Business Context and Reporting Period
This Form 8-K is a current report filed by iPower Inc. (Nasdaq: IPW), a Nevada corporation, on June 24, 2025. The filing discloses a change in the Company's independent registered public accounting firm.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the dismissal and appointment of auditors.
Material Changes
- Dismissal of Auditor: On June 24, 2025, the Company dismissed UHY LLP as its independent registered public accounting firm, effective immediately upon approval by the audit committee.
- Appointment of New Auditor: On the same date, the Company appointed HTL International, LLC as its independent registered public accounting firm for the fiscal year ending June 30, 2025.
- Audit History: The audit reports issued by UHY LLP for the fiscal years ended June 30, 2024, and June 30, 2023, were unqualified and did not contain adverse opinions, disclaimers, or modifications regarding uncertainty, scope, or accounting principles.
Management Commentary, Risks, and Contingencies
Disagreements and Reportable Events: The Company reported no disagreements with UHY LLP regarding accounting principles, practices, or auditing scope during the relevant periods. However, the filing notes the existence of material weaknesses in internal controls previously disclosed in the Company's Form 10-K filings for the years ended June 30, 2024, and June 30, 2023. These weaknesses include:
- Controls related to the financial statements closing process were not adequately designed or implemented to identify material misstatements.
- A lack of effective communication and reconciliation procedures in controlled subsidiaries.
Consultation with New Auditor: The Company confirmed that neither it nor anyone on its behalf consulted HTL International, LLC regarding accounting principles, audit opinions, or matters constituting disagreements or reportable events prior to their appointment.
Investor Verification Checklist
- Verify the content of the letter from UHY LLP (Exhibit 16.1) to confirm the auditor's agreement with the Company's statements regarding the dismissal.
- Review the Company's most recent Form 10-K to understand the specific details of the material weaknesses in internal controls cited in this filing.
- Monitor future filings for the transition plan and timeline for HTL International, LLC to complete the audit for the fiscal year ending June 30, 2025.
- Confirm whether the change in auditors impacts the timing or scope of the upcoming financial statement release.