iPower Inc (NASDAQ:IPW) stock fell 2.61% (As on Sep 28, 11:44:48 AM UTC-4, Source: Google Finance) though the company in the fourth quarter of FY 21 has reported 47% rise in the Non-GAAP net income to $2.9 million or $0.14 per share, compared to $2.0 million or $0.10 per share. The total revenue in the fiscal fourth quarter of 2021 increased slightly to $14.73 million compared to $14.66 million for the same period in fiscal 2020. The Company benefitted from heightened eCommerce demand during the fiscal fourth quarter 2020 due to the mandatory stay-at-home orders due to COVID-19, and such benefits continued into 2021. Cash and cash equivalents had increased to $6.7 million at June 30, 2021, compared to $1.0 million at June 30, 2020. The increase was attributed to proceeds raised from the Company’s initial public offering earlier this fiscal year. During the fiscal fourth quarter, the company had utilized the growth capital raised from the IPO to make significant investments and lay the groundwork for continued growth in the coming years. This included increased advertising on new products launched in the second half of 2021, expansion of the fulfillment infrastructure, and multiple new programs with our co-engineering and supply chain logistics partners.

Moreover, the company delivered the gross profit in the fiscal fourth quarter of 2021 of $6.5 million, decreased slightly compared to $6.6 million. As a percentage of revenue, gross margin was 44.4% compared to 44.7%.  Total operating expenses in the fiscal fourth quarter had risen to $6.3 million compared to $4.8 million for the same period in fiscal 2020. The increase was mainly driven by higher merchant fees related to channel program mix, increases in advertising, and an increase in spending with co-engineering partners.

Meanwhile, the growing demand for the in-house products, which made up 72% of sales in fiscal 2021, is a testament to the company’s superior product research, design and merchandising expertise. The sales of the proprietary products grew nearly 80% in fiscal 2021.  The Company had introduced hundreds of new proprietary SKUs in that same period, with the majority of them introduced in the second half of the fiscal year.

For fiscal 2022, the company expects the organic revenue growth to be in the range between 25-35%, excluding the extraordinary year of fiscal 2020 that benefited from COVID-19 stay-at-home mandates. Hydroponic industry growth at-large appears to be moderating. The company expects to continue to outpace the industry going forward with organic revenue growth of at least 25% in fiscal 2022.