Ideal Power Reports Second Quarter 2020 Financial Results
August 13 2020 - 4:05PM
Ideal Power Inc. (Nasdaq: IPWR), pioneering the development
and commercialization of highly efficient and broadly patented
B-TRAN™ bi-directional power switches, reported results for its
second quarter ended June 30, 2020.
“During the second quarter of 2020, we
significantly advanced Phase Two of our B-TRAN™ commercialization
plan, which entails the fabrication of parts and the delivery of
samples to potential partners for evaluation," said Dan Brdar,
President and Chief Executive Officer of Ideal Power. "We signed a
$1.2 million contract to partner with Diversified Technologies
(“DTI”), a developer and marketer of high voltage, high power pulse
modulators, DC power supplies, and control systems for the U.S.
Departments of Energy and Defense and other prestigious customers,
to develop and demonstrate B-TRAN™ enabled high efficiency 12kV
medium voltage direct current circuit breakers for the U.S. Navy as
part of their ship electrification program, our first award for a
government-funded technology project. We also made strong progress
on our engineering sampling program, completing the fabrication
qualification process as well as another B-TRAN™ run with Teledyne,
our domestic semiconductor fabrication partner, and are preparing
for dies to be packaged for internal testing and characterization.
Overall, we are tracking to plan and are focused for the remainder
of the year on completing a first run of packaged B-TRAN™ devices
under our DTI partnership and on putting engineering prototype
samples packaged with a driver into potential customers’
hands.”
Key Recent Operational
Highlights
- Signed a $1.2 million contract to partner with Diversified
Technologies, Inc. (DTI) /a developer and marketer of high voltage,
high power pulse modulators, DC power supplies, and control systems
for the U.S. Departments of Energy and Defense, leading
universities, and private sector companies, on the demonstration of
B-TRAN™ enabled high efficiency direct current circuit breakers.
This contract is part of a two-year, $3.0 million contract awarded
to DTI by United States Naval Sea Systems Command (“NAVSEA”) to
support its ship electrification program. Ideal Power kicked off
its part of the program in late June.
- Completed the fabrication qualification process with Teledyne,
the Company’s domestic semiconductor fabrication partner. The dies
produced during this process will be packaged and utilized for
internal testing and characterization.
- Released next-generation parts to Teledyne for fabrication
under the NAVSEA program and potential early customer samples.
- In collaboration with University of Texas at Austin’s
Microelectronic Research Center, began design of a new current
source driver to be used in our engineering prototype sampling
program.
- B-TRAN™ Patent Estate: Currently have 56 issued B-TRAN™ patents
with 20 of those issued outside of the United States and 27 pending
B-TRAN™ patents. Current geographic coverage includes North
America, China, Japan and Europe, with potential to expand coverage
into South Korea and India.
- In August, Ideal Power raised an estimated $2.5 million in net
proceeds from an early warrant exercise transaction with certain of
the Company’s Series A warrant holders, in which Series A warrant
holders were issued new Series C warrants to purchase up to an
aggregate of 705,688 shares of the Company’s common stock at an
exercise price of $8.90 per share, through a private placement, as
an incentive for such Series A warrant holders to exercise their
Series A warrants early. The transaction strengthened the Company’s
cash position and enabled an orderly exercise of warrants for
holders.
Second Quarter 2020 Financial
Results
- Research and development expenses in the second quarter of 2020
were $0.3 million, flat compared to $0.3 million in the second
quarter of 2019.
- General and administrative expenses in the second quarter of
2020 were $0.5 million compared to $0.6 million in the second
quarter of 2019. The decrease was due to lower legal fees and
facilities costs.
- Net loss in the second quarter of 2020 was $0.8 million
compared to $1.3 million in the second quarter of 2019. The
decrease in net loss was due to the sale of the PPSA™ operations in
September 2019 and lower general and administrative expenses. The
second quarter of 2019 included a $0.3 million loss from
discontinued operations.
- Cash used in operating activities for the first six months of
2020 was $1.5 million compared to $1.8 million in the first six
months of 2019. Cash flows from operating activities in the
six months of 2019 included $0.5 million of cash used in
discontinued operations.
- Cash and cash equivalents totaled $1.8 million as of June 30,
2020. Subsequent to June 30, 2020, the Company raised an estimated
$2.5 million in net proceeds from an early warrant exercise
transaction.
- Long-term debt outstanding 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.
