable

Convertible promissory notes and notes payable outstanding as of March 31, 2024 and June 30, 2023 are summarized below:

	Maturity	March 31,			June 30,
	Date	2024			2023
Convertible Notes:
Promissory Note, 21- month term note, 18.11% interest payable with common stock and subordinate to the Convertible Notes	June 1, 2026	$	1,650,000		$	2,150,000
Less current portion of notes payable			-			1,254,167
Notes payable, net of current portion		$	1,650,000		$	895,833

Acquisition Notes:
Convertible Notes, 36-month term notes, 0% cash interest, collateralized with all the assets of the Company	October 31, 2025		3,500,000			3,500,000
Subordinated Promissory Notes, 24-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		5,750,000			5,750,000
Subordinated Promissory Notes, 12-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		2,538,500			5,750,000
Total		$	11,788,500		$	15,000,000

Acquisition notes payable			8,288,500			5,750,000
Discount on acquisition notes payable, current			(239,938	)		(93,380	)
Acquisition notes payable, current			8,048,562			5,656,620

			3,500,000			9,250,000
Discount on acquisition notes payable, long-term			(507,607	)		(1,644,915	)
Acquisition notes payable, net of current and discount		$	2,929,393		$	7,605,085

Notes Payable:
Mortgage Loan, 10-year term note, 4.8% interest, collateralized by land and warehouse building	September 26, 2032	$	2,660,679		$	2,841,566
Promissory Note, 21-month term note, 10% cash interest and subordinate to the Convertible Notes	November 22, 2024		560,000			560,000
SBA note payable, 30-year term note, 6% interest rate and collateralized with all assets of the Company	October 6, 2021		3,729,096			3,910,767
Inventory consignment note, 60 monthly payments, with first payment due June 30, 2022, 3.5% interest rate and no security interest in the assets of the business	June 30, 2027		1,000,290			1,099,592
GF Note, 6 annual payments, with first payment due December 31, 2022, 3.5% interest rate and no security interest in the assets of the business	November 7, 2026		683,968			683,968
Total notes payable			8,715,063			9,095,893

Notes payable, current			5,473,136			1,326,214
Discount on notes payable, current			-			(24,193	)
Notes payable, current net of discount		$	5,473,136		$	1,302,021

Notes payable, long-term			3,160,450			7,769,679
Discount on notes payable, long-term			(16,123	)		(23,522	)
Notes payable, long-term, net		$	3,144,327		$	7,746,157

Related Notes Payable:
Marshall Loan, 2-year term note, 8.5% cash interest, 3.5% PIK interest and subordinate to the Convertible Notes. November of 2023 extended to 2.5 year term note	December 28, 2026	$	1,500,000		$	1,500,000

Discount on related party note payable, current			-			(70,644	)
Notes payable, current, net of discount		$	-		$	1,429,356

Discount on related party note payable, long term			(20,185	)		-
Notes payable, long term net		$	1,479,815		$	-

Total convertible notes payable, acquisition notes payable, notes payable and related party note payable		$	22,725,233		$	25,889,239

Future payments on notes payable are as follows:

2024	$	6,399,920
2025		11,946,259
2026		3,766,391
2027		279,649
2028		293,565
2029		307,961
Thereafter		578,341
	$	23,572,086

Convertible notes, original discount and related fees and costs		(846,853	)
	$	22,725,233

Related Party Transactions

9 Months Ended

Mar. 31, 2024

Related Party Transactions

Related Party Transactions

Note 10. Related Party Transactions

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. The proceeds of the transaction will be used for working capital, the reduction of debt and the reduction of other liabilities currently outstanding.

Equity Transactions

9 Months Ended

Mar. 31, 2024

Equity Transactions

Equity Transactions

Note 11. Equity Transactions

Convertible Preferred Stock

Common Stock

On October 31, 2022, the Company issued 1,247,403 shares of common stock for the acquisition of E-Core Technologies Inc., a Florida corporation, valued at $6,000,000.

On January 18, 2024, the Company issued 501,605 shares of common stock as repayment of $500,000 of the Company’s long-term debt. The shares were valued at 500,000 or .09868 per common share.

On March 18, 2024, the Company issued 100,000 shares of common stock as an incentive-restricted stock grant to certain employees. The shares were valued at $85,000 or $0.85 per common share.

Stock Based Compensation

9 Months Ended

Mar. 31, 2024

Stock Based Compensation

Stock Based Compensation

Note 12. Stock Based Compensation

The following table reflects the continuity of stock options for the nine months ended March 31, 2024:

A summary of stock option activity during the nine months ended March 31, 2024 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2023		4,839,278		$	3.31		6.23	$	1,342,280
Forfeited		(532,000	)		4.34		-		-
Granted		400,000			1.47		1		32,000
Options outstanding at March31, 2024		4,791,278		$	3.36		5.44	$	-
Options exercisable at March 31, 2024 (vested)		4,557,361		$	2.92		5.50		-

A summary of stock option activity during the nine months ended March 31, 2023 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2022		4,279,888		$	3.05		7.42	$	4,919,182
Forfeited		(143,613	)		1.21		-		-
Granted		897,000			2.52		10		-
Options outstanding at March31, 2023		5,033,275		$	3.38		6.42	$	4,724,980
Options exercisable at March 31, 2023 (vested)		3,894,776		$	3.04		6.72		4,550,343

	March 31, 2024			March 31, 2023
Dividend rate		-			-
Risk free interest rate		3.95	%		2.07-4.06	%
Expected term		1			1
Expected volatility		63	%	70-77		%
Grant date stock price	$	1.47		$	3.87-5.30

Income Taxes

9 Months Ended

Mar. 31, 2024

Income Taxes

Income Taxes

Note 13. Income Taxes

As of March 31, 2024, there was approximately $10,472,757 of losses available to reduce federal taxable income in future years and can be carried forward indefinitely.

Risks and Uncertainties

9 Months Ended

Mar. 31, 2024

Risks and Uncertainties

Risks and Uncertainties

Note 14. Risks and Uncertainties

Discontinued Operations Sale of Infusionz to Bloomios

9 Months Ended

Mar. 31, 2024

Discontinued Operations Sale of Infusionz to Bloomios

Discontinued Operations - Sale of Infusionz to Bloomios

Note 15. Discontinued Operations – Sale of Infusionz to Bloomios

On October 28, 2022, the Company determined that the best course of action related to Infusionz, LLC and certain manufacturing business was to accept an offer to sell those operations.

Tangible assets, inventory / working capital*	$	(1,344,000	)
Tangible assets, warehouse and manufacturing equipment, net of accumulated depreciation*		(679,327	)
Goodwill		(2,413,814	)
Intangible assets, net of accumulated amortization		(946,996	)
Accrued and incurred expenses related to the transaction and additional working capital*		(2,051,500	)
Consideration received, including cash, debt and equity, net		15,000,000
Total gain recognized	$	7,564,363

*During the continuing transition period, all of the inventory or working capital has not been transferred to the buyer.

