Summary of Ideal Power Business Update Conference Call Company Overview - **Company**: Ideal Power - **Industry**: Semiconductor, specifically focusing on power switching technology - **Key Products**: B-TRAN, a proprietary bidirectional semiconductor power switch Key Points and Arguments Leadership and Management - David Somo, President and CEO, has a background of 35 years in the semiconductor industry, including roles at ON Semiconductor and AMD [3][4] - Tim Burns, CFO, has been with Ideal Power for 13 years [2] - The leadership team includes Mark Russell (Chief Commercial Officer) and Clay Beltran (Chief Operating Officer), both with extensive industry experience [4][5] Financial Position - As of year-end, Ideal Power had 8.5 million shares outstanding for options and warrants, with a cash balance of $6.1 million [6] - Recently completed an offering raising net proceeds of $12.6 million, resulting in a clean balance sheet with no debt [6][54] Market Opportunity - Ideal Power's B-TRAN technology addresses large, high-growth markets including data centers, energy storage, and renewable systems [8] - The current serviceable available market (SAM) for static applications is over $3.5 billion, projected to grow to $6.6 billion by 2030 [14] - Future switching applications could double the SAM to over $14 billion by 2030 [16] Product Advantages - B-TRAN offers unique bidirectional capabilities, reducing the need for multiple devices and lowering conduction losses by over 50% compared to conventional solutions [10][11] - The technology allows for smaller, lower-cost system solutions, which is particularly beneficial for data centers and electric vehicles [11][30] Customer Engagement and Sales Funnel - Ideal Power has a qualified sales opportunity funnel of just under $200 million, with ongoing discussions with strategic customers for potential investments [8][22] - Initial markets for adoption are expected to be data centers, followed by energy storage and renewable energy installations, with product development cycles of 18-24 months [27] Strategic Priorities - Focus on expanding the sales funnel and converting opportunities into design-ins and revenue [24] - Initial sales orders expected later this year, ramping into 2027 [25][44] Competitive Landscape - Competitors include companies like ON Semiconductor and Infineon, which offer silicon carbide devices but lack the bidirectional capability of B-TRAN [48][49] - Ideal Power holds 100 granted patents and 78 patents in process, providing a strong competitive edge in the market [51] Concerns and Risks - Discussions around potential strategic investments from large multinational customers to deepen engagement with B-TRAN [36] - Concerns about intellectual property protection, particularly in China, have been addressed by emphasizing the strength of the patent landscape and the unique manufacturing process of B-TRAN [56][60] Conclusion - Ideal Power is positioned to capitalize on significant market opportunities with its innovative B-TRAN technology, backed by a strong leadership team and a solid financial foundation. The company is focused on accelerating commercialization and expanding its customer base in high-growth sectors.

Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2025 was $5.6 million or $0.17 per share, compared to a net loss of $4.6 million or $0.17 per share in Q3 2024 [18] - GAAP operating expenses increased to $5.7 million from $4.8 million in Q3 2024, driven by higher R&D and G&A expenses [18][19] - Non-GAAP net loss was $4.4 million in Q3 2025, up from a loss of $3.9 million in Q3 2024, primarily due to increased R&D expenses [19] - Cash and cash equivalents as of September 30, 2025, were $20.3 million, down from $22 million as of June 30, 2025 [20] Business Line Data and Key Metrics Changes - The company processed a record number of wafers for customers in the last three months, indicating strong operational activity across various technology focus areas [9] - The focus on MST starting wafers is expected to accelerate revenue generation due to easier integration into existing production flows [10][11] Market Data and Key Metrics Changes - Customers are evaluating MST for power devices between 5 and 48 volts, indicating a broadening market interest [8] - The semiconductor industry is entering a new materials innovation cycle, with a focus on performance, reliability, and reduced variability [15][16] Company Strategy and Development Direction - The company aims to prioritize revenue potential by focusing on the fastest time to market, highest return on investment, and breakthrough long-term growth [10] - Strategic partnerships are being leveraged to advance engagements in gate-all-around logic, memory, and power [17] - The company is actively pursuing new breakthrough materials enabled by MST through commercial partnerships and university collaborations [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of bringing new material technology to market but emphasized the validation achieved with STMicroelectronics [4][6] - The company remains optimistic about future engagements with other customers in the power market segment [8] - The new VP of Sales is expected to enhance sales growth and convert existing opportunities into licenses [16] Other Important Information - The company has filed fundamental patents for several new materials under development, which may lead to disruptive technology announcements in various fields [13] - The gallium nitride initiative is progressing, with device fabrication underway to demonstrate improved electrical performance [14] Q&A Session Summary Question: Can you elaborate on the situation with STMicroelectronics? - The transition from 200 mm to 300 mm wafers led to a loss of ability to validate the new implementation in time for STMicroelectronics' production schedule [28][29] Question: What are the benefits learned from the STMicroelectronics engagement? - The company can apply the architecture and techniques developed with STMicroelectronics to other customers in the power space, enhancing their offerings [35] Question: How many transformative customers are currently engaged? - The company is actively working with more than two transformative customers, with ongoing engagements across various segments [39][40] Question: What is the status of the large demo run mentioned previously? - Revenue from the large demo run is expected to contribute to Q4, but specific timing and customer details remain complex due to the iterative nature of the engagements [43][45] Question: What is the expected timeline for gate-all-around projects to enter production? - Most gate-all-around projects are still a few years out from production, but some may improve yield on current processes and enter production quickly [56][57] Question: Can you provide details on the partnership with Sandia National Labs? - The partnership involves shared costs for testing, with the goal of generating valuable RF data for marketing purposes [59]