Fiscal Q3 Revenue up 15% to $23.3 Million Driven In-Part by

Accelerated Growth of iPower SuperSuite Business

Gross Margin Expansion and Improved Operating Leverage

Enables Return to Profitability

Strong Fiscal Q3 Performance Lays Foundation

for Further Growth and Profitability

DUARTE, Calif., May 14, 2024 (GLOBE NEWSWIRE) -- iPower Inc. (NASDAQ:IPW) ("iPower" or the "Company"), a tech and data-driven online retailer and supplier of consumer home, pet and garden products, as well as a provider of value-added ecommerce services, today announced its financial results for the fiscal third quarter ended March 31, 2024.

Fiscal Q3 2024 Results vs. Fiscal Q3 2023 (unless otherwise noted)

Total revenue increased 15% to $23.3 million.
Gross profit increased 41% to $10.9 million, with gross margin up 850 bps to 47.0%.
Net income attributable to iPower improved to $1.0 million or $0.03 per share, compared to net loss attributable to iPower of $1.5 million or $(0.05) per share.
Adjusted net income attributable to iPower (a non-GAAP financial measure defined below) improved to $1.6 million or $0.05 per share, compared to adjusted net loss attributable to iPower of $1.4 million or $(0.05) per share.
As of March 31, 2024, net debt (total debt less cash) was reduced by 59% to $3.3 million compared to net debt of $8.1 million as of June 30, 2023.

Management Commentary

"We generated strong financial results in our fiscal third quarter as we achieved double-digit revenue growth, material gross margin expansion and improved operating leverage, resulting in our return to profitability," said Lawrence Tan, CEO of iPower. "As anticipated, we saw stronger order volumes from our largest channel partner during the quarter as they have returned to a more normalized inventory position and purchasing cycle. We will continue to invest in our product catalog to ensure we are stocked with high-quality products to meet the growing demand across our sales channels.

"We are also gaining momentum in our SuperSuite supply chain business, which contributed to our strong top-line growth in the current quarter, and now accounts for approximately 10% of total revenue. This new business not only supports our growth but also offers valuable insights that we can utilize to enhance our internal capabilities. In April, we expanded our sales channels by launching on Temu and have seen promising early results in the kitchen and pet categories. We will continue to leverage our expertise in supply chain, fulfillment and merchandising to drive sales for innovative product companies as we work through our growing pipeline of prospective partners."

iPower CFO, Kevin Vassily, added, "Over the last few years, we've purposefully shifted away from hydroponics to focus on our core competency as a data-driven, consumer products and services company. More recently, we've begun to wind down our legacy commercial hydroponics business, where we sold directly to local commercial distributors, and we are working through the remaining inventory to shutter this channel altogether. These initiatives, combined with the accelerating growth in our SuperSuite business and optimized cost structure, have enabled us to deliver impressive results this quarter and achieve our target of returning to profitability. We look forward to closing out the fiscal year on a strong note as we continue to execute on our objectives in the months ahead."

Fiscal Third Quarter 2024 Financial Results

Total revenue in the fiscal third quarter of 2024 increased 15% to $23.3 million compared to $20.2 million for the same period in fiscal 2023. The increase was primarily driven by greater product sales to the Company's largest channel partner, in addition to growth in iPower's SuperSuite supply chain offerings.

Gross profit in the fiscal third quarter of 2024 increased 41% to $10.9 million compared to $7.8 million in the same quarter in fiscal 2023. As a percentage of revenue, gross margin increased 850 basis points to 47.0% compared to 38.5% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations and favorable product mix.

Total operating expenses in the fiscal third quarter of 2024 were $9.3 million compared to $9.6 million for the same period in fiscal 2023. As a percentage of revenue, operating expenses improved 740 basis points to 40.1% compared to 47.5% in the year-ago period. The decrease in operating expenses was driven primarily by lower selling and fulfillment expenses resulting from vendor credits.

Net income attributable to iPower in the fiscal third quarter of 2024 improved to $1.0 million or $0.03 per share, compared to net loss attributable to iPower of $1.5 million or $(0.05) per share for the same period in fiscal 2023.

