New Ideal Power Inc (NASDAQ:IPWR) CEO David Somo is already steering the technology company toward its next chapter of growth. Fresh off a new purchase order from automotive giant Stellantis, the company is ramping up momentum as it heads into 2026. In this Q&A, Somo and CFO Tim Burns discuss how Ideal Power’s B-TRAN technology is poised to make an impact across automotive, industrial, and AI-driven data center markets, and share their strategy for accelerating commercialization while leveraging the company ...

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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]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - Ideal Power Inc. has appointed David Somo as President and CEO, effective November 3, 2025, succeeding Dan Brdar, who retired on November 2, 2025 [1][2][3] Group 1: Leadership Transition - David Somo brings over 30 years of experience in the semiconductor industry, with a strong background in global sales, marketing, business development, and corporate strategy [2][3] - Dan Brdar, the former President and CEO, expressed pride in the company's achievements and highlighted the importance of Somo's commercial experience for future growth [2][3] Group 2: Company Strategy and Market Potential - The company is at a pivotal moment, commercializing its B-TRAN® technology, which has a multi-billion dollar addressable market [3] - B-TRAN® technology offers significant advantages, including reduced conduction and switching losses, and improved thermal management, making it suitable for various applications such as electric vehicles and renewable energy [7] Group 3: Inducement Awards - As part of his appointment, David Somo received inducement awards including restricted stock units (RSUs) and performance restricted stock units (PSUs) for a total of 494,876 shares, with vesting conditions tied to performance goals and continued service [4] Group 4: Upcoming Events - Ideal Power will hold its quarterly conference call on November 13, 2025, to discuss third quarter results and engage with analysts and investors [5][6]