Ideal Power Reports Fourth Quarter and Full Year 2020 Financial Results
March 17 2021 - 4:05PM
Ideal Power Inc. (“Ideal Power” or the “Company”) (Nasdaq:
IPWR), pioneering the development and commercialization of highly
efficient and broadly patented B-TRAN™ bi-directional power
switches, reported results for its fourth quarter and full year
ended December 31, 2020.
“Throughout 2020, we sustained our momentum
toward our commercialization goals and are moving into 2021 with
excitement about our prospects for B-TRAN™ as a differentiated
technology that can address a large and growing market, while armed
with a strong balance sheet to make our vision a reality,” stated
Dan Brdar, President and Chief Executive Officer of Ideal Power.
“Recently, we successfully completed the second major milestone
with United States Naval Sea Systems Command (NAVSEA) under our
partnership with Diversified Technologies, Inc. (DTI), and are in
receipt of the wafers from Teledyne’s second fabrication run. We
also completed the design for a dedicated B-TRAN™ driver as well as
a manufacturing-ready packaging design, key steps for our
engineering sampling with potential customers. In 2021, our focus
is on completing our wafer runs and device fabrication under the
NAVSEA program, engaging with customers under our engineering
sampling program, obtaining the customer feedback needed to develop
an intelligent power module and laying the groundwork for the
commercial agreements that we expect to result in commercial
revenue in 2022.”
Key Recent Operational
Highlights
- Completed the second major milestone
under the NAVSEA program in partnership with DTI to demonstrate
B-TRAN™ enabled high efficiency direct current circuit breakers as
we received wafers from Teledyne’s second fabrication run. These
wafers are being tested for selection and packaging into B-TRAN™
devices.
- In collaboration with The University
of Texas at Austin’s Semiconductor Power Electronics Center:
- Finalized the development and
fabrication of a new B-TRAN™ driver for use in the customer
sampling program; and
- Under the NAVSEA program, finalized
the development of a second packaging design to incorporate design
for manufacturing feedback received from a commercial packaging
firm.
- Hired a Vice President of Business
Development with a strong semiconductor background in both silicon
and silicon carbide devices and established customer relationships
in the electric vehicle and renewable energy market segments.
- B-TRAN™ Patent Estate: Currently
have 58 issued B-TRAN™ patents with 21 of those issued outside of
the United States and 26 pending B-TRAN™ patents. Current
geographic coverage now includes North America, China, Japan and
Europe, with potential to expand coverage into South Korea and
India.
- In February 2021, completed an
underwritten public offering of 1.4 million shares of common stock
for net proceeds of $21.2 million to fund B-TRAN™ commercialization
and development and general corporate and working capital
purposes.
- Subsequent to year-end and through
the end of February 2021, raised an additional $3.2 million from
the exercise of then-outstanding warrants.
Fourth Quarter and Full Year 2020
Financial Results
- Grant revenue was $0.3 million in
the fourth quarter of 2020 and $0.4 million for the full year
2020.
- Operating expenses in the fourth
quarter of 2020 were $1.1 million compared to $0.8 million in the
fourth quarter of 2019 on higher research and development
spending.
- Operating expenses in the full year
2020 were $4.1 million compared to $3.1 million in the full year
2019, primarily on higher research and development spending as well
as higher stock-based compensation expense.
- Net loss in the fourth quarter of
2020 was $1.1 million compared to $0.8 million in the fourth
quarter of 2019.
- Net loss in the full year 2020 was
$7.8 million, inclusive of non-cash warrant inducement expense of
$3.7 million, compared to $3.9 million in the full year 2019. The
full year 2019 included a $0.8 million loss from discontinued
operations.
- Cash used in operating activities
for the full year 2020 was $3.0 million compared to $3.2 million in
the full year 2019. The full year 2019 included $0.7 million of
cash used in operating activities related to discontinued
operations.
- In 2020, the Company raised net
cash proceeds of $2.5 million from an early warrant exercise
transaction.
- Cash and cash equivalents totaled
$3.2 million at December 31, 2020.
- Subsequent to year-end and through
February 2021, the company raised an additional $3.2 million from
the exercise of then-outstanding warrants. Additionally, in
February 2021, the Company raised $21.2 million in net proceeds
through an underwritten public offering of our common stock.
- Long-term debt outstanding at
December 31, 2020 was $0.1 million relating to a Payroll Protection
Program loan received in the second quarter of 2020 to temporarily
subsidize payroll and facilities costs in a business landscape
impacted by the COVID-19 pandemic. Ideal Power has applied for, and
currently expects, this loan to be forgiven.
