iPower sells subsidiaries, pivots to digital assets; revenue plunges 78%, loss widens 10x

Filed May 20, 2026 · Period ending March 31, 2026 · Compared to 10-Q May 15, 2025 · ~2 min read

Key Changes

• high

  Company sold subsidiaries Feb 2026, driving 78% revenue decline to $3.5M and 70% gross-profit drop. Product margin collapsed from 45% to 22%. Nine-month revenue fell 65% to $18.5M. Core business now fundamentally smaller and lower-margin.

  MD&A: Revenue and Margins verify on EDGAR →
• high

  Launched Digital Treasury Strategy buying Bitcoin and Ethereum (15.1 BTC, 301.1 ETH purchased Dec 2025). Unrealized crypto losses, goodwill impairment ($3M writedown), and debt-extinguishment losses drove other expense from $48K to $4.5M in Q3.

  MD&A: Digital Treasury Strategy verify on EDGAR →
• high

  Closed $9M of $30M convertible note facility (6% OID, converts at $17.70 or 95% of 7-day VWAP, floor $2.27). Notes secured by crypto assets. Authorized shares increased 5x to 950M common. Embedded derivatives create $1.3M mark-to-market liability.

  MD&A: Convertible Notes verify on EDGAR →