Ideal Power Inc.

Previous wording

We are in the process of commercializing our B-TRAN® technology and have launched our first three commercial products: the B-TRAN® Discrete, SymCool® Power Module and SymCool® IQ Intelligent Power Module. We generated $37,728 in revenue in the nine months ended September 30, 2025.

Current wording

We are in the process of commercializing our B-TRAN® technology and have launched our first two commercial products, the discrete B-TRAN® and the SymCool® Power Module. We generated no revenue in the three months ended March 31, 2026 and $12,003 in revenue in the three months ended March 31, 2025.

Previous wording

In early 2023, we launched our SymCool® Power Module. This multi-die B-TRAN® module is designed to meet the very low conduction loss needs of the solid-state switchgear and electric vehicle (“EV”) contactor markets. We commenced shipment of SymCool® Power Modules to fulfill customer orders in 2024.

Current wording

Our second commercial product launch was the SymCool® Power Module. This multi-die B-TRAN® module is also designed to meet the very low conduction loss needs of the solid-state circuit protection and EV contactor markets.

Previous wording

Upon product launch, we design and build initial prototypes for testing and to solicit customer feedback. Based on the results of testing and customer feedback, we incorporate any necessary changes into the product design, build final prototypes and complete additional testing prior to full commercial release. To date, our customers have purchased prototypes in small quantities for evaluation and provided us feedback that has been incorporated into our final product designs. We expect significantly higher volume orders from customers once we secure a design win from them, and they start to build inventory in advance of launching their OEM products. For the product launches described above, we would expect the time from announcing a design win to the sale of the related OEM product to be roughly one year, although it may vary considerably depending on the customer. We would expect a significantly longer design cycle for automotive applications. Design wins are expected to result in significant revenue growth for us over time as product life cycles tend to be relatively long for power electronics products as changing to another technology would require an OEM to redesign their product. See “First Design Win” below.

Current wording

Upon product launch, we design and build initial prototypes for testing and to solicit customer feedback. Based on the results of testing and customer feedback, we incorporate any necessary changes into the product design, build final prototypes and complete additional testing prior to full commercial release. To date, our customers have purchased prototypes in small quantities for evaluation and provided us feedback that has been incorporated into our final product designs. We expect significantly higher volume orders from customers once we secure a design win from them and they start to build inventory in advance of launching their OEM products. For the products described above, we would expect the time from announcing a design win to the sale of the related OEM product to be roughly twelve to eighteen months, although it may vary considerably depending on the customer and application. We would expect a significantly longer design cycle for automotive applications. Design wins are expected to result in significant revenue growth for us over time as product life cycles tend to be relatively long for power electronics products as changing to another technology would require an OEM to redesign their product. See "First Design Win” below.

Previous wording

In 2022, we announced, and began the first phase of, a product development agreement with Stellantis, a top 10 global automaker, for a custom B-TRAN® power module for use in the automaker’s EV drivetrain inverters in its next generation EV platform. In the first phase of the program, we provided packaged B-TRAN® devices, test kits and technical data to Stellantis for their evaluation. In 2023, we secured, and began the second phase of, this program. In the second phase of the program, we collaborated with Stellantis and the program partners, including both the program’s packaging company and the organization building the initial drivetrain inverter, to supply B-TRAN® devices for integration into the custom power module and inverter designs. Also, as part of the second phase of the program, we provided Stellantis a comprehensive test plan for the testing required to achieve certification to automotive standards for B-TRAN®. The test plan was subsequently approved as submitted. In 2024, we successfully completed the second phase of the program. The next phase of the program builds on the completion of deliverables from the prior two program phases and transitions to Stellantis’ production team. We are currently finalizing the timing and scope of work for the next phase of the program with Stellantis. In August 2025, we secured an order from Stellantis for custom development and packaged devices targeting multiple EV applications.

Current wording

In 2022, we announced, and began the first phase of, a product development agreement with Stellantis, a top 10 global automaker, for a custom B-TRAN® power module for use in the automaker’s EV drivetrain inverters in its next generation EV platform. In the first phase of the program, we provided packaged B-TRAN® devices, test kits and technical data to Stellantis for their evaluation. In 2023, we secured, and began the second phase of, this program. In the second phase of the program, we collaborated with Stellantis and the program partners, including both the program’s packaging company and the organization building the initial drivetrain inverter, to supply B-TRAN® devices for integration into the custom power module and inverter designs. Also, as part of the second phase of the program, we provided Stellantis a comprehensive test plan for the testing required to achieve certification to automotive standards for B-TRAN®. The test plan was subsequently approved as submitted. In 2024, we successfully completed the second phase of the program. In August 2025, we secured an order from Stellantis for custom development and packaged devices targeting multiple EV applications. We completed the first of five deliverables under this purchase order in 2025. Also in 2025, Stellantis informed us that they are prioritizing the EV contactor application over the drivetrain inverter application. We are currently working to complete the remaining deliverables under the August 2025 purchase order and engaged with Stellantis on a potential EV contactor program.

