Ideal Power(IPWR) - 2023 Q1 - Quarterly Report

PART I FINANCIAL INFORMATION Unaudited Condensed Financial Statements This section presents the unaudited financial statements for Q1 2023, reporting a net loss of $2.53 million and a decrease in total assets Balance Sheets The balance sheet as of March 31, 2023, shows total assets decreased to $17.5 million and stockholders' equity declined Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $14,520 | $16,346 | | Total current assets | $15,024 | $16,903 | | Total assets | $17,521 | $19,399 | | Liabilities & Equity | | | | Total current liabilities | $501 | $449 | | Total liabilities | $1,531 | $1,491 | | Total stockholders' equity | $15,991 | $17,909 | Statements of Operations For Q1 2023, the company reported a net loss of $2.53 million, primarily due to increased operating expenses Q1 2023 vs. Q1 2022 Statement of Operations (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Grant Revenue | $0.66 | $125.01 | | Total Operating Expenses | $2,639 | $1,901 | | - Research and Development | $1,440 | $829 | | - General and Administrative | $895 | $853 | | Loss from Operations | ($2,639) | ($1,901) | | Net Loss | ($2,528) | ($1,905) | | Net Loss Per Share | ($0.41) | ($0.31) | Statements of Cash Flows Net cash used in operating activities for Q1 2023 increased to $1.76 million, resulting in a net decrease in cash Q1 2023 vs. Q1 2022 Cash Flow Summary (in thousands) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,756) | ($1,417) | | Net cash used in investing activities | ($69) | ($28) | | Net decrease in cash | ($1,825) | ($1,445) | | Cash at end of period | $14,520 | $21,725 | Statements of Stockholders' Equity Stockholders' equity decreased from $17.9 million to $16.0 million as of March 31, 2023 - Total stockholders' equity decreased from $17,908,604 at December 31, 2022, to $15,990,545 at March 31, 2023[19] - The decrease in equity was primarily driven by the net loss of $2,527,985, partially offset by stock-based compensation of $609,926[19] Notes to Unaudited Financial Statements The notes clarify the company's focus on B-TRAN™ technology, funding, and details on intangible assets and equity - The company is focused on the development and commercialization of its Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology[22] - Continued operations are dependent on obtaining adequate funding through future revenues, stock offerings, debt financing, or other alternatives[23] - The company has a licensing agreement that expires in February 2033 and requires annual payments of $100,000[35] - As of March 31, 2023, the company had 786,420 warrants outstanding with a weighted average exercise price of $5.19 and 253,828 pre-funded warrants with an exercise price of $0.001[44] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses B-TRAN™ technology commercialization, product launch, and a Q1 2023 net loss increase - The company is solely focused on the further development and commercialization of its B-TRAN™ solid-state switch technology[53] - In January 2023, the company launched its first commercial product, the SymCool™ Power Module, designed for the solid-state circuit breaker (SSCB) market, with initial sales expected later in 2023[55] - A product development agreement is in place with a top 10 global automaker for a custom B-TRAN™ power module for use in electric vehicle (EV) drivetrain inverters[56] Q1 2023 vs. Q1 2022 Operating Results Comparison (in thousands) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Grant Revenue | $0.66 | $125.01 | -99.5% | | R&D Expenses | $1,440.03 | $828.55 | +74% | | Loss from Operations | ($2,639.29) | ($1,900.93) | +39% | | Net Loss | ($2,527.99) | ($1,904.64) | +33% | - As of March 31, 2023, the company had $14.5 million in cash and cash equivalents and believes this will be sufficient to meet liquidity needs for at least the next twelve months[68][69] Quantitative and Qualitative Disclosures About Market Risk The company states that as a smaller reporting company, it is not required to provide this information - As a smaller reporting company, Ideal Power is not required to provide quantitative and qualitative disclosures about market risk[75] Controls and Procedures Management concluded the company's disclosure controls and procedures were effective as of March 31, 2023 - The company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2023[77] - There were no material changes in the company's internal controls over financial reporting during the quarter ended March 31, 2023[78] PART II OTHER INFORMATION Legal Proceedings The company reports that it is not currently a party to any legal proceedings - The company is not currently party to any legal proceedings[82] Risk Factors The company states there are no material changes from the risk factors disclosed in its Annual Report on Form 10-K - There are no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022[83] Unregistered Sales of Equity Securities and Use of Proceeds The company reports no unregistered sales of equity securities or use of proceeds during the period - None reported for the period[84] Defaults Upon Senior Securities This item is not applicable to the company - Not applicable[85] Mine Safety Disclosures This item is not applicable to the company - Not applicable[86] Other Information The company reports no other information for the period - None reported for the period[87] Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications - The report lists certifications by the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act Sections 302 and 906, as well as Inline XBRL documents[89]