Ideal Power Reports Fourth Quarter and Full Year 2022 Financial Results
March 02 2023 - 4:01PM
Ideal Power Inc. (“Ideal Power” or the “Company”) (Nasdaq:
IPWR), pioneering the development and commercialization of the
highly efficient and broadly patented B-TRAN™ bidirectional
semiconductor power switch, reported results for its fourth quarter
and full year ended December 31, 2022.
“Ideal Power accomplished a great deal in 2022
and early 2023. The recent launch of our first commercial product,
the SymCool™ Power Module, marks a pivotal development for our
B-TRAN™ technology,” said Dan Brdar, President and Chief Executive
Officer of Ideal Power. “Our intense focus continues toward B-TRAN™
commercialization. We believe B-TRAN™ has the potential to displace
conventional power semiconductor solutions in many applications
including electric vehicles (EV”), renewable energy, energy
storage, solid-state circuit breakers and motor drives.”
Key Fourth Quarter and Recent
Operational Highlights
- Launched its first commercial
product, the SymCool™ Power Module, a multi-die B-TRAN™ module
designed specifically to enable solid-state circuit breakers to
deliver very low conduction losses.
- Entered into a product development
agreement with a top 10 global automaker for a custom B-TRAN™ power
module for use in EV drivetrain inverters in the automaker’s next
generation EV platform. Represents Ideal Power’s second engagement
with a leading global automobile manufacturer.
- Shipped additional B-TRAN™ devices
to Diversified Technologies, Inc., our Naval Sea Systems Command
program collaboration partner, in preparation for a full-scale
medium voltage direct current circuit breaker demonstration.
- To prepare for
commercial product shipments, the Company is nearing completion of
a full process flow engineering run at a wafer fabrication partner
with high-volume production capability.
- Released a new Ideal Power
whitepaper entitled B-TRAN™ - Device Structure, Performance and
Applications. The test results in the new whitepaper match the
Company’s previous simulation data, further validating the B-TRAN™
technology. This whitepaper includes recent test results using the
Company’s newly designed driver and double-sided cooled packaged
devices. It shows switching characteristics and waveforms important
for customer technical teams using double pulse testing, including
testing in bidirectional mode.
- B-TRAN™ Patent Estate: Currently at 72 issued B-TRAN™ patents
with 31 of those issued outside of the United States and 24 pending
B-TRAN™ patents. Current geographic coverage includes North
America, China, Japan, South Korea, India and Europe.
Fourth Quarter and Full Year 2022
Financial Results
- Grant revenue was $16,608 in the
fourth quarter of 2022 compared to $128,605 in the fourth quarter
of 2021.
- Grant revenue was $203,269 for the
full year 2022 compared to $576,399 for the full year 2021.
- Operating expenses in the fourth
quarter of 2022 were $2.0 million compared to $1.4 million in the
fourth quarter of 2021 driven primarily by higher research and
development spending.
- Operating expenses in the full year
2022 were $7.3 million compared to $4.8 million in the full year
2021 with higher research and development spending accounting for a
majority of the increase.
- Net loss in the fourth quarter of
2022 was $1.9 million compared to $1.4 million in the fourth
quarter of 2021.
- Net loss in the full year 2022 was
$7.2 million compared to $4.8 million in the full year 2021.
- Cash used in operating activities in
full year 2022 was $6.4 million compared to $4.3 million in full
year 2021. Overall, cash burn for the full year 2022 was $6.8
million.
- Cash and cash equivalents totaled
$16.3 million at December 31, 2022.
- Ideal Power had no long-term debt outstanding at December 31,
2022.
2023 Milestones
For 2023, the Company has set the following
milestones:
- Launched first commercial product,
the SymCool™ Power Module in January 2023 with first commercial
sales later in 2023.
- Complete Phase I
of multi-year development program with top 10 global automaker in
Q2 2023.
- Complete first
engineering run with production fab in Q2 2023.
- Deliver packaged
B-TRAN™s to DTI under the NAVSEA program in 1H 2023.
- Introduce second
commercial product, an intelligent power module, in Q3 2023.
- Deliver B-TRAN™ samples for test
and evaluation program in 2H 2023.
Conference Call and Webcast: Q4 and Full
Year 2022 Results
Ideal Power President and CEO Dan Brdar and CFO Tim Burns will
host a conference call today, followed by a question-and-answer
period.
