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AUSTIN, Texas , Sept. 22, 2025 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," "us" or "our"), developer and innovative provider of the highly efficient and broadly patented B-TRAN® bidirectional semiconductor power switch, today announced a 50% increase in the published power rating of its discrete B-TRAN® product from 50 amps to 75 amps. ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...

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 data centers [3]. Conference Participation - Ideal Power will participate in the H.C. Wainwright 27th Annual Global Investment Conference in New York on September 8, 2025, with a presentation scheduled for 8:00 AM ET [2][1]. - The presentation will be available via a live interactive webcast on the Company's Investor Relations website, and it will be archived for future viewing [2]. Technology and Innovation - The B-TRAN® technology offers significant performance improvements over conventional power semiconductors by reducing conduction and switching losses, simplifying thermal management, and lowering operating costs in AC power switching [3].

Core Insights - Ideal Power Inc is advancing towards commercialization with expected near-term revenue from industrial and data center applications, orders from Stellantis, and partnerships with global Tier 1 suppliers and Asian distributors [1][2][3] Group 1: Customer Engagement and Partnerships - The first design win customer is completing prototype testing for a B-TRAN-enabled solid-state circuit breaker (SSCB) with a rollout planned for later this year [2][9] - Stellantis has approved a custom device order that includes engineering services and parts, indicating potential for multiple EV applications [5][8] - The addition of Kaimei Electronic Corporation as a distributor in Taiwan enhances Ideal Power's presence in Asia, the largest power electronics market [6][19] Group 2: Revenue Generation and Market Strategy - Revenue from the Stellantis program is anticipated later this year, starting with non-recurring engineering work [8][21] - The company expects initial revenue from industrial circuit breaker products, as these have shorter design cycles compared to automotive applications [15][17] - The total addressable market for Ideal Power's technology is estimated at approximately $7.6 billion [18] Group 3: Technology and Product Development - B-TRAN technology enables solid-state circuit breakers that act over 100 times faster than conventional breakers, addressing the growing demand in data centers and renewable energy systems [12][13][14] - The company is focusing on increasing the power rating of its products and completing automotive qualification processes [22][23] - The strategy includes targeting industrial applications first, followed by integration into electric vehicle systems [15][17] Group 4: Future Outlook - Ideal Power is on track to achieve milestones for 2025, including new collaborations with global Tier 1 automakers and an initial sales ramp in the second half of 2025 [21][23] - The company plans to add more distributors in Asia to capitalize on the growing semiconductor market [20]

Financial Data and Key Metrics Changes - The cash burn from operating and investing activities for Q2 2025 was $2.5 million, an increase from $2.2 million in Q2 2024 and $2.1 million in Q1 2024 [28] - Total cash, cash equivalents as of June 30, 2025, was $11.1 million, with no debt and a clean capital structure [30] - The net loss for Q2 2025 was $3 million compared to $2.7 million in Q2 2024 [32] Business Line Data and Key Metrics Changes - The company shipped updated solid state circuit breaker prototypes to its first design win customer, which is expected to generate several hundred thousand dollars in revenue in its first year and potentially millions in the second year [11][26] - Collaborations with five automakers, including four of the top 10 global automakers, have been established, indicating a growing interest in B TRAN technology for EV applications [7][9] Market Data and Key Metrics Changes - The company is seeing increased interest in B TRAN technology for circuit protection applications, particularly in Asia, which is the world's largest market for power electronics [7][12] - The automotive market is expected to contribute significantly to revenue growth, with a focus on solid state circuit breakers and EV contactors [27][79] Company Strategy and Development Direction - The company aims to broaden its collaboration with Stellantis and other automotive suppliers, focusing on commonality across their EV platforms [16][41] - Plans to increase the power rating of products later this year, which will enhance competitiveness in the market [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving milestones for 