EX-99.1 2 ipower_ex9901.htm PRESS RELEASE

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 [email protected].

 

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

[email protected]

 

 

 2 

 

 

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 

 

 

 3 

 

 

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)

 

 

 4