To access the call, please use the following information:
Date: |
Thursday,
March 2, 2023 |
Time: |
4:30 p.m. EST, 1:30 p.m. PST |
Toll-free dial-in number: |
1-844-481-2701 |
International dial-in number: |
1-412-317-0657 |
|
|
Please call the conference telephone number 5-10
minutes prior to the start time to ensure proper connection. An
operator will register your name and organization. |
The conference call will be webcast live and
available for replay on the Company’s investor relations website
under the Events tab at https://ir.idealpower.com/events. |
An audio replay of the conference call will be
available one hour after the live call until Midnight April 2,
2023. |
|
|
Toll Free Replay Number: |
1-877-344-7529 |
International Replay Number: |
1-412-317-0088 |
Replay ID: |
6853841 |
Upcoming Conferences
Ideal Power will participate in four investor
conferences in March:
- KeyBanc Capital
Markets 18th Annual Emerging Technology Summit in San Francisco,
California on March 7, 2023.
- Roth Capital
35th Annual Conference in Dana Point, California on March 13,
2023.
- Emerging Growth
Virtual Conference on March 22, 2023.
- Maxim Group’s
Electric Vehicle & Auto Tech Virtual Conference on March 30,
2023.
Conference attendees are encouraged to request a
one-on-one meeting with Ideal Power management. Email your
conference sponsor contact or Jeff Christensen of Ideal Power,
Investor Relations at jchristensen@darrowir.com.
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the
development of its broadly patented bidirectional semiconductor
power switch, creating highly efficient and ecofriendly energy
control solutions for electric vehicle, electric vehicle charging,
renewable energy, energy storage, UPS/data center, solid-state
circuit breaker and other industrial and military applications. The
Company is focused on its patented Bidirectional, Bipolar Junction
Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique
double-sided bidirectional AC switch able to deliver substantial
performance improvements over today's conventional power
semiconductors. Ideal Power believes B-TRAN™ 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 Statement
All 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. Such forward-looking statements include, but are not
limited to, statements regarding our 2023 milestones and B-TRAN™
having the potential to displace conventional power semiconductor
solutions in many applications. 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 our B-TRAN™ technology, including 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 and timing of development and commercialization of our B-TRAN™
technology, including the timing of the completion of our wafer
fabrication runs with our semiconductor fabrications partners, the
rate and degree of market acceptance for our B-TRAN™, the impact of
global health pandemics on our business, supply chain disruptions,
and the expected performance of future products incorporating our
B-TRAN™, 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, except as required by
applicable law.
Ideal Power Investor Relations
Contact:
Jeff ChristensenDarrow
Associates703-297-6917jchristensen@darrowir.com
IDEAL
POWER INC.Balance Sheets
|
|
December 31, |
|
|
2022 |
|
2021 |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
16,345,623 |
|
|
$ |
23,170,149 |
|
Accounts receivable, net |
|
|
65,936 |
|
|
|
233,262 |
|
Prepayments and other current assets |
|
|
491,365 |
|
|
|
43,900 |
|
Total current assets |
|
|
16,902,924 |
|
|
|
23,447,311 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
200,103 |
|
|
|
56,158 |
|
Intangible assets, net |
|
|
2,036,431 |
|
|
|
2,055,650 |
|
Right of use asset |
|
|
248,720 |
|
|
|
307,172 |
|
Other assets |
|
|
11,189 |
|
|
|
11,189 |
|
Total assets |
|
$ |
19,399,367 |
|
|
$ |
25,877,480 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
130,503 |
|
|
$ |
130,500 |
|
Accrued expenses |
|
|
254,218 |
|
|
|
353,507 |
|
Current portion of lease liability |
|
|
64,597 |
|
|
|
58,864 |
|
Total current liabilities |
|
|
449,318 |
|
|
|
542,871 |
|
|
|
|
|
|
|
|
Long-term lease liability |
|
|
202,987 |
|
|
|
267,584 |
|
Other long-term liabilities |
|
|
838,458 |
|
|
|
917,100 |
|
Total liabilities |
