iPower Inc. 8-K

What Happened

• iPower Inc. (IPW) filed an 8-K on February 10, 2026 disclosing two material actions: it completed an additional mandatory closing under a previously announced Securities Purchase Agreement and its board approved a share repurchase program.
• On February 10, 2026 the company issued an Additional Mandatory Series A senior secured convertible note with $2,000,000 aggregate principal amount and received approximately $1,880,000 in gross proceeds (the consideration was paid at $940 per $1,000 of principal, reflecting a 6% original issue discount). The closing followed the effectiveness of the resale registration statement and satisfaction of closing conditions.
• Also on February 10, 2026 the board authorized a Share Buyback Program for up to $2.0 million of common stock. Repurchases may occur on the open market or via privately negotiated transactions (including Rule 10b5‑1 plans), have no time limit, may be suspended or changed, and are expected to be funded from cash on hand and future cash flow.

Key Details

• Additional note closing date: February 10, 2026 (Additional Mandatory Closing Notice delivered Feb 9, 2026).
• Amount issued: $2,000,000 principal of Series A senior secured convertible note; gross proceeds received: approximately $1,880,000.
• Financing terms highlight: paid at $940 per $1,000 principal (6% original issue discount).
• Share repurchase program: up to $2.0 million authorized; no set time limit or minimum share amount; funded from cash and future operating cash flow.

Why It Matters

• The additional note closing provides near-term cash of about $1.88M, which can help fund operations or strategic needs, but it was raised at a discount and through convertible debt that can lead to future equity dilution if converted.
• The $2.0M buyback authorization signals the board may seek to support the share price or offset dilution from convertible securities, but repurchases are discretionary, may not occur, and depend on market and cash conditions.
• Investors should weigh the immediate liquidity benefit against potential dilution from the convertible notes and monitor future disclosures for conversion terms, actual repurchases, and how the company uses the proceeds.