Fourth Quarter 2020 Conference Call
Details
Ideal Power CEO and President 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: |
|
Wednesday March 17, 2021 |
Time: |
|
4:30 p.m. EST, 1:30 p.m. PST |
Toll-free dial-in number: |
|
1- 800-430-8332 |
International dial-in number: |
|
1- 323-289-6581 |
Conference ID: |
|
1356868 |
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 LHA Investor Relations at
1-212-838-3777.
The conference call will be broadcast live and
available for replay
at http://public.viavid.com/index.php?id=142114 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 on Wednesday March 17, 2021,
through April 17, 2021.
Toll Free Replay Number: |
|
1- 844-512-2921 |
International Replay Number: |
|
1-412-317-6671 |
Replay ID: |
|
1356868 |
|
|
|
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the
development of its broadly patented bi-directional power switches,
creating highly efficient and ecofriendly energy control solutions
for electric vehicle, electric vehicle charging, renewable energy,
energy storage, UPS / data center and other industrial and military
applications. The Company is 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. Ideal
Power believes B-TRAN™ modules will reduce conduction and switching
losses, complexity of thermal management and operating cost in
medium voltage AC power switching and control circuitry. 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 Ideal
Power’s 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 impact of COVID-19 on our
business, financial condition and results of operations, the
success of our B-TRAN™ technology, including the success of our
contract with DTI, whether the patents for our technology provide
adequate protection and whether we can be successful in
maintaining, enforcing and defending our patents and our inability
to predict with precision or certainty the pace and timing of
development and commercialization of our B-TRAN™ technology and
uncertainties set forth in our quarterly, annual and other 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: LHA Investor RelationsCarolyn Capaccio, CFA;
Keith FetterT: 212-838-3777IdealPowerIR@lhai.com
IDEAL POWER
INC. Balance Sheets
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,157,256 |
|
|
$ |
3,057,682 |
|
Accounts receivable, net |
|
|
170,287 |
|
|
|
- |
|
Prepayments and other current assets |
|
|
118,883 |
|
|
|
248,148 |
|
Total current assets |
|
|
3,446,426 |
|
|
|
3,305,830 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
37,125 |
|
|
|
47,302 |
|
Intangible assets, net |
|
|
1,568,903 |
|
|
|
1,634,378 |
|
Right of use asset |
|
|
79,719 |
|
|
|
260,310 |
|
Other assets |
|
|
- |
|
|
|
17,920 |
|
Total assets |
|
$ |
5,132,173 |
|
|
$ |
5,265,740 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
101,984 |
|
|
$ |
182,956 |
|
Accrued expenses |
|
|
475,487 |
|
|
|
319,135 |
|
Current portion of lease liability |
|
|
82,055 |
|
|
|
183,119 |
|
Total current liabilities |
|
|
659,526 |
|
|
|
685,210 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
91,407 |
|
|
|
- |
|
Long-term lease liability |
|
|
- |
|
|
|
82,055 |
|
Other long-term
liabilities |
|
|
552,031 |
|
|
|
609,242 |
|
Total liabilities |
|
|
1,302,964 |
|
|
|
1,376,507 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0
shares issued and outstanding at December 31, 2020 and 2019 |
|
|
- |
|
|
|
- |
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
3,265,740 shares issued and 3,264,419 shares outstanding at
December 31, 2020; 2,101,272 shares issued and 2,099,951 shares
outstanding at December 31, 2019 |
|
|
3,266 |
|
|
|
2,101 |
|
Additional paid-in capital |
|
|
78,974,964 |
|
|
|
71,242,256 |
|
Treasury stock, at cost; 1,321 shares at December 31, 2020 and
2019, respectively |
|
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
|
(75,135,811 |
) |
|
|
(67,341,914 |
) |
Total stockholders’ equity |
|
|
3,829,209 |
|
|
|
3,889,233 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,132,173 |
|
|
$ |
5,265,740 |
