Ideal Power Inc

Previous wording

Ideal Power Inc. is located in Austin, Texas. We are solely focused on the further development and commercialization of our Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology.

Current wording

Ideal Power Inc. is located in Austin, Texas. We are focused on the further development and commercialization of our Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology.

Previous wording

To date, operations have been funded primarily through the sale of common stock and we have generated $3.7 million in grant revenue for bidirectional power switch development. Grant revenue was $0 and $664 in the three months ended March 31, 2024 and 2023, respectively. We may pursue additional research and development grants, if and when available, to further develop and/or improve our technology.

Current wording

To date, operations have been funded primarily through the sale of common stock and pre-funded warrants and we have generated $3.7 million in grant revenue for bidirectional power switch development. We did not generate grant revenue in the six months ended June 30, 2024. We may pursue additional research and development grants, if and when available, to further develop and/or improve our technology.

Previous wording

We are in the process of commercializing our B-TRAN™ technology and launched our first two commercial products, the SymCool™ Power Module and SymCool™ IQ Intelligent Power Module, in 2023. We generated $78,739 in commercial revenue in the three months ended March 31, 2024.

Current wording

We are in the process of commercializing our B-TRAN™ technology and launched our first two commercial products, the SymCool® Power Module and SymCool® IQ Intelligent Power Module, in 2023. We generated $80,070 in commercial revenue in the six months ended June 30, 2024.

Previous wording

In March 2024, we announced a global distribution agreement with Richardson Electronics, Ltd. (RELL). RELL is the first distributor for our products. We commenced shipments of our products to RELL to fulfill end customer orders late in the first quarter of 2024.

Current wording

In March 2024, we announced a global distribution agreement with Richardson Electronics, Ltd. (RELL). RELL is the first distributor for our products. We commenced shipments of our products to RELL to fulfill initial end customer orders late in the first quarter of 2024.

Previous wording

In March 2024, we issued and sold 1,366,668 shares of our common stock at a price of $7.50 per share and 633,332 pre-funded warrants to purchase shares of our common stock at a price of $7.499 per pre-funded warrant in an underwritten public offering. The pre-funded warrants have an exercise price of $0.001 per share. The underwriter had a 30-day option to purchase up to an additional 300,000 shares of our common stock at the offering price, less the underwriting discounts and commissions. In April 2024, the underwriter exercised this option in full. The estimated net proceeds to us from the March 2024 Offering are $15.7 million, inclusive of the underwriter’s exercise of its option to purchase additional shares in full. We intend to use the net proceeds from the March 2024 Offering to fund further commercialization and development of our B-TRAN™ technology and general corporate and working capital purposes.

Current wording

In March 2024, we issued and sold 1,366,668 shares of our common stock at a price of $7.50 per share and 633,332 pre-funded warrants to purchase shares of our common stock at a price of $7.499 per pre-funded warrant in an underwritten public offering. The pre-funded warrants have an exercise price of $0.001 per share. The underwriter had a 30-day option to purchase up to an additional 300,000 shares of our common stock at the offering price, less the underwriting discounts and commissions. In April 2024, the underwriter exercised this option in full. The net proceeds to us from the public offering were $15.7 million, inclusive of the underwriter’s exercise of its option to purchase additional shares in full. We intend to use the net proceeds from the public offering to fund further commercialization and development of our B-TRAN™ technology and general corporate and working capital purposes.

Previous wording

Grant Revenue. Grant revenue was immaterial for the three months ended March 31, 2024 and 2023. We expect to pursue additional government funding that may result in additional grant revenues in the future.

Current wording

Grant Revenue. We did not generate grant revenue in the three months ended June 30, 2024. We generated $36,724 in grant revenue in the three months ended June 30, 2023. We expect to pursue additional government funding that may result in additional grant revenues in the future.

Previous wording

Cost of Grant Revenue. Cost of grant revenue was immaterial for the three months ended March 31, 2024 and 2023. Cost of grant revenue was equal to the associated grant revenue resulting in no gross profit. We expect no gross profit from other grants that we are pursuing or may pursue in 2024.

Current wording

Cost of Grant Revenue. Cost of grant revenue was $0 for the three months ended June 30, 2024 as we did not have any active grant programs. Cost of grant revenue was $36,724 in the three months ended June 30, 2023. Cost of grant revenue for the three months ended June 30, 2023 was equal to the associated grant revenue resulting in no gross profit. We expect no gross profit from other grants that we are pursuing or may pursue in the remainder of 2024.

Previous wording

Research and Development Expenses. Research and development expenses decreased by $73,135, or 5%, to $1,366,893 in the three months ended March 31, 2024 from $1,440,028 in the three months ended March 31, 2023. The decrease was due to lower stock-based compensation expense of $168,612, partly offset by higher personnel costs of $78,863 and other B-TRAN™ development spending of $16,614. We expect higher research and development expenses in the remainder of 2024 as compared to 2023 as we continue development of our B-TRAN™ technology.

Current wording

Research and Development Expenses. Research and development expenses increased by $356,059, or 30%, to $1,562,747 in the three months ended June 30, 2024 from $1,206,688 in the three months ended June 30, 2023. The increase was due to higher semiconductor fabrication costs of $331,660, personnel costs of $130,893 and placement fees and expenses of $85,478, partly offset by lower stock-based compensation expense of $181,827 and other B-TRAN™ development spending of $10,145. We expect higher research and development expenses in the remainder of 2024 as compared to 2023, partly due to the addition of engineering personnel, as we continue development of our B-TRAN™ technology.

Previous wording

General and Administrative Expenses. General and administrative expenses decreased by $41,245, or 5%, to $853,688 in the three months ended March 31, 2024 from $894,933 in the three months ended March 31, 2023. The decrease was due to lower stock-based compensation expense of $65,390 and other general and administrative spending of $6,757, partly offset by higher investor relations spending of $30,902. We expect slightly higher general and administrative expenses, exclusive of stock-based compensation, in the remainder of 2024 as compared to 2023.

