Ideal Power(US:IPWR)2021-11-10 23:57Financial Data and Key Metrics Changes - In Q3 2021, the company recorded $121,000 in grant revenue, with operating expenses remaining flat at $1.2 million compared to Q3 2020 [44][46] - Net loss for Q3 2021 was $1.2 million, a decrease from $4.9 million in Q3 2020, which included a one-time non-cash warrant inducement expense of $3.7 million [48] - Cash used in operating and investing activities was $1.2 million, up from $0.8 million in Q3 2020, with cash and cash equivalents totaling $24.5 million as of September 30, 2021 [49][50] Business Line Data and Key Metrics Changes - The company is focused on the commercialization of its B-TRAN semiconductor technology, with significant progress made towards a commercial launch in the second half of 2022 [6][11] - The company has engaged with multiple global companies for testing and evaluation of B-TRAN, including a top 10 global automaker and a top 10 solar power conversion provider [8][11] Market Data and Key Metrics Changes - The overall circuit breaker market is projected to grow at a compound annual growth rate of over 6% to approximately $26 billion by 2027, with B-TRAN positioned in a segment worth about $10 billion [19][54] - The company anticipates that the actual size of the circuit breaker market may be underestimated, particularly with the growth in electric vehicle applications [57] Company Strategy and Development Direction - The company aims to leverage its B-TRAN technology to address the growing demand for efficient power management solutions in various sectors, including electric vehicles, renewable energy, and solid-state circuit breakers [11][41] - The strategy includes ongoing collaborations with the U.S. Navy and the Department of Energy to develop B-TRAN enabled circuit breakers for military and utility applications [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growing interest in government-funded R&D and commercial partnerships for solid-state circuit breakers, indicating a favorable environment for B-TRAN technology [17][18] - The company plans to continue engaging with prospective customers and expects to provide updates on customer feedback and program developments [37][39] Other Important Information - The company has 65 issued B-TRAN patents and is in the process of qualifying a second semiconductor fabrication partner to mitigate supply chain risks [36][33] - The passing of the Chairman of the Board, Mr. David Eisenhaure, was acknowledged, highlighting his contributions to the company's strategic direction [42][43] Q&A Session Summary Question: Clarification on Total Addressable Markets - The total circuit breaker market is $26 billion, with about 40% applicable to B-TRAN, estimated at $10 billion [54][55] Question: Additional Use Cases for B-TRAN - B-TRAN has potential applications beyond circuit breakers, particularly in electric vehicles and charging stations, which may not be fully captured in current market studies [56][57] Question: Timing for Third-Party Lab Selection - The selection of a third-party lab is expected to be completed by the end of the current quarter, with results anticipated in Q1 [58][61] Question: Revenue Post-Sampling Program - The company expects to earn revenue from custom modules and additional R&D funds from grants after the sampling program [68] Question: Progress with Companies Sampling B-TRAN - Several companies are ready to proceed with sampling, with discussions ongoing for cross-selling B-TRAN into multiple product lines [70][71]