Advance for payroll	$	50,000
Operating expense		652,891
Management fees		685,600
Excess working capital		388,565
Accrued Interest		247,885
Subtotal due from Bloomios	$	2,024,941
Reserve		1,179,498
Total due from Bloomios	$	845,443

Discontinued Operations Sale of Interactive Offers

9 Months Ended

Mar. 31, 2024

Discontinued Operations Sale of Interactive Offers

Discontinued Operations - Sale of Interactive Offers

Note 16. Discontinued Operations – Sale of Interactive Offers

Summary of discontinued operations:

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	-	$	604,625
Cost of sales	$	-	$	230,967
Sales, general and administrative expenses	$	-	$	971,657
Depreciation and amortization	$	-	$	1,798
Loss from discontinued operations	$	-	$	(928,215	)
Accounts receivable net of allowance for doubtful accounts	$	-	$	56,961
Fixed assets, net of accumulated depreciation	$	-	$	5,195
Total assets	$	-	$	405,721
Total liabilities	$	-	$	562,953

	Nine months ended March 31,
	2024			2023
Discontinued Operations
Revenue	$	158,147		$	1,054,935
Cost of sales	$	11,982		$	254,028
Sales, general and administrative expenses	$	339,205		$	1,646,949
Depreciation and amortization	$	-		$	455,357
Loss from discontinued operations	$	(193,040	)	$	(1,305,261	)
Accounts receivable net of allowance for doubtful accounts	$	-		$	45,314
Fixed assets, net of accumulated depreciation	$	-		$	3,593
Total assets	$	-		$	4,843,723
Total liabilities	$	-		$	415,660

Discontinued Operations - Sale of VitaMedica

9 Months Ended

Mar. 31, 2024

Discontinued Operations - Sale of VitaMedica

Discontinued Operations - Sale of VitaMedica

Note 17. Discontinued Operations – Sale of VitaMedica

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officer. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.

Summary of discontinued operations:

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	2,673,744	$	1,491,373
Cost of sales	$	587,142	$	201,409
Sales, general and administrative expenses	$	1,888,490	$	1,536,773
Depreciation and amortization	$	115,896	$	151,599
Income (loss) from discontinued operations	$	81,978	$	(149,966	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

	Nine months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	6,708,021	$	5,525,651
Cost of sales	$	1,480,486	$	1,094,753
Sales, general and administrative expenses	$	4,694,350	$	4,342,632
Depreciation and amortization	$	353,646	$	389,349
Income (loss) from discontinued operations	$	239,908	$	(307,899	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

Subsequent Events

9 Months Ended

Mar. 31, 2024

Subsequent Events

Subsequent Events

Note 18. Subsequent Events

Background Information (Policies)	9 Months Ended
Background Information (Policies)	Mar. 31, 2024
Background Information
Business Acquisitions	On April 1, 2022, the Company entered into a securities purchase agreement with a single investor to acquire 55% of the equity interest in Cygnet Online, LLC, a Delaware limited liability corporation. The agreement also enables the Company to purchase the remaining 45% over the following two years. On September 1, 2023, the Company purchased the remaining 45% of Cygnet Online, LLC for $500,000 cash, 90,909 shares of the Company’s common stock and a $300,000 cash payment due on September 1, 2024. The Company has not released the shares to the seller. On August 12, 2022, the Company entered into an asset purchase agreement with GA Solutions, LLC, a Delaware limited liability company (“LuckyTail”), pursuant to which the Company acquired substantially all the assets of LuckyTail. LuckyTail sells pet nail grinders and other pet products through various sales channels including some international sales channels. On October 31, 2022, the Company and its wholly owned subsidiary Upexi Enterprise, LLC, entered into a securities purchase agreement to purchase the outstanding stock of E-Core Technology, Inc. d/b/a New England Technology, Inc. (“E-Core”), a Florida corporation. E-Core distributes non-owned branded products to national retail distributors and has branded products in the toy industry that E-Core sells direct to consumers through online sales channels and sells to national retail distributors.
Business Divested	On October 26, 2022, the Company entered into a membership interest purchase agreement to sell 100% of the membership interests of Infusionz LLC, a Colorado limited liability company (“Infusionz”), included in the sale was all the rights to Infusionz brands and the manufacturing of certain private label business. Infusionz was originally purchased by the Company in July of 2020. The divestiture of Infusionz and related private label manufacturing represents a strategic shift in our operations and will allow us to become a predominantly product distribution focused company for both our Company owned brands and non-owned brands. As a result, the results of the business were classified as discontinued operations in our condensed statements of operations and excluded from both continuing operations and segment results for all periods presented. On August 31, 2023, Upexi, Inc. (the “Company”) entered into an Equity Interest Purchase Agreement (“EIPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary Interactive Offers, LLC (“Interactive”) to Amplifyir Inc. (the “Buyer”). The purchase price for the Interests was One Million Two Hundred Fifty Thousand Dollars ($1,250,000), subject to certain customary post-closing adjustments. In addition, the Buyer is obligated to pay the Company two-and one- half percent (2.5%) of certain advertising revenues of Interactive for a two-year period post-closing. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented. On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement. Accordingly, the results of the business were classified as discontinued operations in our statements of operations and excluded from both continuing operations and segment results for all periods presented.
Basis of Presentation and Principles of Consolidation	The Company’s condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the accounts of all subsidiaries in which the Company holds a controlling financial interest as of March 31, 2024, and June 30, 2023. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. All significant intercompany transactions and balances are eliminated in consolidation. However, the results of operations included in such financial statements may not necessarily be indicative of annual results.
Discontinued Operations	A discontinued operation is a component of an entity that has either been disposed of or that is classified as held for sale, which represents a separate major line of business or geographic area of options and is part of a single coordinated plan to dispose of a separate line of business or geographical area of operations. In accordance with the rules regarding the presentation of discontinued operations, the assets, liabilities, and activity of Infusionz, Interactive Offers, VitaMedica and certain manufacturing business have been reclassified as discontinued operations for all periods presented.
Fair Value of Financial Instruments	ASC Topic 820, Fair Value Measurement (“ASC 820”), establishes a fair value hierarchy for instruments measured at fair value that distinguished between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumption about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. ASC 820 identified fair value as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, ASC 820 established a three-tier fair value hierarchy that distinguishes between the following: Level 1—Quoted market prices (unadjusted) in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable, such as quoted market prices, interest rates and yield curves. Level 3—Unobservable inputs developed using estimates or assumptions developed by the Company, which reflect those that a market participant would use. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The carrying amounts reflected in the balance sheets for cash, prepaid expenses, other current assets, accounts payable and accrued expenses approximate their fair values, due to their short-term nature. For the three months ended September 30, 2022, management believed it necessary to record a reserve against the debt and equity instruments obtained in the sale of Infusionz of $8,500,000.
Reclassification	Certain reclassifications have been made to the condensed consolidated financial statements as of and for the three and nine months ended March 31, 2024, for the three and nine month periods ended March 31, 2023, and as of June 30, 2023 to conform to the presentation as of and for the three and nine months ended March 31, 2024.

Acquisition (Tables)

9 Months Ended

Mar. 31, 2024

Schedule of recognized identified assets acquired, and liabilities assumed

Cash	$	1,500,000
Convertible note payable, convertible at $6.00 per common share		1,050,000
Earnout payment		-
Common stock, 555,489 shares valued at $5.34 per common share, the closing price on April 1, 2022.		2,965,756
	$	5,515,756

Recognized amounts of identifiable assets acquired and liabilities assumed:

Cash	$	471,237
Accounts receivable		860,882
Inventory		2,337,208
Prepaid expenses		6,900
Property and equipment		7,602
Right to use asset		410,365
Other asset		6,545
Online sales channels		1,800,000
Vendor relationships		6,000,000
Accrued liabilities		(701,606	)
Notes payable		(7,298,353	)
Operating lease		(422,479	)
Total identifiable net assets	$	3,478,301
Goodwill	$	2,037,455

Cash	$	800,000
Noncontrolling interest		505,147
Forgiveness of advances		89,416
Common stock, 90,909 shares valued at $1.79 per common share, the closing price on September 1, 2023.		162,727
	$	1,557,290

Schedule of revenue from acquisitions

	Nine months ended March 31,
	2024		2023
Cygnet	$	10,629,121	$	20,806,317
LuckyTail		2,219,111		3,573,727
E-Core		38,625,335		25,822,931

	$	51,473,567	$	50,202,975

	Three months ended March 31,
	2024		2023
Cygnet		1,956,310		7,359,955
LuckyTail		673,738		1,394,459
E-Core		9,221,715		13,647,412

