iPower Inc. (NASDAQ:IPW) said it has sold its subsidiary Global Product Marketing Inc. for roughly $2.3 million, a move aimed at lowering operating expenses as part of a broader restructuring effort.
The company said the sale removes a significant cost burden tied to its online sales operations, while allowing iPower to keep control of its core supply chain, procurement, fulfillment and software platforms. E-commerce activities will continue through in-house capabilities and selected strategic partners.
iPower expects the transaction to materially reduce ongoing expenses and boost its asset base by about $2.3 million. It also noted that future supply chain-related revenue opportunities will be preserved, with contribution margins potentially reaching up to 15% under commercial agreements.
“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,” said Lawrence Tan, chief executive officer.
The stronger financial position is expected to give iPower greater flexibility to assess its previously announced digital asset initiatives, including a Digital Asset Treasury strategy, although the company stressed that any such plans remain subject to capital allocation discipline and risk management considerations.
iPower operates as a technology- and data-driven online retailer and provides e-commerce services to third-party brands. The group runs a nationwide fulfillment network and continues to invest in software, logistics and manufacturing infrastructure.