Second 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: |
Thursday, August 13, 2020 |
Time: |
4:30 p.m. EST, 1:30 p.m. PST |
Toll-free dial-in number: |
1- 866-248-8441 |
International dial-in number: |
1-323-347-3612 |
Conference ID: |
8018042 |
|
|
Please call the conference telephone number 5 to 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/player/index.php?id=140862 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 August 13, 2020 through September 13,
2020.
|
|
Toll Free Replay Number: |
1-844-512-2921 |
International Replay Number: |
1-412-317-6671 |
Replay ID: |
8018042 |
|
|
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 industrial, alternative energy, military and automotive
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 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. 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 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 of development and
commercialization of our B-TRAN™ technology, our ability to secure
additional financing on commercially reasonable terms, or at all,
especially in light of the market volatility uncertainty as a
result of the COVID-19 pandemic 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
|
June 30, 2020 |
|
|
December 31, 2019 |
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,793,582 |
|
|
$ |
3,057,682 |
|
Prepayments and other current assets |
|
223,838 |
|
|
|
248,148 |
|
Total current assets |
|
2,017,420 |
|
|
|
3,305,830 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
46,078 |
|
|
|
47,302 |
|
Intangible assets, net |
|
1,594,085 |
|
|
|
1,634,378 |
|
Right of use asset |
|
171,849 |
|
|
|
260,310 |
|
Other assets |
|
– |
|
|
|
17,920 |
|
Total assets |
$ |
3,829,432 |
|
|
$ |
5,265,740 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
47,333 |
|
|
$ |
182,956 |
|
Accrued expenses |
|
327,328 |
|
|
|
319,135 |
|
Current portion of lease liability |
|
176,989 |
|
|
|
183,119 |
|
Total current liabilities |
|
551,650 |
|
|
|
685,210 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
96,407 |
|
|
|
– |
|
Long-term lease liability |
|
– |
|
|
|
82,055 |
|
Other long-term
liabilities |
|
603,917 |
|
|
|
609,242 |
|
Total liabilities |
|
1,251,974 |
|
|
|
1,376,507 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
2,353,306 shares issued and 2,351,985 shares outstanding at June
30, 2020, and 2,101,272 shares issued and 2,099,951 shares
outstanding at December 31, 2019, respectively |
|
2,353 |
|
|
|
2,101 |
|
Additional paid-in capital |
|
71,693,988 |
|
|
|
71,242,256 |
|
Treasury stock, at cost, 1,321 shares at June 30, 2020 and December
31, 2019 |
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
(69,105,673 |
) |
|
|
(67,341,914 |
) |
Total stockholders’ equity |
|
2,577,458 |
|
|
|
3,889,233 |
|
Total liabilities and stockholders’ equity |
$ |
3,829,432 |
|
|
$ |
5,265,740 |
|
|
|
|
|
|
|
|
|
IDEAL POWER
INC.Statements of
Operations(unaudited)
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Grant revenue |
$ |
6,515 |
|
|
$ |
– |
|
|
$ |
6,515 |
|
|
$ |
– |
|
Cost of grant revenue |
|
6,515 |
|
|
|
– |
|
|
|
6,515 |
|
|
|
– |
|
Gross profit |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
316,325 |
|
|
|
335,752 |
|
|
|
666,989 |
|
|
|
553,968 |
|
General and administrative |
|
515,878 |
|
|
|
580,663 |
|
|
|
1,095,648 |
|
|
|
1,049,053 |
|
Total operating expenses |
|
832,203 |
|
|
|
916,415 |
|
|
|
1,762,637 |
|
|
|
1,603,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before interest |
|
(832,203 |
) |
|
|
(916,415 |
) |
|
|
(1,762,637 |
) |
|
|
(1,603,021 |
) |
Interest (income) expense,
net |
|
1,055 |
|
|
|
(6,809 |
) |
|
|
1,122 |
|
|
|
309 |
|
Loss from continuing
operations |
|
(833,258 |
) |
|
|
(909,606 |
) |
|
|
(1,763,759 |
) |
|
|
(1,603,330 |
) |
Loss from discontinued
operations |
|
– |
|
|
|
(342,076 |
) |
|
|
– |
|
|
|
(689,251 |
) |
Net loss |
$ |
(833,258 |
) |
|
$ |
(1,251,682 |
) |
|
$ |
(1,763,759 |
) |
|
$ |
(2,292,581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations per share – basic and fully diluted |
$ |
(0.28 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.10 |
) |
Loss from discontinued
operations per share – basic and fully diluted |
|
– |
|
|
|
(0.23 |
) |
|
|
– |
|
|
|
(0.48 |
) |
Net loss per share – basic and
fully diluted |
$ |
(0.28 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.59 |
) |
|
$ |
(1.58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
2,998,350 |
|
|
|
1,474,001 |
|
|
|
2,983,372 |
|
|
|
1,453,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER
INC.Statements of Cash
Flows(unaudited)
|
Six Months Ended June 30, |
|
|
2020 |
|
|
2019 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Loss from continuing operations |
$ |
(1,763,759 |
) |
|
$ |
