iPower Reports Fiscal First Quarter 2024 Results

November 14, 2023

- Record Quarterly Revenue, Driven In-Part by Ramp of New SuperSuite Supply Chain Business -

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

DUARTE, Calif., Nov. 14, 2023 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services, today announced financial results for its fiscal first quarter ended September 30, 2023.

Fiscal Q1 2024 Results vs. Fiscal Q1 2023 (unless otherwise noted)

  • Total revenue increased 2% to $26.5 million compared to the Company’s record $26.0 million in Q1 2023.
  • Gross profit increased 18% to $11.8 million, while gross margin increased 600 bps to 44.4% compared to 38.4%.
  • Net loss attributable to iPower improved 69% to $1.3 million or $(0.04) per share, compared to net loss attributable to iPower of $4.2 million or $(0.14) per share.
  • As of September 30, 2023, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to net debt of $8.1 million as of June 30, 2023.

Management Commentary 

“We continued to generate revenue growth during the quarter, surpassing the challenging comp against our record revenues in fiscal Q1 2023,” said Lawrence Tan, CEO of iPower. “Sales of our non-hydroponic products remained strong at more than 75% of revenue, largely driven by categories such as fans, shelving and outdoor patio furniture. Business generated by our SuperSuite supply chain partnerships has reached an annualized revenue run-rate of approximately $7.0 million and continues to gain momentum as we work through our growing pipeline of prospective partnerships. We are pleased with the early financial results as well as the invaluable insights that we are gaining from this accelerating area of our business.”

iPower CFO, Kevin Vassily, added, “As highlighted last quarter, we have continued to drive reductions to our supply of higher cost inventory and are now beginning to realize the benefit of our efforts through gross margin expansion, which has reached our highest level in nearly two years. Additionally, we made material improvements to our capitalization during the quarter, with net debt decreasing 48% as compared to the close of fiscal 2023. These actions place us in a good position to capitalize on prospective acquisition opportunities as we continue to drive growth and target a return to profitability in fiscal 2024.”

Fiscal First Quarter 2024 Financial Results 

Total revenue in the fiscal first quarter of 2024 increased 2% to $26.5 million as compared to $26.0 million for the same period in fiscal 2023. The increase was driven in-part by growth from the Company’s SuperSuite supply chain offerings, which is generating approximately $600,000 in revenue per month, as well as favorable seasonality in the Company’s product mix.   

Gross profit in the fiscal first quarter of 2024 increased 18% to $11.8 million as compared to S10.0 million in the same quarter in fiscal 2023. As a percentage of revenue, gross margin increased 600 basis points to 44.4% compared to 38.4% in the year-ago period. The increase in gross margin was primarily driven by a favorable product mix.

Total operating expenses in the fiscal first quarter of 2024 improved 11% to $13.0 million compared to $14.6 million for the same period in fiscal 2023. The decrease was driven primarily by a $3.1 million decrease in impairment loss on goodwill, partially offset by increased selling and fulfillment expenses.

Net loss attributable to iPower in the fiscal first quarter of 2024 improved to $1.3 million or $(0.04) per share, as compared to a net loss attributable to iPower of $4.2 million or $(0.14) per share for the same period in fiscal 2023. The improvement was driven by the aforementioned higher gross profit and lower operating expenses.

Cash and cash equivalents were $2.7 million at September 30, 2023, as compared to $3.7 million at June 30, 2023. Total debt as of September 30, 2023 was $7.0 million as compared to $11.8 million as of June 30, 2023. As a result of the Company’s debt paydown, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to $8.1 million as of June 30, 2023.

Conference Call 

The Company will hold a conference call today, November 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal first quarter ended September 30, 2023.

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: Tuesday, November 14, 2023
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 and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its ecommerce channel partners and its websites, www.zenhydro.com and www.simpledeluxe.com. iPower has a diverse customer base that includes both commercial businesses and individuals. 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 15, 2023, its Quarterly Report on Form 10-Q, as filed with the SEC on November 14, 2023, and in its other SEC filings.