	$	11,851,763	$	22,401,826

Schedule of pro forma

Pro Forma, Unaudited								Proforma
Nine months ended March 31, 2023	Upexi, Inc.			LuckyTail		E-Core		Adjustments			Proforma

Net sales	$	56,282,542		$	892,270	$	12,905,836	$	-		$	70,080,648
Cost of sales	$	35,555,746		$	137,088	$	11,177,032	$	-		$	46,869,866
Operating expenses	$	26,635,582		$	383,476	$	1,050,602	$	567,721		$	28,637,381
Net income (loss) from continuing operations	$	(263,119	)	$	371,706	$	660,860	$	(567,721	)	$	201,726
Basic income (loss) per common share	$	(0.02	)	$	-	$	0.53	$	-		$	0.01
Weighted average shares outstanding		17,418,877			-		1,247,402		(693,001	)		17,973,278

LuckyTail [Member]

Schedule of recognized identified assets acquired, and liabilities assumed

Fair value of consideration transferred:

Cash	$	2,000,000
Cash payment, 90 days after close		484,729
Cash payment, 180 days after close		469,924
Contingent consideration		112,685
Cash payment, working capital adjustment		460,901
	$	3,528,239

Recognized amounts of identifiable assets acquired, and liabilities assumed:

Inventory	$	460,901
Trade name		383,792
Customer list		1,834,692
Total identifiable net assets	$	2,679,385
Goodwill	$	848,854

E Core Technology Inc [Member]

Schedule of recognized identified assets acquired, and liabilities assumed

Fair value of consideration transferred:

Cash	$	100,000
Cash payment, 120 days		3,000,000
Note payable		5,189,718
Note payable 2		4,684,029
Convertible note payable, convertible at $4.81 per common share		2,418,860
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.		6,000,000
	$	21,039,765

Cash	$	1,014,610
Accounts receivable		6,699,945
Inventory		7,750,011
Prepaid expenses		75,721
Trade name		1,727,249
Customer relationships		5,080,305
Accrued liabilities		(192,051	)
Line of credit		(7,201,079	)
Total identifiable net assets	$	14,635,673
Goodwill	$	6,404,092

Inventory (Tables)

9 Months Ended

Mar. 31, 2024

Inventory

Schedule of inventory

	March 31, 2024		June 30, 2023
Raw materials	$	1,007,749	$	-
Finished goods		7,794,152		11,557,128
	$	8,801,901	$	11,557,128

Property and Equipment (Tables)

9 Months Ended

Mar. 31, 2024

Property and Equipment

Schedule of property and equipment

	March 31, 2024			June 30, 2023
Furniture and fixtures	$	216,143		$	172,663
Computer equipment		166,569			155,506
Internal use software		570,645			541,705
Manufacturing equipment		3,495,666			3,291,557
Leasehold improvements		1,554,771			-
Building		4,923,464			4,923,464
Vehicles		261,362			261,362
Property and equipment, gross		10,325,160			9,346,256
Less accumulated depreciation		(2,805,155	)		(1,903,633	)
	$	7,520,005		$	7,442,623

Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2024

Intangible Assets

Schedule of intangible assets

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	2,597,503	$	4,317,394
Trade name, amortized over five years	5 years		2,111,041		628,512		1,482,529
Online sales channels	2 years		1,800,000		1,800,000		-
Vender relationships	5 years		6,000,000		2,400,000		3,600,000
Tytan Tiles Patents	15 years		70,000		-		70,000
		$	16,825,938	$	7,426,015	$	9,469,923

	Estimated Life	Cost		Accumulated Amortization		Net Book Value
Customer relationships, amortized over four years	4 years	$	6,914,897	$	1,300,958	$	5,613,939
Trade name, amortized over five years	5 years		2,111,041		311,856		1,799,185
Online sales channels	2 years		1,800,000		1,125,000		675,000
Vender relationships	5 years		6,000,000		1,500,000		4,500,000

		$	16,825,938	$	4,237,814	$	12,588,124

Schedule of intangible assets added

Customer relationships	$	1,834,692
Trade name		383,792
Intangible Assets from Purchase	$	2,218,484
E-Core:
Customer relationships	$	5,080,205
Trade name		1,727,249
Intangible Assets from Purchase	$	6,807,454

Schedule of future amortization of intangible assets

June 30, 2024	$	838,900
June 30, 2025		3,355,599
June 30, 2026		3,355,599
June 30, 2027		1,754,640
June 30, 2028		115,018
June 30, 2029		4,667
Thereafter		45,500
	$	9,469,923

Prepaid Expense and Other Current Assets (Tables)

9 Months Ended

Mar. 31, 2024

Prepaid Expense and Other Current Assets

Schedule of prepaid expense and other current assets

	March 31, 2024		June 30, 2023
Insurance	$	84,249	$	187,949
Prepayment to vendors		68,143		239,970
Deposits on services		21,000		45,678
Prepaid monthly rent		22,500		27,813
Prepaid sales tax		-		70,021
Other deposits		-		70,826
Stock issued for prepaid interest on convertible note payable		161,189		465,595
Other prepaid expenses		155,946		31,000
Other receivables		207,555		144,765
Total	$	720,582	$	1,307,299

Operating Leases (Tables)

9 Months Ended

Mar. 31, 2024

Operating Leases

Schedule of undiscounted future minimum lease payments

2024	$	131,679
2025		508,665
2026		529,284
2027		268,530
2028		246,013
Thereafter		21,114
Total undiscounted future minimum lease payments		1,705,285
Less: Imputed interest		(137,670	)
Accrued adverse lease obligation		291,244
Present value of operating lease obligation	$	1,858,859

Schedule of weighted average lease term and weighted average discount rate

Weighted average remaining lease term		43 Months
Weighted average incremental borrowing rate			5.0	%

Schedule of components of lease expenses

	Three Months Ended March 31, 2024		Nine Months Ended March 31, 2024
Operating lease cost:
Operating lease cost	$	148,794	$	462,496
Amortization of ROU assets		144,983		455,006
Interest expense		19,587		66,832
Total lease cost	$	313,364	$	984,334

	Three Months Ended March 31, 2023		Nine Months Ended March 31, 2023
Operating lease cost:
Operating lease cost	$	99,101	$	285,855
Amortization of ROU assets		67,088		233,409
Interest expense		4,595		25,030
Total lease cost	$	170,784	$	544,294

Accrued Liabilities and Acquisition Payable (Tables)

9 Months Ended

Mar. 31, 2024

Accrued Liabilities and Acquisition Payable

Schedule of accrued liabilities

	March 31, 2024		June 30, 2023
Accrued interest	$	876,775		655,187
Accrued vendor liabilities		278,689		861,664
Accrued sales tax		35,491		47,070
Accrued expenses from sale of manufacturing operations		1,191,423		1,360,000
Other accrued liabilities		168,771		441,641

	$	2,551,149	$	3,365,562

Schedule of acquisition payable

March 31,

2024

June 30,

2023

Payments related to the acquisition of Cygnet

300,000

Convertible Promissory Notes and Notes Payable (Tables)

9 Months Ended

Mar. 31, 2024

Convertible Promissory Notes and Notes Payable

Schedule of convertible promissory notes and notes payable

	Maturity	March 31,			June 30,
	Date	2024			2023
Convertible Notes:
Promissory Note, 21- month term note, 18.11% interest payable with common stock and subordinate to the Convertible Notes	June 1, 2026	$	1,650,000		$	2,150,000
Less current portion of notes payable			-			1,254,167
Notes payable, net of current portion		$	1,650,000		$	895,833

Acquisition Notes:
Convertible Notes, 36-month term notes, 0% cash interest, collateralized with all the assets of the Company	October 31, 2025		3,500,000			3,500,000
Subordinated Promissory Notes, 24-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		5,750,000			5,750,000
Subordinated Promissory Notes, 12-month term notes, 4% cash interest, collateralized with all the assets of the Company	October 31, 2024		2,538,500			5,750,000
Total		$	11,788,500		$	15,000,000