2025, including the start of revenue ramp and completion of third-party automotive qualification [27] - The company is well-positioned to mitigate impacts from tariffs and trade policies due to its asset-light business model and dual sourcing strategy [20] Other Important Information - The company has 96 issued V TRAN patents, with 74 pending, indicating a strong focus on innovation and intellectual property protection [25] - The company is actively engaged in educating the engineering community about its technology to facilitate adoption [58] Q&A Session Summary Question: How do we think about the opportunity with Stellantis? - The company expects to be involved with multiple brands under Stellantis' EV platform, aiming for commonality across their brands [36][38] Question: What is the estimated power semiconductor content in EVs? - The estimated total power semiconductor content in an EV is about $1,100, with the EV contactor contributing approximately $300 [43] Question: How many design win opportunities are there? - The company sees a growing funnel of design win opportunities, particularly in the industrial sector, with many companies interested in solid state circuit breakers [45][48] Question: What are the challenges to closing sales? - The primary challenge is the education process for engineers regarding the new technology, as opposed to technical challenges [58] Question: What is Ideal Power doing to drive sales ramp? - The company is utilizing internal sales teams, distributor relationships, and increasing awareness through trade shows and publications [60][62] Question: When will Ideal Power reach cash flow breakeven? - A few key design wins could lead to cash flow breakeven, with significant revenue potential from solid state circuit breakers and EV applications [67] Question: What is the cost comparison between B TRAN and IGBT? - B TRAN is expected to be about 10-20% more expensive than a single IGBT, but offers significant cost savings in bidirectional applications due to fewer components needed [84]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) Presents the company's unaudited financial statements for interim periods ended June 30, 2025, and December 31, 2024 [Item 1. Unaudited Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Condensed%20Financial%20Statements) Presents the company's unaudited financial position, operational performance, cash flows, and equity for interim periods [Balance Sheets](index=4&type=section&id=Balance%20Sheets) Total assets decreased from **$19.83 million** to **$14.95 million**, driven by reduced cash, with equity significantly declining Balance Sheet Summary | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,105,553 | $15,842,850 | | Total current assets | $11,424,643 | $16,296,606 | | Total assets | $14,948,016 | $19,826,684 | | Total current liabilities | $904,272 | $560,810 | | Total liabilities | $2,209,675 | $1,971,520 | | Total stockholders' equity | $12,738,341 | $17,855,164 | [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) Net loss significantly increased for both three and six months ended June 30, 2025, due to decreased revenue and higher R&D Statements of Operations Summary | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,275 | $1,331 | $13,278 | $80,070 | | Gross loss | $(2,202) | $(16,143) | $(21,061) | $(5,902) | | Research and development | $1,900,019 | $1,562,747 | $3,468,011 | $2,929,640 | | Total operating expenses | $3,138,291 | $2,869,870 | $5,944,264 | $5,407,062 | | Loss from operations | $(3,140,493) | $(2,886,013) | $(5,965,325) | $(5,412,964) | | Net loss | $(3,036,765) | $(2,662,065) | $(5,739,789) | $(5,131,691) | | Net loss per share – basic and diluted | $(0.33) | $(0.31) | $(0.63) | $(0.69) | [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) Operating cash outflows increased due to higher net loss, with financing activities shifting from inflow to outflow Statements of Cash Flows Summary | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,425,301) | $(3,970,930) | | Net cash used in investing activities | $(220,337) | $(239,004) | | Net cash provided by (used in) financing activities | $(91,659) | $15,799,996 | | Net increase (decrease) in cash and cash equivalents | $(4,737,297) | $11,590,062 | | Cash and cash equivalents at end of period | $11,105,553 | $20,064,897 | [Statements of Stockholders' Equity](index=7&type=section&id=Statements%20of%20Stockholders'%20Equity) Stockholders' equity significantly decreased from **$17.86 million** to **$12.74 million** due to net loss Stockholders' Equity Summary | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Stockholders' Equity | $12,738,341 | $17,855,164 | | Common Stock Shares Outstanding | 8,499,335 | 8,336,812 | | Additional Paid-In Capital | $125,950,104 | $125,327,300 | | Accumulated Deficit | $(113,207,052) | $(107,467,263) | - Net loss for the six months ended June 30, 2025, was **$5,739,789**, contributing to the accumulated deficit[17](index=17&type=chunk) - Stock-based compensation for the six months ended June 30, 2025, totaled **$714,625**[17](index=17&type=chunk) [Notes to Unaudited Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Financial%20Statements) Provides detailed context for financial statements, covering organization, accounting policies, asset/liability, and equity [Note 1 – Organization and Description of Business](index=8&type=section&id=Note%201%20%E2%80%93%20Organization%20and%20Description%20of%20Business) Ideal Power Inc. develops B-TRAN® solid-state switch technology, with continued operations dependent on future funding - Ideal Power Inc. is focused on the development and commercialization of its B-TRAN® solid-state switch technology[20](index=20&type=chunk) - The company's continued operations rely on obtaining adequate funding through future revenues, stock offerings, debt financing, co-development agreements, government grants, or intellectual property sales/licensing[21](index=21&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=8&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) Outlines financial statement presentation, segment information, and net loss per share policies, confirming SEC Form 10-Q adherence - Financial statements are prepared in accordance with SEC Form 10-Q rules, with certain information condensed or omitted[22](index=22&type=chunk) - The company operates as one operating segment, with the CEO as the Chief Operating Decision Maker, reviewing financial information on a company-wide basis[24](index=24&type=chunk) - Pre-funded warrants are included in the computation of basic net loss per share, but no common share equivalents are included in diluted net loss per share due to their anti-dilutive effect in periods of net loss[26](index=26&type=chunk)[27](index=27&type=chunk) [Note 3 – Intangible Assets](index=10&type=section&id=Note%203%20%E2%80%93%20Intangible%20Assets) Intangible assets increased from **$2.61 million** to **$2.68 million**, with capitalized unawarded patent costs Intangible Assets, Net | Intangible Asset | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Patents | $1,949,489 | $1,770,374 | | Trademarks | $22,861 | $22,767 | | Other intangible assets | $1,843,036 | $1,843,036 | | Total intangible assets, net | $2,681,808 | $2,611,998 | - Costs related to patents not yet awarded (**$707,305** at June 30, 2025) are capitalized but not amortized until patent issuance[30](index=30&type=chunk) - Amortization expense for intangible assets was **$109,399** for the six months ended June 30, 2025, up from **$106,602** in the prior year[32](index=32&type=chunk) [Note 4 – Lease](index=10&type=section&id=Note%204%20%E2%80%93%20Lease) Amended Lease in April 2024 for larger space resulted in a gain on termination and new right-of-use asset/liability - In April 2024, the company entered an Amended Lease for a larger **5,775 sq ft** office and laboratory space, replacing a **4,070 sq ft** suite[34](index=34&type=chunk) - The Amended Lease term expires **62 months** from July 1, 2024, with annual base rent starting at **$118,388** and increasing by approximately **2.75%** annually[34](index=34&type=chunk) - A gain of **$15,319** was recorded on the termination of the original lease[35](index=35&type=chunk) Lease Liability Components | Lease Liability Component | Amount | | :--- | :--- | | Total lease liability | $446,361 | | Current portion of lease liability | $(87,915) | | Long-term lease liability | $358,446 | [Note 5 – Commitments and Contingencies](index=12&type=section&id=Note%205%20%E2%80%93%20Commitments%20and%20Contingencies) Holds two exclusive royalty-free license agreements with **$1.1 million** estimated future payments, no current legal proceedings - The company holds exclusive royalty-free licenses for semiconductor power switches (expires 2033, **$100,000** annually) and semiconductor drive circuitry (expires 2034, **$50,000** annually)[39](index=39&type=chunk)[40](index=40&type=chunk) - The estimated present value of future payments under licensing agreements was **$1,096,957** at June 30, 2025, with **$150,000** due in the next twelve months[41](index=41&type=chunk) - The company is not currently party to any legal proceedings[42](index=42&type=chunk) [Note 6 – Equity Incentive Plan](index=12&type=section&id=Note%206%20%E2%80%93%20Equity%20Incentive%20Plan) Equity Incentive Plan had **213,555** shares available, with decreased outstanding options and increased RSU/PSU awards - At June 30, 2025, **213,555** shares of common stock were available for issuance under the 2013 Equity Incentive Plan[44](index=44&type=chunk) Stock Options Summary | Stock Options | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Outstanding | 416,414 | 509,414 | | Weighted Average Exercise Price | $7.85 | $7.56 | | Exercisable | 412,414 | N/A | Equity Awards Summary | Equity Awards | Outstanding at June 30, 2025 | Outstanding at December 31, 2024 | | :--- | :--- | :--- | | RSUs | 334,904 | 331,715 | | PSUs | 194,000 | 114,000 | - Unrecognized compensation cost related to non-vested equity awards was **$2,236,333** at June 30, 2025, expected to be recognized over a weighted average period of **0.9 years**[48](index=48&type=chunk) [Note 7 – Warrants](index=14&type=section&id=Note%207%20%E2%80%93%20Warrants) Outstanding warrants totaled **342,240** and pre-funded warrants **653,827**, with **110,000** pre-funded warrants exercised Warrant Summary | Warrant Type | Outstanding at June 30, 2025 | Outstanding at December 31, 2024 | Weighted Average Exercise Price | | :--- | :--- | :--- | :--- | | Warrants | 342,240 | 342,240 | $8.90 | | Pre-funded warrants | 653,827 | 763,827 | $0.001 | - During the six months ended June 30, 2025, **110,000** pre-funded warrants were exercised for **$110** in proceeds[49](index=49&type=chunk) - All warrants were exercisable at June 30, 2025, subject to beneficial ownership limitations for certain holders[50](index=50&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Ideal Power's business, product commercialization, customer engagements, and financial performance, highlighting increased losses [Overview](index=17&type=section&id=Overview) Ideal Power focuses on B-TRAN® solid-state switch technology, launching SymCool® products and generating **$13,278** revenue in H1 2025 - Ideal Power Inc. is solely focused on the development and commercialization of its B-TRAN® solid-state switch technology[55](index=55&type=chunk) - The company launched its first two commercial products, the SymCool® Power Module and SymCool® IQ Intelligent Power Module, in early and late 2023, respectively[57](index=57&type=chunk)[58](index=58&type=chunk) - Revenue for the six months ended June 30, 2025, was **$13,278**[56](index=56&type=chunk) [Product Launches](index=17&type=section&id=Product%20Launches) Launched SymCool® Power Module for SSCBs and SymCool® IQ for renewable energy, with higher volume sales expected post-design wins - SymCool® Power Module (launched early 2023) targets the solid-state circuit breaker (SSCB) market[57](index=57&type=chunk) - SymCool® IQ Intelligent Power Module (launched late 2023) targets renewable energy, energy storage, EV charging, and other industrial applications[58](index=58&type=chunk) - Significant revenue growth is expected from higher volume orders following design wins, with a typical one-year lead time for OEM product launches[59](index=59&type=chunk) [Development Agreement](index=18&type=section&id=Development%20Agreement) Completed second phase of Stellantis development agreement for EV drivetrain inverters, next phase focuses on automotive certification - Completed the second phase of a product development agreement with Stellantis for a custom B-TRAN® power module for EV drivetrain inverters[60](index=60&type=chunk) - The next phase will involve extensive testing to meet automotive certification standards for B-TRAN® in Stellantis' next-generation EVs[60](index=60&type=chunk) [Customer Engagements](index=18&type=section&id=Customer%20Engagements) Engaged with global automakers, power conversion providers, and automotive suppliers for B-TRAN® testing, leading to design wins - Engagements include multiple top global automakers, a top 10 global power conversion solutions provider, three global power management market leaders, and five tier 1 automotive suppliers[61](index=61&type=chunk) - These engagements involve testing and evaluating B-TRAN® technology for various applications, potentially leading to future design wins or custom development agreements[61](index=61&type=chunk) [First Design Win](index=18&type=section&id=First%20Design%20Win) Secured first design win for SSCBs with a major Asian manufacturer, completing development in Q1 2025, sales expected later in 2025 - First design win secured in late 2024 for SSCBs with a top Asian circuit protection equipment manufacturer[62](index=62&type=chunk) - Joint development agreement for an SSCB product incorporating B-TRAN® devices was completed in Q1 2025, three months ahead of schedule[62](index=62&type=chunk) - Commercial sales for this design win are expected later in 2025, with additional design wins anticipated in the second half of 2025[62](index=62&type=chunk) [Results of Operations](index=18&type=section&id=Results%20of%20Operations) Operating and net losses increased for both three and six months ended June 30, 2025, due to decreased revenue and higher R&D [Comparison of the three months ended June 30, 2025 to the three months ended June 30, 