On February 14, iPower Inc. (IPW) declared its financial results for the fiscal second quarter of 2022. Along with this, the company also announced the launch of a new joint venture Global Social Media LLC. Following the announcements, the stock rallied in the premarket.
In the previous trading session, the stock varied between a high of $1.91 and a low of $1.53 at 596.5K shares. IPW closed the session in the red at $1.63, with a loss of 15.10%. consequent to the announcements, the stock rebounded in the premarket to add a huge 38.04%, at the last check on Tuesday. Hence, IPW was trading at $2.25 per share in the premarket, at the time of writing.
The online hydroponic equipment supplier and retailer, iPower Inc. has a market capitalization of $50.86 million. Currently, the company has 26.49 million shares outstanding in the market. IPW presently stands at a year-to-date loss of 31.51%.
IPW’S Q2 Fiscal 2022 Results
In the fiscal Q2 2022, the company had revenue of $17.1 million, against $11.3 million in the year-ago period. Thus, marking a YOY increase of 52%.
Moreover, IPW had a net income of $0.8 million in fiscal Q2 2022, against $0.6 million in the prior-year quarter. Therefore, the net income per diluted share was $0.03 and $0.06 in fiscal Q2 2022 and 2021, respectively. The net income grew by 39% YOY.
In addition, the company ended the quarter with cash and cash equivalents of $1.0 million.
Global Social Media LLC
On February 14, the company also announced entering into a joint venture (JV) with certain individuals and a social media marketing and entertainment company. IPW together with the partners will create a social commerce platform, Global Social Media LLC (GSM) through the JV.
The JV partners’ social media marketing expertise together with the supply chain and e-commerce expertise of IPW will create GSM. According to the terms of the JV agreement, the company will be contributing $100,000 in the JV for a 60% equity interest.
IPW’s Previous Joint Venture
Previously, on January 20, the company had announced the launch of a joint venture, Box Harmony LLC, a full-service e-commerce logistics company. IPW entered into the joint venture with certain individuals and Titanium Plus Autoparts Inc. Titanium Plus is one of the largest collision-related auto parts sellers on eBay and Amazon.
Conclusion
On Monday, the company announced its quarterly results as well as a new joint venture. The improved financials along with the company’s expansion through the JVs impressed investors. As a result, the stock rallied in the premarket despite high volatility.
