EX-99.1 2 ipower_ex9901.htm PRESS RELEASE

Exhibit 99.1

 

 

 

iPower Reports Fiscal Third Quarter 2025 Results

 

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

 

RANCHO CUCAMONGA, CA, May 15, 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 third quarter ended March 31, 2025.

 

Fiscal Q3 2025 Results vs. Year-Ago Quarter

 

·Total revenue was $16.6 million compared to $23.3 million.
·Gross profit was $7.2 million compared to $10.4 million, with gross margin of 43.3% compared to 44.5%.
·Net loss attributable to iPower was $0.3 million or $(0.01) per share, compared to net income attributable to iPower of $1.0 million or $0.03 per share.
·As of March 31, 2025, total debt was reduced by 43% to $3.6 million as compared to $6.3 million as of June 30, 2024.

 

Management Commentary

 

“We made important strides in strengthening our operations during the quarter, even as we navigated a more cautious demand environment that impacted order volumes across key channels,” said Lawrence Tan, CEO of iPower. “In response, we’ve accelerated efforts to diversify our supply chain by expanding manufacturing into the U.S., as well as continuing to cultivate relationships with alternative suppliers in new geographies. These actions are central to our strategy to build a more agile and resilient supply chain capable of supporting long-term growth and reducing exposure to external volatility.”

 

“In our SuperSuite business, we are continuing to gain traction and generating solid momentum, with our SuperSuite now representing approximately 20% of our total revenue mix, underscoring the robust demand for our end-to-end supply chain solutions. SuperSuite continues to evolve as a comprehensive, data-driven platform that equips our partners with the tools, insights and infrastructure they need to thrive in today’s competitive ecommerce landscape. We are working through a strong pipeline of prospective partners and look forward to capitalizing on the demand for SuperSuite as we continue to build out our partner ecosystem and deliver greater value to our current partners.”

 

iPower CFO, Kevin Vassily, added, “We faced a challenging comp this quarter due to elevated purchasing volumes from our largest channel partner in the year-ago period. Nonetheless, we continued to benefit from the optimization initiatives we implemented in fiscal 2024, resulting in a 10% improvement in operating expenses for the quarter. Additionally, we reduced our total debt obligations by nearly 20% during the quarter, demonstrating our commitment to strengthening the balance sheet. With our ongoing efforts to diversify our supply chain, accelerating momentum in SuperSuite, and an optimized operating structure, we believe we are well positioned to navigate the current market environment and deliver long term value to our customers and shareholders alike.”

 

Fiscal Third Quarter 2025 Financial Results

 

Total revenue in the fiscal third quarter of 2025 was $16.6 million compared to $23.3 million for the same period in fiscal 2024. The decrease was driven primarily by lower product sales to the Company’s largest channel partner, partially offset by growth in iPower’s SuperSuite supply chain offerings.

 

 

 

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Gross profit in the fiscal third quarter of 2025 was $7.2 million compared to $10.4 million in the same quarter in fiscal 2024. As a percentage of revenue, gross margin was 43.3% compared to 44.5% in the year-ago period. The decrease in gross margin was primarily driven by an increase in services income in the quarter.

 

Total operating expenses in the fiscal third quarter of 2025 improved 15% to $7.4 million compared to $8.8 million for the same period in fiscal 2024. The decrease in operating expenses was driven primarily by lower general and administrative costs from the Company’s optimization initiatives, as well as lower selling and fulfillment expenses related to the Company’s largest channel partner.

 

Net loss attributable to iPower in the fiscal third quarter of 2025 was $0.3 million or $(0.01) per share, compared to net income attributable to iPower of $1.0 million or $0.03 per share for the same period in fiscal 2024.

 

Cash and cash equivalents were $2.2 million at March 31, 2025, compared to $7.4 million at June 30, 2024. As a result of the Company’s consistent debt paydown, total debt was reduced by 43% to $3.6 million compared to $6.3 million as of June 30, 2024.

 

Conference Call 

The Company will hold a conference call today, May 15, 2025, at 4:30 p.m. Eastern Time to discuss its results for the fiscal third quarter ended March 31, 2025.