Acquisition notes payable			8,288,500			5,750,000
Discount on acquisition notes payable, current			(239,938	)		(93,380	)
Acquisition notes payable, current			8,048,562			5,656,620

			3,500,000			9,250,000
Discount on acquisition notes payable, long-term			(507,607	)		(1,644,915	)
Acquisition notes payable, net of current and discount		$	2,929,393		$	7,605,085

Notes Payable:
Mortgage Loan, 10-year term note, 4.8% interest, collateralized by land and warehouse building	September 26, 2032	$	2,660,679		$	2,841,566
Promissory Note, 21-month term note, 10% cash interest and subordinate to the Convertible Notes	November 22, 2024		560,000			560,000
SBA note payable, 30-year term note, 6% interest rate and collateralized with all assets of the Company	October 6, 2021		3,729,096			3,910,767
Inventory consignment note, 60 monthly payments, with first payment due June 30, 2022, 3.5% interest rate and no security interest in the assets of the business	June 30, 2027		1,000,290			1,099,592
GF Note, 6 annual payments, with first payment due December 31, 2022, 3.5% interest rate and no security interest in the assets of the business	November 7, 2026		683,968			683,968
Total notes payable			8,715,063			9,095,893

Notes payable, current			5,473,136			1,326,214
Discount on notes payable, current			-			(24,193	)
Notes payable, current net of discount		$	5,473,136		$	1,302,021

Notes payable, long-term			3,160,450			7,769,679
Discount on notes payable, long-term			(16,123	)		(23,522	)
Notes payable, long-term, net		$	3,144,327		$	7,746,157

Related Notes Payable:
Marshall Loan, 2-year term note, 8.5% cash interest, 3.5% PIK interest and subordinate to the Convertible Notes. November of 2023 extended to 2.5 year term note	December 28, 2026	$	1,500,000		$	1,500,000

Discount on related party note payable, current			-			(70,644	)
Notes payable, current, net of discount		$	-		$	1,429,356

Discount on related party note payable, long term			(20,185	)		-
Notes payable, long term net		$	1,479,815		$	-

Total convertible notes payable, acquisition notes payable, notes payable and related party note payable		$	22,725,233		$	25,889,239

Schedule of future payments on notes payable

2024	$	6,399,920
2025		11,946,259
2026		3,766,391
2027		279,649
2028		293,565
2029		307,961
Thereafter		578,341
	$	23,572,086

Convertible notes, original discount and related fees and costs		(846,853	)
	$	22,725,233

Stock Based Compensation (Tables)

9 Months Ended

Mar. 31, 2024

Stock Based Compensation

Schedule of stock option activity

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2023		4,839,278		$	3.31		6.23	$	1,342,280
Forfeited		(532,000	)		4.34		-		-
Granted		400,000			1.47		1		32,000
Options outstanding at March31, 2024		4,791,278		$	3.36		5.44	$	-
Options exercisable at March 31, 2024 (vested)		4,557,361		$	2.92		5.50		-

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2022		4,279,888		$	3.05		7.42	$	4,919,182
Forfeited		(143,613	)		1.21		-		-
Granted		897,000			2.52		10		-
Options outstanding at March31, 2023		5,033,275		$	3.38		6.42	$	4,724,980
Options exercisable at March 31, 2023 (vested)		3,894,776		$	3.04		6.72		4,550,343

Schedule of assumptions

	March 31, 2024			March 31, 2023
Dividend rate		-			-
Risk free interest rate		3.95	%		2.07-4.06	%
Expected term		1			1
Expected volatility		63	%	70-77		%
Grant date stock price	$	1.47		$	3.87-5.30

Discontinued Operations Sale of Infusionz to Bloomios (Tables)

9 Months Ended

Mar. 31, 2024

Discontinued Operations Sale of Infusionz to Bloomios

Schedule of inventory or working capital

Tangible assets, inventory / working capital*	$	(1,344,000	)
Tangible assets, warehouse and manufacturing equipment, net of accumulated depreciation*		(679,327	)
Goodwill		(2,413,814	)
Intangible assets, net of accumulated amortization		(946,996	)
Accrued and incurred expenses related to the transaction and additional working capital*		(2,051,500	)
Consideration received, including cash, debt and equity, net		15,000,000
Total gain recognized	$	7,564,363

Schedule of due from Bloomios

Advance for payroll	$	50,000
Operating expense		652,891
Management fees		685,600
Excess working capital		388,565
Accrued Interest		247,885
Subtotal due from Bloomios	$	2,024,941
Reserve		1,179,498
Total due from Bloomios	$	845,443

Discontinued Operations Sale of Interactive Offers (Tables)

9 Months Ended

Mar. 31, 2024

Discontinued Operations Sale of Interactive Offers

Schedule of discontinued operations

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	-	$	604,625
Cost of sales	$	-	$	230,967
Sales, general and administrative expenses	$	-	$	971,657
Depreciation and amortization	$	-	$	1,798
Loss from discontinued operations	$	-	$	(928,215	)
Accounts receivable net of allowance for doubtful accounts	$	-	$	56,961
Fixed assets, net of accumulated depreciation	$	-	$	5,195
Total assets	$	-	$	405,721
Total liabilities	$	-	$	562,953

	Nine months ended March 31,
	2024			2023
Discontinued Operations
Revenue	$	158,147		$	1,054,935
Cost of sales	$	11,982		$	254,028
Sales, general and administrative expenses	$	339,205		$	1,646,949
Depreciation and amortization	$	-		$	455,357
Loss from discontinued operations	$	(193,040	)	$	(1,305,261	)
Accounts receivable net of allowance for doubtful accounts	$	-		$	45,314
Fixed assets, net of accumulated depreciation	$	-		$	3,593
Total assets	$	-		$	4,843,723
Total liabilities	$	-		$	415,660

Discontinued Operations - Sale of VitaMedica (Tables)

9 Months Ended

Mar. 31, 2024

Discontinued Operations - Sale of VitaMedica

Schedule of discontinued operations of VitaMedica

	Three months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	2,673,744	$	1,491,373
Cost of sales	$	587,142	$	201,409
Sales, general and administrative expenses	$	1,888,490	$	1,536,773
Depreciation and amortization	$	115,896	$	151,599
Income (loss) from discontinued operations	$	81,978	$	(149,966	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

	Nine months ended March 31,
	2024		2023
Discontinued Operations
Revenue	$	6,708,021	$	5,525,651
Cost of sales	$	1,480,486	$	1,094,753
Sales, general and administrative expenses	$	4,694,350	$	4,342,632
Depreciation and amortization	$	353,646	$	389,349
Income (loss) from discontinued operations	$	239,908	$	(307,899	)
Accounts receivable net of allowance for doubtful accounts	$	444,730	$	16,715
Fixed assets, net of accumulated depreciation	$	54,791	$	102,988
Total assets	$	4,901,950	$	4,420,502
Total liabilities	$	403,460	$	164,077

Background Information (Details Narrative) - USD ($)	9 Months Ended
Background Information (Details Narrative) - USD ($)	Mar. 31, 2024	Oct. 26, 2022
Equity Interest Purchase Agreement [Member]
Description of agreement	the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary Interactive Offers, LLC (“Interactive”) to Amplifyir Inc. (the “Buyer”). The purchase price for the Interests was One Million Two Hundred Fifty Thousand Dollars ($1,250,000), subject to certain customary post-closing adjustments. In addition, the Buyer is obligated to pay the Company two-and one- half percent (2.5%) of certain advertising revenues of Interactive for a two-year period post-closing
Stock Purchase Agreement [Member]
Description of agreement	the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers. The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments. In addition, the Buyers are obligated to pay the Company for services provided according to the Transition Services Agreement
Securities Purchase Agreement [Member]
Description of agreement	the Company entered into a securities purchase agreement with a single investor to acquire 55% of the equity interest in Cygnet Online, LLC, a Delaware limited liability corporation. The agreement also enables the Company to purchase the remaining 45% over the following two years. On September 1, 2023, the Company purchased the remaining 45% of Cygnet Online, LLC for $500,000 cash, 90,909 shares of the Company’s common stock and a $300,000 cash payment due on September 1, 2024. The Company has not released the shares to the seller
Infusionz LLC [Member]
Membership interest		100.00%
Reserves	$ 8,500,000