|
IDEAL POWER
INC.Statements of Operations
|
|
Three Months EndedDecember
31, |
|
|
Year EndedDecember 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Grant revenue |
|
$ |
273,827 |
|
|
$ |
– |
|
|
$ |
428,129 |
|
|
$ |
– |
|
Cost of grant revenue |
|
|
273,827 |
|
|
|
– |
|
|
|
428,129 |
|
|
|
– |
|
Gross profit |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
559,356 |
|
|
|
245,410 |
|
|
|
1,720,893 |
|
|
|
1,050,151 |
|
General and administrative |
|
|
573,474 |
|
|
|
544,787 |
|
|
|
2,347,089 |
|
|
|
2,065,112 |
|
Total operating expenses |
|
|
1,132,830 |
|
|
|
790,197 |
|
|
|
4,067,982 |
|
|
|
3,115,263 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before interest |
|
|
(1,132,830 |
) |
|
|
(790,197 |
) |
|
|
(4,067,982 |
) |
|
|
(3,115,263 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
2,569 |
|
|
|
1,195 |
|
|
|
5,049 |
|
|
|
4,267 |
|
Warrant inducement expense |
|
|
– |
|
|
|
– |
|
|
|
3,720,866 |
|
|
|
- |
|
Total other expenses |
|
|
2,569 |
|
|
|
1,195 |
|
|
|
3,725,915 |
|
|
|
4,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations |
|
|
(1,135,399 |
) |
|
|
(791,392 |
) |
|
|
(7,793,897 |
) |
|
|
(3,119,530 |
) |
Loss from discontinued
operations |
|
|
– |
|
|
|
(30,978 |
) |
|
|
- |
|
|
|
(799,025 |
) |
Loss on sale of discontinued
operations |
|
|
– |
|
|
|
– |
|
|
|
- |
|
|
|
(9,107 |
) |
Net loss |
|
$ |
(1,135,399 |
) |
|
$ |
(822,370 |
) |
|
$ |
(7,793,897 |
) |
|
$ |
(3,927,662 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations per share – basic and fully diluted |
|
$ |
(0.26 |
) |
|
$ |
(0.36 |
) |
|
$ |
(2.20 |
) |
|
$ |
(1.89 |
) |
Loss from discontinued
operations per share – basic and fully diluted |
|
|
– |
|
|
|
(0.01 |
) |
|
|
- |
|
|
|
(0.49 |
) |
Net loss per share – basic and
fully diluted |
|
$ |
(0.26 |
) |
|
$ |
(0.37 |
) |
|
$ |
(2.20 |
) |
|
$ |
(2.38 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
|
4,356,324 |
|
|
|
2,228,152 |
|
|
|
3,539,217 |
|
|
|
1,653,996 |
|
IDEAL POWER
INC.Statements of Cash Flows
|
|
For the Year Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Loss from continuing operations |
|
$ |
(7,793,897 |
) |
|
$ |
(3,119,530 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
122,152 |
|
|
|
110,463 |
|
Write-off of capitalized patents |
|
|
20,660 |
|
|
|
14,707 |
|
Stock-based compensation |
|
|
868,648 |
|
|
|
184,339 |
|
Stock issued for services |
|
|
50,000 |
|
|
|
— |
|
Warrant inducement expense |
|
|
3,720,866 |
|
|
|
— |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(170,287 |
) |
|
|
— |
|
Prepaid expenses and other assets |
|
|
147,185 |
|
|
|
85,729 |
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(80,972 |
) |
|
|
88,753 |
|
Accrued expenses |
|
|
96,613 |
|
|
|
104,956 |
|
Net cash used in operating activities |
|
|
(3,019,032 |
) |
|
|
(2,530,583 |
) |
Net cash used in operating activities – discontinued
operations |
|
|
— |
|
|
|
(688,074 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(13,940 |
) |
|
|
(4,253 |
) |
Acquisition of intangible assets |
|
|
(53,220 |
) |
|
|
(99,845 |
) |
Net cash used in investing activities |
|
|
(67,160 |
) |
|
|
(104,098 |
) |
Net cash provided by (used in) investing activities – discontinued
operations |
|
|
— |
|
|
|
23,587 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from loans |
|
|
91,407 |
|
|
|
— |
|
Net proceeds from exercise of warrants |
|
|
3,094,359 |
|
|
|
— |
|
Net proceeds from issuance of common stock and pre-funded
warrants |
|
|
— |
|
|
|
3,098,773 |
|
Net cash provided by (used in) financing activities |
|
|
3,185,766 |
|
|
|
3,098,773 |
|
Net increase in cash and cash
equivalents – continuing operations |
|
|
99,574 |
|
|
|
464,092 |
|
Net decrease in cash and cash
equivalents – discontinued operations |
|
|
— |
|
|
|
(664,487 |
) |
Cash and cash equivalents at
beginning of year |
|
|
3,057,682 |
|
|
|
3,258,077 |
|
Cash and cash equivalents at
end of year |
|
$ |
3,157,256 |
|
|
$ |
3,057,682 |
|
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