Current wording

General and Administrative Expenses. General and administrative expenses increased by $13,391, or 1%, to $947,384 in the three months ended June 30, 2024 from $933,993 in the three months ended June 30, 2023. We expect slightly to moderately higher general and administrative expenses, exclusive of stock-based compensation, in the remainder of 2024 as compared to 2023.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses increased by $12,285, or 4%, to $316,611 in the three months ended March 31, 2024 from $304,326 in the three months ended March 31, 2023. The increase was due to higher personnel costs of $55,274 and other spending of $761, partly offset by lower search and placement fees of $43,750. We expect higher sales and marketing expenses in the remainder of 2024 as compared to 2023 as we further commercialize our B-TRAN™ technology.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses increased by $87,839, or 32%, to $359,739 in the three months ended June 30, 2024 from $271,900 in the three months ended June 30, 2023. The increase was due to higher personnel costs of $73,855 and search and placement fees of $32,243, partly offset by lower other spending of $18,259. We expect higher sales and marketing expenses in the remainder of 2024 as compared to 2023, partly due to the addition of sales personnel, as we further commercialize our B-TRAN™ technology.

Previous wording

Loss from Operations. Our loss from operations for the three months ended March 31, 2024 was $2,526,951, or 4% lower, as compared to the $2,639,287 loss from operations for the three months ended March 31, 2023, for the reasons discussed above.

Current wording

Loss from Operations. Our loss from operations for the three months ended June 30, 2024 was $2,886,013, or 21% higher, as compared to the $2,388,151 loss from operations for the three months ended June 30, 2023, for the reasons discussed above.

Previous wording

Interest Income, Net. Net interest income was $57,325 for the three months ended March 31, 2024 compared to $111,302 for the three months ended March 31, 2023 as a result of the impact of a declining cash balance on the interest earned from our money market account.

Current wording

Interest Income, Net. Net interest income was $223,948 for the three months ended June 30, 2024 compared to $108,345 for the three months ended June 30, 2023 due to the impact of a higher cash balance post-public offering on interest earned from our money market account.

Previous wording

Net Loss. Our net loss for the three months ended March 31, 2024 was $2,469,626, or 2% lower, as compared to a net loss of $2,527,985 for the three months ended March 31, 2023, for the reasons discussed above.

Current wording

Net Loss. Our net loss for the three months ended June 30, 2024 was $2,662,065, or 17% higher, as compared to a net loss of $2,279,806 for the three months ended June 30, 2023, for the reasons discussed above.

Previous wording

*Cost of Commercial Revenue.*Cost of commercial revenue was $68,498 for the three months ended March 31, 2024, compared to $0 in the three months ended March 31, 2023, as we completed Phase 2 of our development agreement with Stellantis and began to fulfill customer orders for our products.

Current wording

*Cost of Commercial Revenue.*Cost of commercial revenue was $85,972 for the six months ended June 30, 2024, compared to $74,013 in the six months ended June 30, 2023. Cost of commercial revenue related primarily to our development agreement with Stellantis.

Previous wording

At March 31, 2024, we had cash and cash equivalents of $20.2 million. Our net working capital at March 31, 2024 was also $19.8 million. We had no outstanding debt at March 31, 2024.

Current wording

At June 30, 2024, we had cash and cash equivalents of $20.1 million. Our net working capital at June 30, 2024 was also $19.6 million. We had no outstanding debt at June 30, 2024.

Previous wording

Operating activities in the three months ended March 31, 2023 resulted in cash outflows of $1,755,723, which were due to the net loss for the period of $2,527,985, partly offset by stock-based compensation of $609,926, favorable balance sheet timing of $93,960 and other non-cash items of $68,376.

Current wording

Operating activities in the six months ended June 30, 2024 resulted in cash outflows of $3,970,930 which were due to the net loss for the period of $5,131,691, partly offset by stock-based compensation of $745,600, depreciation and amortization of $163,871, favorable balance sheet timing of $155,129 and other non-cash items of $96,161.

Previous wording

Operating activities in the three months ended March 31, 2024 resulted in cash outflows of $1,875,295 which were due to the net loss for the period of $2,469,626, partly offset by stock-based compensation of $381,019, favorable balance sheet timing of $105,817 and other non-cash items of $107,495.

Current wording

Operating activities in the six months ended June 30, 2023 resulted in cash outflows of $3,408,492, which were due to the net loss for the period of $4,807,791, partly offset by stock-based compensation of $1,233,207, depreciation and amortization of $121,423 and favorable balance sheet timing and other non-cash items of $44,669.

Previous wording

Investing activities in the three months ended March 31, 2024 and 2023 resulted in cash outflows of $103,550 and $69,450, respectively, for the acquisition of intangible assets and fixed assets.

Current wording

Investing activities in the six months ended June 30, 2024 and 2023 resulted in cash outflows of $239,004 and $253,863, respectively, for the acquisition of intangible assets and fixed assets.

Previous wording

Financing activities in the three months ended March 31, 2024 resulted in cash inflows of $13,652,663 from the March 2024 Offering, as discussed above, and $86,757 from the exercise of stock options.

Current wording

Financing activities in the six months ended June 30, 2024 resulted in cash inflows of $15,724,818 in net proceeds from the public offering of our common stock and pre-funded warrants and $86,757 from the exercise of stock options, slightly offset by $11,579 in tax payments related to the vesting of restricted stock units.

Previous wording

There have been no significant changes during the three months ended March 31, 2024 to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Current wording

There have been no significant changes during the six months ended June 30, 2024 to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.