The AI “hype train” has been accelerating for far longer than even most bulls would have expected, and it is no longer far-fetched to assume that 2026 could be just a repeat of what happened in the past two years. This means more money pouring into everything AI, with all these investments translating into a higher share price for the companies that are most directly involved. It doesn't get more “direct” than power and electricity, which are essential for AI and are expected to face a crunch. AI data ce ...

Core Insights - Ideal Power Inc is positioning itself for growth with its B-TRAN technology, particularly in the automotive and data center markets, following a new purchase order from Stellantis [1][2] Company Strategy - The company aims to accelerate the commercialization of its B-TRAN products by engaging directly with customers to understand their needs and support their product development [3][4] - Ideal Power is focusing on expanding its sales pipeline and identifying new opportunities in a multibillion-dollar market [5] Market Opportunities - The fastest market entry for B-TRAN technology is expected in circuit breaking, circuit protection, and UPS systems within data centers, driven by high demand for AI data centers [6] - Industrial applications are also a key focus, with a quicker adoption cycle compared to automotive, which typically has a longer development timeline [7] Technology Development - The company is undergoing third-party automotive qualification testing to demonstrate the reliability of its technology, which is crucial for gaining customer trust in automotive and industrial applications [8] Strategic Partnerships - Ideal Power is exploring strategic partnerships, particularly with Stellantis, to enhance growth and production scaling, leveraging existing relationships [9][10] - Development agreements are seen as beneficial for aligning product development efforts and generating additional capital for business growth [10] Intellectual Property - The company has a substantial patent portfolio and is committed to protecting its innovations while fostering a culture of innovation to adapt to evolving market needs [11][12]

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Financial Data and Key Metrics Changes - The third quarter 2025 cash burn from operating and investing activities was $2.7 million, an increase from $2.4 million in Q3 2024 and $2.5 million in Q2 2025 [18] - Operating expenses were $3 million in Q3 2025 compared to $2.9 million in Q3 2024, attributed to higher wafer fabrication costs [19] - Net loss in Q3 2025 was $2.9 million, compared to $2.7 million in Q3 2024 [21] Business Line Data and Key Metrics Changes - A purchase order was secured from Stellantis for custom development and packaged B-TRAN devices targeting multiple electric vehicle applications [9] - The power rating of the discrete B-TRAN product was increased by 50%, leading to greater interest from customers [11][15] - The first DesignWin customer is expected to generate several hundred thousand dollars in revenue in its first year, potentially exceeding $1 million in the second year [14] Market Data and Key Metrics Changes - The company is engaged in discussions with a sixth global automaker evaluating B-TRAN for next-generation high-voltage EV applications [10] - Interest in B-TRAN is growing across Asia, which is the largest market for power electronics [12] - Third-party automotive qualification testing of B-TRAN devices is underway, with positive early test results [12] Company Strategy and Development Direction - The company aims to commercialize its B-TRAN technology in high-growth power applications across data centers, industrial, and automotive markets [4] - The strategy includes leveraging extensive commercial experience to drive revenue growth in target markets [5] - The company is focused on executing with rigor and discipline to establish credibility and maintain investor confidence [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to drive long-term value creation and highlighted the importance of understanding customer needs [8] - The CEO emphasized the trend towards higher power architectures in EVs and the need for improved power efficiency and density [25][31] - The company anticipates a continued trend towards higher power levels across multiple applications, which aligns with B-TRAN technology advantages [31] Other Important Information - The company has 97 issued B-TRAN patents, with 73 pending, and is focused on safeguarding its intellectual property [17] - Cash and cash equivalents totaled $8.4 million at September 30, 2025, with no debt [18] - The company expects fourth quarter 2025 cash burn to be approximately $2.5-$2.7 million, with a full year 2025 cash burn of approximately $10 million [18] Q&A Session Summary Question: What is driving the automakers to look for better solutions? - The shift to higher power architectures, particularly the adoption of 800-volt battery systems, is driving automakers to evaluate new technologies for improved power efficiency and density [25] Question: Is the product currently available for sale? - The product is not currently for sale; the customer is finalizing their product design [28] Question: How do you see the markets evolving? - The markets are expected to trend towards higher power applications, with a focus on improved power efficiency and density [30][31] Question: What is Ideal Power doing to expand the sales pipeline? - The company has added direct sales in Asia and is conducting meetings with current and prospective customers [33] Question: How does B-TRAN compare to competitors? - B-TRAN has advantages of ultra-low conduction losses and bidirectionality, translating to more efficient and compact products at lower costs compared to silicon and silicon carbide solutions [34]