(1,603,330 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
57,248 |
|
|
|
56,497 |
|
Write-off of capitalized patents |
|
18,235 |
|
|
|
– |
|
Stock-based compensation |
|
226,168 |
|
|
|
140,190 |
|
Stock issued for services |
|
50,000 |
|
|
|
– |
|
Decrease in operating assets: |
|
|
|
|
|
|
|
Prepayments and other current assets |
|
42,230 |
|
|
|
112,347 |
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
(135,623 |
) |
|
|
2,836 |
|
Accrued expenses |
|
3,144 |
|
|
|
(7,588 |
) |
Net cash used in operating activities |
|
(1,502,357 |
) |
|
|
(1,299,048 |
) |
Net cash used in operating activities – discontinued
operations |
|
– |
|
|
|
(465,328 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(10,678 |
) |
|
|
(1,194 |
) |
Acquisition of intangible assets |
|
(23.288 |
) |
|
|
(54,710 |
) |
Net cash used in investing activities |
|
(33,966 |
) |
|
|
(55,904 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds from loans |
|
96,407 |
|
|
|
– |
|
Proceeds from the exercise of warrants |
|
175,816 |
|
|
|
– |
|
Net cash provided by financing activities |
|
272,223 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents – continuing operations |
|
(1,264,100 |
) |
|
|
(1,354,952 |
) |
Net decrease in cash and cash
equivalents – discontinued operations |
|
– |
|
|
|
(465,328 |
) |
Cash and cash equivalents at
beginning of period |
|
3,057,682 |
|
|
|
3,258,077 |
|
Cash and cash equivalents at
end of period |
$ |
1,793,582 |
|
|
$ |
1,437,797 |
|
|
|
|
|
|
|
|
|
IDEAL POWER
INC.Statement of Stockholders’
EquityFor the Three-Month Periods during the Six
Months Ended June 30, 2020 and
2019(unaudited)
|
Common Stock |
|
|
Preferred Stock |
|
|
Additional Paid-In Capital |
|
|
Treasury Stock |
|
|
Accumulated Deficit |
|
|
Total Stockholders’ Equity |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
|
|
|
Shares |
|
|
Amount |
|
|
|
|
|
|
|
Balances at December 31, 2018 |
|
1,404,479 |
|
|
$ |
1,404 |
|
|
|
1,518,430 |
|
|
$ |
1,518 |
|
|
$ |
68,022,484 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(63,414,252 |
) |
|
$ |
4,597,944 |
|
Conversion of preferred stock
to common stock |
|
70,843 |
|
|
|
71 |
|
|
|
(708,430 |
) |
|
|
(708 |
) |
|
|
637 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,814 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25,814 |
) |
Net loss for the three months
ended March 31, 2019 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,040,899 |
) |
|
|
(1,040,899 |
) |
Balances at March 31,
2019 |
|
1,475,322 |
|
|
$ |
1,475 |
|
|
|
810,000 |
|
|
$ |
810 |
|
|
$ |
67,997,307 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(64,455,151 |
) |
|
$ |
3,531,231 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
101,843 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
101,843 |
|
Net loss for the three months
ended June 30, 2019 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,251,682 |
) |
|
|
(1,251,682 |
) |
Balances at June 30, 2019 |
|
1,475,322 |
|
|
$ |
1,475 |
|
|
|
810,000 |
|
|
$ |
810 |
|
|
$ |
68,099,150 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(65,706,833 |
) |
|
$ |
2,381,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31,
2019 |
|
2,101,272 |
|
|
$ |
2,101 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
71,242,256 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(67,341,914 |
) |
|
$ |
3,889,233 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
116,497 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
116,497 |
|
Net loss for the three months
ended March 31, 2020 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(930,501 |
) |
|
|
(930,501 |
) |
Balances at March 31,
2020 |
|
2,101,272 |
|
|
$ |
2,101 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
71,358,753 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(68,272,415 |
) |
|
$ |
3,075,229 |
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,671 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
109,671 |
|
Stock issued for services |
|
26,316 |
|
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
49,974 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50,000 |
|
Exercise of warrants |
|
225,718 |
|
|
|
226 |
|
|
|
— |
|
|
|
— |
|
|
|
175,590 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
175,816 |
|
Net loss for the three months
ended June 30, 2020 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(833,258 |
) |
|
|
(833,258 |
) |
Balances at June 30, 2020 |
|
2,353,306 |
|
|
$ |
2,353 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
71,693,988 |
|
|
|
1,321 |
|
|
$ |
(13,210 |
) |
|
$ |
(69,105,673 |
) |
|
$ |
2,577,458 |
|
Ideal Power (NASDAQ:IPWR)
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From Mar 2024 to Apr 2024
Ideal Power (NASDAQ:IPWR)
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From Apr 2023 to Apr 2024