Ideal Power Reports Third Quarter 2017 Financial Results
November 09 2017 - 4:01PM
Ideal Power Inc. (NASDAQ:IPWR), an innovative power conversion
technology company, reported results for the third quarter ending
September 30, 2017.
Key Third Quarter 2017 and Subsequent
Highlights:
- Completed UL 1741 Supplement A (SA) testing of our next
generation SunDial™ and Stabiliti™ series power conversion systems
(PCS).
- Signed a master purchase agreement with NEXTracker for our
solar + storage products, utilizing the Company’s SunDial™ series
PV string inverter and Stabiliti™ PCS for commercial, industrial
and utility sites throughout North America.
- Shipped initial units to NEXTracker and its battery partner for
NX Fusion Plus development and system integration.
- Received a purchase order for, and shipped, 35 units of our
Stabiliti™ 30 kilowatt (kW) PCS to Sharp Electronics Corporation
for a solar + storage integration project in a California school
district.
- Partnered with W Energies Solar One to deploy a grid-resilient
commercial solar + storage microgrid system in Texas.
- Strengthened patent estate: currently have 72 issued patents,
including 31 issued patents for B-TRAN™ with a similar number of
patent applications pending.
"Our recent accomplishments were highlighted by the completion
of UL 1741 SA certification testing for our next generation 30 kW
Stabiliti™ and SunDial™ series and the NX-15 product for
NEXTracker, which incorporate the newest standards for grid-tied
systems and complement our new strategic initiative in the solar +
storage market,” said Dan Brdar, Chief Executive Officer. “These
improvements add significant capabilities for dealing with grid
disturbances, and this standard is now required by certain
utilities for new equipment installed in their service territory.
We expect to receive official listing in the coming days.
This certification will support the rollout of the NX Fusion Plus
with NEXTracker and, we believe, will facilitate growth with
existing customers, such as Sharp, and new customers in the solar +
storage market.”
Third Quarter 2017 Financial Results
- Q3 2017 product revenue remained unchanged at $0.4 million
versus Q3 2016.
- Q3 2017 gross margins were 6% compared to negative 68% gross
margins in Q3 2016.
- Q3 2017 net loss was $2.2 million compared to $2.9 million in
Q3 2016, with the decrease primarily attributable to reduced
operating expenses as a result of ongoing cost reduction activities
and excess and obsolete inventory charges in Q3 2016 for our
discontinued IBC-30 battery converter.
- Q3 2017 cash used in operating and investing activities was
$1.7 million compared to $2.0 million in Q2 2017 and $2.7 million
in Q3 2016.
- Cash and cash equivalents totaled $11.7 million as of September
30, 2017, with no long-term debt outstanding.
“On the financial front, the third quarter of 2017 was
highlighted by our lowest cash burn in three years and a return to
an improved gross margin profile for our next generation product
families,” said Tim Burns, Chief Financial Officer. “Our cost
reduction efforts, including our focus on opportunities with the
most significant short-term potential, have extended our runway in
advance of anticipated revenue growth in the solar + storage
market.”
Conference Call Details
Ideal Power CEO Dan Brdar and CFO Tim Burns will host the
conference call, followed by a question and answer period.
To access
the call, please use the following information: |
|
|
Date: |
Thursday, November 9,
2017 |
Time: |
4:30 p.m. ET, 1:30 p.m.
PT |
Toll-free dial-in
number: |
1-888-438-5519 |
International dial-in
number: |
1-719-325-4778 |
Conference ID: |
1602135 |
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 MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for
replay at http://public.viavid.com/index.php?id=126703 and 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 through December 9, 2017.
Toll-free replay
number: |
1-844-512-2921 |
International replay
number: |
1-412-317-6671 |
Replay ID: |
1602135 |
About Ideal Power Inc.Ideal Power (NASDAQ:IPWR)
is a power conversion technology company that delivers innovative
solutions to system integrators and project developers, enabling
distributed energy resources for applications both on and off the
grid. Ideal Power’s products deliver superior reliability and
compelling return on investment for renewable energy and storage
applications at a competitive cost, backed by first-rate customer
service. With its patented power conversion technology, Ideal Power
supports a broad set of growing markets, including solar + storage,
battery energy storage and microgrids. For more information, visit
www.IdealPower.com.
