Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>We are assuming coverage of iPower (IPW). The company sells consumer products on multiple online marketplaces, but primarily on Amazon (AMZN), where it is both a vendor (i.e., AMZN purchases inventory directly under its “Vendor Central” program and labels it as “Sold by Amazon”, which represents 80- 90% of IPW’s sales to AMZN) as well as a third-party (3P) seller.</li><li>The company has also started leveraging its AMZN relationship and experience to support other sellers in an initiative called “SuperSuite”, where it reports revenue as a mix of product sales and services.</li><li>Hydroponics, which was once dominant, is now &lt;10% of sales.</li></ul>

We are assuming coverage of iPower (IPW). The company sells consumer products on multiple online marketplaces, but primarily on Amazon (AMZN), where it is both a vendor (i.e., AMZN purchases inventory directly under its “Vendor Central” program and labels it as “Sold by Amazon”, which represents 80- 90% of IPW’s sales to AMZN) as well as a third-party (3P) seller.The company has also started leveraging its AMZN relationship and experience to support other sellers in an initiative called “SuperSuite”, where it reports revenue as a mix of product sales and services.Hydroponics, which was once dominant, is now &lt;10% of sales.

IPower, Inc. - Assuming Coverage: Diving into the Puts and Takes of Tariffs; We See a Silver Lining!