Ideal Power Reports Second Quarter 2019 Financial Results
August 14 2019 - 4:05PM
Ideal Power Inc. (NASDAQ: IPWR), a semiconductor and power
conversion technology company, reported results for its second
quarter ended June 30, 2019.
Key Second Quarter 2019 and Subsequent B-TRAN™ Division
Highlights:
- Completed successful testing of double-sided B-TRAN™ wafers,
confirming the following testing results:
- Successful bi-directional operation
with symmetrical performance in both directions;
- Forward voltage drop for our
B-TRAN™ dies was measured at 0.2 – 0.3V, consistent with our
simulations. This value is substantially lower than the
corresponding junction voltage drop of approximately 0.9V for an
IGBT die; and
- Measured breakdown voltages were up
to 1200V, a characteristic required for commercial, industrial and
military applications such as electric vehicles, battery storage,
renewable energy and traction drives.
- B-TRAN™ dies from these wafers are
being packaged for use with a bi-directional driver to characterize
switching performance.
- Design basis and test results of
initial B-TRAN™ devices meet the criteria for Ideal Power’s
engineering prototype sampling program, with initial samples
expected to be delivered to potential partners in the fourth
quarter of 2019.
- Confirmed manufacturability of new
double-sided B-TRAN™ wafer die design with conventional silicon
processing equipment. The results of this testing are being
incorporated into the design of next generation dies with our
semiconductor fabrication partners.
- B-TRAN™ Patent Estate: Currently
have 46 issued B-TRAN™ patents with 13 of those patents issued
outside the United States. Significantly, our geographic coverage
now includes China, Japan and Europe. Our B-TRAN™ patent portfolio
of approximately 35 patent filings includes pending applications
that will enhance our coverage in the US, China, Japan and Europe
and potentially expand our coverage to include Korea and
India.
Management Commentary
“The second quarter of 2019 was a continuation
of our new strategic focus on our proprietary B-TRAN™ power switch
technology,” said Dr. Lon Bell, Chief Executive Officer of Ideal
Power. “During the quarter we fabricated and subsequently tested
double-sided B-TRAN™ wafers that validated the three critical
performance metrics of symmetric bi-directionality, low conduction
losses and necessary breakdown voltage required for use in a broad
range of commercial and military applications. We confirmed our
B-TRAN™ design is able to be manufactured with conventional silicon
processing equipment.
“Given the progress with our B-TRAN™ technology,
management and the board of directors unanimously decided to effect
a reverse stock split in order to maintain our Nasdaq listing. We
strongly believe maintaining this listing status will enable the
company to engage strategic partners and investors from a position
of strength,” concluded Bell.
Second Quarter 2019 Financial Results
- The company had no revenues from
continuing operations in the second quarter of 2019.
- Q2 2019 operating expenses were
$0.9 million compared to $1.1 million in Q2 2018. The decrease in
operating expense was due to a decrease in our general and
administrative expenses impacted by our cost reduction plan,
inclusive of reduced headcount, an absence of grants in recent
years to tenured executives and lower employee bonus expense partly
offset by higher legal fees as Q2 2018 included the recovery of
$0.2 million in legal expenses related to the resolution of legal
proceedings in the company’s favor.
- Q2 2019 net loss was $1.3 million,
compared to $1.7 million in Q2 2018.
- Cash used in operating activities
for continuing operations was $1.3 million for the six months ended
June 30, 2019 compared to $1.9 million in the six months ended June
30, 2018.
- Cash and cash equivalents totaled
$1.4 million as of June 30, 2019, with no long-term debt
outstanding.
“We now report our power conversion systems
division as a discontinued operation and thus had no revenue from
continuing operations in the second quarter of 2019,” said Tim
Burns, Chief Financial Officer. “On the cash management side, we
maintained our targeted cash burn rate, utilizing $0.7 million of
cash from continuing operations in the second quarter of 2019,”
concluded Burns.
