Ideal Power Reports Fourth Quarter and Full Year 2017 Financial Results
March 06 2018 - 4:01PM
Ideal Power Inc. (NASDAQ:IPWR), an innovative power conversion
technology company, reported results for its fourth quarter and
full year ended December 31, 2017.
Key 2017 and Subsequent Highlights:
- Completed successful proof of concept testing of Bi-directional
bi-polar junction TRANsistor (B-TRAN™) prototypes with test results
supporting third-party simulations.
- Signed a master purchase agreement with NEXTracker for solar +
storage products utilizing the company’s SunDial™ series PV string
inverter and Stabiliti™ power conversion systems (PCS) for
commercial, industrial and utility sites throughout North
America.
- Shipped initial units to NEXTracker and its battery partner for
NEXTracker’s NX Flow (previously named NX Fusion Plus) development
and system integration.
- Signed a master purchase agreement with Bosch, a leading global
technology and services provider, to provide Stabiliti™ power
conversion systems for Bosch’s high-efficiency building
solutions.
- Delivered 35 units of Stabiliti™ PCS to Sharp Electronics
Corporation for a solar + storage integration project in a
California school district.
- Completed 750-Kilowatt purchase order with JLM Energy for Ideal
Power’s Stabiliti™ Series products.
- Introduced and received both UL 1741 and UL 1741 Supplement A
(SA) certification of our next generation SunDial™ and Stabiliti™
series PCS.
- Shipped multiple units for microgrid applications including
projects with W Energies Solar One in Texas, Azimuth Energy in New
York and Civic Solar in Saint Croix, U.S. Virgin Islands.
- Solar Power World named Ideal Power’s 30-kW Stabiliti™ series
as one of 2017’s Top Solar Inverter Products.
- Completed a $15 million private placement in March with
institutional and accredited investors. All members of senior
management and the Board of Directors participated in the private
placement.
- Strengthened patent estate: currently have 78 issued patents,
including 35 issued patents for B-TRAN™ with over 60 patent
applications pending.
"The fourth quarter of 2017 was highlighted with the UL 1741 SA
listing of our next generation 30 kW Stabiliti™ and SunDial™ series
PCS and the NX-15 product for NEXTracker, both incorporating the
newest standards for grid-tied systems and complement our new
initiative in the solar + storage market,” said Dan Brdar, Chief
Executive Officer.
“2017 was a year of transition for us as we shifted our focus
from the slow-to-transact commercial and industrial standalone
storage market, particularly for smaller systems, to the solar +
storage and, to a lesser extent, microgrids markets. We look
forward to NEXTracker closing on initial projects for its NX Flow
incorporating our PCS and have started to see positive indications
from other integration partners such as JLM, Sharp and now
Bosch.
“As we kickoff 2018 we are excited about the opportunity for our
B-TRAN technology, a technology that has broad applicability to the
power semiconductor market. With the recent completion of
successful proof of concept testing of our B-TRAN™, we are looking
forward to incorporating planned corrections and improvements in
the B-TRAN™ manufacturing process followed by the fabrication of
prototype engineering samples for potential customers and
partners,” concluded Brdar.
Fourth Quarter and Full Year 2017 Financial
Results
- 2017 product revenue decreased 26% to $1.2 million compared to
2016 product revenue of $1.6 million.
- Q4 2017 product revenue totalled $0.2 million versus $0.4
million in Q4 2016.
- 2017 gross margins were negative 85% compared to negative 19%
in 2016 and Q4 2017 gross margins were negative 46% compared to
negative 10% gross margins in Q4 2016. Gross margins were
negatively impacted by asset impairments and warranty reserve
adjustments related to our discontinued first generation 30kW and
125kW products.
- 2017 net loss was $10.3 million compared to $11.0 million in
2016.
- Q4 2017 net loss was $1.8 million compared to Q4 2016 net loss
of $2.8 million.
