Ideal Power(IPWR) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights 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 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] - Collaborating with fourth and fifth global Tier 1 automotive suppliers for low-loss, solid-state solutions for electric vehicle (EV) contactors[3] - 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] Key Operational Highlights 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] - 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] - 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] - 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] 2025 Milestones & Future Outlook 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] - 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] - 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] - 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] Financial Performance Overview 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 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] 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] Balance Sheets 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 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 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] Additional Corporate Information 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 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] - Access available via dial-in (U.S./Canada: 888-506-0062, International: 973-528-0011, Passcode: 422159) and a live webcast portal[8][9] - An audio replay will be available until Midnight on August 28, 2025, using passcode 52771[8] Upcoming Investor Conference 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] - A live, interactive webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab[11] About Ideal Power Inc. 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] - 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] - 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] Safe Harbor Statement 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] - 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] - 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] Investor Relations Contact 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] - Contact details: jchristensen@darrowir.com, 703-297-6917[15]