2024](index=18&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030%2C%202025%20to%20the%20three%20months%20ended%20June%2030%2C%202024) Revenue slightly decreased, gross loss improved, but increased R&D expenses led to higher operating and net losses for Q2 2025 Three Months Ended June 30 Comparison | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $1,275 | $1,331 | -4.2% | | Cost of revenue | $3,477 | $17,474 | -80.1% | | Gross loss | $(2,202) | $(16,143) | -86.4% | | Research and development | $1,900,019 | $1,562,747 | +21.6% | | General and administrative | $897,239 | $947,384 | -5.3% | | Sales and marketing | $341,033 | $359,739 | -5.2% | | Loss from operations | $(3,140,493) | $(2,886,013) | +8.8% | | Net interest income | $103,728 | $223,948 | -53.7% | | Net loss | $(3,036,765) | $(2,662,065) | +14.1% | [Comparison of the six months ended June 30, 2025 to the six months ended June 30, 2024](index=18&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030%2C%202025%20to%20the%20six%20months%20ended%20June%2030%2C%202024) Revenue significantly decreased, resulting in higher gross loss, increased R&D, and higher operating and net losses for H1 2025 Six Months Ended June 30 Comparison | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | $13,278 | $80,070 | -83.4% | | Cost of revenue | $34,339 | $85,972 | -60.1% | | Gross loss | $(21,061) | $(5,902) | +256.8% | | Research and development | $3,468,011 | $2,929,640 | +18.4% | | General and administrative | $1,797,060 | $1,801,072 | -0.2% | | Sales and marketing | $679,193 | $676,350 | +0.4% | | Loss from operations | $(5,965,325) | $(5,412,964) | +10.2% | | Net interest income | $225,536 | $281,273 | -19.9% | | Net loss | $(5,739,789) | $(5,131,691) | +11.8% | - Revenue for the six months ended June 30, 2025, included product sales and development revenue related to the first design win, while 2024 revenue was primarily from the Stellantis development agreement[70](index=70&type=chunk) - Expects negative gross margin from product revenue at low volumes, with significant improvement as higher volume production commences[71](index=71&type=chunk) - Research and development expenses are expected to be higher in the second half of 2025 due to continued B-TRAN® technology development[72](index=72&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) Incurred losses since inception, with **$11.1 million** cash and **$10.5 million** working capital, requiring potential future funding - The company has incurred losses since inception and relies on common stock and pre-funded warrant sales for funding[77](index=77&type=chunk) Liquidity Metrics | Metric | June 30, 2025 | | :--- | :--- | | Cash and cash equivalents | $11.1 million | | Net working capital | $10.5 million | | Outstanding debt | $0 | - Net cash used in operating activities was **$4,425,301** for the six months ended June 30, 2025, an increase from **$3,970,930** in the prior year[79](index=79&type=chunk)[80](index=80&type=chunk) - Management believes current cash and cash equivalents are sufficient to meet ongoing liquidity needs for at least the next twelve months, but additional future funding may be required[78](index=78&type=chunk) [Critical Accounting Estimates](index=21&type=section&id=Critical%20Accounting%20Estimates) No significant changes to critical accounting estimates since the December 31, 2024, Annual Report on Form 10-K - No significant changes to critical accounting estimates since the December 31, 2024, Annual Report on Form 10-K[83](index=83&type=chunk) [Trends, Events and Uncertainties](index=21&type=section&id=Trends%2C%20Events%20and%20Uncertainties) No material changes from trends, events, or uncertainties disclosed in the December 31, 2024, Annual Report on Form 10-K - No material changes from trends, events, or uncertainties disclosed in the December 31, 2024, Annual Report on Form 10-K[84](index=84&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Ideal Power Inc. is exempt from market risk disclosures - The company is not required to provide market risk disclosures as a smaller reporting company[85](index=85&type=chunk) [Item 4. Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control - Disclosure controls and procedures were deemed effective as of June 30, 2025, following an evaluation by the CEO and CFO[86](index=86&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended June 30, 2025[87](index=87&type=chunk) [PART II OTHER INFORMATION](index=15&type=section&id=PART%20II%20OTHER%20INFORMATION) Presents other information including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings, though ordinary course litigation may occur - The company is not currently involved in any legal proceedings[90](index=90&type=chunk) [Item 1A. Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes from the risk factors disclosed in the December 31, 2024, Annual Report on Form 10-K - No material changes from the risk factors disclosed in the December 31, 2024, Annual Report on Form 10-K[91](index=91&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - No unregistered sales of equity securities or use of proceeds to report[92](index=92&type=chunk) [Item 3. Defaults Upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company - Not applicable[93](index=93&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[94](index=94&type=chunk) [Item 5. Other Information](index=23&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[95](index=95&type=chunk) [Item 6. Exhibits](index=24&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including certifications and XBRL documents, providing supporting report documentation - Includes certifications of Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1)[97](index=97&type=chunk) - Contains Inline XBRL documents for financial data (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 10.LAB, 101.PRE, 104)[97](index=97&type=chunk) [SIGNATURES](index=25&type=section&id=SIGNATURES) Affirms the accuracy and completeness of the filing, duly signed by the CEO and CFO on August 14, 2025 [Signatures](index=25&type=section&id=Signatures) Report duly signed by CEO R. Daniel Brdar and CFO Timothy W. Burns on August 14, 2025, affirming filing accuracy - Report signed by R. Daniel Brdar (CEO) and Timothy W. Burns (CFO) on August 14, 2025[100](index=100&type=chunk)[101](index=101&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Ideal Power reported Q2 2025 progress, including design wins, automotive collaborations, a Stellantis order, and strategic milestones for B-TRAN® commercialization [Company Introduction & CEO Statement](index=1&type=section&id=Company%20Introduction%20%26%20CEO%20Statement) Ideal Power's CEO highlighted Q2 2025 progress, including a design win nearing prototype testing, new automotive collaborations, and a Stellantis order for B-TRAN® development - First design win customer nearing completion of B-TRAN®-enabled solid-state circuit breaker (SSCB) prototype testing, with product rollout anticipated later this year and potential for expanded offerings[3](index=3&type=chunk) - Collaborating with fourth and fifth global Tier 1 automotive suppliers for low-loss, solid-state solutions for electric vehicle (EV) contactors[3](index=3&type=chunk) - Stellantis internally approved a purchase order for custom development and packaged B-TRAN® devices targeting multiple EV applications, enabling multiple uses across Stellantis' EV platforms[3](index=3&type=chunk) [Key Operational Highlights](index=1&type=section&id=Key%20Operational%20Highlights) Ideal Power advanced its B-TRAN® commercial roadmap in Q2 2025, shipping prototypes, securing new automotive collaborations, and progressing on the Stellantis custom development order - Shipped updated solid-state circuit breaker prototypes with additional capabilities to the first design win customer, who is nearing testing completion and gathering end-customer feedback[4](index=4&type=chunk) - Entered into a collaboration with a fourth global Tier 1 automotive supplier, who is expected to begin evaluating B-TRAN® soon and plans a formal solid-state EV contactor program[4](index=4&type=chunk) - Secured an order from a fifth global Tier 1 automotive supplier for B-TRAN®-enabled devices for evaluation in their innovative solid-state EV contactor design[4](index=4&type=chunk) - Stellantis' order for custom development and packaged devices for multiple EV applications was internally approved, with Ideal Power actively engaged on EV contactor and drivetrain inverter programs[4](index=4&type=chunk) [2025 Milestones & Future Outlook](index=2&type=section&id=2025%20Milestones%20%26%20Future%20Outlook) Ideal Power achieved 2025 milestones including an Asian distribution partnership, shipping SSCB reference designs, expanding its patent estate, and outlining future commercialization goals - Added partnership with Kaimei Electronic Corp. to distribute Ideal Power's products throughout Asia, the world's largest power electronics market[6](index=6&type=chunk) - Shipped SSCB reference designs to several large companies, including two Forbes Global 500 power management leaders and the fourth and fifth global Tier 1 automotive suppliers[6](index=6&type=chunk) - B-TRAN® Patent Estate: Currently holds **96 issued B-TRAN® patents** (47 outside U.S.) and 74 pending B-TRAN® patents, with geographic coverage including North America, China, Taiwan, Japan, South Korea, India, and Europe[6](index=6&type=chunk) - Future goals include capturing additional design wins/custom development agreements, starting initial sales ramp in the second half of the year, increasing power rating of products, and completing third-party automotive qualification