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): February 13, 2025

 

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 February 13, 2025, iPower Inc., a Nevada corporation (the “Company”), issued a press release announcing its earnings for the second fiscal quarter ended December 31, 2024. The press release also announced that the Company will hold a conference call to discuss its second quarter financial results on February 13, 2025, at 4:30 p.m. Eastern Time.

 

The conference call details are as follows:

 

Date:	Thursday, February 13, 2025
Time:	4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time
Dial-in Registration Link:	https://register.vevent.com/register/BI733d7a23796347afb09fc944c4645afc
Live Webcast Registration Link:	https://edge.media-server.com/mmc/p/ahs9vigc/

 

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 February 13, 2025.
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: February 13, 2025
	By:	/s/ Kevin Vassily
	Name:	Kevin Vassily
	Title:	Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 99.1

 

 

 

iPower Reports Fiscal Second Quarter 2025 Results

 

Fiscal Q2 Revenue up 13% to $19.0 Million

 

Achieves GAAP Profitability and Positive Cash Flow from Operations

 

RANCHO CUCAMONGA, CA, February 13, 2025 -- 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 second quarter ended December 31, 2024.

 

Fiscal Q2 2025 Results vs. Year-Ago Quarter

 

·

Total revenue increased 14% to $19.1 million.

·

Gross profit increased 15% to $8.4 million, with gross margin up 40 bps to 44.0%.

·

Net income attributable to iPower improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share.

·

As of December 31, 2024, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

 

Management Commentary

 

“We delivered strong results across all key financial metrics in our fiscal second quarter while further enhancing our SuperSuite platform,” said Lawrence Tan, CEO of iPower. “Throughout the quarter, we continued to optimize operations and strengthen our presence across both our established and emerging sales channels. We also remain focused on supply chain diversification by exploring new supplier relationships beyond our existing network, reinforcing our commitment to building a more resilient and adaptable infrastructure.

 

“Our SuperSuite platform is gaining further momentum as we leverage our superior supply chain, warehousing and merchandising expertise to drive sales growth for partners with innovative product catalogs. Additionally, we are making steady progress with our recently launched SaaS platform, refining its capabilities to improve supplier collaboration, streamline operations, and better align partners with evolving market demands. With a strong pipeline of prospective partners, we are well-positioned to capitalize on the growing demand for SuperSuite as we bolster our comprehensive service offerings.”

 

iPower CFO, Kevin Vassily, added, “Our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business. We have also officially shuttered our legacy commercial hydroponics business, as we are now focused on our core competency as a data-driven, consumer products and services company. We believe these initiatives, coupled with our accelerating growth in our SuperSuite business, will enable us to execute on our goals ahead.”

 

Fiscal Second Quarter 2025 Financial Results 

 

Total revenue in the fiscal second quarter of 2025 increased 14% to $19.1 million compared to $16.8 million for the same period in fiscal 2024. The increase was driven primarily by growth in iPower’s SuperSuite supply chain offerings, as well as greater product sales to the Company’s largest channel partner.

 

Gross profit in the fiscal second quarter of 2025 increased 15% to $8.4 million compared to $7.3 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin increased 40 basis points to 44.0% compared to 43.6% 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 second quarter of 2025 improved 22% to $7.7 million compared to $9.9 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to the Company’s largest channel partner.

 

Net income attributable to iPower in the fiscal second quarter of 2025 improved to $0.2 million or $0.01 per share, compared to net loss attributable to iPower of $1.9 million or $(0.06) per share for the same period in fiscal 2024.

 

Cash and cash equivalents were $2.9 million at December 31, 2024, compared to $7.4 million at June 30, 2024. As a result of the Company’s debt paydown, total debt was reduced by 31% to $4.4 million compared to $6.3 million as of June 30, 2024.

 

Conference Call 

 

The Company will hold a conference call today, February 13, 2025, at 4:30 p.m. Eastern Time to discuss its results for the fiscal second quarter ended December 31, 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, February 13, 2025
Time: 4:30 p.m. Eastern time
Dial-in registration link: https://register.vevent.com/register/BI733d7a23796347afb09fc944c4645afc

Live webcast registration link: https://edge.media-server.com/mmc/p/ahs9vigc/

 

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 Reports 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 December 31, 2024 and June 30, 2024

 

 

