DUARTE, Calif., June 24, 2021 /PRNewswire/ -- iPower Inc
(NASDAQ: IPW) ("iPower" or the "Company"), one of the leading
online hydroponic equipment suppliers and retailers in the United States, today announced its
financial results for the third quarter ended March 31, 2021.
- Revenue grew by 34.4% to $13.1
million in the quarter ended March
31, 2021 as compared to $9.8
million in the quarter ended March
31, 2020.
- Income from operations increased 132% to $788,734 in the quarter ended March 31, 2021 as compared to $340,185 in the quarter ended March 31, 2020.
- Gross margin in the quarter was 43.9%, up from 32.3% in the
quarter ended March 31,
2020.
- Net income declined 194% to a loss of $206,823 in the quarter ended March 31,2021 as compared to net income of
$220,724 in the quarter ended
March 31, 2020. Income before Taxes
and Net Income were negatively impacted by non-cash charges
associated with the accounting treatment of Convertible Notes and
Warrant liabilities in the quarter.
"In our first earnings release as a public company, we are
pleased to report a healthy fiscal third quarter, with strong year
over year revenue growth. We are particularly happy with this
quarter's gross margin performance, which reflects our product
design and development expertise, our strong merchandising
capability, and customer recognition of the value proposition of
our in-house brands," said Lawrence
Tan, Chairman and CEO of iPower. We finished the quarter
with significant momentum as we were able to add inventory to meet
customer demand and we saw some of the supply chain bottlenecks
that had impacted the month of December
2020 and the first two months of 2021 begin to ease. We
believe our data and technology driven approach to operating our
business is paying dividends and will continue to accelerate our
opportunities in the hydroponics industry and adjacent markets for
the foreseeable future."
The Company ended the quarter with approximately $474,000 in cash, working capital of
approximately $4.6 million, and
inventory of approximately $10
million.
"Our plan going forward is to issue annual financial targets for
the business, starting with FY 2022 when we report our FY Q4 2021
results later this year," said Kevin
Vassily, Chief Financial Officer of iPower. "While we won't
comment on specific targets for the current fiscal year, we can say
that the momentum we saw starting in March continued through the
first two months of this quarter, and this is before any of the
impact from investment into our
supply chain after we
completed our IPO in May."
Earnings Conference Call
To attend the conference call, please dial in using the
information below. When prompted upon dialing-in, please provide
the conference ID or ask for the "iPower Earnings Conference
Call."
Date:
|
Wednesday, June 24,
2021
|
Time:
|
4:30 pm ET
|
US/CANADA Toll-Free
Dial-In Number:
|
(833)
882-8474
|
Conference
ID:
|
3476576
|
This conference call will be broadcast live on the Internet and
can be accessed by all interested parties at:
https://edge.media-server.com/mmc/p/6cmy369a.
Please access the link at least fifteen minutes prior to the
start of the call to register, download, and install any necessary
audio software.
Following the earnings call, a webcast replay will be made
available on the Company's website at
https://ir.meetipower.com/.
About iPower Inc.
iPower Inc. is one of the leading online retailers and suppliers
of hydroponics equipment and accessories in the United States. iPower offers thousands of
stock keeping units from its in-house brands as well as hundreds of
other brands through its website, www.zenhydro.com, and its online
platform partners all of which are fulfilled from its two
fulfillment centers in southern California. iPower has a diverse customer base
that includes both commercial businesses and individuals. For more
information, visit iPower's website at
https://ir.meetipower.com/.
Forward-Looking Statements
All statements other than statements of historical fact in
this announcement 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 occurring
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 in iPower's registration statement and in its other
filings with the SEC.
.
iPower Inc
Unaudited Condensed Consolidated Balance Sheets
As of March 31, 2021 and June 30, 2020
|
|
|
March 31,
|
|
|
June 30,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
$
|
474,322
|
|
|
$
|
977,635
|
|
Accounts receivable,
net
|
|
|
8,092,787
|
|
|
|
6,067,199
|
|
Inventories,
net
|
|
|
10,015,923
|
|
|
|
5,743,181
|
|
Prepayments and other
current assets
|
|
|
2,923,572
|
|
|
|
616,231
|
|
Total current
assets
|
|
|
21,506,604
|
|
|
|
13,404,246
|
|
|
|
|
|
|
|
|
|
|
Right of use –
non-current
|
|
|
1,987,363
|
|
|
|
262,875
|
|
Property and
equipment, net
|
|
|
59,356
|
|
|
|
6,252
|
|
Deferred tax
assets
|
|
|
52,947
|
|
|
|
–
|
|
Other non-current
assets
|
|
|
99,395
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
23,705,665
|
|
|
$
|
13,673,373
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
6,985,438
|
|
|
$
|
4,220,347
|
|
Credit cards
payable
|
|
|
253,552
|
|
|
|
892,792
|
|
Customer
deposit
|
|
|
628,080
|
|
|
|
741,301
|
|
Due to related
parties
|
|
|
515,517
|
|
|
|
133,793
|
|
Other payables and
accrued liabilities
|
|
|
1,889,643
|
|
|
|
1,940,858
|
|
Short-term loans
payable
|
|
|
1,877,718
|
|
|
|
1,329,680
|
|
Lease liability –
current
|
|
|
715,083
|
|
|
|
262,875
|
|
Long-term loan
payable - current portion
|
|
|
29,244
|
|
|
|
–
|
|
Income taxes
payable
|
|
|
837,694
|
|
|
|
721,211
|
|
Convertible notes
payable, net
|
|
|
2,729,747
|
|
|
|
–
|
|
Redeemable preferred
stock, $0.001 par value; 20,000,000 shares authorized; 34,500
and 0 shares issued and outstanding at March 31, 2021 and June 30,
2020
|
|
|
433,714
|
|
|
|
–
|
|
Total current
liabilities
|
|
|
16,895,430
|
|
|
|
10,242,857
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
|
Long-term loan
payable
|
|
|
470,756
|
|
|
|
500,000
|
|
Warrant
liabilities
|
|
|
905,713
|
|
|
|
-
|
|
Lease liability –
non-current
|
|
|
1,358,601
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
|
2,735,070
|
|
|
|
500,000
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
19,630,500
|
|
|
|
10,742,857
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingency
|
|
|
–
|
|
|
|
–
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
|
|
Class A common stock,
$0.001 par value; 166,000,000 shares authorized; 20,204,496
and 20,204,496 shares issued and outstanding at March 31, 2021 and
June 30, 2020 *
|
|
|
20,204
|
|
|
|
20,204
|
|
Class B common stock,
$0.001 par value; 14,000,000 shares authorized; 14,000,000
shares issued and outstanding at March 31, 2021 and June 30, 2020
*
|
|
|
14,000
|
|
|
|
14,000
|
|
Subscription
receivable
|
|
|
–
|
|
|
|
(14,000)
|
|
Additional paid in
capital
|
|
|
389,490
|
|
|
|
389,490
|
|
Retained
earnings
|
|
|
3,651,471
|
|
|
|
2,520,822
|
|
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
4,075,165
|
|
|
|
2,930,516
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
$
|
23,705,665
|
|
|
$
|
13,673,373
|
|
*On November 16, 2020, the Company
implemented a 2-for-1 forward split of the issued and outstanding
shares of Class A Common Stock of the Company.
