Key Highlights

  • Shares slid 11.59% to USD 1.45 in pre-market trading on November 4, 2026.
  • The implied Tuesday close was about USD 1.64 (calculated), which means the decline equals USD 0.1901.
  • A 1-for-12 reverse split took effect on October 26, 2026, reducing shares from 6,394,999 to about 532,917.
  • A non-binding letter of intent dated October 15, 2026 pointed to up to USD 21.90 million in annualized fees at full build-out.
  • Fiscal third quarter 2026 Revenue came in at USD 3.50 million, compared with USD 16.04 million a year earlier.

What Drove iPower Lower Before the Open (down USD 0.1901, 11.59%)

iPower (NASDAQ:IPW) traded 11.59% lower at USD 1.45 in pre-market trading on November 4, 2026, against the Tuesday November 3, 2026 close. The screen figures imply a prior close of about USD 1.64 (calculated).

No company announcement dated November 2, 3 or 4, 2026 was identified. The drop follows a reverse split that took effect on October 26, 2026, and trading in a very small share base tends to be volatile after such a split, though that is an inference rather than a confirmed cause.

The Reverse Split and AI Letter of Intent

A company press release dated October 22, 2026 stated that the 1-for-12 reverse split became effective at 12:01 a.m. Eastern Time on October 26, 2026 to keep the company compliant with Nasdaq's minimum bid price requirement. Shares outstanding dropped from 6,394,999 to about 532,917, and the ticker remained IPW.

In a release dated October 15, 2026, iPower AI LLC, a subsidiary, disclosed a customer-signed, non-binding five-year letter of intent at USD 4,608 per unit per month. The initial 48 units equal about USD 2.65 million annualized, while roughly 396 units planned during 2027 would reach up to USD 21.90 million annualized. The company said these figures are not committed revenue, Backlog or guidance.

Business Background and Recent Results

iPower describes itself as a technology and data driven infrastructure company that now puts priority on AI infrastructure acquisition, financing and equipment leasing rather than passive digital asset accumulation. It was previously an online hydroponics and home goods supplier and has divested units, including the sale of its GPM Subsidiary in exchange for a USD 2.3 million promissory note.

For the fiscal third quarter ended March 31, 2026, revenue was USD 3.50 million against USD 16.04 million, and gross Margin was 21.6% versus about 42.7% (calculated). The GAAP net loss came to USD 3.45 million, or USD 2.38 per share, including a USD 3.03 million Goodwill impairment, compared with a loss of USD 0.34 million a year earlier.

Balance Sheet and Risks

At March 31, 2026, cash stood at USD 0.71 million, restricted cash at USD 2.21 million and convertible notes payable at USD 4.47 million. The Annual Report for the year ended June 30, 2026 said the company had sold about USD 15.18 million of Series A notes under a USD 30 million facility, and that USD 9.36 million had been converted into 849,697 shares as of October 2, 2026.

Digital Assets of about USD 6.10 million, including 15.1 BTC, were pledged to noteholders as of October 1, 2026. Conversions add dilution, and the company reported only 2 full-time employees at June 30, 2026. As a penny stock, its shares can be volatile and thinly traded.

What to Watch Next

Watch for a definitive services agreement to replace the letter of intent, which the company said is not assured. Further note conversions, any additional reverse split or listing notice, and the first quarter fiscal 2027 report would also shape sentiment.

Whether the stock holds its post-split range during regular hours on November 4, 2026 will show if the pre-market weakness persists.