Acquisition (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Inventory	$ 8,801,901	$ 9,267,892
Property and equipment	7,520,005	7,442,623
Other asset	368,004	76,728
Note payable	(3,144,327)	(7,746,157)
Operating lease	(1,858,859)
Goodwill	10,847,791	$ 9,290,501
Cygnet Online, LLC [Member]
Cash	1,500,000
Convertible note payable, convertible at $6.00 per common share	1,050,000
Earnout payment	0
Common stock, 555,489 shares valued at $5.34 per common share, the closing price on April 1, 2022.	2,965,756
Total Purchase Price	5,515,756
Cash.	471,237
Accounts receivable	860,882
Inventory	2,337,208
Prepaid expenses	6,900
Property and equipment	7,602
Trade name	410,365
Other asset	6,545
Online sales channels	1,800,000
Vendor relationships	6,000,000
Accrued liabilities	(701,606)
Note payable	(7,298,353)
Operating lease	(422,479)
Total identifiable net assets	3,478,301
Goodwill	$ 2,037,455

Acquisition (Details 1) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Common stock, 90,909 shares valued at $1.79 per common share, the closing price on September 1, 2023.	$ 20,909	$ 20,216
Cygnet Online, LLC [Member]
Cash	800,000
Noncontrolling interest	505,147
Forgiveness of advances	89,416
Common stock, 90,909 shares valued at $1.79 per common share, the closing price on September 1, 2023.	162,727
Fair value of consideration transferred	$ 1,557,290

Acquisition (Details 2) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Inventory	$ 8,801,901	$ 9,267,892
Goodwill	10,847,791	$ 9,290,501
LuckyTail [Member]
Cash	2,000,000
Cash payment, 90 days after close	484,729
Cash payment, 180 days after close	469,924
Contingent consideration	112,685
Cash payment, working capital adjustment	460,901
Total Purchase Price	3,528,239
Inventory	460,901
Trade name	383,792
Customer list	1,834,692
Total identifiable net assets	2,679,385
Goodwill	$ 848,854

Acquisition (Details 3) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Note payable	$ 3,144,327	$ 7,746,157
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.	20,909	20,216
Inventory	8,801,901	9,267,892
Accrued liabilities	(2,551,149)	(3,350,541)
Line of credit	(3,938,772)	(882,845)
Goodwill	10,847,791	$ 9,290,501
E-Core, Inc. and its subsidiaries [Member]
Cash	100,000
Cash payment, 120 days	3,000,000
Note payable	5,189,718
Note payable 2	4,684,029
Convertible note payable, convertible at $4.81 per common share	2,418,860
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.	6,000,000
Total Purchase Price	21,039,765
Cash balance	1,014,610
Accounts receivable	6,699,945
Inventory	7,750,011
Prepaid expenses	75,721
Trade name	1,727,249
Customer relationships	5,080,305
Accrued liabilities	(192,051)
Line of credit	(7,201,079)
Total identifiable net assets	14,635,673
Goodwill	$ 6,404,092

Acquisition (Details 4) - USD ($)	3 Months Ended		9 Months Ended
Acquisition (Details 4) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Net revenue	$ 11,851,763	$ 22,401,826	$ 51,473,567	$ 50,202,975
LuckyTail [Member]
Net revenue	673,738	1,394,459	2,219,111	3,573,727
Cygnet [Member]
Net revenue	1,956,310	7,359,955	10,629,121	20,806,317
E-core [Member]
Net revenue	$ 9,221,715	$ 13,647,412	$ 38,625,335	$ 25,822,931

Acquisition (Details 5) - USD ($)	3 Months Ended		9 Months Ended
Acquisition (Details 5) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Cost of sales	$ 11,561,834	$ 14,305,698	$ 42,864,857	$ 35,555,746
Operating expenses	7,820,170	9,710,611	24,684,938	26,635,582
Net income (loss) from continuing operations	$ (4,200,593)	$ (1,483,624)	$ (7,959,793)	$ (263,119)
Basic income (loss) per common share	$ (0.20)	$ (0.09)	$ (0.39)	$ (0.09)
Proforma [Member]
Net sales			$ 70,080,648
Cost of sales			46,869,866
Operating expenses			28,637,381
Net income (loss) from continuing operations			$ 201,726
Basic income (loss) per common share			$ 0.01
Weighted average shares outstanding			17,973,278
Proforma Adjustments [Member]
Operating expenses			$ 567,721
Net income (loss) from continuing operations			$ (567,721)
Weighted average shares outstanding			(693,001)
LuckyTail [Member]
Net sales			$ 892,270
Cost of sales			137,088
Operating expenses			383,476
Net income (loss) from continuing operations			$ 371,706
Basic income (loss) per common share			$ 0
E-core [Member]
Net sales			$ 12,905,836
Cost of sales			11,177,032
Operating expenses			1,050,602
Net income (loss) from continuing operations			$ 660,860
Basic income (loss) per common share			$ 0.53
Weighted average shares outstanding			1,247,402
Upexi, Inc. [Member]
Net sales			$ 56,282,542
Cost of sales			35,555,746
Operating expenses			26,635,582
Net income (loss) from continuing operations			$ (263,119)
Basic income (loss) per common share			$ (0.02)
Weighted average shares outstanding			17,418,877

Acquisition (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
Acquisition (Details Narrative) - USD ($)	Sep. 01, 2023	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Interest consideration		$ 19,587	$ 4,595	$ 66,832	$ 25,030
LuckyTail [Member]
Interest consideration						$ 63,282
Total Purchase Price		3,528,239		3,528,239
Estimated purchase value of assets				150,000
Amortization expense monthly			44,619
Revenue for the business acquired				112,685
Increased purchase price		460,901		460,901
Cygnet Online, LLC [Member]
Forgiveness of advances		89,416		89,416
Total Purchase Price		$ 5,515,756		5,515,756
Structured cash payments				800,000
Increase purchase price in the first year				700,000
Valued for the contingency				0
Purchase price decreased				950,000
Unpaid the remaining amount related to additional acquisition				$ 300,000
Acquisition percentage rate		55.00%		55.00%
Remaining interest acquired		45.00%		45.00%
Common stock issued during period for acquisition value	$ 162,727			$ 162,727
Common stock issued during period for acquisition, shares	90,909			90,909
E-Core, Inc [Member]
Interest consideration				$ 900,339		969,098
Purchase price decreased amount		$ 33,803		33,803
Cash payment adjustment		$ 3,000,000		3,000,000
Unamortized debt discount				$ 810,545		$ 1,738,295
Interest expenses			363,415
Amortization expense monthly			$ 134,625

Inventory (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Inventory
Raw materials	$ 1,007,749	$ 0
Finished goods	7,794,152	11,557,128
Total inventory	$ 8,801,901	$ 11,557,128

Inventory (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Inventory (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Inventory
Inventory write off	$ 1,722,289	$ 0	$ 1,812,319	$ 34,328