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Revenue Performance - Revenue for the three months ended September 30, 2025, was $24,450, a significant increase from $554 in the same period in 2024, primarily due to the completion of the first deliverable under the Stellantis purchase order[62] - For the nine months ended September 30, 2025, revenue was $37,728, down from $80,624 in the same period in 2024, attributed to the completion of the first deliverable under the Stellantis order and other product revenues[69] Research and Development Expenses - Research and development expenses increased by $109,099, or 6%, to $1,793,162 for the three months ended September 30, 2025, driven by higher semiconductor fabrication costs and search fees[64] - Research and development expenses for the nine months ended September 30, 2025, rose by $647,470, or 14%, to $5,261,173, mainly due to increased semiconductor fabrication costs[71] Net Loss - The net loss for the three months ended September 30, 2025, was $2,940,650, representing a 9% increase compared to a net loss of $2,690,348 for the same period in 2024[68] - The net loss for the nine months ended September 30, 2025, was $8,680,439, an 11% increase from a net loss of $7,822,039 for the same period in 2024[75] Cash and Working Capital - Cash and cash equivalents at September 30, 2025, were $8.4 million, with net working capital of $7.8 million and no outstanding debt[76] - Operating activities resulted in cash outflows of $6,973,275 for the nine months ended September 30, 2025, primarily due to the net loss for the period[78] - Financing activities for the nine months ended September 30, 2025 resulted in net cash outflows of $98,724, primarily due to tax payments of $98,834 related to the vesting of restricted stock units[81] - For the nine months ended September 30, 2024, financing activities generated cash inflows of $15,724,818 from the public offering of common stock and pre-funded warrants, $1,018,898 from the exercise of warrants, and $86,757 from the exercise of stock options[82] Product Development and Agreements - The company launched the SymCool® IQ Intelligent Power Module in late 2023, targeting markets such as renewable energy and EV charging, with the first order announced in late 2024[57] - A development agreement with Stellantis for a custom B-TRAN® power module progressed to the second phase in 2023, with an order secured in August 2025 for multiple EV applications[59] Accounting and Reporting - There have been no significant changes to critical accounting estimates during the nine months ended September 30, 2025, as disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[83] - There are no material changes from trends, events, or uncertainties disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[84] - As a smaller reporting company, there is no requirement to provide quantitative and qualitative disclosures about market risk[85]

Financial Performance - Ideal Power reported a revenue of $24,450 in Q3 2025, a significant increase from $554 in Q3 2024[15] - The net loss for Q3 2025 was $2.94 million, compared to a net loss of $2.69 million in Q3 2024, reflecting a 9.3% increase in losses year-over-year[15] - Cash used in operating and investing activities in Q3 2025 was $2.7 million, up from $2.4 million in Q3 2024, indicating a 12.5% increase[7] - Cash and cash equivalents totaled $8.4 million as of September 30, 2025, down from $15.8 million at the end of 2024[13] - Operating expenses in Q3 2025 were $3.0 million, slightly higher than $2.9 million in Q3 2024, primarily due to increased research and development spending[7] - Cash used in operating activities for the first nine months of 2025 was $7.4 million, compared to $6.6 million in the same period of 2024, marking a 12.1% increase[7] Business Developments - The company secured a purchase order from Stellantis for custom B-TRAN® devices, completing the first of five deliverables under this order[3] - Ideal Power increased the power rating of its discrete B-TRAN® product by 50%, which has generated greater interest from both existing and potential customers[3] - The company has 97 issued B-TRAN® patents, with 73 pending, covering regions including North America, China, and Europe[7] - The company engaged with a sixth global automaker to evaluate B-TRAN® for EV applications, indicating ongoing market expansion efforts[3]

Core Insights - Ideal Power Inc. reported its third quarter results for 2025, highlighting significant operational progress and financial metrics [1][3]. Operational Highlights - The company secured a purchase order from Stellantis for custom development and packaged B-TRAN® devices aimed at multiple electric vehicle (EV) applications, completing the first of five deliverables under this order [3][5]. - Ideal Power's first design win customer has successfully tested an updated prototype of solid-state circuit breakers (SSCBs) and is finalizing their product design for an AI data center target [2][5]. - Engagement with a sixth global automaker is underway, evaluating B-TRAN® for low-loss, solid-state solutions for EV power switching and protection applications [5]. - The power rating of the discrete B-TRAN® product has been increased by 50%, leading to heightened interest from both existing and new customers [5]. - Third-party automotive qualification and reliability testing of B-TRAN® devices is ongoing, with over a thousand packaged devices tested and no failures reported to date [5]. Financial Performance - Cash used in operating and investing activities in Q3 2025 was $2.7 million, up from $2.4 million in Q3 2024 [5]. - The net loss for Q3 2025 was $2.9 million, compared to a net loss of $2.7 million in Q3 2024 [5]. - Operating expenses for Q3 2025 were $3.0 million, slightly higher than $2.9 million in Q3 2024, attributed to increased research and development spending [5]. - Cash and cash equivalents totaled $8.4 million as of September 30, 2025, down from $15.8 million at the end of 2024 [10][12]. Patent Portfolio - Ideal Power currently holds 97 issued B-TRAN® patents, with 47 issued outside the United States and 73 pending, covering regions including North America, China, Taiwan, Japan, South Korea, India, and Europe [5].

Core Points - Ideal Power Inc. will hold a conference call on November 13, 2025, at 10:00 AM Eastern Time to discuss its third-quarter results for the period ending September 30, 2025 [1] - A press release detailing the financial results will be issued prior to the conference call [1] - Analysts and investors can submit questions for management during the live call [2] Company Overview - Ideal Power Inc. is a developer and provider of the patented B-TRAN® bidirectional semiconductor power switch, focusing on energy control solutions for various applications including electric vehicles, renewable energy, and energy storage [5] - The B-TRAN® technology offers significant performance improvements over conventional power semiconductors, reducing conduction and switching losses, and lowering operating costs [5]

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