IPW iPower Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (date of earliest event reported): November 14, 2024

 

iPower Inc.

(Exact name of registrant as specified in its charter)

 

Nevada		001-40391		82-5144171
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

8798 9th Street

Rancho Cucamonga, CA 91730

(Address Of Principal Executive Offices) (Zip Code)

 

(626) 863-7344

(Registrant’s Telephone Number, Including Area Code)

 

___________________________

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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 $0.001 per share		IPW		The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. ☐

 

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On November 14, 2024, iPower Inc., a Nevada corporation (the “Company”), issued a press release announcing its earnings for the first fiscal quarter ended September 30, 2024. The press release also announced that the Company will hold a conference call to discuss its first quarter financial results on November 14, 2024, at 4:30 p.m. Eastern Time.

 

The conference call details are as follows:

 

Date:	Thursday, November 14, 2024
Time:	4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time
Dial-in Registration Link:	https://register.vevent.com/register/BIca122e92db6f48849b4b74b2e91dd421
Live Webcast Registration Link:	https://edge.media-server.com/mmc/p/w3k9ff9r

 

The conference call will be broadcast live and will also be available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.

 

A copy of the press release is attached hereto and incorporated herein by reference.

 

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general language in such filing, unless it is specifically identified therein as being incorporated therein by reference.

 

Item 9.01.

Financial Statement and Exhibits.

 

(d) Exhibits.

 

Exhibit No.		Description
99.1		Press Release dated November 14, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

 

 

 

SIGNATURES

 

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

 

	IPOWER, INC.
Dated: November 14, 2024
	By:	/s/ Kevin Vassily
	Name:	Kevin Vassily
	Title:	Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

 

 

iPower Reports Fiscal First Quarter 2025 Results

 

Management to Host Conference Call Today at 4:30 p.m. Eastern Time

 

RANCHO CUCAMONGA, CA, November 14, 2024 -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven ecommerce services provider and online retailer, today announced its financial results for the fiscal first quarter ended September 30, 2024.

 

Fiscal Q1 2025 Results vs. Year-Ago Quarter

 

	·	Total revenue was $19.0 million compared to $26.5 million.
	·	Gross profit was $8.5 million compared to $11.8 million, with gross margin up 30 bps to 44.7%.
	·	Net loss attributable to iPower was $2.0 million or $(0.06) per share, compared to net loss attributable to iPower of $1.3 million or $(0.04) per share.
	·	As of September 30, 2024, total debt was reduced by 45% to $3.5 million compared to $6.3 million as of June 30, 2024.

 

Management Commentary

 

“We maintained solid momentum during the quarter with our optimization initiatives and SuperSuite supply chain business,” said Lawrence Tan, CEO of iPower. “We advanced our strategic plan by investing in key areas of the business, establishing a strong foundation for sustainable growth and improved profitability. We also expanded our sales channels by launching on AliExpress, while continuing to deepen our presence on newer channels like TikTok Shop and Temu. Additionally, we shipped our first purchase order from one of our new suppliers in South East Asia, underscoring our commitment to diversifying our supply chain and building a more resilient and efficient global network.

 

“In our SuperSuite business, we continued to work through a robust pipeline of prospective partners, integrating critical elements across logistics, technology, and marketing to elevate our comprehensive service offerings. At the end of the quarter, we announced the launch of our SaaS platform, which we believe will enhance supplier interactions, streamline operations, and more effectively align partners with market demands. Looking ahead, we will continue to bolster each aspect of the supply chain to deliver a comprehensive, end-to-end solution for supply chain management, ecommerce and logistics.”

 

iPower CFO, Kevin Vassily, added, “We faced a challenging comp this quarter due to record revenue in the year-ago period where we increased promotions to sell down inventory. Nonetheless, we continued to benefit from the optimization initiatives implemented last fiscal year, leading to gross margin expansion and lower operating expenses for the quarter. We also reduced our total debt obligations by nearly $3 million in fiscal Q1 and recently extended our credit facility with J.P. Morgan Chase to further strengthen our balance sheet. We believe these actions, combined with the continued growth of our SuperSuite business and optimized cost structure, will enable us to deliver on our goals in fiscal 2025.”

 

 

 

 

Fiscal First Quarter 2025 Financial Results

 

Total revenue in the fiscal first quarter of 2025 was $19.0 million compared to $26.5 million for the same period in fiscal 2024. The decrease was driven primarily by higher promotional activity in the year-ago period related to selling down inventory. This was partially offset by growth in iPower’s SuperSuite supply chain offerings.

 

Gross profit in the fiscal first quarter of 2025 was $8.5 million compared to $11.8 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin increased 30 basis points to 44.7% compared to 44.4% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations.

 

Total operating expenses in the fiscal first quarter of 2025 improved 14% to $11.2 million compared to $13.0 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses resulting from a combination of lower marketing and promotional activity. This was partially offset by approximately $1.8 million in write downs of certain inventory and credit loss reserves.

 

Net loss attributable to iPower in the fiscal first quarter of 2025 was $2.0 million or $(0.06) per share, compared to net loss attributable to iPower of $1.3 million or $(0.04) per share for the same period in fiscal 2024.

 

Cash and cash equivalents were $2.6 million at September 30, 2024, compared to $7.4 million at June 30, 2024. As a result of the Company’s debt paydown, total debt was reduced by 45% to $3.5 million compared to $6.3 million as of June 30, 2024.

 

Conference Call

 

The Company will hold a conference call today, November 14, 2024, at 4:30 p.m. Eastern Time to discuss its results for the fiscal first quarter ended September 30, 2024.

