iPower Inc. reported its financial results for the three months ended September 30, 2024, revealing a significant decline in revenue and an increase in net losses compared to the same period in 2023. Total revenues for Q3 2024 were $19.0 million, down 28.3% from $26.5 million in Q3 2023. Product sales revenues specifically decreased by 31.1%, from $26.5 million to $18.3 million. The gross profit also fell to $8.5 million, a 27.8% decrease from $11.8 million in the prior year, reflecting a gross profit margin of 45.7%, slightly up from 44.4% due to reduced costs of goods sold.

Operating expenses decreased by 13.8% to $11.2 million, primarily due to a $4.1 million reduction in selling and fulfillment expenses, although this was offset by a $2.4 million increase in general and administrative expenses. The company reported a loss from operations of $2.7 million, a 116.5% increase from the loss of $1.3 million in Q3 2023. The net loss attributable to iPower Inc. was $2.0 million, compared to $1.3 million in the previous year, marking a 57.7% increase in net losses.

On the balance sheet, total current assets decreased to $26.3 million from $35.0 million as of June 30, 2024, with cash and cash equivalents dropping significantly from $7.4 million to $2.6 million. Total assets also fell to $42.4 million from $51.3 million, while total liabilities decreased from $28.3 million to $21.3 million. Stockholders' equity declined to $21.1 million from $23.0 million.

The company has been actively managing its cash flow, with net cash used in operating activities for Q3 2024 reported at $(1.4 million), a notable decrease from $4.1 million in Q3 2023. This reduction was attributed to lower cash receipts from customers and increased payments for costs and operating expenses. iPower anticipates improvements in cash flow as supply chain operations stabilize.

Strategically, iPower has focused on expanding its product offerings and geographic reach, particularly in the hydroponics and gardening sectors. The company has also engaged in various acquisitions and joint ventures to enhance its market position. Notably, it acquired E Marketing Solution Inc. and Global Product Marketing Inc. in May 2021, and formed joint ventures such as Box Harmony, LLC, and Global Social Media, LLC, to bolster logistics and marketing capabilities.

Overall, iPower Inc. is navigating a challenging market environment, with efforts to streamline operations and improve financial performance amid declining revenues and increased losses.