Ideal Power Reports First Quarter 2021 Financial Results
May 13 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 first quarter ended March 31,
2021.
“We continue to make progress toward our B-TRAN™
commercialization objectives,” stated Dan Brdar, President and
Chief Executive Officer of Ideal Power. “Under our collaboration
with Diversified Technologies, Inc. (DTI), we recently began the
next wafer fabrication run with Teledyne, which, when completed
later this quarter, represents the next major milestone under the
United States Naval Sea Systems Command (NAVSEA) program. We have
signed initial sampling agreements and are working with potential
partners’ technical and procurement teams on additional sampling
agreements. We also submitted proposals for government funding with
both new and prospective partners in our customer sampling program.
Since the beginning of the year, we have strengthened our balance
sheet, added highly qualified business development and engineering
leaders to the team, developed new packaging and driver designs and
completed a major milestone under the NAVSEA program.”
Key First Quarter and 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.
- 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 for high volume
production and to incorporate design for manufacturing feedback
from a commercial packaging firm.
- Released a B-TRAN™ information sheet
that provides technical information on B-TRAN™, the new packaging
design and driver that serve as the core of Ideal Power’s customer
sampling program. The B-TRAN™ information sheet is available at
http://www.idealpower.com/wp-content/uploads/2021/05/BTRAN-Information-Sheet-V1.1.pdf.
- Actively engaged with automotive
companies, electric vehicle (EV) system suppliers and renewable
energy power converter manufacturers on evaluating B-TRAN™ for
their applications and participation in our customer sampling
program.
- Submitted multiple proposals in
collaboration with both new and prospective partners in our
customer sampling program under a new round of solicitations from
the Department of Energy for government funding, representing
diverse applications including EVs, power converters for renewable
energy and UPS systems for data centers.
- 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.
- Hired a Vice President of
Engineering with over 20 years of experience in leading power
semiconductor design devices teams, including for EV and hybrid
electric vehicle applications, and numerous publications and
patents, to further expand in-house expertise and lead B-TRAN™
technology development.
- B-TRAN™ Patent Estate: Currently
have 62 issued B-TRAN™ patents with 25 of those issued outside of
the United States and 22 pending B-TRAN™ patents. In late March, we
had our first patent issuance in South Korea. Current geographic
coverage now includes North America, China, Japan, South Korea and
Europe, with potential to expand coverage into India.
- Raised $21.2 million in net proceeds
through an underwritten public offering of common stock, and an
additional $3.3 million through the exercise of options and
warrants.
First Quarter Financial
Results
- Grant revenue was $0.2 million in the first quarter of
2021.
- Operating expenses in the first quarter of 2021 were $0.9
million, flat compared to $0.9 million in the first quarter of
2020.
- Net loss in the first quarter of 2021 was $0.9 million, flat
compared to $0.9 million in the first quarter of 2020.
- Cash used in operating activities in first quarter of 2021 was
$0.8 million compared to $0.8 million in the first quarter of 2020.
Including investing activities, cash burn in the first quarter of
2021 was $0.9 million.
- In the first quarter of 2021, the Company raised $21.2 million
in net proceeds through an underwritten public offering of our
common stock and net cash proceeds of $3.3 million from the
exercise of options and warrants.
- Cash and cash equivalents totaled $26.8 million at March 31,
2021.
- Long-term debt outstanding at March 31, 2021 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. This loan was forgiven by the SBA earlier this
month.
First Quarter 2021 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, May 13, 2021 |
Time: |
|
4:30 p.m. EST, 1:30 p.m. PST |
Toll-free dial-in number: |
|
1-866-248-8441 |
International dial-in number: |
|
1-323-289-6581 |
Conference ID: |
|
3477153 |
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/player/index.php?id=144800 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 Thursday, May 13, 2021, through Saturday, June
12, 2021.