Previous wording

We have announced several engagements and/or initial orders with large companies, including a second top 10 global automaker, a third global automaker, a top 10 global provider of power conversion solutions to the solar industry, three global diverse power management market leaders, five tier 1 automotive suppliers, a global power conversion supplier and others. These companies intend to test and evaluate, or are already in the process of testing and evaluating, our technology for use in their applications. These engagements could lead to future design wins or custom development agreements. We also announced agreements with four distribution partners. We may add other distribution partners in the future.

Current wording

We have announced several engagements and/or initial orders with large companies, including Stellantis and other global automakers, Forbes Global 500 diverse power management market leaders, global tier 1 automotive suppliers, circuit protection market leaders, inverter / energy storage market leaders and others. These companies intend to test and evaluate, or are already in the process of testing and evaluating, our technology for use in their applications. These engagements could lead to future design wins or custom development agreements. We also announced agreements with multiple distribution partners. We may add other distribution partners in the future. Recently, we signed a letter of intent with a power module maker in Asia to manufacture and offer B-TRAN®-based power modules for sale to their customers. We may engage with other power module manufacturers or others in the power semiconductor ecosystem in the future to further expand the channels to market for products incorporating our technology.

Previous wording

In late 2024, we announced our first design win for solid-state circuit breakers (“SSCBs”) with one of the largest circuit protection equipment manufacturers in Asia serving the industrial and utility markets. In connection with this design win, we entered into a joint development agreement for a SSCB product incorporating multiple B-TRAN® devices. The agreement includes the product design, prototype builds and testing of the SSCB, which was targeted for completion in the second quarter of 2025, to be followed by commercial sales. We completed our deliverables, including SSCB prototypes, under the agreement in the first quarter of 2025, three months ahead of schedule. Recently, the customer successfully completed their testing of updated SSCB prototypes that included enhancements requested by the customer. The customer plans on gathering feedback on this new product from their end customers ahead of product launch.

Current wording

In late 2024, we announced our first design win for solid-state circuit breakers ("SSCBs”) with one of the largest circuit protection equipment manufacturers in Asia serving the data center, renewable energy, energy storage, EV and other industrial markets. In connection with this design win, we entered into a joint development agreement for a SSCB product incorporating multiple B-TRAN® devices. The agreement included the product design, prototype builds and testing of the SSCB. We completed our deliverables, including SSCB prototypes, under this agreement in the first quarter of 2025. In the third quarter of 2025, the customer successfully completed their testing of updated SSCB prototypes that included enhancements requested by the customer. The customer plans on gathering feedback on this new product from their end customers ahead of product launch. In February 2026, we entered into a multi-year strategic cooperation agreement with this customer for the design, development and worldwide sales of circuit protection solutions including SSCBs, battery disconnect units and EV contactors featuring B-TRAN®. We expect to announce additional design wins and/or custom development agreements with this customer and/or other customers in 2026.

Previous wording

Research and Development Expenses. Research and development expenses increased by $647,470, or 14%, to $5,261,173 in the nine months ended September 30, 2025 from $4,613,703 in the nine months ended September 30, 2024. The increase was due to higher semiconductor fabrication costs of $615,118, personnel costs of $117,555 and search and placement fees of $103,454, partly offset by lower stock-based compensation expense of $181,021 and other B-TRAN® development spending of $7,636. We expect relatively flat to modestly lower research and development expenses in the fourth quarter of 2025 as compared to the third quarter of 2025. There will be quarter-to-quarter variability to research and development expenses due to the timing of semiconductor fabrication runs, hiring and other development activities.

Current wording

Research and Development Expenses. Research and development expenses increased by $464,321, or 30%, to $2,032,313 in the three months ended March 31, 2026 from $1,567,992 in the three months ended March 31, 2025. The increase was due to higher stock-based compensation expense of $327,521, semiconductor fabrication costs of $71,654, higher testing costs of $53,278 and other net B-TRAN® development spending of $11,868. We expect lower quarterly research and development expenses in the remainder of 2026 as compared to the first quarter of 2026 due to a decline in stock-based compensation expense as certain awards will be fully expensed early in the second quarter of 2026. There will also be quarter-to-quarterly variability in research and development expenses due to the timing of semiconductor fabrication runs and other development activities.

Previous wording

General and Administrative Expenses. General and administrative expenses increased by $60,957, or 2%, to $2,755,998 in the nine months ended September 30, 2025 from $2,695,041 in the nine months ended September 30, 2024. The increase was due to higher search and placement fees of $120,792, personnel costs of $82,880, stock-based compensation expense of $53,528 and other spending of $23,914, partly offset by lower investor relations spending of $220,157. We expect relatively flat to modestly higher general and administrative expenses, exclusive of stock-based compensation, in the fourth quarter of 2025 as compared to the third quarter of 2025.