Except shares authorized, all references to number of shares,
and to per share information in the consolidated and combined
financial statements have been retroactively adjusted.
*On October 20, 2020, the Company
issued to its Founders 14,000,000 shares of the Company's Class B
Common Stock. The issuance was considered as a nominal issuance, in
substance a recapitalization transaction, which was recorded and
presented retroactively as outstanding for all reporting
periods.
iPower Inc.
Unaudited Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended March 31, 2021 and
2020
|
|
|
|
|
|
For the Three Months
Ended March 31,
|
|
|
For the Nine Months
Ended March 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
REVENUES
|
|
$
|
13,133,902
|
|
|
$
|
9,772,108
|
|
|
$
|
39,348,154
|
|
|
$
|
25,278,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
REVENUES
|
|
|
13,133,902
|
|
|
|
9,772,108
|
|
|
|
39,348,154
|
|
|
|
25,278,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUES
|
|
|
7,369,127
|
|
|
|
6,612,596
|
|
|
|
23,073,000
|
|
|
|
16,710,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
5,764,775
|
|
|
|
3,159,512
|
|
|
|
16,275,154
|
|
|
|
8,567,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
2,398,157
|
|
|
|
1,662,909
|
|
|
|
7,292,793
|
|
|
|
4,330,603
|
|
General and
administrative
|
|
|
2,577,884
|
|
|
|
1,156,418
|
|
|
|
6,264,148
|
|
|
|
3,092,393
|
|
Total operating
expenses
|
|
|
4,976,041
|
|
|
|
2,819,327
|
|
|
|
13,556,941
|
|
|
|
7,422,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
|
|
788,734
|
|
|
|
340,185
|
|
|
|
2,718,213
|
|
|
|
1,144,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(expenses)
|
|
|
(60,118)
|
|
|
|
(26,222)
|
|
|
|
(109,656)
|
|
|
|
(43,519)
|
|
Other financing
expenses
|
|
|
(60,692)
|
|
|
|
–
|
|
|
|
(98,139)
|
|
|
|
–
|
|
PPP loan
forgiveness
|
|
|
175,500
|
|
|
|
–
|
|
|
|
175,500
|
|
|
|
–
|
|
Other non-operating
income (expense)
|
|
|
(812,434)
|
|
|
|
(7,154)
|
|
|
|
(794,582)
|
|
|
|
8,113
|
|
Total other income
(expense), net
|
|
|
(757,744)
|
|
|
|
(33,376)
|
|
|
|
(826,877)
|
|
|
|
(35,406)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
|
30,990
|
|
|
|
306,809
|
|
|
|
1,891,336
|
|
|
|
1,108,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
237,813
|
|
|
|
86,085
|
|
|
|
760,687
|
|
|
|
311,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
$
|
(206,823)
|
|
|
$
|
220,724
|
|
|
$
|
1,130,649
|
|
|
$
|
797,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF CLASS A
COMMON STOCK*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
20,204,496
|
|
|
|
20,170,788
|
|
|
|
20,204,496
|
|
|
|
20,056,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.010)
|
|
|
$
|
0.011
|
|
|
$
|
0.056
|
|
|
$
|
0.040
|
|
*On November 16, 2020, the Company
implemented a 2-for-1 forward split of the issued and outstanding
shares of Class A Common Stock of the Company. The computation of
basic and diluted EPS was retroactively adjusted for all periods
presented.
*On October 20, 2020, the Company
issued to its Founders 14,000,000 shares of the Company's Class B
Common Stock. The issuance was considered as a nominal issuance, in
substance a recapitalization transaction, which was recorded and
presented retroactively as outstanding for all reporting periods.
The computation of basic and diluted EPS did not include the Class
B Common Stock as the holders of Class B Common Stock have no
dividend or liquidation right until such time as their shares of
Class B Common Stock have been converted into Class A Common
Stock.
For more information, please contact:
Sherry Zheng
Weitian Group LLC
Phone: 718-213-7386
Email: shunyu.zheng@weitian-ir.com
View original
content:http://www.prnewswire.com/news-releases/ipower-reports-fiscal-third-quarter-results-301319794.html
SOURCE iPower Inc.