Business
iPower Eliminates Major Cost Center and Receives $2.3 Million in Consideration as Part of Strategic Restructuring While Retaining Core Supply Chain Platform
RANCHO CUCAMONGA, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”) today announced that it has eliminated a
About this update from Ipower Inc.
[{"type":"text","content":"RANCHO CUCAMONGA, Calif., Feb. 02, 2026 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”) today announced that it has eliminated a major operating cost center while receiving total consideration of approximately $2.3 million as part of a strategic restructuring designed to streamline operations and strengthen the Company’s core supply chain and fulfillment platform. Through this transaction, iPower has removed major costs associated with online sales operations by selling its subsidiary, Global Product Marketing Inc., while retaining iPower’s core supply chain, procurement, fulfillment and software infrastructure. The Company will continue to maintain its e-commerce capabilities through its internal operating experience and strategic partnerships, and also maintain ongoing commercial arrangements that provide continued access to future purchase orders and supply chain revenue opportunities, without bearing the previously associated operating expenses. The transaction is expected to: Significantly reduce operating expenses by eliminating a major cost center;Increase iPower’s asset base by approximately $2.3 million; andPreserve future supply chain revenue opportunities with positive contribution margins, which may reach up to approximately 15% under applicable commercial arrangements. “This restructuring reflects a disciplined focus on efficiency and long-term value creation,” said Lawrence Tan, Chief Executive Officer of iPower. “By removing a high-cost operating component while retaining our supply chain platform and commercial relationships, we have improved our cost structure, strengthened our balance sheet, and positioned iPower to pursue sustainable, margin-positive revenue opportunities going forward.” As a result of the improved cost structure and enhanced balance sheet following this restructuring, iPower noted that the Company is better positioned to prudently evaluate and support its previously announced digital asset initiatives, including its Digital Asset Treasury strategy. The Company emphasized that such initiatives remain subject to disciplined capital allocation, governance and risk management, and are intended to complement—rather than replace—its core operating focus. Following completion of the transaction, iPower expects to operate with lower operating costs, improved operating effici...