FIEE Reports H1 FY2025 Unaudited Financial Results

HONG KONG, Aug. 14, 2025 /PRNewswire/ -- FiEE, Inc. (NASDAQ:FIEE) ("FiEE" or the "Company"), a technology company integrating IoT, connectivity and AI to redefine brand management solutions in the digital era, today announced its unaudited financial results for the three and six months ended June 30, 2025.

Operational and Financial Highlights for the Three and Six Months Ended June 30, 2025

• Net sales for the three months ended June 30, 2025 were $44,993, a significant increase from
  $125 for the three months ended March 31, 2025. The increase in net sales was primarily a result of the Company's strategic transition from legacy hardware operations to software-as-a-service ("SaaS") solutions, with a new focus on integrating artificial intelligence and data analytics into content creation and brand management. The Company secured its first customer orders and generated initial sales, marking a critical milestone in the strategic pivot. Net sales for the six months ended June 30, 2025 were $45,118, down from $639,893 year-over-year, which was primarily due to our strategic business transformation.
• As of June 30, 2025, the Company onboarded 245 customers, representing a considerable increase compared to 1 new customer upon launching its SaaS services on March 28, 2025, illustrating the early traction of our new SaaS products. Prepaid subscription fees received from customers for our SaaS service were $1.5 million which highlights the early traction of our SaaS offerings.
• Gross profit for the six months ended June 30, 2025 was $438, down from $207,259 for the six months ended June 30, 2024, which was primarily due to our strategic business transformation.
• Net loss for the six months ended June 30, 2025 was $1,013,590 representing a significant improvement as compared to a net loss of $3,746,867 in the first half of 2024. The narrowing of our net loss highlights the early success of our strategic transition.
• Net cash provided by operating activities for the six months ended June 30, 2025 was $171,955, comparing with the cash used from operating activities of $2,878,506 in the first half of 2024.

Rafael Li, Chief Executive Officer of FiEE, commented, "FiEE has been undergoing a strategic transition from legacy hardware operations to redefine brand management solutions in the digital era. We are glad to present the first financial statement after the strategic transformation. Despite being at the early stage of the transition, we have seen several encouraging figures, showing that our hardship has paid off and resulted in early successes. First, we have achieved new customers adopting our SaaS solution in the second quarter. Prepaid subscription fees received from customers for our SaaS service were $1.5 million, which marked a significant milestone for our new business. We anticipate adding additional customers in the near future with increasingly sophisticated product offerings. In addition, we have greatly reduced our net loss in the first half of 2025, as a result of our strengthened cost management and new business development."

Li further mentioned, "New growth areas required upfront capital associated with market entry and product deployment. To accelerate our growth, we have recently acquired advanced technologies including product authentication featuring systematic algorithmic verification and certification, high-efficiency file transfer systems and KYC solutions for robust and efficient data protection, powering our SaaS products. We are providing comprehensive protection for original creations, digital arts, NFTs, and exclusive content, aiming to cultivate an expansive KOL community. This marks an exciting development for our Company, and we are confident in our path towards sustainable growth and enduring value."

Financial Results for the Six Months Ended June 30, 2025

Net Sales were $45,118, compared to $639,893 in the same period of fiscal year 2024.

Gross profit was $438, compared to $207,259 in the same period of 2024.

Gross margin was 1.0%, compared to 32.4% in the same period of 2024. It was not representative of future trends, as the new business was in its initial launch phase during this period, incurring elevated upfront costs associated with market entry, product deployment, and operational ramp-up.

Operating expenses were $1,008,470, representing a decrease of 74.6% from $3,965,424 in the same period of 2024.

• Selling and marketing expenses were $16,811, representing a decrease of 74.6% from $66,171 in the same period of 2024. The decrease was primarily due to (i) reduction in sales support costs in 2024 and (ii) lower operational scale during the initial phases of business development in 2025. For the remainder of fiscal year 2025, our selling and marketing expenses may fluctuate based on actual net sales and the timing and scope of marketing programs.
• General and administrative expenses were $944,240, representing a decrease of 40.4% from $1,585,030 in the same period of 2024. The decrease was primarily due to our business transformation from hardware-focus to software-focus, along with the Company's cost reduction efforts.
• Research and development expenses were $47,419, representing an decrease of 58.1% from $113,294 in the same period of 2024. The research and development expenses incurred in 2025 were primarily used for software subscriptions and support costs. In the first quarter of 2025, we partnered with a new vendor to develop the "FiEE All-in-One Media Operations SaaS Platform" which is designed to provide content creation, multi-platform publishing, data analytics, and collaboration tools for media teams and individual creators.

Operating loss was $1,008,032, representing a reduction of loss by 73.2% comparing with the same period of 2024.

Net loss was $1,013,590, representing a reduction of loss by 72.9% comparing with the same period of 2024.

Diluted net loss per share was $0.2, representing a reduction of loss by 84.3% comparing with the same period of 2024.

Total cash and cash equivalents were $4,504,079, compared to $30,162 as of December 31, 2024.