		December 31,				June 30,
		2024				2024
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalent		$	2,877,457			$	7,377,837
Accounts receivable, net			13,926,432				14,740,093
Inventories, net			9,183,631				10,546,273
Other receivable - related party			–				–
Prepayments and other current assets, net			2,292,744				2,346,534
Total current assets			28,280,264				35,010,737
Non-current assets
Right of use - non-current			4,757,429				6,124,163
Property and equipment, net			303,059				370,887
Deferred tax assets, net			3,001,517				2,445,605
Non-current prepayments			–				–
Goodwill			3,034,110				3,034,110
Investment in joint venture			–				–
Intangible assets, net			3,306,014				3,630,700
Other non-current assets			1,187,179				679,655
Total non-current assets			15,589,308				16,285,120
Total assets		$	43,869,572			$	51,295,857
LIABILITIES AND EQUITY
Current liabilities
Accounts payable, net			8,853,320				11,227,116
Other payables and accrued liabilities			3,491,596				3,885,487
Lease liability - current			1,540,624				2,039,301
Short-term loan payable							491,214
Short-term loan payable - related party			350,000				350,000
Long-term promissory note payable - current portion			–				–
Revolving loan payable, net			–				5,500,739
Income taxes payable			274,947				276,158
Total current liabilities			14,510,487				23,770,015
Non-current liabilities
Long-term revolving loan payable, net			4,042,400				–
Long-term promissory note payable, net			–				–
Deferred tax liabilities			–				–
Lease liability - non-current			3,612,756				4,509,809
Total non-current liabilities			7,655,156				4,509,809
Total liabilities			22,165,643				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 December 31, 2024 and June 30, 2024			–				–
Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 and
31,359,899 shares issued and outstanding at December 31, 2024 and June 30, 2024			31,361				31,361
Additional paid in capital			33,867,156				33,463,883
Accumulated deficits			(12,041,063	)			(10,230,601	)
Non-controlling interest			(44,195	)			(38,204	)
Accumulated other comprehensive loss			(109,330	)			(210,406	)
Total stockholders' equity			21,703,929				23,016,033
Total liabilities and stockholders' equity		$	43,869,572			$	51,295,857

 

 

 

iPower Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss

For the Three and Six Months Ended December 31, 2024 and 2023

 

 

		For the Three Months Ended December 31,								For the Six Months Ended December 31,
		2024				2023				2024				2023
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
REVENUES
Product sales		$	17,606,889			$	16,800,122			$	35,882,301			$	43,308,496
Service income			1,465,682				–				2,198,791				–
Total revenues			19,072,571				16,800,122				38,081,092				43,308,496
COST OF REVENUES
Product costs			9,461,119				9,481,882				19,378,567				24,231,411
Service costs			1,221,566				–				1,824,742				–
Total cost of revenues			10,682,685				9,481,882				21,203,309				24,231,411
GROSS PROFIT			8,389,886				7,318,240				16,877,783				19,077,085
OPERATING EXPENSES:
Selling and fulfillment			4,628,914				6,936,980				10,543,722				17,000,451
General and administrative			3,077,365				2,933,607				8,396,888				5,897,658
Impairment loss - goodwill			–				–				–				–
Total operating expenses			7,706,279				9,870,587				18,940,610				22,898,109
INCOME (LOSS) FROM OPERATIONS			683,607				(2,552,347	)			(2,062,827	)			(3,821,024	)
OTHER INCOME (EXPENSE)
Interest expenses			(140,672	)			(182,612	)			(280,634	)			(410,977	)
Loss on equity method investment			(802	)			(801	)			(1,721	)			(1,826	)
Other non-operating income (expenses)			(205,958	)			128,838				12,728				61,672
Total other expenses, net			(347,432	)			(54,575	)			(269,627	)			(351,131	)
INCOME (LOSS) BEFORE INCOME TAXES			336,175				(2,606,922	)			(2,332,454	)			(4,172,155	)
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)			120,511				(688,939	)			(516,001	)			(964,821	)
NET INCOME (LOSS)			215,664				(1,917,983	)			(1,816,453	)			(3,207,334	)
Non-controlling interest			(3,155	)			(3,155	)			(5,991	)			(5,991	)
NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.		$	218,819			$	(1,914,828	)		$	(1,810,462	)		$	(3,201,343	)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments			156,130				(160,255	)			101,076				(160,962	)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.		$	374,949			$	(2,075,083	)		$	(1,709,386	)		$	(3,362,305	)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK
Basic			31,437,517				29,790,242				31,427,360				29,777,378
Diluted			31,437,517				29,790,242				31,427,360				29,777,378
EARNINGS (LOSSES) PER SHARE
Basic		$	0.01			$	(0.06	)		$	(0.06	)		$	(0.11	)
Diluted		$	0.01			$	(0.06	)		$	(0.06	)		$	(0.11	)

 

 

 

v3.25.0.1

Cover	Feb. 13, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 13, 2025
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

---