Ideal Power(IPWR) - 2025 Q4 - Annual Report

Financial Performance - The company generated $3.7 million in grant revenue for bidirectional power switch development [15]. - The discrete B-TRAN® and SymCool® Power Module generated commercial revenues of $37,728 and $86,032, respectively, for the years ended December 31, 2025 and 2024 [16]. - The company issued and sold 3,505,855 shares at $2.75 per share in February 2026, raising estimated net proceeds of $12.6 million for commercialization and development of B-TRAN® technology [23]. - The estimated present value of future payments under licensing agreements was $1,036,538, with $150,000 due in 2026 [44]. - The company amended a licensing agreement in 2023, reducing annual payments from $100,000 to $50,000 [44]. Product Development and Partnerships - The company completed the first phase of a product development agreement with Stellantis for a custom B-TRAN® power module targeting EV applications [20]. - A first design win for solid-state circuit breakers (SSCBs) was announced in late 2024, leading to a multi-year strategic cooperation agreement with a major circuit protection equipment manufacturer [22]. - The company is currently working on multiple engagements with large companies, including Stellantis and other global automakers, for testing and evaluating its technology [21]. - The company expects significantly higher volume orders from customers once design wins are secured, with a typical timeline of 12 to 18 months from design win to OEM product sales [19]. - In 2025, the company secured an order from Stellantis for custom development and packaged devices targeting multiple EV applications, with the first of five deliverables completed in the same year [20]. - The company announced its first design win for solid-state circuit breakers with a major Asian manufacturer, leading to a multi-year strategic cooperation agreement expected to yield additional design wins in 2026 [22]. Technology and Innovation - The B-TRAN® technology can reduce power losses by 50% or more compared to conventional power switches like IGBTs, leading to lower thermal management requirements [35]. - B-TRAN®'s symmetric bidirectional operation reduces the number of components by 75% compared to conventional bidirectional switches, enhancing efficiency [35]. - The company has qualified two foundries for B-TRAN® wafer fabrication, achieving electrical losses at less than 50% of conventional power switches [36]. - Prototype discrete B-TRAN® devices began shipping to large companies in mid-2023, with shipments of SymCool® Power Modules starting in early 2024 [38]. - The company is leveraging existing silicon processing infrastructure to focus on the development and commercialization of B-TRAN® technology [40]. Market Outlook - The global power semiconductor market is driven by demand from automotive, industrial, and renewable energy sectors, with significant growth expected in electric vehicle applications [30]. - Asia Pacific is the leading region for power semiconductor consumption, primarily driven by China’s automotive market [31]. - The power electronics market is forecasted to grow to $37.7 billion by 2028, with the company targeting segments such as AI data centers and electric vehicles [41]. - Target markets for B-TRAN® include AI data centers, solid-state circuit protection, and electric vehicles, with the power electronics market forecasted to grow to $37.7 billion by 2028 [41]. Intellectual Property - The company has 52 U.S. and 47 foreign issued patents related to B-TRAN® technology, with additional pending applications [42]. - As of December 31, 2025, the company holds 52 U.S. and 47 foreign issued patents, along with 76 pending patent applications related to its B-TRAN® technology [42]. - The company is focused on enhancing its intellectual property portfolio through exclusive royalty-free licenses related to semiconductor technologies [43]. Workforce and Operations - As of February 28, 2026, the company had 17 full-time employees, with no collective bargaining agreements in place [49]. - As of February 28, 2026, the company has 17 full-time employees, with no collective bargaining agreements in place [49]. Competitive Landscape - The competitive landscape includes well-established suppliers with greater financial resources and broader market presence, particularly in the unidirectional power switch market [45]. - Government support for semiconductors and target markets like electric vehicles could significantly impact the company's business, especially if B-TRAN® technology is commercialized successfully [48].