FREE

Fireside Chat with CFO Kevin Vassily

We discussed the new Business Service initiative with CFO Kevin Vassily. This report contains a transcript of the fireside chat from August 21, 2023, which can be accessed on demand. Over the last couple of years, iPower has been approached many times by companies seeking help in bringing their products to the US market via ecommerce. The company has now decided to pursue these opportunities as another way to monetize its experience and know-how as an ecommerce operator. iPower can assist partners across every step of the value creation chain, from product feasibility and design, to sourcing, quality assurance, logistics, merchandising and marketing. iPower uses data for each of these steps in its own business and can assist and advise partners using its data analysis experience. iPower’s strong relationship with Amazon and its ability to sell to Amazon via the Vendor Central Platform is likely to be the primary basis of most Business Service agreements, but the company should be able to then expand the services offered to multiple steps of the value creation chain. As iPower has been repeatedly approached for help by potential partners over the last two years, the company has a good pipeline of potential clients for these services. The company has announced its first strategic partnership (with LTMATE Global) and it already has a second agreement in place (the name of the partner hasn’t been disclosed). iPower expects its business model to go back to “pre-2022 inventory panic” in FY24 and to yield positive results at the EBITDA level. A continued successful launch of this new business line should further contribute to profitability in FY24. This initiative has so far not necessitated additional investments in the business as the company has the bandwidth to handle additional business. Management believes additional investment won’t be needed until about 10 strategic partnerships are signed.