Conference Call Details
Ideal Power Chairman, CEO and President Dr. Lon Bell, CFO Tim
Burns and B-TRAN™ Chief Commercial Officer Dan Brdar will host the
conference call, followed by a question and answer period.
To access the call, please use the following information:
Date: |
Wednesday, August 14, 2019 |
Time: |
4:30 p.m. EST, 1:30 p.m.
PST |
Toll-free dial-in number: |
1-800-458-4121 |
International dial-in
number: |
1-323-794-2093 |
Conference ID: |
1930397 |
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=135537 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 September 14, 2019.
Toll Free Replay Number: |
1-844-512-2921 |
International Replay
Number: |
1-412-317-6671 |
Replay ID: |
1930397 |
About Ideal Power Inc.Ideal
Power (NASDAQ: IPWR) is a semiconductor and power conversion
technology company focused on its patented Bi-directional, Bi-polar
Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is
a unique double-sided bi-directional AC switch able to deliver
substantial performance improvements over today's conventional
power semiconductors. We believe B-TRAN modules will improve the
efficiency and system economics of a wide variety of power
converter applications including electrified vehicle traction
drives, energy storage applications, photovoltaic (PV) inverters
and wind converters, variable frequency (VFD) motor drives, and AC
and DC power control applications. 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, the success of a potential sale of our Power Conversion
Systems division and PPSA™ technology, the success of our B-TRAN™
technology, the success of our strategic shift and change in
corporate focus, whether the patents for our technology provide
adequate protection and whether we can be successful in
maintaining, enforcing and defending our patents, our inability to
predict with precision or certainty the pace of development and
commercialization of our B-TRAN™ technology, whether we can
continue as a going concern 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. 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
949-491-8235 IPWR@mzgroup.us www.mzgroup.us
|
IDEAL POWER INC. |
Balance Sheets |
|
|
June 30, 2019 |
|
|
December 31, 2018 |
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,437,797 |
|
|
$ |
3,258,077 |
|
Prepayments and other current assets |
|
221,530 |
|
|
|
333,877 |
|
Current assets of discontinued operations held for sale |
|
393,408 |
|
|
|
1,096,323 |
|
Total current assets |
|
2,052,735 |
|
|
|
4,688,277 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
54,682 |
|
|
|
63,214 |
|
Intangible assets, net |
|
1,647,477 |
|
|
|
1,396,409 |
|
Right of use asset |
|
345,344 |
|
|
|
– |
|
Other assets |
|
17,920 |
|
|
|
17,920 |
|
Total assets |
$ |
4,118,158 |
|
|
$ |
6,165,820 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
97,039 |
|
|
$ |
94,203 |
|
Accrued expenses |
|
169,561 |
|
|
|
167,755 |
|
Current portion of lease liability |
|
172,327 |
|
|
|
– |
|
Current liabilities of discontinued operations held for sale |
|
473,686 |
|
|
|
877,755 |
|
Total current liabilities |
|
912,613 |
|
|
|
1,139,713 |
|
|
|
|
|
|
|
|
|
Long-term lease liability |
|
176,989 |
|
|
|
– |
|
Other long-term
liabilities |
|
647,164 |
|
|
|
428,163 |
|
Total liabilities |
|
1,736,766 |
|
|
|
1,567,876 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized;
810,000 shares issued and outstanding at June 30, 2019 and
1,518,430 shares issued at December 31, 2018, respectively |
|
810 |
|
|
|
1,518 |
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
14,736,020 shares issued and 14,722,840 shares outstanding at June
30, 2019 and 14,027,590 shares issued and 14,014,410 shares
outstanding at December 31, 2018, respectively |
|
14,736 |
|
|
|
14,028 |
|
Additional paid-in capital |