Property and Equipment (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Property and equipment, gross	$ 10,325,160	$ 9,346,256
Less accumulated depreciation	(2,805,155)	(1,903,633)
Property and equipment	7,520,005	7,442,623
Furniture and Fixtures [Member]
Property and equipment, gross	216,143	172,663
Computer equipment [Member]
Property and equipment, gross	166,569	155,506
Internal use software [Member]
Property and equipment, gross	570,645	541,705
Manufacturing equipment [Member]
Property and equipment, gross	3,495,666	3,291,557
Leasehold improvements [Member]
Property and equipment, gross	1,554,771	0
Building [Member]
Property and equipment, gross	4,923,464	4,923,464
Vehicles [Member]
Property and equipment, gross	$ 261,362	$ 261,362

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Property and Equipment (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Property and Equipment
Depreciation expense	$ 264,817	$ 225,879	$ 901,521	$ 649,883

Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Cost	$ 16,825,938	$ 16,825,938
Accumulated Amortization	7,426,015	4,237,814
Net Book Value	9,469,923	12,588,124
Customer Relationship [Member]
Cost	$ 6,914,897	$ 6,914,897
Estimated Life	4 years	4 years
Accumulated Amortization	$ 2,597,503	$ 1,300,958
Net Book Value	4,317,394	5,613,939
Trade Name [Member]
Cost	$ 2,111,041	$ 2,111,041
Estimated Life	5 years	5 years
Accumulated Amortization	$ 628,512	$ 311,856
Net Book Value	1,482,529	1,799,185
Online sales channels [Member]
Cost	$ 1,800,000	$ 1,800,000
Estimated Life	2 years	2 years
Accumulated Amortization	$ 1,800,000	$ 1,125,000
Net Book Value	0	675,000
Vender relationships [Member]
Cost	$ 6,000,000	$ 6,000,000
Estimated Life	5 years	5 years
Accumulated Amortization	$ 2,400,000	$ 1,500,000
Net Book Value	3,600,000	$ 4,500,000
Tytan Tiles Patents [Member]
Cost	$ 70,000
Estimated Life	15 years
Accumulated Amortization	$ 0
Net Book Value	$ 70,000

Intangible Assets (Details 1) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Intangible assets	$ 9,469,923	$ 12,588,124
CustomerRelationship [Member] \| E core [Member]
Intangible assets		5,080,205
Trade Name [Member]
Intangible assets		383,792
Trade Name [Member] \| E core [Member]
Intangible assets		1,727,249
Customer Relationships [Member]
Intangible assets		1,834,692
Intangible Assets from Purchase
Intangible assets		2,218,484
Intangible Asset from Purchage [Member] \| E core [Member]
Intangible assets		$ 6,807,454

Intangible Assets (Details 2) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Intangible Assets
June 30, 2024	$ 838,900
June 30, 2025	3,355,599
June 30, 2026	3,355,599
June 30, 2027	1,754,640
June 30, 2028	115,018
June 30, 2029	4,667
Thereafter	45,500
Finite-Lived Intangible Assets, Net	$ 9,469,923	$ 12,588,124

Intangible Assets (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Intangible Assets (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Intangible Assets
Amortization of intangible assets	$ 1,062,734	$ 1,124,500	$ 3,188,201	$ 2,709,167

Prepaid Expense and Other Current Assets (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Prepaid expenses and other assets	$ 720,582	$ 1,307,299
Other receivable [Member]
Prepaid expenses and other assets	207,555	144,765
Insurance [Member]
Prepaid expenses and other assets	84,249	187,949
Prepayment to vendors [Member]
Prepaid expenses and other assets	68,143	239,970
Deposit on services [Member]
Prepaid expenses and other assets	21,000	45,678
Prepaid monthly rent [Member]
Prepaid expenses and other assets	22,500	27,813
Other deposits [Member]
Prepaid expenses and other assets	0	70,826
Prepaid sales tax [Member]
Prepaid expenses and other assets	0	70,021
Stock issued for prepaid interest on convertible note payable
Prepaid expenses and other assets	161,189	465,595
Other prepaid expenses [Member]
Prepaid expenses and other assets	$ 155,946	$ 31,000

Operating Leases (Details)	Mar. 31, 2024 USD ($)
Operating Leases
2024	$ 131,679
2025	508,665
2026	529,284
2027	268,530
2028	246,013
Thereafter	21,114
Total undiscounted future minimum lease payments	1,705,285
Less: Imputed interest	(137,670)
Accrued adverse lease obligation	291,244
Present value of operating lease obligation	$ 1,858,859

Operating Leases (Details 1)	9 Months Ended
Operating Leases (Details 1)	Mar. 31, 2024
Operating Leases
Weighted average remaining lease term	43 months
Weighted average incremental borrowing rate	5.00%

Operating Leases (Details 2) - USD ($)	3 Months Ended		9 Months Ended
Operating Leases (Details 2) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Operating Leases
Operating lease cost	$ 148,794	$ 99,101	$ 462,496	$ 285,855
Amortization of ROU assets	144,983	67,088	455,006	233,409
Interest expense	19,587	4,595	66,832	25,030
Total lease cost	$ 313,364	$ 170,784	$ 984,334	$ 544,294

Operating Leases (Details Narrative) - USD ($)	9 Months Ended
Operating Leases (Details Narrative) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Operating Leases
Operating lease payable	$ 803,558	$ 419,443
Lease term	1 year to 5 years
Lease impairment costs	$ 291,244

Accrued Liabilities and Acquisition Payable (Details) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Accrued Liabilities and Acquisition Payable
Accrued interest	$ 876,775	$ 655,187
Accrued vendor liabilities	278,689	861,664
Accrued sales tax	35,491	47,070
Accrued expenses from sale of manufacturing operations	1,191,423	1,360,000
Other accrued liabilities	168,771	441,641
Total Accrued Liabilities	$ 2,551,149	$ 3,365,562

Accrued Liabilities and Acquisition Payable (Details 1) - USD ($)	Mar. 31, 2024	Jun. 30, 2023
Acquisition Payable	$ 300,000	$ 0
Cygnet [Member]
Acquisition Payable	$ 300,000	$ 0

Convertible Promissory Notes and Notes Payable (Details) - USD ($)	9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Notes payable, current	$ 5,473,136	$ 1,302,021
Note payable	3,144,327	7,746,157
Notes Payable [Member]
Discount on notes payable, current	0	(24,193)
Notes payable, current	5,473,136	1,326,214
Notes payable, current net of discount	5,473,136	1,302,021
Discount on notes payable, long-term	(16,123)	(23,522)
Notes payable, long-term	3,160,450	7,769,679
Notes payable, long-term, net	3,144,327	7,746,157
Note payable	8,715,063	9,095,893
Notes Payable [Member] \| Promissory Note, 21- month term note [Member]
Note payable	$ 560,000	560,000
Maturity Date	Nov. 22, 2024
Notes Payable [Member] \| SBA Note Payable, 30-Year Term Note [Member]
Note payable	$ 3,729,096	3,910,767
Maturity Date	Oct. 06, 2021
Notes Payable [Member] \| Inventory Consignment Note, 60 Monthly Payments [Member]
Note payable	$ 1,000,290	1,099,592
Maturity Date	Jun. 30, 2027
Notes Payable [Member] \| GF Note, 6 annual payments [Member]
Note payable	$ 683,968	683,968
Maturity Date	Nov. 07, 2026
Notes Payable [Member] \| Mortgage Loan, 10-Year Term Note [Member]
Note payable	$ 2,660,679	2,841,566
Maturity Date	Sep. 26, 2032
Related Party Notes Payable [Member]
Total convertible notes payable, acquisition notes payable, notes payable and related party note payable	$ 22,725,233	25,889,239
Notes payable, long-term, net	1,479,815	0
Discount on related party notes payable, current	0	(70,644)
Notes payable, current, net of discount	0	1,429,356
Discount on related party notes payable, long-term	(20,185)	0
Related Party Notes Payable [Member] \| Marshall Loan, 2- Year Term Note [Member]
Note payable	$ 1,500,000	1,500,000
Maturity Date	Dec. 28, 2026
Convertible Notes [Member]
Less current portion of notes payable	$ 0	1,254,167
Notes payable, net of current portion	1,650,000	895,833
Convertible Notes [Member] \| Promissory Note, 21- month term note [Member]
Note payable	$ 1,650,000	2,150,000
Maturity Date	Jun. 01, 2026
Acquisition Notes [Member]
Total acquisition notes	$ 11,788,500	15,000,000
Acquisition notes payable	8,288,500	5,750,000
Total Acquisition notes payable	3,500,000	9,250,000
Discount on acquisition notes payable, current	(239,938)	(93,380)
Acquisition notes payable, current	8,048,562	5,656,620
Discount on acquisition notes payable, long-term	(507,607)	(1,644,915)
Acquisition notes payable, net of current and discount	2,929,393	7,605,085
Acquisition Notes [Member] \| Convertible Notes, 36-Month Term Notes [Member]
Note payable	$ 3,500,000	3,500,000
Maturity Date	Oct. 31, 2025
Acquisition Notes [Member] \| Subordinated Promissory Notes, 24-Month Term Notes [Member]
Note payable	$ 5,750,000	5,750,000
Maturity Date	Oct. 31, 2024
Acquisition Notes [Member] \| Subordinated Promissory Notes, 12-Month Term Notes [Member]
Note payable	$ 2,538,500	$ 5,750,000
Maturity Date	Oct. 31, 2024