Current wording

General and Administrative Expenses. General and administrative expenses increased by $320,190, or 36%, to $1,220,011 in the three months ended March 31, 2026 from $899,821 in the three months ended March 31, 2025. The increase was due to higher stock-based compensation expense of $277,824, related to inducement awards granted to our new CEO in the fourth quarter of 2025, and higher personnel costs of $116,095, partly offset by lower investor relations spending of $70,631 and other spending of $3,098. We expect slightly higher quarterly general and administrative expenses, exclusive of stock-based compensation, in the remainder of 2026 as compared to the first quarter of 2026.

Previous wording

Sales and Marketing Expenses. Sales and marketing expenses decreased by $51,201, or 5%, to $945,791 in the nine months ended September 30, 2025 from $996,992 in the nine months ended September 30, 2024. The decrease was due to lower personnel costs of $101,659 and stock-based compensation expense of $38,476, partly offset by higher search and placement fees of $75,654 and other spending of $13,280. We expect relatively flat sales and marketing expenses in the fourth quarter of 2025 as compared to the third quarter of 2025 as we further commercialize our B-TRAN® technology.

Current wording

Sales and Marketing Expenses. Sales and marketing expenses increased by $101,538, or 30%, to $439,698 in the three months ended March 31, 2026 from $338,160 in the three months ended March 31, 2025. The increase was due to higher personnel costs of $82,991, travel costs of $12,855 and other spending of $5,692. We expect higher quarterly sales and marketing expenses in the remainder of 2026 as compared to the first quarter of 2026 as we add sales personnel, expand our engagement and sales pipeline with prospective customers, and further commercialize our B-TRAN® technology and related products.

Previous wording

Loss from Operations. Our loss from operations for the three months ended September 30, 2025 was $3,020,317, or 4% higher, as compared to the $2,899,631 loss from operations for the three months ended September 30, 2024, for the reasons discussed above.

Current wording

Loss from Operations. Our loss from operations for the three months ended March 31, 2026 was $3,692,022, or 31% higher, as compared to the $2,824,832 loss from operations for the three months ended March 31, 2025, for the reasons discussed above.

Previous wording

Interest Income, Net. Net interest income was $79,667 for the three months ended September 30, 2025, compared to $209,283 for the three months ended September 30, 2024, due primarily to the impact of a declining cash balance on interest earned on our money market account.

Current wording

Interest Income, Net. Net interest income was $60,517 for the three months ended March 31, 2026, compared to $121,808 for the three months ended March 31, 2025, primarily as a result of the impact of decreased interest from a lower average daily cash balance and lower interest rate on our money market account.

Previous wording

Net Loss. Our net loss for the three months ended September 30, 2025 was $2,940,650, or 9% higher, as compared to a net loss of $2,690,348 for the three months ended September 30, 2024, for the reasons discussed above.

Current wording

Net Loss. Our net loss for the three months ended March 31, 2026 was $3,631,505, or 34% higher, as compared to a net loss of $2,703,024 for the three months ended March 31, 2025, for the reasons discussed above.

Previous wording

At September 30, 2025, we had cash and cash equivalents of $8.4 million. Our net working capital at September 30, 2025 was $7.8 million. We had no outstanding debt at September 30, 2025.

Current wording

At March 31, 2026, we had cash and cash equivalents of $16.4 million. Our net working capital at March 31, 2026 was $15.3 million. We had no outstanding debt at March 31, 2026.

Previous wording

Operating activities in the nine months ended September 30, 2025 resulted in cash outflows of $6,973,275, which were due to the net loss for the period of $8,680,439, partly offset by stock-based compensation of $997,840, depreciation and amortization of $276,332, favorable balance sheet timing of $328,510 and other non-cash items of $104,482.

Current wording

Operating activities in the three months ended March 31, 2026 resulted in cash outflows of $2,034,860, which were due to the net loss for the period of $3,631,505, partly offset by stock-based compensation of $991,440, favorable balance sheet timing of $488,259 and other non-cash items of $116,946.

Previous wording

Operating activities in the nine months ended September 30, 2024 resulted in cash outflows of $6,192,707 which were due to the net loss for the period of $7,822,039, partly offset by stock-based compensation of $1,163,808, depreciation and amortization of $250,936, other non-cash items of $117,136 and favorable balance sheet timing of $97,452.

Current wording

Operating activities in the three months ended March 31, 2025 resulted in cash outflows of $2,066,774 which were due to the net loss for the period of $2,703,024, partly offset by stock-based compensation of $384,595, favorable balance sheet timing of $139,102 and other non-cash items of $112,553.

Previous wording

Investing activities in the nine months ended September 30, 2025 and 2024 resulted in cash outflows of $376,738 and $445,100, respectively, for the acquisition of intangible assets and fixed assets.

Current wording

Investing activities in the three months ended March 31, 2026 and 2025 resulted in cash outflows of $253,966 and $69,878, respectively, for the acquisition of intangible assets and fixed assets.

Previous wording

There have been no significant changes during the nine months ended September 30, 2025 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, 2024.

Current wording

There have been no significant changes during the three months ended March 31, 2026 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, 2025.