iPower (US:IPW)2023-02-14 22:02Financial Performance - Revenues for the three months ended December 31, 2022 increased 12.43% to $19,254,590 compared to $17,125,663 for the same period in 2021[192]. - Cost of goods sold for the three months ended December 31, 2022 increased 17.95% to $11,285,064 compared to $9,568,051 for the same period in 2021[193]. - Gross profit for the three months ended December 31, 2022 was $7,969,526, with a gross profit margin of 41.39%, down from 44.13% in the same period of 2021[195]. - Revenues for the six months ended December 31, 2022 increased 31.27% to $45,277,263 compared to $34,492,428 for the same period in 2021[203]. - Cost of goods sold for the six months ended December 31, 2022 increased 39.25% to $27,322,021 compared to $19,621,114 for the same period in 2021[202]. - Gross profit was $17,955,242 for the six months ended December 31, 2022, with a gross profit ratio of 39.66%, down from 43.11% in the prior year[206]. Operating Expenses and Losses - Operating expenses for the three months ended December 31, 2022 increased 87.66% to $12,052,092 compared to $6,422,327 for the same period in 2021[196]. - Operating loss for the six months ended December 31, 2022 was ($8,675,872), a decrease from operating income of $2,425,600 for the same period in 2021[202]. - Operating expenses surged by 113.98% to $26,631,114 for the six months ended December 31, 2022, primarily due to increased selling and fulfillment expenses[207]. Net Income and Loss - Net loss attributable to iPower Inc. for the three months ended December 31, 2022 was ($3,290,439), a decrease of $4,088,300 compared to net income of $797,861 for the same period in 2021[199]. - Comprehensive loss attributable to iPower Inc. for the three months ended December 31, 2022 was ($3,243,290), compared to comprehensive income of $797,861 for the same period in 2021[200]. - Net loss attributable to iPower Inc. was ($7,472,815) for the six months ended December 31, 2022, a decrease of $9,158,204 compared to net income of $1,685,389 in the same period of 2021[210]. Cash and Working Capital - Cash and cash equivalents increased to $3,997,125 as of December 31, 2022, up by $2.2 million from $1,821,947 as of June 30, 2022[212]. - Net cash provided by operating activities was $7,778,208 for the six months ended December 31, 2022, compared to a net cash used of ($12,243,043) in the same period of 2021[216]. - Working capital was $22.96 million as of December 31, 2022, down from $32.3 million as of June 30, 2022[215]. Acquisitions and Goodwill - The company acquired 100% of Anivia Limited on February 15, 2022, consolidating its financial statements from that date[229]. - The Company recognized intangible assets from the acquisition of Anivia Limited, including a covenant not to compete (10 years), supplier relationships (6 years), and software (5 years) valued at fair value as of February 15, 2022[234]. - The company recognized a goodwill impairment loss of $3,060,034 as of September 30, 2022, due to a decrease in share price and net loss incurred[232]. - As of December 31, 2022, there were no indicators of impairment for long-lived assets, including intangible assets[234]. Accounting Policies and Tax Positions - The Company applies ASC No. 718 for stock-based compensation, measuring share-based payment transactions based on grant date fair value and recognizing it over the requisite service period[235]. - The Company will recognize forfeitures of equity-based compensation as they occur[236]. - Deferred tax assets and liabilities are recognized for future tax consequences, with valuation allowances recorded when necessary to reduce deferred tax assets to realizable amounts[237]. - The Company has adopted ASC 740 since inception, analyzing tax positions in major jurisdictions, including U.S. federal, Nevada, and California[239]. - The Company does not anticipate material changes to its financial position from its income tax filing positions and has not recorded reserves for uncertain income tax positions[240]. - The Company does not expect the adoption of recently issued accounting standards to have a material impact on its consolidated financial statements[241][242][243][244][246][247][248].