|
|
1,490,763 |
|
|
|
1,727,555 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0
shares issued and outstanding at December 31, 2022 and 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
5,926,001 shares issued and 5,924,680 shares outstanding at
December 31, 2022 and 5,893,767 shares issued and
5,892,446 shares outstanding at December 31, 2021 |
|
|
5,926 |
|
|
|
5,894 |
|
Additional paid-in capital |
|
|
105,011,318 |
|
|
|
104,063,321 |
|
Treasury stock, at cost; 1,321 shares at
December 31, 2022 and 2021, respectively |
|
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
|
(87,095,430 |
) |
|
|
(79,906,080 |
) |
Total stockholders’ equity |
|
|
17,908,604 |
|
|
|
24,149,925 |
|
Total liabilities and stockholders’ equity |
|
$ |
19,399,367 |
|
|
$ |
25,877,480 |
|
|
|
|
|
|
|
|
|
|
IDEAL
POWER INC.Statements of
Operations
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Grant revenue |
|
$ |
16,608 |
|
|
$ |
128,605 |
|
|
$ |
203,269 |
|
|
$ |
576,399 |
|
Cost of grant revenue |
|
|
16,608 |
|
|
|
128,605 |
|
|
|
203,269 |
|
|
|
576,399 |
|
Gross profit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
1,029,695 |
|
|
|
501,694 |
|
|
|
3,366,776 |
|
|
|
1,927,743 |
|
General and administrative |
|
|
767,309 |
|
|
|
703,279 |
|
|
|
3,123,852 |
|
|
|
2,408,425 |
|
Sales and marketing |
|
|
192,307 |
|
|
|
209,948 |
|
|
|
852,331 |
|
|
|
512,807 |
|
Total operating expenses |
|
|
1,989,311 |
|
|
|
1,414,921 |
|
|
|
7,342,959 |
|
|
|
4,848,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,989,311 |
) |
|
|
(1,414,921 |
) |
|
|
(7,342,959 |
) |
|
|
(4,848,975 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
98,366 |
|
|
|
(5,827 |
) |
|
|
153,609 |
|
|
|
(12,701 |
) |
Gain on forgiveness of long-term debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
91,407 |
|
Total other income (expense) |
|
|
98,366 |
|
|
|
(5,827 |
) |
|
|
153,609 |
|
|
|
78,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,890,945 |
) |
|
$ |
(1,420,748 |
) |
|
$ |
(7,189,350 |
) |
|
$ |
(4,770,269 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share – basic and
diluted |
|
$ |
(0.31 |
) |
|
$ |
(0.23 |
) |
|
$ |
(1.17 |
) |
|
$ |
(0.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and diluted |
|
|
6,160,803 |
|
|
|
6,143,452 |
|
|
|
6,157,866 |
|
|
|
5,937,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL
POWER INC.Statements of Cash
Flows
|
|
For the Year Ended
December 31, |
|
|
2022 |
|
2021 |
Cash flows from operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(7,189,350 |
) |
|
$ |
(4,770,269 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
187,077 |
|
|
|
157,564 |
|
Write-off of long-lived assets |
|
|
937 |
|
|
|
528 |
|
Stock-based compensation |
|
|
975,801 |
|
|
|
352,313 |
|
Stock issued for services |
|
|
100,100 |
|
|
|
207,980 |
|
Gain on forgiveness of long-term debt |
|
|
— |
|
|
|
(91,407 |
) |
Decrease (increase) in operating assets: |
|
|
|
|
|
|
Accounts receivable |
|
|
167,326 |
|
|
|
(62,975 |
) |
Prepaid expenses and other assets |
|
|
(389,013 |
) |
|
|
176,223 |
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
Accounts payable |
|
|
3 |
|
|
|
28,516 |
|
Accrued expenses and other liabilities |
|
|
(236,795 |
) |
|
|
(279,337 |
) |
Net cash used in operating activities |
|
|
(6,383,914 |
) |
|
|
(4,280,864 |
) |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(182,651 |
) |
|
|
(44,267 |
) |
Acquisition of intangible assets |
|
|
(130,089 |
) |
|
|
(192,668 |
) |
Net cash used in investing activities |
|
|
(312,740 |
) |
|
|
(236,935 |
) |
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
Net proceeds from issuance of common stock |
|
|
— |
|
|
|
21,204,609 |
|
Exercise of options and warrants |
|
|
— |
|
|
|
3,326,083 |
|
Payment of taxes on vesting of restricted stock units |
|
|
(127,872 |
) |
|
|
— |
|
Net cash (used in) provided by financing activities |
|
|
(127,872 |
) |
|
|
24,530,692 |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
(6,824,526 |
) |
|
|
20,012,893 |
|
Cash and cash equivalents at beginning of year |
|
|
23,170,149 |
|
|
|
3,157,256 |
|
Cash and cash equivalents at end of year |
|
$ |
16,345,623 |
|
|
$ |
23,170,149 |
|
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