During
Management Commentary
“Our fiscal second quarter reflects a deliberate strategic transition,” said
“At the same time, we made the active decision to restructure our supply chain, consolidate vendors, and shift toward primarily
“Importantly, our Board authorized iPower’s first-ever
“The February restructuring was not simply a divestiture — it marked the beginning of a new chapter for iPower. We streamlined our sourcing, strengthened our financial position, reduced structural costs, and positioned our business to selectively invest in infrastructure-driven growth opportunities.”
Fiscal Second Quarter 2026 Financial Summary
Revenue for the fiscal second quarter of 2026 was
Gross profit was
Total operating expenses declined to
Net loss attributable to iPower was
During the quarter, iPower continued to reduce traditional borrowings, with short-term debt declining to
Post-Quarter Strategic Update
In
Because the divestiture was completed after
The Company also authorized its first-ever
About
Forward-Looking Statements
All statements other than statements of historical fact in this press release are forward-looking statements, including statements regarding the share repurchase program, the anticipated benefits of the financing, the implementation of iPower’s digital asset strategy, and iPower’s future business plans. 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 except as may be required by law. Actual results may differ materially from those anticipated. Investors are encouraged to review iPower’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other
Media & Investor Contact
| Consolidated Balance Sheets | |||||||||||
| As of | |||||||||||
| 2025 | 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalent | $ | 2,011,738 | $ | 2,007,890 | |||||||
| Accounts receivable, net | 5,168,143 | 6,124,008 | |||||||||
| Inventories, net | 3,611,859 | 8,131,203 | |||||||||
| Restricted Cash - | 2,209,000 | - | |||||||||
| Prepayments and other current assets, net | 1,691,476 | 3,111,210 | |||||||||
| Total current assets | 14,692,216 | 19,374,311 | |||||||||
| Non-current assets | |||||||||||
| Right of use - non-current | 3,286,752 | 3,915,539 | |||||||||
| Property and equipment, net | 187,372 | 390,349 | |||||||||
| Deferred tax assets, net | 4,753,025 | 3,724,462 | |||||||||
| 3,034,110 | 3,034,110 | ||||||||||
| Investment in joint venture | 678,706 | 385,180 | |||||||||
| Intangible assets, net | 2,656,643 | 2,981,328 | |||||||||
| Digital assets | 2,214,759 | - | |||||||||
| Other non-current assets | 2,493,705 | 1,837,488 | |||||||||
| Total non-current assets | 19,305,072 | 16,268,456 | |||||||||
| Total assets | $ | 33,997,288 | $ | 35,642,767 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable, net | 3,056,935 | 7,180,009 | |||||||||
| Other payables and accrued liabilities | 981,832 | 1,893,921 | |||||||||
| Lease liability - current | 1,418,909 | 1,361,111 | |||||||||
| Short-term loan payable | 1,500,000 | - | |||||||||
| Short-term loan payable - related party | 1,063,278 | - | |||||||||
| Revolving loan payable, net | - | 3,737,602 | |||||||||
| Income taxes payable | 3,512 | 280,155 | |||||||||
| Total current liabilities | 8,024,466 | 14,452,798 | |||||||||
| Non-current liabilities | |||||||||||
| Convertible notes payable | 4,381,531 | - | |||||||||
| Derivative liability - Conversion option | 1,413,100 | - | |||||||||
| Lease liability - non-current | 2,193,849 | 2,913,967 | |||||||||
| Total non-current liabilities | 7,988,480 | 2,913,967 | |||||||||
| Total liabilities | 16,012,946 | 17,366,765 | |||||||||
| Commitments and contingency | - | - | |||||||||
| Stockholders' Equity | |||||||||||
| Preferred stock, | |||||||||||
| outstanding at | - | - | |||||||||
| **Common stock, | |||||||||||
| 1,045,330 shares issued and outstanding at | 1,082 | 1,045 | |||||||||
