Independence Power Holdings, Inc. Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how Independence Power Holdings, Inc. performed this year. My goal is to break down their complex filings into simple terms so you can decide if this company fits your investment goals.

1. What does this company do?

Independence Power is a Dallas-based energy technology firm. Think of them as the "brains" behind a fleet of industrial-sized batteries. They don't own the batteries; they provide the software that manages them. These batteries act like a "shock absorber" for oilfield equipment. If a generator fails or the power grid flickers, the batteries kick in instantly to keep operations running. By managing power loads, they help drilling rigs use less fuel and lower their carbon emissions.

2. A Total Transformation

The company looks completely different than it did a year ago. Formerly a Malaysian business services firm called "TriUnity," the company rebooted in late 2025. On October 24, 2025, they completed a reverse merger with Independence Power, moved to Dallas, and shifted their entire business to battery energy storage software. They sold off their old Malaysian operations to focus entirely on the North American energy sector.

3. How they make money

The company uses an "asset-light" model. They have a five-year agreement to manage 101 battery units.

• The Revenue Model: They act as the fleet operator, handling maintenance, monitoring, and software support. In return, they get a share of the rental fees oil companies pay to use these units.
• The Guarantee: Their contract guarantees a minimum monthly fee of $5,000 per battery. This totals $505,000 per month in guaranteed billings.
• The Reality Check: They reported $97.2 million in total revenue for 2025. However, $86.6 million of that was not cash. It was a "promissory note"—essentially an IOU from a customer. This note pays 5% interest and is scheduled for repayment over 24 months, starting in November 2026. Because of this, the company’s actual cash flow remains very low compared to their reported revenue.

4. Who is in charge?

Control is heavily concentrated. A group led by Chairman and CEO David J. Durrett owns about 94% of the company’s stock. This gives them total control over the company’s direction. They can approve mergers or strategy changes without needing approval from other shareholders. Their interests may not always align with yours.

5. Key risks

This is a highly speculative investment. Here is what you should know:

• One-Hit Wonder: Almost all of their 2025 revenue came from one project for a single customer. If they don't find more clients, or if this customer runs into trouble, the business could face a cash crisis.
• The "IOU" Risk: Since they were paid mostly in an IOU rather than cash, they are at risk if their customer struggles financially. The company needs that note to be paid to cover its own bills.
• Small Team: They have only five full-time employees and rely on outside contractors for legal and accounting support. This limits their ability to grow quickly.
• High Stakes: The company warns that this is a "highly speculative" investment. Given their reliance on one customer and lack of cash, you should be prepared for the possibility of losing your entire investment.

6. The Bottom Line

The company is in a "startup" phase. They have a new strategy, but they haven't proven they can generate steady cash yet. They are a holding company that relies entirely on their subsidiary to stay afloat. Until they land more contracts and turn their "paper" revenue into actual cash, the company remains very vulnerable to failure.

Investor Checklist: Before deciding to invest, ask yourself:

• Am I comfortable with a company that relies on a single customer for nearly all its revenue?
• Does the high concentration of ownership by the CEO match my personal risk tolerance?
• Am I prepared for the volatility of a company that reports large "paper" gains but has limited cash on hand?