Toll Free Replay Number: |
|
1- 844-512-2921 |
International Replay Number: |
|
1-412-317-6671 |
Replay ID: |
|
3477153 |
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,
including the timing of the completion of our next wafer
fabrication run with Teledyne and our success engaging companies to
participate in our customer sampling program, 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,
CFAT: 212-838-3777IdealPowerIR@lhai.com
IDEAL POWER
INC. Balance Sheets
|
March 31, 2021 |
|
|
December 31,2020 |
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
26,789,017 |
|
|
$ |
3,157,256 |
|
Accounts receivable, net |
|
125,887 |
|
|
|
170,287 |
|
Prepayments and other current assets |
|
172,913 |
|
|
|
118,883 |
|
Total current assets |
|
27,087,817 |
|
|
|
3,446,426 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
32,770 |
|
|
|
37,125 |
|
Intangible assets, net |
|
2,001,417 |
|
|
|
1,568,903 |
|
Right of use asset |
|
32,215 |
|
|
|
79,719 |
|
Other assets |
|
11,189 |
|
|
|
– |
|
Total assets |
$ |
29,165,408 |
|
|
$ |
5,132,173 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
107,290 |
|
|
$ |
101,984 |
|
Accrued expenses |
|
448,029 |
|
|
|
475,487 |
|
Current portion of lease liability |
|
33,149 |
|
|
|
82,055 |
|
Total current liabilities |
|
588,468 |
|
|
|
659,526 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
91,407 |
|
|
|
91,407 |
|
Other long-term
liabilities |
|
944,026 |
|
|
|
552,031 |
|
Total liabilities |
|
1,623,901 |
|
|
|
1,302,964 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
5,873,367 shares issued and 5,872,046 shares outstanding at
March 31, 2021 and 3,265,740 shares issued and 3,264,419
shares outstanding at December 31, 2020 |
|
5,873 |
|
|
|
3,266 |
|
Additional paid-in capital |
|
103,608,805 |
|
|
|
78,974,964 |
|
Treasury stock, at cost, 1,321 shares at March 31, 2021 and
December 31, 2020 |
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
(76,059,961 |
) |
|
|
(75,135,811 |
) |
Total stockholders’ equity |
|
27,541,507 |
|
|
|
3,829,209 |
|
Total liabilities and stockholders’ equity |
$ |
29,165,408 |
|
|
$ |
5,132,173 |
|
IDEAL POWER
INC.Statements of Operations
|
Three Months EndedMarch 31, |
|
|
2021 |
|
|
2020 |
|
Grant revenue |
$ |
242,061 |
|
|
$ |
– |
|
Cost of grant revenue |
|
242,061 |
|
|
|
– |
|
Gross profit |
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
260,880 |
|
|
|
350,664 |
|
General and administrative |
|
600,686 |
|
|
|
579,770 |
|
Sales and marketing |
|
62,578 |
|
|
|
– |
|
Total operating expenses |
|
924,144 |
|
|
|
930,434 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(924,144 |
) |
|
|
(930,434 |
) |
|
|
|
|
|
|
|
|
Interest expense, net |
|
6 |
|
|
|
67 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(924,150 |
) |
|
$ |
(930,501 |
) |
|
|
|
|
|
|
|
|
Net loss per share – basic and
fully diluted |
$ |
(0.17 |
) |
|
$ |
(0.31 |
) |
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
5,344,025 |
|
|
|
2,968,394 |
|
IDEAL POWER
INC.Statements of Cash Flows
|
Three Months EndedMarch 31, |
|
|
2021 |
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(924,150 |
) |
|
$ |
(930,501 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
29,515 |
|
|
|
28,113 |
|
Write-off of capitalized patents |
|
– |
|
|
|
17,344 |
|
Stock-based compensation |
|
61,933 |
|
|
|
116,497 |
|
Stock issued for services |
|
68,680 |
|
|
|
– |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
Accounts receivable |
|
44,400 |
|
|
|
– |
|
Prepaid expenses and other assets |
|
(17,715 |
) |
|
|
(5,754 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
5,306 |
|
|
|
(44,036 |
) |
Accrued expenses |
|
(111,306 |
) |
|
|
4,710 |
|
Net cash used in operating activities |
|
(843,337 |
) |
|
|
(813,627 |
) |
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(1,462 |
) |
|
|
(10,678 |
) |
Acquisition of intangible assets |
|
(29,275 |
) |
|
|
(13,385 |
) |
Net cash used in investing activities |
|
(30,737 |
) |
|
|
(24,063 |
) |
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Net proceeds from issuance of
common stock |
|
21,204,609 |
|
|
|
– |
|
Exercise of options and
warrants |
|
3,301,226 |
|
|
|
– |
|
Net cash provided by financing
activities |
|
24,505,835 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
23,631,761 |
|
|
|
(837,690 |
) |
Cash and cash equivalents at
beginning of period |
|
3,157,256 |
|
|
|
3,057,682 |
|
Cash and cash equivalents at
end of period |
$ |
26,789,017 |
|
|
$ |
2,219,992 |
|
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