Adjusted net income attributable to iPower (a non-GAAP financial measure defined below), which excludes legal fees for arbitration net of tax impact, improved to $1.6 million or $0.05 per share in the fiscal third quarter of 2024 compared to adjusted net loss attributable to iPower of $1.4 million or $(0.05) per share in the year-ago period.

Cash and cash equivalents were $2.7 million at March 31, 2024, compared to $3.7 million at June 30, 2023. Total debt as of March 31, 2024, was $6.0 million 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 59% to $3.3 million compared to $8.1 million as of June 30, 2023.

Conference Call

The Company will hold a conference call today, May 14, 2024, at 4:30 p.m. Eastern Time to discuss its results for the fiscal third quarter ended March 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: Tuesday, May 14, 2024

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, pet and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. Our capabilities include a full spectrum of online channels, robust fulfillment capacity, a network of warehouses serving the US, competitive last mile delivery partners and a differentiated business intelligence platform. With these capabilities, iPower efficiently moves a diverse catalog of SKUs from its supply chain partners to end consumers every day, providing the best value to customers in the US and other countries. For more information, please visit iPower's website at www.meetipower.com.

Non-GAAP Financial Measures

iPower has disclosed non-GAAP net income/(loss) and non-GAAP earnings per share in this press release, which are non-GAAP financial measures as defined by SEC Regulation G. The Company defines non-GAAP net income/(loss) as net income excluding legal fees for arbitration net of tax impact. A table providing a reconciliation of non-GAAP net income/(loss) and non-GAAP EPS is included at the end of this press release.

The Company's management believes that presenting non-GAAP net income/(loss) and non-GAAP EPS provides useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations, as well as providing for more consistent period-over-period comparisons. This non-GAAP measure assists management in its operational and financial decision-making, as well as monitoring the Company's performance, non-GAAP net income/(loss) and non-GAAP EPS are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure.

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 Reports on Form 10-Q, as filed with the SEC on November 15, 2023, February 14, 2024 and May 14, 2024, and in its other SEC filings.

Investor Relations Contact:

Sean Mansouri, CFA

Elevate IR

(720) 330-2829

IPW@elevate-ir.com

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of March 31, 2024 and June 30, 2023

				March 31,			June 30,
				2024			2023
				(Unaudited)
ASSETS
Current assets
	Cash and cash equivalent			$	2,714,724		$	3,735,642
	Accounts receivable, net				16,843,692			14,071,543
	Inventories, net				11,872,286			20,593,889
	Prepayments and other current assets				1,632,113			2,858,196
			Total current assets		33,062,815			41,259,270

Non-current assets
	Right of use - non-current				6,632,349			7,837,345
	Property and equipment, net				405,621			536,418
	Deferred tax assets, net				2,756,420			2,155,250
	Non-current prepayments				320,190			531,456
	Goodwill				3,034,110			3,034,110
	Investment in joint venture				30,495			33,113
	Intangible assets, net				3,793,042			4,280,071
	Other non-current assets				381,631			427,254
			Total non-current assets		17,353,858			18,835,017

			Total assets	$	50,416,673		$	60,094,287

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
	Accounts payable				14,199,052			13,244,957
	Credit cards payable				236,000			366,781
	Customer deposit				339,968			350,595
	Other payables and accrued liabilities				3,242,002			4,831,067
	Advance from shareholders				85,581			85,200
	Lease liability - current				2,106,867			2,159,173
	Revolving loan payable				6,011,860			-
	Income taxes payable				277,921			276,683
			Total current liabilities		26,499,251			23,332,308

Non-current liabilities
	Long-term revolving loan payable, net				-			9,791,191
	Lease liability - non-current				4,949,802			6,106,047
			Total non-current liabilities		4,949,802			15,897,238

			Total liabilities		31,449,053			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 March 31, 2024 and June 30, 2023			-			-
	Common stock, $0.001 par value; 180,000,000 shares authorized; 29,818,232 and
		29,710,939 shares issued and outstanding at March 31, 2024 and June 30, 2023			29,819			29,712
	Additional paid in capital				30,013,997			29,624,520
	Accumulated deficits				(10,887,703	)		(8,702,442	)
	Non-controlling interest				(34,519	)		(24,915	)
	Accumulated other comprehensive loss				(153,974	)		(62,134	)
			Total stockholders' equity		18,967,620			20,864,741

