Fitell's Business Segments

Fitell Corporation is a Cayman Islands exempted company incorporated on April 11, 2022. It operates primarily through its consolidated subsidiaries in Australia, including its wholly-owned subsidiary GD Wellness Pty Ltd, which has been active since July 22, 2005. Fitell also owns KMAS Capital and Investment Pty Ltd, an Australian company incorporated on July 26, 2016, which holds all issued shares of GD Wellness. The company conducts its business in Australian dollars, while its financial statements are presented in U.S. dollars. Fitell completed its initial public offering on August 10, 2023, and has adopted a dual-class share structure consisting of Class A and Class B ordinary shares. A share consolidation effective September 23, 2025, adjusted the par value and number of shares. Fitell manages its share capital and corporate governance under Cayman Islands law and U.S. securities regulations. Its financial reporting and disclosures comply with SEC requirements and include cautionary statements regarding forward-looking information related to its financial performance, business strategy, and objectives.

The registrant operates primarily in the fitness equipment business segment, selling products directly to customers through both online and offline channels. For the fiscal year ended June 30, 2025, approximately 65.95% of total sales were generated through their e-commerce website, GymDirect.com.au, which features three proprietary brands under Gym Direct as well as other fitness equipment retail brands. Offline sales are conducted via phone, email, and showroom interactions, targeting large and repeat customers such as fitness studios, gyms, and government institutions, with opportunities for product viewing and customization. Marketing efforts employ a multi-channel approach, including Google Search, social media, affiliate programs, email, SMS marketing, and a loyalty program named Gym Direct Lion Rewards Club. The registrant also operates a Licensing Business segment that markets to prospective licensees through social, digital, search, referral, and experiential marketing. This segment offers turnkey solutions with high-quality products and licenses trademarks including Gym Direct, Muscle Motion, FleetX, and Rapid Motion. The introduction of 1FinalRound and smart connected fitness equipment, accessible via the corporate website and application, expands marketing reach beyond physical licensee locations. The registrant continues to focus on product design and innovation to enhance the customer experience.