testing[13](index=13&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) Ideal Power's Q2 2025 financial performance showed increased operating expenses and net loss, reduced cash, and decreased total assets, primarily due to lower commercial revenue [Second Quarter 2025 Financial Summary](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Summary) Ideal Power reported increased cash usage, higher operating expenses driven by R&D, and an increased net loss for Q2 and 1H 2025, with cash at **$11.1 million** Cash Flow and Equivalents | Metric | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :-------------------------------- | :---------- | :---------- | :---------- | :---------- | | Cash used in operating and investing activities | $2.5 million | $2.2 million | $4.6 million | $4.2 million | | Cash and cash equivalents (as of June 30) | $11.1 million | N/A | N/A | N/A | - No long-term debt was outstanding at June 30, 2025[6](index=6&type=chunk) Operating Expenses and Net Loss | Metric | Q2 2025 | Q2 2024 | | :----------------- | :---------- | :---------- | | Operating expenses | $3.1 million | $2.9 million | | Net loss | $3.0 million | $2.7 million | - Increase in operating expenses in Q2 2025 was primarily driven by higher research and development spending[6](index=6&type=chunk) [Balance Sheets](index=5&type=section&id=Balance%20Sheets) Ideal Power's total assets decreased to **$14.9 million** by June 30, 2025, driven by reduced cash, while total liabilities slightly increased and equity significantly decreased Key Balance Sheet Metrics | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :-------------- | :---------------- | :----- | | Total assets | $14,948,016 | $19,826,684 | -$4,878,668 | | Cash and cash equivalents | $11,105,553 | $15,842,850 | -$4,737,297 | | Total liabilities | $2,209,675 | $1,971,520 | +$238,155 | | Total stockholders' equity | $12,738,341 | $17,855,164 | -$5,116,823 | [Statements of Operations](index=6&type=section&id=Statements%20of%20Operations) Ideal Power experienced a significant decrease in commercial revenue, leading to increased gross losses and a higher net loss for Q2 and 1H 2025, with R&D driving operating expense increases Revenue and Gross Profit (Loss) | Metric | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :---------------------- | :-------- | :-------- | :-------- | :-------- | | Commercial revenue | $1,275 | $1,331 | $13,278 | $80,070 | | Cost of commercial revenue | $3,477 | $17,474 | $34,339 | $85,972 | | Gross profit (loss) | $(2,202) | $(16,143) | $(21,061) | $(5,902) | Operating Expenses and Net Loss | Metric | Q2 2025 | Q2 2024 | 1H 2025 | 1H 2024 | | :---------------------- | :---------- | :---------- | :---------- | :---------- | | Research and development | $1,900,019 | $1,562,747 | $3,468,011 | $2,929,640 | | General and administrative | $897,239 | $947,384 | $1,797,060 | $1,801,072 | | Sales and marketing | $341,033 | $359,739 | $679,193 | $676,350 | | Total operating expenses | $3,138,291 | $2,869,870 | $5,944,264 | $5,407,062 | | Loss from operations | $(3,140,493) | $(2,886,013) | $(5,965,325) | $(5,412,964) | | Net loss | $(3,036,765) | $(2,662,065) | $(5,739,789) | $(5,131,691) | | Net loss per share | $(0.33) | $(0.31) | $(0.63) | $(0.69) | [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$4.4 million** in 1H 2025, with a significant shift to cash outflow from financing activities, resulting in a **$4.7 million** decrease in cash and equivalents Cash Flow Summary | Metric | 1H 2025 | 1H 2024 | | :------------------------------------------ | :---------- | :---------- | | Net cash used in operating activities | $(4,425,301) | $(3,970,930) | | Net cash used in investing activities | $(220,337) | $(239,004) | | Net cash provided by (used in) financing activities | $(91,659) | $15,799,996 | | Net Increase (decrease) in cash and cash equivalents | $(4,737,297) | $11,590,062 | | Cash and cash equivalents at end of the period | $11,105,553 | $20,064,897 | - The significant change in financing activities from a net inflow in 1H 2024 to a net outflow in 1H 2025 is primarily due to the absence of net proceeds from the issuance of common stock and pre-funded warrants in 2025[21](index=21&type=chunk) [Additional Corporate Information](index=3&type=section&id=Additional%20Corporate%20Information) This section provides details on Ideal Power's upcoming conference call, investor conference participation, company overview, forward-looking statement disclaimer, and investor relations contact [Conference Call & Webcast Details](index=3&type=section&id=Conference%20Call%20%26%20Webcast%20Details) Ideal Power will host a conference call and webcast on **August 14, 2025, at 10:00 AM ET** to discuss Q2 2025 results, with replay options available - Conference call and webcast for Q2 2025 results scheduled for Thursday, August 14, 2025, at 