			Total liabilities and stockholders' equity	$	50,416,673		$	60,094,287

iPower Inc. and Subsidiaries
Unaudited Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended March 31, 2024 and 2023

			For the Three Months Ended March 31,						For the Nine Months Ended March 31,
			2024			2023			2024			2023
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)

REVENUES			$	23,308,508		$	20,225,619		$	66,617,004		$	65,502,882

TOTAL REVENUES				23,308,508			20,225,619			66,617,004			65,502,882

COST OF REVENUES				12,360,170			12,433,898			36,591,581			39,755,919

GROSS PROFIT				10,948,338			7,791,721			30,025,423			25,746,963

OPERATING EXPENSES:
	Selling and fulfillment			6,025,878			6,537,124			23,026,329			24,294,673
	General and administrative			3,321,184			3,065,795			9,218,842			8,879,326
	Impairment loss - goodwill			-			-			-			3,060,034
		Total operating expenses		9,347,062			9,602,919			32,245,171			36,234,033

INCOME (LOSS) FROM OPERATIONS				1,601,276			(1,811,198	)		(2,219,748	)		(10,487,070	)

OTHER INCOME (EXPENSE)
	Interest expenses			(181,199	)		(238,623	)		(592,176	)		(800,783	)
	Loss on equity method investment			(792	)		(1,297	)		(2,618	)		(8,625	)
	Other non-operating income			(29,669	)		(72,235	)		32,003			199,125
		Total other expenses, net		(211,660	)		(312,155	)		(562,791	)		(610,283	)

INCOME (LOSS) BEFORE INCOME TAXES				1,389,616			(2,123,353	)		(2,782,539	)		(11,097,353	)

PROVISION FOR INCOME TAX EXPENSE (BENEFIT)				377,147			(589,581	)		(587,674	)		(2,085,126	)
NET INCOME (LOSS)				1,012,469			(1,533,772	)		(2,194,865	)		(9,012,227	)

	Non-controlling interest			(3,613	)		(3,238	)		(9,604	)		(8,878	)

NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	1,016,082		$	(1,530,534	)	$	(2,185,261	)	$	(9,003,349	)

OTHER COMPREHENSIVE INCOME (LOSS)
	Foreign currency translation adjustments			69,122			17,604			(91,840	)		(46,722	)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.			$	1,085,204		$	(1,512,930	)	$	(2,277,101	)	$	(9,050,071	)

WEIGHTED AVERAGE NUMBER OF COMMON STOCK
	Basic			29,821,811			29,730,914			29,791,990			29,702,014

	Diluted			29,821,811			29,730,914			29,791,990			29,702,014

EARNINGS (LOSSES) PER SHARE
	Basic		$	0.03		$	(0.05	)	$	(0.07	)	$	(0.30	)

	Diluted		$	0.03		$	(0.05	)	$	(0.07	)	$	(0.30	)

iPower Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2024			2023			2024			2023

GAAP NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.	$	1,016,082		$	(1,530,534	)	$	(2,185,261	)	$	(9,003,349	)
Legal fees for arbitration		814,923			177,566			1,239,337			682,411
Impairment loss - goodwill		-			-			-			3,060,034
Adjustments to tax provision		(221,173	)		(49,310	)		(261,749	)		(128,225	)
NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC.	$	1,609,832		$	(1,402,278	)	$	(1,207,673	)	$	(5,389,129	)


GAAP EARNINGS (LOSSES) PER SHARE *
Basic and diluted	$	0.03		$	(0.05	)	$	(0.07	)	$	(0.30	)
Impact of Non-GAAP adjustments		0.02			0.00			0.03			0.12
NON-GAAP EARNINGS (LOSSES) PER SHARE *	$	0.05		$	(0.05	)	$	(0.04	)	$	(0.18	)


WEIGHTED AVERAGE NUMBER OF COMMON STOCK*
Basic and diluted - GAAP and NON-GAAP		29,821,811			29,730,914			29,791,990			29,702,014

iPower Reports Fiscal Third Quarter 2024 Results