Investor Relations Contact:

Sean Mansouri, CFA
Elevate IR
(720) 330-2829

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of September 30, 2023 and June 30, 2023
  September 30, June 30,
  2023  2023 
Current assets      
Cash and cash equivalent $2,729,161  $3,735,642 
Accounts receivable, net  13,237,282   14,071,543 
Inventories, net  15,056,623   20,593,889 
Other receivable - related party  -   - 
Prepayments and other current assets  1,811,499   2,858,196 
  Total current assets  32,834,565   41,259,270 
Non-current assets      
Right of use - non-current  7,763,712   7,837,345 
Property and equipment, net  496,901   536,418 
Deferred tax assets  2,432,439   2,155,250 
Non-current prepayments  461,034   531,456 
Goodwill  3,034,110   3,034,110 
Investment in joint venture  32,088   33,113 
Intangible assets, net  4,117,728   4,280,071 
Other non-current assets  417,639   427,254 
 Total non-current assets  18,755,651   18,835,017 
 Total assets $51,590,216  $60,094,287 
Current liabilities      
Accounts payable  12,031,323   13,244,957 
Credit cards payble  693,327   366,781 
Customer deposit  362,826   350,595 
Other payables and accrued liabilities  3,292,581   4,831,067 
Advance from shareholders  84,718   85,200 
Investment payable  -   - 
Lease liability - current  2,169,603   2,159,173 
Short-term loan payable - related party  1,006,060   2,017,852 
Long-term promissory note payable - current portion  1,149,961   - 
Income taxes payable  275,117   276,683 
 Total current liabilities  21,065,516   23,332,308 
Non-current liabilities      
Long-term revolving loan payable, net  4,808,322   9,791,191 
Long-term promissory note payable, net  0   - 
Deferred tax liabilities  -   - 
Lease liability - non-current  6,023,813   6,106,047 
 Total non-current liabilities  10,832,135   15,897,238 
 Total liabilities  31,897,651   39,229,546 
Commitments and contingency  -   - 
Stockholders' Equity      
Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and      
outstanding at June 30, 2023 and 2022  -   - 
Common stock, $0.001 par value; 180,000,000 shares authorized; 29,710,939 and      
29,572,382 shares issued and outstanding at June 30, 2023 and 2022  29,712   29,712 
Additional paid in capital  29,742,402   29,624,520 
(Accumulated deficits) Retained earnings  (9,988,957)  (8,702,442)
Non-controlling interest  (27,751)  (24,915)
Accumulated other comprehensive income (loss)  (62,841)  (62,134)
 Total equity  19,692,565   20,864,741 
 Total liabilities and equity $51,590,216  $60,094,287 

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
For the Three Months Ended September 30, 2023 and 2022
  For the Three Months Ended September 30,
  2023  2022 
  (Unaudited) (Unaudited)
REVENUES $26,508,487  $26,022,673 
TOTAL REVENUES  26,508,487   26,022,673 
COST OF REVENUES  14,749,529   16,036,957 
GROSS PROFIT  11,758,845   9,985,716 
 Selling and fulfillment  10,063,471   8,418,812 
 General and administrative  2,964,051   3,100,176 
 Impairment loss - goodwill  -   3,060,034 
  Total operating expenses  13,027,522   14,579,022 
(LOSS) INCOME FROM OPERATIONS  (1,268,677)  (4,593,306)
 Interest expenses  (228,365)  (248,041)
 Other financing expenses  -   - 
 Loss on equity method investment  (1,025)  (3,390)
 Other non-operating income  (67,166)  211,760 
  Total other expenses, net  (296,556)  (39,671)
(LOSS) INCOME BEFORE INCOME TAXES  (1,565,233)  (4,632,977)
NET (LOSS) INCOME  (1,289,351)  (4,185,181)
 Non-controlling interest  (2,836)  (2,805)
 Foreign currency translation adjustments  (707)  (111,475)
 Basic  29,764,515   29,665,716 
 Diluted  29,764,515   29,665,716 
 Basic $(0.04) $(0.14)
 Diluted $(0.04) $(0.14)