10:00 AM Eastern Time[7](index=7&type=chunk) - Access available via dial-in (U.S./Canada: 888-506-0062, International: 973-528-0011, Passcode: 422159) and a live webcast portal[8](index=8&type=chunk)[9](index=9&type=chunk) - An audio replay will be available until Midnight on August 28, 2025, using passcode 52771[8](index=8&type=chunk) [Upcoming Investor Conference](index=3&type=section&id=Upcoming%20Investor%20Conference) Ideal Power will participate in the H.C. Wainwright 27th Annual Global Investment Conference in New York on **September 8, 2025**, with webcast access available - Ideal Power will participate in the H.C. Wainwright 27th Annual Global Investment Conference in New York on September 8, 2025[10](index=10&type=chunk) - A live, interactive webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab[11](index=11&type=chunk) [About Ideal Power Inc.](index=3&type=section&id=About%20Ideal%20Power%20Inc.) Ideal Power develops the patented B-TRAN® bidirectional semiconductor power switch, providing efficient, eco-friendly energy control solutions for diverse applications - Ideal Power is the developer and provider of the broadly patented B-TRAN® bidirectional semiconductor power switch[12](index=12&type=chunk) - B-TRAN® creates highly efficient and eco-friendly energy control solutions for electric vehicle, EV charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker, and other industrial and military applications[12](index=12&type=chunk) - B-TRAN® is a unique double-sided bidirectional AC switch that delivers substantial performance improvements, reducing conduction and switching losses, complexity of thermal management, and operating cost[12](index=12&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This disclaimer states that all non-historical statements are forward-looking, subject to risks, and should not be relied upon as predictions of actual results - All non-historical statements are "forward-looking statements" subject to risks, uncertainties, and other factors that could cause actual results to differ materially[14](index=14&type=chunk) - Risks include the success of B-TRAN® technology, patent protection, pace of development and commercialization, market acceptance, global health pandemics, supply chain disruptions, and performance of future products[14](index=14&type=chunk) - Investors should not place reliance on forward-looking statements as a prediction of actual results, and the company disclaims any obligation to update them, except as required by law[14](index=14&type=chunk) [Investor Relations Contact](index=4&type=section&id=Investor%20Relations%20Contact) Contact information for Ideal Power's investor relations is provided, handled by Jeff Christensen of Darrow Associates Investor Relations - Investor Relations Contact: **Jeff Christensen**, Darrow Associates Investor Relations[15](index=15&type=chunk) - Contact details: jchristensen@darrowir.com, 703-297-6917[15](index=15&type=chunk)

Core Insights - Ideal Power Inc. reported its second quarter results for 2025, highlighting progress in its B-TRAN® technology and collaborations with major automotive suppliers [1][3]. Company Developments - The first design win customer is close to completing prototype testing for their B-TRAN®-enabled solid-state circuit breaker (SSCB), with an anticipated product rollout later this year [2]. - Collaborations have expanded to include four and five global Tier 1 automotive suppliers, focusing on low-loss, solid-state solutions for electric vehicle (EV) contactors [2][5]. - Stellantis has approved a purchase order for custom development of B-TRAN® devices for multiple EV applications, indicating a strategic partnership [2][5]. - A partnership with Kaimei Electronic Corp. has been established to distribute Ideal Power's products throughout Asia, a key market for power electronics [5]. Financial Performance - Cash used in operating and investing activities in Q2 2025 was $2.5 million, up from $2.2 million in Q2 2024 [5]. - Operating expenses for Q2 2025 were $3.1 million, compared to $2.9 million in Q2 2024, primarily due to increased research and development spending [5]. - The net loss for Q2 2025 was $3.0 million, compared to a net loss of $2.7 million in Q2 2024 [5][17]. - Cash and cash equivalents totaled $11.1 million as of June 30, 2025, down from $15.8 million at the end of 2024 [15]. Patent and Technology - Ideal Power currently holds 96 issued B-TRAN® patents, with 47 issued outside the United States and 74 pending [5]. - The B-TRAN® technology is positioned as a highly efficient and eco-friendly solution for various applications, including EVs and renewable energy [11]. Future Milestones - The company has set several milestones for 2025, including securing additional design wins and starting initial sales ramp in the second half of the year [13].