Safe Harbor StatementAll 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. Forward-looking
statements in this press release include our statements that we
expect the UL1741 SA listing in the coming days and that we expect
this listing to support growth with existing and new customers in
the solar + storage market, as well as our anticipated revenue
growth in such market. While 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. 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, whether the patents for our
technology provide adequate protection and whether we can be
successful in maintaining, enforcing and defending our patents, the
timing and impact of regulatory developments affecting the markets
for our products, our inability to predict with precision or
certainty the pace of development and commercialization of our
advanced technologies, unanticipated costs in connection with the
discontinuation our legacy product families, the uncertainty of
whether the demand for energy storage products will grow at a pace
consistent with our expectations, whether our backlog will
translate into revenue in future periods, whether demand for our
products will develop, and whether we can compete
successfully with other manufacturers and suppliers of power
conversion products, both now and in the future, as new products
are developed and marketed, whether our cost reduction efforts will
be successful and other risks and uncertainties set forth in our
quarterly and annual 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. The availability and amount of government incentive programs
affect our customers spending patterns, and adverse changes or
developments in such programs – such as the SGIP in California –
have materially and adversely affected our orders, net sales, gross
profit and net income, and may do so again in the future.
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 Media Contact: Antenna Sharon
Golubchik201-465-8008 idealpower@antennagroup.com Ideal
Power Investor Relations Contact: MZ North America Chris
Tyson 949-491-8235IPWR@mzgroup.us www.mzgroup.us
IDEAL POWER INC. |
Balance Sheets |
|
|
|
September 30, 2017 |
|
December 31, 2016 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
11,681,887 |
|
|
$ |
4,204,916 |
|
Accounts
receivable, net |
|
387,081 |
|
|
378,658 |
|
Inventories, net |
|
327,461 |
|
|
1,245,147 |
|
Prepayments and other current assets |
|
171,147 |
|
|
312,593 |
|
Total
current assets |
|
12,567,576 |
|
|
6,141,314 |
|
|
|
|
|
|
Property and equipment,
net |
|
647,657 |
|
|
936,486 |
|
Intangible assets,
net |
|
2,059,645 |
|
|
1,905,556 |
|
Other assets |
|
— |
|
|
17,920 |
|
Total
Assets |
|
$ |
15,274,878 |
|
|
$ |
9,001,276 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
287,114 |
|
|
$ |
346,767 |
|
Accrued
expenses |
|
1,250,484 |
|
|
1,149,129 |
|
Total
current liabilities |
|
1,537,598 |
|
|
1,495,896 |
|
|
|
|
|
|
Other long-term
liabilities |
|
493,088 |
|
|
265,418 |
|
Total
liabilities |
|
2,030,686 |
|
|
1,761,314 |
|
|
|
|
|
|
Commitments and
contingencies (see Note 8) |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430
shares issued and outstanding at September 30, 2017 |
|
1,518 |
|
|
— |
|
Common
stock, $0.001 par value; 50,000,000 shares authorized; 13,998,465
shares issued and 13,996,121 shares outstanding at September 30,
2017 and 9,560,896 shares issued and 9,559,213 shares outstanding
at December 31, 2016, respectively |
|
13,998 |
|
|
9,561 |
|
Additional paid-in capital |
|
66,806,637 |
|
|
52,310,481 |
|
Treasury
stock, at cost; 2,344 shares at September 30, 2017 and 1,683 shares
at December 31, 2016, respectively |
|