Convertible Promissory Notes and Notes Payable (Details 1) - Notes Payable [Member]	Mar. 31, 2024 USD ($)
2024	$ 6,399,920
2025	11,946,259
2026	3,766,391
2027	279,649
2028	293,565
2029	307,961
Thereafter	578,341
Future payments, notes payable	23,572,086
Note original discount and related fees and costs	846,853
Future payments on notes payable, net	$ 22,725,233

Convertible Promissory Notes and Notes Payable (Details Narrative) - USD ($)	1 Months Ended				6 Months Ended	9 Months Ended
	Feb. 22, 2023	Oct. 31, 2022	Oct. 19, 2022	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2024	Mar. 31, 2023	Jan. 18, 2024	Jun. 30, 2023	Apr. 15, 2022	Aug. 01, 2021
Proceeds from related party						$ 0	$ 1,470,000
Common stock per share						$ 0.001		$ 0.9868	$ 0.001
Interest rate				8.50%
Upexi Enterprises, LLC [Member]
Promissory notes Principal amount		$ 5,750,000
Promissory notes maturity date		12 months
Common stock conversion price		$ 4.81
Interest rate		4.00%
Upexi Enterprises, LLC One [Member]
Promissory notes Principal amount		$ 5,750,000
Promissory notes maturity date		24 months
Interest rate		4.00%
Upexi Enterprises, LLC Two [Member]
Promissory notes Principal amount		$ 3,500,000
Promissory notes maturity date		36 months
Interest rate		0.00%
Promissory note Feb 22, 2023 [Member]
Promissory notes Principal amount	$ 560,000
Description of amendment to the promissory note	the Company executed an amendment to the promissory note with the investor, providing for the payment of interest only for 18 months at 12% per annum and thereafter the amortization of the note over a 12-month period, starting in June of 2025
Principal outstanding amount	$ 560,000
Common stock share purchase	125,000
Common stock per share	$ 1.10
Promissory note Feb 22, 2023 One [Member]
Promissory notes Principal amount	$ 2,150,000
Description of amendment to the promissory note	the Company executed an amendment to the promissory note with the investor, providing for the payment of interest only for 18 months at 12% per annum and thereafter the amortization of the note over a 12-month period, starting in June of 2025
Principal outstanding amount	$ 2,150,000
Common stock share purchase	500,000
Common stock per share	$ 1.10
Allan Marshall [Member]
Promissory notes Principal amount				$ 1,500,000
Description of amendment to the promissory note				the Company executed an amendment to the promissory note with Mr. Marshall, providing for the payment of interest only for 18 months at an interest rate of 12% per annum and thereafter the amortization of the note over a 12 month period, starting in June of 2025
Principal outstanding amount				$ 1,500,000
Common stock share purchase				375,000
Common stock per share				$ 1.10
Interest rate				8.50%
Interest rate pik				3.50%
VitaMedica Note [Member]
Promissory notes Principal amount											$ 500,000
Common stock per share											$ 5.00
Total convertible common stock											$ 100,000
Cygnet Note [Member]
Promissory notes Principal amount										$ 1,050,000
Common stock per share										$ 6.00
Convertible Notes, 36-Month Term Notes [Member]
Proceeds from related party				$ 7,500,000
Fund received from accredited investors				15,000,000
Proceeds from notes			$ 2,780,200	6,678,506
Description of agreement			The Company received a forbearance agreement from the bank until June 30, 2024 to return to compliance of the debt service ratio of 1.25 to 1, until that time the Company will pay an interest rate of 10% instead of the contractual terms of 4.8%
Holdback amount			$ 3,000,000
Warrants acquire				$ 56,250
Exercise price				$ 4.44
Gain in the change of derivative liability					$ 3,540
Redeem warrants				$ 250,000
Note Agreement [Member]
Holdback amount				$ 500,000

Related Party Transactions (Details Narrative)		1 Months Ended		9 Months Ended
Related Party Transactions (Details Narrative)	Jun. 13, 2024 USD ($)	Nov. 15, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($)	Mar. 31, 2024 USD ($) ft² $ / shares	Jan. 18, 2024 $ / shares	Jun. 30, 2023 $ / shares
Common stock per share \| $ / shares				$ 0.001	$ 0.9868	$ 0.001
Loan amount			$ 1,500,000
Interest rate			8.50%
Additional PIK			3.50%
Stock Purchase Agreement [Member] \| Subsequent Event [Member]
Purchase price for the stock	$ 6,000,000
Mr. Marshall [Member]
Description of amendment to the promissory note		the Company executed an amendment to the promissory note with Mr. Marshall, providing for the payment of interest only for 18 months at an interest rate of 12% per annum and thereafter, the amortization of the note over a 12-month period, starting in June of 2025
Principal outstanding amount		$ 1,500,000
Common stock share purchase \| shares		375,000
Common stock per share \| $ / shares		$ 1.10
MFA 2510 Merchant LLC [Member] \| Lease Agreement [Member]
Lease rent, per month				$ 20,060
Lease term				5 years
Warehouse and office space \| ft²				10,000

Equity Transactions (Details Narrative) - USD ($)		1 Months Ended			3 Months Ended	9 Months Ended
Equity Transactions (Details Narrative) - USD ($)	Sep. 01, 2023	Mar. 18, 2024	Jan. 18, 2024	Oct. 31, 2022	Mar. 31, 2023	Mar. 31, 2024	Jun. 30, 2023
Common stock per share			$ 0.9868			$ 0.001	$ 0.001
Common stock issued during period for value per share		$ 0.85
Common stock issued during period for employees, shares		100,000
Common stock issued during period for employees, value		$ 85,000
Common stock issued during period for repayment, shares			501,605
Common stock issued during period for repayment, value			$ 500,000		$ 607,004
Preferred stock, shares issued						500,000	500,000
Preferred stock, shares outstanding						500,000	500,000
Convertible Preferred Stock [Member]
Preferred stock, shares issued						500,000
Preferred stock convertible into shares of common stock ratio						The preferred stock is convertible into the Company’s common stock at a ratio of 1.8 shares of preferred stock for a single share
Preferred stock, shares outstanding						500,000
Cygnet Online, LLC [Member]
Common stock issued during period for acquisition value	$ 162,727					$ 162,727
Common stock per share	$ 1.79
Common stock issued during period for acquisition	90,909					90,909
E-Core Technologies Inc. [Member]
Common stock issued during period for acquisition value				$ 6,000,000
Common stock issued during period for acquisition				1,247,403

