Ideal Power(US:IPWR)2020-03-12 02:08Financial Data and Key Metrics Changes - The company reported no revenues from continuing operations for both the fourth quarter and full year of 2019 [34] - Fourth quarter 2019 operating expenses decreased to $0.8 million from $1 million in the fourth quarter of 2018, while full year 2019 operating expenses were $3.1 million compared to $4.3 million in 2018 [35] - The net loss for the fourth quarter of 2019 was $0.8 million, down from $1.9 million in the same quarter of 2018, and the full year net loss was $3.9 million compared to $7.9 million in 2018 [36] - Cash and cash equivalents totaled $3.1 million as of December 31, 2019, with no long-term debt outstanding [40] - The current cash burn rate is approximately $0.7 million per quarter, which is about 60% less than the average quarterly cash burn in 2018 [41] Business Line Data and Key Metrics Changes - The company has shifted focus from its legacy Power Conversion Systems business to the development and commercialization of B-TRAN technology, resulting in reduced cash burn [8] - The B-TRAN technology is in Phase two of its commercialization plan, which involves fabricating parts and delivering samples to potential customers [19] Market Data and Key Metrics Changes - The electric power switch market is expected to grow to $7.4 billion by 2022, indicating significant market potential for B-TRAN technology [9] - U.S. data centers currently consume 73 billion kilowatt hours per year, with a greater than 13% power loss, highlighting the efficiency benefits of B-TRAN technology [16] Company Strategy and Development Direction - The company aims to establish strategic partnerships in targeted market sectors for initial commercial sales of B-TRAN power switches [19] - The B-TRAN technology is positioned to address inefficiencies in conventional power switches, which could lead to broader adoption in various applications [14][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2020 being an inflection point for B-TRAN, citing increased engagement with potential customers and partners [44] - The company is actively monitoring the impact of COVID-19 on operations and has implemented risk mitigation strategies [20][22] Other Important Information - The company has 51 issued B-TRAN patents, with 15 issued outside North America, and 34 pending patent filings to enhance geographic coverage [33] - The company is currently not in production, which minimizes logistics and supply chain issues related to COVID-19 [23] Q&A Session Summary Question: Has the focus on the UPS market changed? - Management acknowledged that while the UPS market remains a focus, other opportunities have emerged that are being evaluated [46] Question: How will strategic partnerships affect B-TRAN manufacturing? - Management clarified that the company is fabless and will rely on contractual relationships with fab houses for manufacturing, while selling parts to strategic partners [48][50] Question: What is the timeline for entering the automotive market? - Management indicated that while the automotive market is a significant opportunity, initial revenue will come from partnerships that are executable in a shorter timeframe, with automotive partnerships likely involving licensing arrangements [52][53]