 

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, May 15, 2025
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 [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]

 

 

 

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iPower Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

As of March 31, 2025 and June 30, 2024

 

 

   March 31,   June 30, 
   2025   2024 
   (Unaudited)     
ASSETS          
Current assets          
Cash and cash equivalent  $2,192,254   $7,377,837 
Accounts receivable, net   10,179,237    14,740,093 
Inventories, net   9,772,699    10,546,273 
Prepayments and other current assets, net   2,660,968    2,346,534 
Total current assets   24,805,158    35,010,737 
           
Non-current assets          
Right of use - non-current   4,281,622    6,124,163 
Property and equipment, net   271,473    370,887 
Deferred tax assets, net   2,961,886    2,445,605 
Goodwill   3,034,110    3,034,110 
Intangible assets, net   3,143,671    3,630,700 
Other non-current assets   2,008,561    679,655 
Total non-current assets   15,701,323    16,285,120 
           
Total assets  $40,506,481   $51,295,857 
           
LIABILITIES AND EQUITY          
Current liabilities          
Accounts payable, net  $8,034,949   $11,227,116 
Other payables and accrued liabilities   3,241,283    3,885,487 
Lease liability - current   1,392,146    2,039,301 
Short-term loan payable   –    491,214 
Short-term loan payable - related party   –    350,000 
Revolving loan payable, net   –    5,500,739 
Income taxes payable   278,769    276,158 
Total current liabilities   12,947,147    23,770,015 
           
Non-current liabilities          
Long-term revolving loan payable, net   3,573,896    – 
Lease liability - non-current   3,267,491    4,509,809 
Total non-current liabilities   6,841,387    4,509,809 
           
Total liabilities   19,788,534    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 March 31, 2025 and June 30, 2024   –    – 
Common stock, $0.001 par value; 180,000,000 shares authorized; 31,359,899 shares  issued and outstanding at March 31, 2025 and June 30, 2024   31,361    31,361 
Additional paid in capital   33,321,103    33,463,883 
Accumulated deficits   (12,380,662)   (10,230,601)
Non-controlling interest   (46,969)   (38,204)
Accumulated other comprehensive loss   (206,886)   (210,406)
Total stockholders' equity   20,717,947    23,016,033 
           
Total liabilities and stockholders' equity  $40,506,481   $51,295,857 

 

 

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iPower Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

For the Three and Nine Months Ended March 31, 2025 and 2024

 

 

   For the Three Months Ended March 31,   For the Nine Months Ended March 31, 
   2025   2024   2025   2024 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
REVENUES                
Product sales  $15,546,233   $22,593,081   $51,428,534   $65,901,577 
Service income   1,023,445    715,427    3,222,236    715,427 
Total revenues   16,569,678    23,308,508    54,650,770    66,617,004 
                     
COST OF REVENUES                    
Product costs   8,512,709    12,360,170    27,891,276    36,591,581 
Service costs   879,995    581,229    2,704,737    581,229 
Total cost of revenues   9,392,704    12,941,399    30,596,013    37,172,810 
                     
GROSS PROFIT   7,176,974    10,367,109    24,054,757    29,444,194 
                     
OPERATING EXPENSES:                    
Selling and fulfillment   5,531,751    5,444,649    16,075,473    22,445,100 
General and administrative   1,914,226    3,321,184    10,311,114    9,218,842 
Total operating expenses   7,445,977    8,765,833    26,386,587    31,663,942 
                     
(LOSS) INCOME FROM OPERATIONS   (269,003)   1,601,276    (2,331,830)   (2,219,748)
                     
OTHER INCOME (EXPENSE)                    
Interest expenses   (81,968)   (181,199)   (362,602)   (592,176)
Loss on equity method investment   (986)   (792)   (2,707)   (2,618)
Other non-operating income (expenses)   35,601    (29,669)   48,329    32,003 
Total other expenses, net   (47,353)   (211,660)   (316,980)   (562,791)
                     
(LOSS) INCOME BEFORE INCOME TAXES   (316,356)   1,389,616    (2,648,810)   (2,782,539)
                     
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)   26,017    377,147    (489,984)   (587,674)
NET (LOSS) INCOME   (342,373)   1,012,469    (2,158,826)   (2,194,865)
                     
Non-controlling interest   (2,774)   (3,613)   (8,765)   (9,604)
                     
NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.  $(339,599)  $1,016,082   $(2,150,061)  $(2,185,261)
                     
OTHER COMPREHENSIVE (LOSS) INCOME                    
Foreign currency translation adjustments   (97,556)   69,122    3,520    (91,840)
                     
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC.  $(437,155)  $1,085,204   $(2,146,541)  $(2,277,101)
                     
WEIGHTED AVERAGE NUMBER OF COMMON STOCK                    
Basic   31,455,248    29,821,811    31,434,479    29,791,990 
                     
Diluted   31,455,248    29,821,811    31,434,479    29,791,990 
                     
(LOSSES) EARNINGS PER SHARE                    
Basic  $(0.01)  $0.03   $(0.07)  $(0.07)
                     
Diluted  $(0.01)  $0.03   $(0.07)  $(0.07)

 

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