(7,489 |
) |
|
(5,915 |
) |
Accumulated deficit |
|
(53,570,472 |
) |
|
(45,074,165 |
) |
Total
stockholders’ equity |
|
13,244,192 |
|
|
7,239,962 |
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
15,274,878 |
|
|
$ |
9,001,276 |
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC. |
Statements of Operations |
(unaudited) |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Product revenue |
|
$ |
444,640 |
|
|
$ |
439,270 |
|
|
$ |
973,680 |
|
|
$ |
1,258,030 |
|
Cost of product
revenue |
|
418,529 |
|
|
737,937 |
|
|
1,894,068 |
|
|
1,531,628 |
|
Gross
profit (loss) |
|
26,111 |
|
|
(298,667 |
) |
|
(920,388 |
) |
|
(273,598 |
) |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
1,075,849 |
|
|
1,231,024 |
|
|
3,374,386 |
|
|
3,914,188 |
|
General
and administrative |
|
899,882 |
|
|
907,335 |
|
|
2,976,260 |
|
|
2,709,325 |
|
Sales and
marketing |
|
271,844 |
|
|
496,794 |
|
|
1,240,713 |
|
|
1,321,757 |
|
Total
operating expenses |
|
2,247,575 |
|
|
2,635,153 |
|
|
7,591,359 |
|
|
7,945,270 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(2,221,464 |
) |
|
(2,933,820 |
) |
|
(8,511,747 |
) |
|
(8,218,868 |
) |
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
3,865 |
|
|
11,554 |
|
|
15,440 |
|
|
26,778 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,217,599 |
) |
|
$ |
(2,922,266 |
) |
|
$ |
(8,496,307 |
) |
|
$ |
(8,192,090 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share –
basic and fully diluted |
|
$ |
(0.16 |
) |
|
$ |
(0.31 |
) |
|
$ |
(0.66 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding – basic and fully diluted |
|
13,990,202 |
|
|
9,549,011 |
|
|
12,964,452 |
|
|
9,547,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC. |
Statements of Cash Flows |
(unaudited) |
|
|
|
Nine Months Ended September 30, |
|
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
|
Net
loss |
|
$ |
(8,496,307 |
) |
|
$ |
(8,192,090 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Allowance
for doubtful accounts |
|
226,557 |
|
|
85,375 |
|
Write-down of inventory |
|
703,220 |
|
|
73,521 |
|
Depreciation and amortization |
|
339,493 |
|
|
290,474 |
|
Write-off
of capitalized patents |
|
268,789 |
|
|
71,109 |
|
Write-off
of fixed assets |
|
53,445 |
|
|
6,215 |
|
Stock-based compensation |
|
833,637 |
|
|
1,135,008 |
|
Decrease
(increase) in operating assets: |
|
|
|
|
Accounts
receivable |
|
(234,980 |
) |
|
337,480 |
|
Inventories |
|
214,466 |
|
|
(689,854 |
) |
Prepayments and other current assets |
|
159,366 |
|
|
147,061 |
|
Increase
(decrease) in operating liabilities: |
|
|
|
|
Accounts
payable |
|
(59,653 |
) |
|
(729,435 |
) |
Accrued
expenses |
|
67,722 |
|
|
(151,178 |
) |
Net cash
used in operating activities |
|
(5,924,245 |
) |
|
(7,616,314 |
) |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchase
of property and equipment |
|
(44,819 |
) |
|
(328,930 |
) |
Acquisition of intangible assets |
|
(220,865 |
) |
|
(299,140 |
) |
Net cash
used in investing activities |
|
(265,684 |
) |
|
(628,070 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net
proceeds from issuance of stock |
|
13,657,331 |
|
|
— |
|
Exercise
of options and warrants |
|
11,143 |
|
|
35,536 |
|
Payment
of taxes related to restricted stock vesting |
|
(1,574 |
) |
|
— |
|
Net cash
provided by financing activities |
|
13,666,900 |
|
|
35,536 |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
7,476,971 |
|
|
(8,208,848 |
) |
Cash and cash
equivalents at beginning of period |
|
4,204,916 |
|
|
15,022,286 |
|
Cash and cash
equivalents at end of period |
|
$ |
11,681,887 |
|
|
$ |
6,813,438 |
|
|
|
|
|
|
|
|
|
|
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