Executive Summary / Key Takeaways

• GPO Plus, Inc. ($GPOX) is an AI-powered distributor revolutionizing the fragmented $327 billion convenience store and gas station market through its Direct Store Delivery (DSD) model and proprietary PRISM+ AI technology.
• The company has demonstrated significant revenue growth, with annual revenue reaching $4.74 million for the fiscal year ending April 30, 2025, a 9% increase year-over-year, and a remarkable 560% year-over-year growth in the prior fiscal year.
• Operational efficiency is improving, evidenced by a 30% reduction in operating expenses and an 87% improvement in gross margins, from 15% to 28%, for the quarter ending January 31, 2025.
• Strategic initiatives, including the national rollout of field teams, the launch of the DISTRO+ Wholesale Portal, and expansion of regional hubs, aim to scale the business to over 20,000 national retail partners and generate recurring revenue.
• Despite strong operational progress, GPOX faces financial challenges, including a working capital deficit and a need for additional capital, alongside a material weakness in internal controls over financial reporting.

The AI-Powered Revolution in Convenience Distribution

GPO Plus, Inc. ($GPOX) is emerging as a technology-driven force in the often-overlooked and highly fragmented distribution landscape for gas stations and convenience stores. The company's core mission is to consolidate the 15% to 20% of products in this market—ranging from car chargers to specialty snacks—that are typically serviced by numerous regional vendors and distributors. This segment alone represents a substantial $50 billion opportunity within the broader $327 billion in-store sales convenience store market. GPOX aims to empower independent retailers with competitive service and pricing, mirroring the advantages enjoyed by larger chains, thereby addressing significant pain points such as supply chain complexities, minimum order requirements, and excess inventory.

The company's overarching strategy centers on an innovative AI-driven Direct Store Delivery (DSD) model. This approach seeks to revolutionize distribution by leveraging advanced technology to optimize efficiency and maximize reach across a vast network of retail partners. GPOX believes its ability to pivot and integrate new technology provides a significant competitive advantage over many established competitors whose systems were set up decades ago.

Technological Edge: PRISM+ AI and the DSD Model

At the heart of GPOX's operational strategy is its proprietary AI technology platform, PRISM+ (Predictive Route Inventory and Service Management). This in-house AI is specifically designed to streamline the entire distribution process, offering tangible benefits that differentiate GPOX in the market. PRISM+ supports efficient delivery, inventory management, and data analytics, enabling GPOX to reliably and effectively meet the dynamic needs of its partners.

The tangible benefits of PRISM+ AI are manifold. It provides near-real-time inventory visibility, sales analytics, and streamlined replenishment cycles, which are critical for reducing overhead costs and increasing profitability for both GPOX and its retail partners. This technological foundation underpins strategic initiatives such as the DISTRO+ Wholesale Portal, a self-service e-commerce platform. This portal leverages PRISM+ AI to open new sales channels, empower independent sales organizations (ISOs), and dramatically expand the company's addressable market. Furthermore, GPOX is upgrading its warehouses to ambient temperature-controlled facilities, which will enable an expanded product catalog, including sensitive items like apparel, and is projected to increase annualized revenues by $3.0 million to $5.0 million over the next year. The launch of Regional Hubs and DISTRO+ Cash + Carry locations further enhances service efficiency and unlocks additional revenue channels by serving smaller retailers and maximizing the utility of existing storage spaces.

A History of Transformation and Growth

GPO Plus, Inc. has undergone a notable transformation, evolving from earlier periods of fluctuating revenue to its current focused, technology-driven model. After reporting no revenue in 2020, the company saw a significant increase to $826,731 in 2021 and $1.16 million in 2022. While revenue dipped to $653,516 in 2023, the strategic shift has since propelled a substantial surge, with revenues reaching $4.36 million in 2024 and $4.74 million for the fiscal year ending April 30, 2025. This represents a 9% increase from the previous year, driven by improved sales performance. The company also achieved a remarkable 560% year-over-year revenue growth in the fiscal year ending April 30, 2024.

Recent quarterly results further underscore this positive trajectory. For the three-month period ending January 31, 2025, GPOX reported record quarterly revenue of $1.23 million, an increase of $143,183 compared to the same period in 2024. This growth was accompanied by a significant reduction in the cost of revenue, leading to an 87% improvement in gross margins, which rose from 15% to 28% year-over-year for that quarter. Operating expenses also saw a 30% reduction year-over-year for the nine months ending January 31, 2025, reflecting a commitment to disciplined, scalable growth.

Financial Performance: Growth Amidst Investment

While GPOX demonstrates compelling top-line growth and improving operational efficiency, its financial statements reflect a company in an investment phase. For the fiscal year ending April 30, 2025, the company reported a gross profit of $1.13 million, a 36% increase over the prior year, attributed to higher revenue and effective cost management. The gross profit ratio stood at 0.24 for 2025. However, GPOX recorded an operating loss of $3.20 million for the same period, an improvement of 20% over the prior year due to reduced operating expenses. The net loss for the fiscal year 2025 was $4.34 million, a 12% decrease from the previous year, resulting in a basic and diluted net loss per common share of $(0.07), an improvement from $(0.11) in the previous year.

Cash flow remains a critical area for monitoring. For the fiscal year ending April 30, 2025, net cash used in operating activities was $1.04 million, and free cash flow was -$1.11 million.