|
68,085,889 |
|
|
|
68,009,860 |
|
Treasury stock, at cost, 13,180 shares at June 30, 2019 and
December 31, 2018, respectively |
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
(65,706,833 |
) |
|
|
(63,414,252 |
) |
Total stockholders’ equity |
|
2,381,392 |
|
|
|
4,597,944 |
|
Total liabilities and stockholders’ equity |
$ |
4,118,158 |
|
|
$ |
6,165,820 |
|
|
IDEAL POWER INC. |
Statements of Operations |
(unaudited) |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Product revenue |
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
Cost of product revenue |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Gross profit |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
335,752 |
|
|
|
322,218 |
|
|
|
553,968 |
|
|
|
416,762 |
|
General and administrative |
|
580,663 |
|
|
|
803,312 |
|
|
|
1,049,053 |
|
|
|
1,685,411 |
|
Total operating expenses |
|
916,415 |
|
|
|
1,125,530 |
|
|
|
1,603,021 |
|
|
|
2,102,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before interest |
|
(916,415 |
) |
|
|
(1,125,530 |
) |
|
|
(1,603,021 |
) |
|
|
(2,102,173 |
) |
Interest (income) expense,
net |
|
(6,809 |
) |
|
|
(35,614 |
) |
|
|
309 |
|
|
|
(36,929 |
) |
Loss from continuing
operations |
|
(909,606 |
) |
|
|
(1,089,916 |
) |
|
|
(1,603,330 |
) |
|
|
(2,065,244 |
) |
Loss from discontinued
operations |
|
(342,076 |
) |
|
|
(632,530 |
) |
|
|
(689,251 |
) |
|
|
(1,713,364 |
) |
Net loss |
$ |
(1,251,682 |
) |
|
$ |
(1,722,446 |
) |
|
$ |
(2,292,581 |
) |
|
$ |
(3,778,608 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations per share – basic and fully diluted |
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.15 |
) |
Loss from discontinued
operations per share – basic and fully diluted |
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.12 |
) |
Net loss per share – basic and
fully diluted |
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
14,722,840 |
|
|
|
13,992,791 |
|
|
|
14,519,313 |
|
|
|
13,991,961 |
|
|
IDEAL POWER INC. |
Statements of Cash Flows |
(unaudited) |
|
|
Six Months Ended |
|
|
June 30, |
|
|
2019 |
|
|
2018 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Loss from continuing operations |
$ |
(1,603,330 |
) |
|
$ |
(2,065,244 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
56,497 |
|
|
|
82,091 |
|
Write-off of capitalized patents |
|
– |
|
|
|
10,873 |
|
Stock-based compensation |
|
140,190 |
|
|
|
510,160 |
|
Decrease in operating assets: |
|
|
|
|
|
|
|
Prepayments and other current assets |
|
112,347 |
|
|
|
(243,632 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
2,836 |
|
|
|
(158,215 |
) |
Accrued expenses |
|
(7,588 |
) |
|
|
(5,980 |
) |
Net cash used in operating activities |
|
(1,299,048 |
) |
|
|
(1,869,947 |
) |
Net cash used in operating activities – discontinued
operations |
|
(465,328 |
) |
|
|
(1,072,185 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(1,194 |
) |
|
|
– |
|
Acquisition of intangible assets |
|
(54,710 |
) |
|
|
(63,584 |
) |
Net cash used in investing activities |
|
(55,904 |
) |
|
|
(63,584 |
) |
Net cash used in investing activities – discontinued
operations |
|
– |
|
|
|
(34,130 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Payment of taxes related to restricted stock vesting |
|
– |
|
|
|
(2,188 |
) |
Net cash used in financing activities |
|
– |
|
|
|
(2,188 |
) |
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents – continuing operations |
|
(1,354,952 |
) |
|
|
(1,935,719 |
) |
Net decrease in cash and cash
equivalents – discontinued operations |
|
(465,328 |
) |
|
|
(1,106,315 |
) |
Cash and cash equivalents at
beginning of period |
|
3,258,077 |
|
|
|
10,022,247 |
|
Cash and cash equivalents at
end of period |
$ |
1,437,797 |
|
|
$ |
6,980,213 |
|
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