- 2017 cash used in operating and investing activities was $7.8
million compared to $10.8 million in 2016.
- Q4 2017 cash used in operating and investing activities was
$1.7 million compared to $2.6 million in Q4 2016.
- Cash and cash equivalents totalled $10.0 million as of December
31, 2017, with no long-term debt outstanding.
“2017 was a transformative year with respect to our cash
management as we strengthened the company’s balance sheet with a
$15 million private placement in the first quarter and produced our
lowest annual cash burn in years,” said Tim Burns, Chief Financial
Officer. “In fact, the $1.7 million cash burn seen in both the
third and fourth quarters of 2017 was the lowest cash burn in our
history as a public company and is a testament to the success of
our aggressive cost reduction plan we implemented in the second
quarter of 2017. We will continue to look for further
opportunities to reduce our cash burn in 2018.”
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: |
Tuesday, March 6,
2018 |
Time: |
4:30 p.m. ET, 1:30 p.m.
PT |
Toll-free dial-in
number: |
1- 800-281-7973 |
International dial-in
number: |
1-323-794-2093 |
Conference ID:
|
7762706 |
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=128366 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 April 6, 2018.
Toll-free replay
number: |
1-844-512-2921 |
International replay
number: |
1-412-317-6671 |
Replay ID: |
7762706 |
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 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 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. 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, market acceptance of our products in the solar +
storage market, the success of our B-TRAN technology, 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 Investor Relations Contact: MZ
North America Chris Tyson 949-491-8235IPWR@mzgroup.us
www.mzgroup.us
IDEAL POWER INC.Balance Sheets |
|
|
|
|
December 31, |
|
|
2017 |
|
2016 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
10,022,247 |
|
|
$ |
4,204,916 |
|
|
Accounts
receivable, net |
221,084 |
|
|
378,658 |
|
|
Inventories, net |
251,363 |
|
|
1,245,147 |
|
|
Prepayments and other current assets |
283,208 |
|
|
312,593 |
|
|
Total
current assets |
10,777,902 |
|
|
6,141,314 |
|
|
|
|
|
|
|
Property and equipment,
net |
669,571 |
|
|
936,486 |
|
|
Intangible assets,
net |
2,082,014 |
|
|
1,905,556 |
|
|
Other assets |
37,500 |
|
|
17,920 |
|
|
Total
assets |
$ |
13,566,987 |
|
|
$ |
9,001,276 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$ |
449,475 |
|
|
$ |
346,767 |
|
|
Accrued
expenses |
981,155 |
|
|
1,149,129 |
|
|
Total
current liabilities |
1,430,630 |
|
|
1,495,896 |
|
|
|
|
|
|
|
Long-term
liabilities |
456,234 |
|
|
265,418 |
|
|
Total
liabilities |
1,886,864 |
|
|
1,761,314 |
|
|
|
|
|
|
|
Commitments |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430
shares issued and outstanding at December 31,
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 December 31,
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 |
67,081,359 |
|
|
52,310,481 |
|
|
Treasury
stock, at cost; 2,344 shares at December 31, 2017 and 1,683 shares
at December 31, 2016, respectively |
(7,489 |
) |
|
(5,915 |
) |
|
Accumulated deficit |
(55,409,263 |
) |
|
(45,074,165 |
) |
|
Total
stockholders’ equity |
11,680,123 |
|
|
7,239,962 |
|
|
Total
liabilities and stockholders’ equity |
$ |