The company's balance sheet as of April 30, 2025, shows cash and cash equivalents of $336,249, but also a working capital deficit of $4.84 million as of January 31, 2025. This highlights the ongoing need for additional capital resources to support continued operations and fund its ambitious growth strategy.

Competitive Arena: Carving a Niche with Technology

GPOX operates in a competitive landscape characterized by both large, established players and niche specialists. In the broader Group Purchasing Organization (GPO) market, particularly healthcare, companies like Premier, Inc. (NASDAQ: PINC) and Vizient dominate with extensive networks and comprehensive service offerings. Premier, Inc., a leading technology-driven healthcare improvement company, boasts a market capitalization of $2.18 billion and focuses on supply chain solutions and performance improvement for a wide array of healthcare providers. Vizient, the nation's largest provider-driven healthcare performance improvement company, manages a contract portfolio representing $156 billion in annual purchasing volume and serves over two-thirds of acute care providers. These larger entities benefit from significant economies of scale and established relationships, which translate into robust financial performance and strong bargaining power.

GPOX, with its focus on the convenience store and gas station sector, carves out a distinct niche. While it does not directly compete with the scale of Premier or Vizient in healthcare, its technology-driven DSD model aims to disrupt a segment where traditional distribution methods have remained largely unchanged for decades. GPOX's PRISM+ AI, with its capabilities in optimizing delivery, inventory, and data analytics, provides a competitive advantage by offering streamlined, data-driven solutions that many older, less agile competitors cannot easily replicate. This technological differentiation allows GPOX to offer a value proposition centered on efficiency and improved profitability for independent retailers, a segment often underserved by larger distributors.

In the hemp/CBD sector, GPOX's cbdGPO initiative faces competition from companies like CV Sciences (CVSI), which primarily focuses on product sales. GPOX's strength here lies in its structured group purchasing approach, potentially offering better procurement services through its GPO model. However, GPOX's smaller scale and limited brand recognition compared to larger, more diversified players present vulnerabilities, potentially leading to higher operational costs and increased customer acquisition efforts. The company's current ratio of 0.04 and quick ratio of 0.02 indicate significant liquidity challenges, which could hinder its ability to compete effectively against more financially robust rivals.

Outlook and Strategic Trajectory

GPOX is positioning itself for substantial future growth, underpinned by a clear strategic roadmap. The company's CEO, Brett H. Pojunis, has articulated a vision to scale to over 20,000 national retail partners, emphasizing expansion and profitability gains. This ambitious target is supported by ongoing strategic initiatives, including the activation of field teams in Las Vegas as the initial phase of a national rollout, with the goal of onboarding 200 new stores and establishing a scalable model for nationwide expansion. The launch of a Career Portal is also designed to attract high-performing, revenue-driving talent, particularly in sales and expansion roles, to fuel this growth.

The company's shareholder updates highlight strategic initiatives aimed at generating recurring revenue and fostering sustainable, long-term growth. The recent improvements in gross margins and reduction in operating expenses demonstrate GPOX's operational refinement as it prepares to scale. The market opportunity identified by Water Tower Research, valuing the overlooked segment at $327 billion, further validates the company's strategic focus.

However, the recent notification of late filing for the Quarterly Report on Form 10-Q for the quarter ended July 31, 2025, introduces a degree of uncertainty. The company cited a need for "additional time to complete certain disclosures and analyses" and anticipates a "significant change in results of operations from the corresponding period for the last fiscal year" in the upcoming report. This suggests that while operational momentum is present, financial reporting and internal controls may require further strengthening.

Risks to Consider

Investing in GPOX carries inherent risks. The company's current financial position, marked by consistent net losses and negative operating cash flow, indicates a reliance on external financing to sustain operations and fund growth. The working capital deficit of $4.84 million as of January 31, 2025, underscores liquidity concerns and the ongoing need for additional capital.

The late filing of the 10-Q report, coupled with the anticipated "significant change" in results, points to potential challenges in financial reporting and internal controls. A material weakness in internal controls over financial reporting due to a lack of segregation of duties has also been identified. These factors could impact investor confidence and the company's ability to access capital on favorable terms. Furthermore, GPOX operates in a competitive industry, and its ability to execute its ambitious expansion plans and achieve profitability will depend on its capacity to effectively leverage its technology, manage operational costs, and navigate market dynamics.

Conclusion

GPO Plus, Inc. presents a compelling, albeit speculative, investment thesis centered on its AI-powered Direct Store Delivery model and its strategic focus on the underserved convenience store and gas station distribution market. The company's proprietary PRISM+ AI technology offers a genuine differentiator, promising enhanced efficiency and profitability for retailers in a fragmented industry. Recent financial performance, characterized by strong revenue growth and improving gross margins, suggests operational traction. The ambitious vision to scale to over 20,000 national retail partners indicates a significant long-term growth opportunity.

However, GPOX is in a critical investment phase, marked by ongoing net losses, negative cash flow, and a need for additional capital. The recent delay in its quarterly filing and identified internal control weaknesses highlight the importance of diligent oversight and execution. For investors with a high-risk tolerance and a long-term perspective, GPOX represents an opportunity to participate in the potential transformation of a substantial market segment through technological leadership. The company's ability to convert its operational momentum and technological advantages into sustained profitability and robust cash flow will be paramount to realizing its full investment potential.