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