| Additional paid in capital | 34,891,869 | 33,481,201 | |||||||||
| Accumulated deficits | (16,925,818 | ) | (15,198,889 | ) | |||||||
| Non-controlling interest | (47,462 | ) | (47,462 | ) | |||||||
| Accumulated other comprehensive loss | 64,671 | 40,107 | |||||||||
| Total stockholders' equity | 17,984,342 | 18,276,002 | |||||||||
| Total liabilities and stockholders' equity | $ | 33,997,288 | $ | 35,642,767 | |||||||
**all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on
| Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||||
| For the Three and Six Months Ended | ||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES | ||||||||||||||||||
| Product sales | $ | 7,133,602 | $ | 17,606,889 | $ | 17,618,347 | $ | 35,882,301 | ||||||||||
| Service income | - | 1,465,682 | 1,532,722 | 2,198,791 | ||||||||||||||
| Total revenues | 7,133,602 | 19,072,571 | 19,151,069 | 38,081,092 | ||||||||||||||
| COST OF REVENUES | ||||||||||||||||||
| Product costs | 3,994,680 | 9,461,119 | 9,872,942 | 19,378,567 | ||||||||||||||
| Service costs | - | 1,221,566 | 1,332,681 | 1,824,742 | ||||||||||||||
| Total cost of revenues | 3,994,680 | 10,682,685 | 11,205,623 | 21,203,309 | ||||||||||||||
| GROSS PROFIT | 3,138,922 | 8,389,886 | 7,945,446 | 16,877,783 | ||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||
| Selling and fulfillment | 3,075,161 | 4,628,914 | 8,255,351 | 10,543,722 | ||||||||||||||
| General and administrative | 2,501,738 | 3,077,365 | 3,823,251 | 8,396,888 | ||||||||||||||
| Total operating expenses | 5,576,899 | 7,706,279 | 12,078,602 | 18,940,610 | ||||||||||||||
| INCOME (LOSS) FROM OPERATIONS | (2,437,977 | ) | 683,607 | (4,133,156 | ) | (2,062,827 | ) | |||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Interest expenses | (167,222 | ) | (140,672 | ) | (228,941 | ) | (280,634 | ) | ||||||||||
| Loss on equity method investment | - | (802 | ) | - | (1,721 | ) | ||||||||||||
| Loss on deconsolidation of VIE | - | - | (39,624 | ) | - | |||||||||||||
| Unrealized gain (loss) on digital assets | 5,759 | - | 5,759 | - | ||||||||||||||
| Change in fair value of derivative liability | 176,600 | - | 176,600 | - | ||||||||||||||
| Loss on extinguishment of debt | (24,100 | ) | - | (24,100 | ) | - | ||||||||||||
| Other non-operating income (expenses) | 433,151 | (205,958 | ) | 1,232,441 | 12,728 | |||||||||||||
| Total other income (expenses), net | 424,188 | (347,432 | ) | 1,122,135 | (269,627 | ) | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (2,013,789 | ) | 336,175 | (3,011,021 | ) | (2,332,454 | ) | |||||||||||
| PROVISION FOR INCOME TAX EXPENSE (BENEFIT) | (820,508 | ) | 120,511 | (1,284,092 | ) | (516,001 | ) | |||||||||||
| NET INCOME (LOSS) | (1,193,281 | ) | 215,664 | (1,726,929 | ) | (1,816,453 | ) | |||||||||||
| Non-controlling interest | - | (3,155 | ) | - | (5,991 | ) | ||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | (1,193,281 | ) | $ | 218,819 | $ | (1,726,929 | ) | $ | (1,810,462 | ) | |||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
| Foreign currency translation adjustments | (379 | ) | 156,130 | 24,564 | 101,076 | |||||||||||||
| COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | (1,193,660 | ) | $ | 374,949 | $ | (1,702,365 | ) | $ | (1,709,386 | ) | |||||||
| WEIGHTED AVERAGE NUMBER OF COMMON STOCK | ||||||||||||||||||
| Basic** | 1,102,378 | 1,047,917 | 1,075,986 | 1,047,570 | ||||||||||||||
| Diluted** | 1,102,378 | 1,047,917 | 1,075,986 | 1,047,570 | ||||||||||||||
| EARNINGS (LOSSES) PER SHARE | ||||||||||||||||||
| Basic | $ | (1.08 | ) | $ | 0.21 | $ | (1.60 | ) | $ | (1.73 | ) | |||||||
| Diluted | $ | (1.08 | ) | $ | 0.21 | $ | (1.60 | ) | $ | (1.73 | ) | |||||||
**all shares of common stock and per share numbers in the unaudited condensed consolidated financial statements have been adjusted retroactively to reflect the 1-for-30 reverse stock split effected on