13,566,987 |
|
|
$ |
9,001,276 |
|
|
|
IDEAL POWER INC.Statements of
Operations |
|
|
For the Quarter Ended December
31, |
|
For the Year Ended December 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Product revenues |
$ |
238,590 |
|
|
$ |
370,710 |
|
|
$ |
1,212,270 |
|
|
$ |
1,628,740 |
|
|
Cost of product
revenues |
347,614 |
|
|
408,084 |
|
|
2,241,682 |
|
|
1,939,712 |
|
|
Gross
profit (loss) |
(109,024 |
) |
|
(37,374 |
) |
|
(1,029,412 |
) |
|
(310,972 |
) |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
810,519 |
|
|
1,310,804 |
|
|
4,184,905 |
|
|
5,224,992 |
|
|
General
and administrative |
713,592 |
|
|
1,034,615 |
|
|
3,389,852 |
|
|
3,743,940 |
|
|
Sales and
marketing |
207,804 |
|
|
415,476 |
|
|
1,448,517 |
|
|
1,737,233 |
|
|
Total
operating expenses |
1,731,915 |
|
|
2,760,895 |
|
|
9,323,274 |
|
|
10,706,165 |
|
|
Loss from
operations |
(1,840,939 |
) |
|
(2,798,269 |
) |
|
(10,352,686 |
) |
|
(11,017,137 |
) |
|
Interest income |
2,148 |
|
|
9,268 |
|
|
17,588 |
|
|
36,046 |
|
|
Net loss |
$ |
(1,838,791 |
) |
|
$ |
(2,789,001 |
) |
|
$ |
(10,335,098 |
) |
|
$ |
(10,981,091 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss per
share – basic and fully diluted |
$ |
(0.13 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.15 |
) |
|
Weighted average number
of shares outstanding – basic and fully diluted |
|
13,991,102 |
|
|
|
9,551,106 |
|
|
|
13,223,229 |
|
|
|
9,548,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC.Statements of
Cash Flows |
|
|
|
|
For the Year Ended December 31, |
|
|
2017 |
|
2016 |
|
Cash flows from
operating activities: |
|
|
|
|
Net
loss |
$ |
(10,335,098 |
) |
|
$ |
(10,981,091 |
) |
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Allowance
for doubtful accounts |
192,693 |
|
|
85,375 |
|
|
Write-down of inventory |
760,785 |
|
|
72,823 |
|
|
Depreciation and amortization |
451,547 |
|
|
406,639 |
|
|
Write-off
of fixed assets |
54,261 |
|
|
47,560 |
|
|
Write-off
of capitalized patents |
279,982 |
|
|
116,969 |
|
|
Stock-based compensation |
1,108,359 |
|
|
1,517,545 |
|
|
Decrease
(increase) in operating assets: |
|
|
|
|
Accounts
receivable |
(35,119 |
) |
|
408,841 |
|
|
Inventories |
232,999 |
|
|
(679,993 |
) |
|
Prepaid
expenses and other assets |
9,805 |
|
|
(16,238 |
) |
|
Increase
(decrease) in operating liabilities: |
|
|
|
|
Accounts
payable |
102,708 |
|
|
(992,061 |
) |
|
Accrued
expenses |
(238,461 |
) |
|
(85,022 |
) |
|
Net cash
used in operating activities |
(7,415,539 |
) |
|
(10,098,653 |
) |
|
Cash flows from
investing activities: |
|
|
|
|
Purchase
of property and equipment |
(155,613 |
) |
|
(391,088 |
) |
|
Acquisition of intangible assets |
(278,417 |
) |
|
(359,904 |
) |
|
Net cash
used in investing activities |
(434,030 |
) |
|
(750,992 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
Net
proceeds from issuance of common stock |
13,657,331 |
|
|
— |
|
|
Exercise
of options and warrants |
11,143 |
|
|
35,533 |
|
|
Payment
of taxes related to restricted stock vesting |
(1,574 |
) |
|
(3,258 |
) |
|
Net cash
provided by financing activities |
13,666,900 |
|
|
32,275 |
|
|
Net increase (decrease)
in cash and cash equivalents |
5,817,331 |
|
|
(10,817,370 |
) |
|
Cash and cash
equivalents at beginning of year |
4,204,916 |
|
|
15,022,286 |
|
|
Cash and cash
equivalents at end of year |
$ |
10,022,247 |
|
|
$ |
4,204,916 |
|
|
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