 

iPower’s management will host the conference call, which will be followed by a question-and-answer session.

 

The conference call details are as follows:

 

Date: Thursday, November 14, 2024
Time: 4:30 p.m. Eastern Time
Dial-in registration link: here

Live webcast registration link: here

 

Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com.

 

The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.

 

 

 

 

About iPower Inc.

 

iPower Inc. is a tech and data-driven online retailer, as well as a provider of value-added ecommerce services for third-party products and brands. iPower's capabilities include a full spectrum of online channels, robust fulfillment capacity, a nationwide network of warehouses, competitive last mile delivery partners and a differentiated business intelligence platform. iPower believes that these capabilities will enable it to efficiently move a diverse catalog of SKUs from its supply chain partners to end consumers every day, providing the best value to customers in the U.S. and other countries. For more information, please visit iPower's website at www.meetipower.com.

 

Forward-Looking Statements

 

All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower's Annual Report on Form 10-K, as filed with the SEC on September 20, 2024, and in its other SEC filings, including Quarterly Reports on Form 10-Q and Current Report on Form 8-K.

 

Investor Relations Contact

 

Sean Mansouri, CFA or Aaron D’Souza

Elevate IR

(720) 330-2829

IPW@elevate-ir.com

 

 

 

 

 

 

 

 

 

 

 

iPower Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

As of September 30, 2024 and June 30, 2024

 

		September 30,				June 30,
		2024				2024
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalent		$	2,577,305			$	7,377,837
Accounts receivable, net			12,278,182				14,740,093
Inventories, net			8,668,497				10,546,273
Prepayments and other current assets, net			2,808,914				2,346,534
Total current assets			26,332,898				35,010,737
Non-current assets
Right of use - non-current			5,226,888				6,124,163
Property and equipment, net			337,036				370,887
Deferred tax assets, net			3,090,525				2,445,605
Goodwill			3,034,110				3,034,110
Intangible assets, net			3,468,357				3,630,700
Other non-current assets			905,673				679,655
Total non-current assets			16,062,589				16,285,120
Total assets		$	42,395,487			$	51,295,857
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, net		$	8,352,699			$	11,227,116
Other payables and accrued liabilities			3,507,224				3,885,487
Lease liability - current			1,686,889				2,039,301
Short-term loan payable			–				491,214
Short-term loan payable - related party			350,000				350,000
Revolving loan payable, net			–				5,500,739
Income taxes payable			285,963				276,158
Total current liabilities			14,182,775				23,770,015
Non-current liabilities
Long-term revolving loan payable, net			3,131,955				–
Lease liability - non-current			3,945,935				4,509,809
Total non-current liabilities			7,077,890				4,509,809
Total liabilities			21,260,665				28,279,824
Commitments and contingency			–				–
Stockholders' Equity
Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2024 and June 30, 2024			–				–
Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 shares issued and outstanding at September 30, 2024 and June 30, 2024			31,361				31,361
Additional paid in capital			33,669,843				33,463,883
Accumulated deficits			(12,259,882	)			(10,230,601	)
Non-controlling interest			(41,040	)			(38,204	)
Accumulated other comprehensive loss			(265,460	)			(210,406	)
Total stockholders' equity			21,134,822				23,016,033
Total liabilities and stockholders' equity		$	42,395,487			$	51,295,857

 

 

iPower Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three Months Ended September 30, 2024 and 2023

 

		For the Three Months Ended September 30,
		2024				2023
		(Unaudited)				(Unaudited)
REVENUES
Product sales revenue		$	18,275,412			$	26,508,374
Service income			733,109				–
Total revenues			19,008,521				26,508,374
COST OF REVENUES
Product costs			9,917,448				14,749,529
Service costs			603,176				–
Total cost of revenues			10,520,624				14,749,529
GROSS PROFIT			8,487,897				11,758,845
OPERATING EXPENSES:
Selling and fulfillment			5,914,808				10,063,471
General and administrative			5,319,523				2,964,051
Total operating expenses			11,234,331				13,027,522
LOSS FROM OPERATIONS			(2,746,434	)			(1,268,677	)
OTHER INCOME (EXPENSE)
Interest expenses			(139,962	)			(228,365	)
Loss on equity method investment			(919	)			(1,025	)
Other non-operating income (Loss)			218,686				(67,166	)
Total other expenses, net			77,805				(296,556	)
LOSS  BEFORE INCOME TAXES			(2,668,629	)			(1,565,233	)
PROVISION FOR INCOME TAX  BENEFIT			636,512				275,882
NET LOSS			(2,032,117	)			(1,289,351	)
Non-controlling interest			2,836				2,836
NET LOSS ATTRIBUTABLE TO IPOWER INC.			(2,029,281	)			(1,286,515	)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments			(55,054	)			(707	)
COMPREHENSIVE LOSS ATTRIBUTABLE TO IPOWER INC.		$	(2,084,335	)		$	(1,287,222	)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK
Basic and diluted			31,417,203				29,764,515
LOSSES PER SHARE
Basic and diluted		$	(0.06	)		$	(0.04	)

 

 

 

v3.24.3

Cover	Nov. 14, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 14, 2024
Entity File Number	001-40391
Entity Registrant Name	iPower Inc.
Entity Central Index Key	0001830072
Entity Tax Identification Number	82-5144171
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	8798 9th Street
Entity Address, City or Town	Rancho Cucamonga
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	91730
City Area Code	(626)
Local Phone Number	863-7344
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock $0.001 per share
Trading Symbol	IPW
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false

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