AUSTIN, Texas, Nov. 14, 2022 (GLOBE NEWSWIRE) — Ideal Power Inc. (“Ideal Power” or the “Company”) (Nasdaq: IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, reported results for its third quarter ended September 30, 2022.

“Our progress toward B-TRAN™ commercialization continues as we engaged with another top 10 global automaker, entering into a product development agreement. In addition, we shipped additional B-TRAN™ devices to Diversified Technologies, Inc. (DTI), our Naval Sea Systems Command (NAVSEA) program collaboration partner, in preparation for a full-scale medium voltage direct current (MVDC) circuit breaker demonstration. We also engaged a design partner who is nearing completion of the packaging design of our first commercial product, a multi-die power module. Heading into the remaining weeks of 2022, we remain focused on execution toward delivering on our objective of introducing our first commercial B-TRAN™ module by year end,” stated Dan Brdar, President and Chief Executive Officer of Ideal Power.

Key Third Quarter and Recent Operational Highlights

  • Entered into a product development agreement with a top 10 global automaker for a custom B-TRAN™ power module for use in electric vehicle (“EV”) drivetrain inverters in the automaker’s next generation EV platform. This represents Ideal Power’s second engagement with a leading global automobile manufacturer.
  • Under the NAVSEA program, shipped additional B-TRAN™ devices to DTI. These devices were tested prior to shipment and demonstrated the very low conduction losses anticipated by prior internal and third-party simulations. DTI will incorporate these packaged B-TRAN™s into a full-scale MVDC circuit breaker.
  • Fabricated and tested the latest generation of B-TRAN™ driver, which will support the test and evaluation program.
  • Designed and fabricated test and evaluation kit that includes a B-TRAN™ device, driver, power board and enclosure for safety and ease of connection to facilitate and accelerate setup, test and evaluation of B-TRAN™ by customers in the Company’s evaluation program.
  • Selected a design firm who is nearing completion of the packaging design for Ideal Power’s first commercial product, a multi-die power module, planned for introduction later this year. Due to significant interest from prospective customers and test and evaluation program participants, the multi-die power module is targeted for the solid-state circuit breaker (SSCB) market.
  • Added participants to the roster of B-TRAN™ test and evaluation program, including:
    • a non-domestic designer and manufacturer of grid solutions interested in evaluating B-TRAN™ for SSCB and other grid applications; and
    • two universities with connections to large commercial businesses.
  • Completed the qualification of a world-class packaging firm to transition to the new packaging concept for volume production. This firm is working closely with the Company and its module design firm to ensure the Company’s initial product is manufacturable in high volume.
  • Engaged a third-party firm to conduct long-term reliability testing of B-TRAN™ devices, involving tens of thousands of power cycles to assess the mechanical integrity of the design.
  • B-TRAN™ Patent Estate: Currently at 71 issued B-TRAN™ patents with 31 of those issued outside of the United States and 22 pending B-TRAN™ patents. In the third quarter, two patents were issued in the US, one related to Ideal Power’s device driver and another related to paralleling and controlling multiple B-TRAN™ die in a common module. Current geographic coverage includes North America, China, Japan, South Korea, India and Europe.

Third Quarter 2022 Financial Results

  • Grant revenue was $10,675 in the third quarter of 2022 compared to $121,028 in the third quarter of 2021.
  • Operating expenses in the third quarter of 2022 were $1.8 million compared to $1.2 million in the third quarter of 2021.
  • Net loss in the third quarter of 2022 was $1.7 million compared to $1.2 million in the third quarter of 2021.
  • Cash used in operating and investing activities in third quarter 2022 was $1.6 million compared to $1.7 million in the second quarter of 2022 and $1.2 million in third quarter 2021.
  • Cash and cash equivalents totaled $18.5 million at September 30, 2022.
  • Ideal Power had no long-term debt outstanding at September 30, 2022.

Third Quarter 2022 Conference Call Details

Ideal Power President and CEO Dan Brdar and CFO Tim Burns will host a conference call today, followed by a question-and-answer period.

To access the call, please use the following information:

Date: Monday, November 14, 2022
Time: 4:30 p.m. EST, 1:30 p.m. PST
Toll-free dial-in number: 1-888-394-8218
International dial-in number: 1-323-994-2093
Conference ID: 1668798

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact LHA Investor Relations at 1-212-838-3777.

The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1572492&tp_key=7b9047f1f5 via the investor relations section of the Company’s website at www.IdealPower.com.

A replay of the conference call will be available after 7:30 p.m. Eastern time on Monday, November 14, 2022, through Wednesday, December 14, 2022.

Toll Free Replay Number: 1-844-512-2921
International Replay Number: 1-412-317-6671
Replay ID: 1668798

About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the development of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS / data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch able to deliver substantial performance improvements over today’s conventional power semiconductors. Ideal Power believes B-TRAN™ will reduce conduction and switching losses, complexity of thermal management and operating cost in medium voltage AC power switching and control circuitry. For more information, visit www.IdealPower.com.

Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power’s management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding our design partner nearing completion of the design of our first commercial product, a multi-die power module, and our plans to introduce our first commercial product by year end. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the impact of COVID-19 on our business, financial condition and results of operations, the success of our B-TRAN™ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents and our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN™ technology, including the timing of the completion of our wafer fabrication runs with our semiconductor fabrications partners and our continued success engaging companies to participate in our customer sampling program, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.

Ideal Power Investor Relations Contact: 
LHA Investor Relations
Carolyn Capaccio, CFA
T: 212-838-3777
[email protected]

IDEAL POWER INC.
Balance Sheets
(unaudited)

    September 30,   December 31,
    2022     2021  
ASSETS              
Current assets:              
Cash and cash equivalents   $ 18,450,537     $ 23,170,149  
Accounts receivable, net     49,328       233,262  
Prepayments and other current assets     448,252       43,900  
Total current assets     18,948,117       23,447,311  
             
Property and equipment, net     151,192       56,158  
Intangible assets, net     2,032,938       2,055,650  
Right of use asset     263,667       307,172  
Other assets     11,189       11,189  
Total assets   $ 21,407,103     $ 25,877,480  
             
LIABILITIES AND STOCKHOLDERS’ EQUITY            
Current liabilities:            
Accounts payable   $ 19,843     $ 130,500  
Accrued expenses     573,549       353,507  
Current portion of lease liability     63,131       58,864  
Total current liabilities     656,523       542,871  
             
Long-term lease liability     219,715       267,584  
Other long-term liabilities     883,118       917,100  
Total liabilities     1,759,356       1,727,555  
             
Commitments and contingencies (Note 6)            
             
Stockholders’ equity:            
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,905,118 shares issued and 5,903,797 shares outstanding at September 30, 2022 and 5,893,767 shares issued and 5,892,446 shares outstanding at December 31, 2021     5,905       5,894  
Additional paid-in capital     104,859,537       104,063,321  
Treasury stock, at cost, 1,321 shares at September 30, 2022 and December 31, 2021     (13,210 )     (13,210 )
Accumulated deficit     (85,204,485 )     (79,906,080 )
Total stockholders’ equity     19,647,747       24,149,925  
Total liabilities and stockholders’ equity   $ 21,407,103     $ 25,877,480  
                 

IDEAL POWER INC.
Statements of Operations
(unaudited)

    Three Months Ended   Nine Months Ended
    September 30,   September 30,
       2022        2021        2022        2021  
Grant revenue   $ 10,675     $ 121,028     $ 186,661     $ 447,794  
Cost of grant revenue     10,675       121,028       186,661       447,794  
Gross profit                        
                         
Operating expenses:                        
Research and development     780,151       604,476       2,337,081       1,426,049  
General and administrative     768,957       500,942       2,356,543       1,705,146  
Sales and marketing     207,443       128,248       660,024       302,859  
Total operating expenses     1,756,551       1,233,666       5,353,648       3,434,054  
                         
Loss from operations     (1,756,551 )     (1,233,666 )     (5,353,648 )     (3,434,054 )
                         
Other income (expense):                        
Interest income (expense), net     52,781       (5,012 )     55,243       (6,874 )
Gain on forgiveness of long-term debt                       91,407  
Total other income (expense)     52,781       (5,012 )     55,243       84,533  
                         
Net loss   $ (1,703,770 )   $ (1,238,678 )   $ (5,298,405 )   $ (3,349,521 )
                         
Net loss per share – basic and diluted   $ (0.28 )   $ (0.20 )   $ (0.86 )   $ (0.57 )
                         
Weighted average number of shares outstanding – basic and diluted     6,157,625       6,125,874       6,156,876       5,868,122  

IDEAL POWER INC.
Statements of Cash Flows
(unaudited)

    Nine Months Ended
    September 30,
       2022        2021  
Cash flows from operating activities:              
Net loss   $ (5,298,405 )   $ (3,349,521 )
Adjustments to reconcile net loss to net cash used in operating activities:            
Depreciation and amortization     134,557       113,607  
Write-off of capitalized patents           528  
Stock-based compensation     696,127       247,512  
Stock issued for services     100,100       68,680  
Gain on forgiveness of long-term debt           (91,407 )
Decrease (increase) in operating assets:            
Accounts receivable     183,934       (92,240 )
Prepaid expenses and other assets     (360,847 )     105,687  
Increase (decrease) in operating liabilities:            
Accounts payable     (110,657 )     (44,629 )
Accrued expenses and other liabilities     142,458       49,040  
Net cash used in operating activities     (4,512,733 )     (2,992,743 )
             
Cash flows from investing activities:            
Purchase of property and equipment     (118,239 )     (43,685 )
Acquisition of intangible assets     (88,640 )     (139,116 )
Net cash used in investing activities     (206,879 )     (182,801 )
             
Cash flows from financing activities:            
Net proceeds from issuance of common stock           21,204,609  
Exercise of options and warrants           3,301,226  
Net cash provided by financing activities           24,505,835  
             
Net increase (decrease) in cash and cash equivalents     (4,719,612 )     21,330,291  
Cash and cash equivalents at beginning of period     23,170,149       3,157,256  
Cash and cash equivalents at end of period   $ 18,450,537     $ 24,487,547  

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