Stock Based Compensation (Details) - Stock Option [Member] - USD ($)	9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Beginning balance	4,839,278	4,279,888
Forfeited	(532,000)	(143,613)
Granted	400,000	897,000
Ending balance	4,791,278	5,033,275
Options exercisable, ending balance	4,557,361	3,894,776
Weighted average exercise price, beginning balance	$ 3.31	$ 3.05
Weighted average exercise price, forfeited	4.34	1.21
Weighted average exercise price, granted	1.47	2.52
Weighted average exercise price, ending balance	3.36	3.38
Weighted average exercise price, Options exercisable, ending balance	$ 2.92	$ 3.04
Weighted average remaining contractual life, beginning balance	6 years 2 months 23 days	7 years 5 months 1 day
Weighted average remaining contractual life, granted	1 year	10 years
Weighted average remaining contractual life, ending balance	5 years 5 months 8 days	6 years 5 months 1 day
Weighted average remaining contractual life, exercisable, ending balance	5 years 6 months	6 years 8 months 19 days
Aggregate intrinsic value, beginning balance	$ 1,342,280	$ 4,919,182
Aggregate intrinsic value, forfeited	0	0
Aggregate intrinsic value, granted	32,000	0
Aggregate intrinsic value ending balance	0	4,724,980
Aggregate intrinsic value, option exercisable, ending balance	$ 0	$ 4,550,343

Stock Based Compensation (Details 1) - $ / shares	9 Months Ended
Stock Based Compensation (Details 1) - $ / shares	Mar. 31, 2024	Mar. 31, 2023
Dividend rate	0.00%	0.00%
Risk free interest rate	3.95%
Expected term	1 year	1 year
Expected volatility	63.00%
Grant date stock price	$ 1.47
Minimum [Member]
Risk free interest rate		2.07%
Expected volatility		70.00%
Grant date stock price		$ 3.87
Maximum [Member]
Risk free interest rate		4.06%
Expected volatility		77.00%
Grant date stock price		$ 5.30

Stock Based Compensation (Details Narrative) - USD ($)	3 Months Ended						9 Months Ended
Stock Based Compensation (Details Narrative) - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2024	Mar. 31, 2023
Stock based compensation	$ 212,758	$ 330,584	$ 421,887	$ 1,146,299	$ 1,052,847	$ 927,326	$ 965,229	$ 3,126,472
Stock Based Compensation [Member]
Option exercised period							10 years
Estimated forfeitures rate							0.00%	0.00%
Stock based compensation	212,758			$ 1,146,299			$ 965,229	$ 3,126,472
Unrecognized compensation expense related to unvested stock options outstanding	$ 330,455						$ 330,455

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Details Narrative) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Income Taxes
Income tax benefit	$ 1,501,595	$ 496,880	$ 2,668,769	$ 449,828
Effective tax rate of federal and state income taxes	29.00%		29.00%
Losses attributable to federal taxable income	$ 10,472,757		$ 10,472,757

Discontinued Operations - Sale of Infusionz to Bloomios (Details) - Discontinued Operations [Member]	Oct. 26, 2023 USD ($)
Tangible assets, inventory / working capital	$ (1,344,000)
Tangible assets, warehouse and manufacturing equipment, net of accumulated depreciation	(679,327)
Goodwill	(2,413,814)
Intangible assets, net of accumulated amortization	(946,996)
Accrued and incurred expenses related to the transaction and additional working capital	(2,051,500)
Consideration received, including cash, debt and equity, net	15,000,000
Total gain recognized	$ 7,564,363

Discontinued Operations - Sale of Infusionz to Bloomios (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2023
Operating expenses	$ 7,820,170	$ 9,710,611	$ 24,684,938	$ 26,635,582
Discontinued Operations [Member]
Advance for payroll	50,000		50,000
Operating expenses			652,891
Management fees			685,600
Excess working capital	388,565		388,565
Accrued interest	247,885		247,885
Subtotal due from Bloomios	2,024,941		2,024,941
Reserve	1,179,498		1,179,498		$ 931,613
Total amounts due from Bloomios	$ 845,443		$ 845,443

Discontinued Operations - Sale of Infusionz to Bloomios (Details Narrative) - USD ($)	Mar. 31, 2024	Jun. 30, 2023	Oct. 28, 2022
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.	$ 20,909	$ 20,216
Discontinued Operations [Member]
Accounts receivable		845,443
Original principal amount			$ 5,500,000
Series D Convertible Preferred Stock, value			$ 8,500,000
Series D Convertible Preferred Stocks			85,000
Senior secured convertible debenture			$ 4,500,000
Reserve	$ 1,179,498	$ 931,613
Original principal amount, after OID			779,117
Common stock purchase warrant			2,853,910
Common stock, 1,247,402 shares valued at $4.81 per common share, the calculated closing price on October 21, 2022.			8,500,000
Valuation allowance			$ 8,500,000

Discontinued Operations - Sale of Interactive Offers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Fixed assets, net of accumulated depreciation	$ 264,817	$ 225,879	$ 901,521	$ 649,883
Discontinued Operations [Member]
Revenues	0	604,625	158,147	1,054,935
Cost of sales	0	230,967	11,982	254,028
Sales general and administrative expenses	0	971,657	339,205	1,646,949
Deprecation and amortization	0	1,798	0	455,357
Loss from discontinued operations	0	(928,215)	(193,040)	(1,305,261)
Accounts receivable net of allowance for doubtful accounts	0	56,961	0	45,314
Fixed assets, net of accumulated depreciation	0	5,195	0	3,593
Total assets	0	405,721	0	4,843,723
Total liabilities	$ 0	$ 562,953	$ 0	$ 415,660

Discontinued Operations - Sale of Interactive Offers (Details narrative)	1 Months Ended
	Aug. 31, 2023 USD ($)
Discontinued Operations Sale of Interactive Offers
Purchase price	$ 1,250,000

Discontinued Operations - Sale of VitaMedica (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Fixed assets, net of accumulated depreciation	$ 264,817	$ 225,879	$ 901,521	$ 649,883
Discontinued Operations One [Member]
Revenues	2,673,744	1,491,373	6,708,021	5,525,651
Cost of sales	587,142	201,409	1,480,486	1,094,753
Sales general and administrative expenses	1,888,490	1,536,773	4,694,350	4,342,632
Deprecation and amortization	115,896	151,599	353,646	389,349
Loss from discontinued operations	81,978	(149,966)	239,908	(307,899)
Accounts receivable net of allowance for doubtful accounts	444,730	16,715	444,730	16,715
Fixed assets, net of accumulated depreciation	54,791	102,988	54,791	102,988
Total assets	4,901,950	4,420,502	4,901,950	4,420,502
Total liabilities	$ 403,460	$ 164,077	$ 403,460	$ 164,077

Discontinued Operations - Sale of VitaMedica (Details narrative) - USD ($)	1 Months Ended	9 Months Ended
	Aug. 31, 2023	Mar. 31, 2024
Purchase price	$ 1,250,000
Description of stock purchase agreement		Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc.
Chief Executive Officer [Member]
Purchase price		$ 6,000,000

Subsequent Events (Details Narrative) - Subsequent Event [Member]	1 Months Ended
	May 28, 2024	Apr. 30, 2024
Description of lease agreement		the Company entered into a lease agreement with MFA 2510 Merchant LLC. The lease is a for approximately 10,000 square feet of warehouse and office space, located in Odessa, Florida, for $20,060 per month on a triple net basis
Description of sale agreement	the Company entered into an agreement to sell its Clearwater warehouse for a sale price of 4,300,000. The Company expects to receive approximately $1,350,000 after repayment of the mortgage and transaction expenses. The $1,350,000 will be used for working capital and the repayment of other outstanding debts
Chief Executive Officer
Initial lease term		five years