Ideal Power Reports Second Quarter 2021 Financial Results
August 12 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 second quarter ended June 30,
2021.
“Our recent announcements of test and evaluation collaborations
with leaders in the electric vehicle (EV), uninterruptible power
supplies (UPS) for data centers and renewable energy markets
represent the launch of our commercialization of B-TRAN™,” stated
Dan Brdar, President and Chief Executive Officer of Ideal Power.
“These customer engagements are a crucial step forward in
establishing B-TRAN™ as a differentiated semiconductor architecture
technology addressing a large and growing market. We are also
partnering with Diversified Technologies, Inc. (DTI) on a second
project, a Phase I Small Business Innovation Research (SBIR) grant
funded by the Department of Energy (DOE) to develop a B-TRAN™
alternating current (AC) solid state circuit breaker (SSCB) for use
in utility transmission and distribution systems. Backed by our
strong balance sheet and with the recent additions of highly
qualified business development and engineering leaders, we believe
we are well positioned to support our B-TRAN™ commercialization
plan.”
Key Second Quarter and Recent
Operational Highlights
- Announced collaborations with a top
10 automaker, a top 10 solar power conversion provider and an EV
charging company on the testing and evaluation of B-TRAN™. These
companies’ technical teams are committing considerable resources to
evaluating the device and driver for use in their applications and
will provide valuable feedback that Ideal Power will incorporate
into an intelligent module design for commercialization.
- Partnered with DTI, under a Phase I
SBIR grant from the DOE, to develop a B-TRAN™-enabled low-loss AC
SSCB. In the Phase I project, DTI and Ideal Power will design,
build and demonstrate B-TRAN™ driven SSCB switch modules to
interrupt AC power and confirm the efficiency and speed of the
B-TRAN™ devices in AC operation. If successful and awarded a Phase
II grant, DTI and Ideal Power will build and test a full 50 MW,
13.8kV SSCB.
- Recently began the next wafer
fabrication run with Teledyne, our domestic semiconductor
fabrication partner, under the Naval Sea System Command (NAVSEA)
program. The completion of this fabrication run is the next major
milestone in the program.
- Began the process of qualifying a
second domestic semiconductor fabrication partner to ensure
sufficient supply capacity for the large customers the Company is
engaging and to mitigate supply chain risk. A qualifying run with
this semiconductor fab is in process.
- B-TRAN™ Patent Estate: Currently
have 65 issued B-TRAN™ patents with 27 of those issued outside of
the United States and 23 pending B-TRAN™ patents. Current
geographic coverage includes North America, China, Japan, South
Korea and Europe, with potential to expand coverage into India. In
the last twelve months, 9 B-TRAN™ patents have been issued with 7
of the 9 issued outside of the United States including Ideal
Power’s first patent issuance in South Korea.
Second Quarter Financial
Results
- Grant revenue was $85 thousand in
the second quarter of 2021 on the timing of milestones under the
NAVSEA program.
- Grant revenue was $327 thousand for
the six months ended June 30, 2021.
- Operating expenses in the second
quarter of 2021 were $1.3 million, compared to $0.8 million in the
second quarter of 2020 as the company invested in research and
development, sales and marketing and general corporate
expenses.
- Operating expenses in the six months
ended June 30, 2021 were $2.2 million, compared to $1.8 million in
the first six months of 2020.
- Net loss in the second quarter of
2021 was $1.2 million, compared to $0.8 million in the second
quarter of 2020, and $2.1 million in the first six months of 2021,
compared to $1.8 million in the first six months of 2020. Net loss
for the three and six months ended June 30, 2021 includes a gain on
forgiveness of loan of $91 thousand relating to a Payroll
Protection Program loan received in the second quarter of 2020 and
forgiven by the Small Business Administration in May 2021.
- Cash used in operating activities in
the first six months of 2021 was $1.8 million compared to $1.5
million in the six months of 2020. Including investing activities,
cash burn in the first six months of 2021 was $1.9 million.
- Cash and cash equivalents totaled
$25.7 million at June 30, 2021.
- Ideal Power had no long-term debt
outstanding at June 30, 2021.
Second Quarter 2021 Conference Call
Details
Ideal Power President and CEO 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 12, 2021 |
Time: |
|
4:30 p.m. EDT, 1:30 p.m. PDT |
Toll-free dial-in number: |
|
1-800-437-2398 |
International dial-in number: |
|
1-323-289-6576 |
Conference ID: |
|
8858685 |
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=145446 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, August 12, 2021, through Sunday,
September 12, 2021.
Toll Free Replay Number: |
|
1-844-512-2921 |
International Replay Number: |
|
1-412-317-6671 |
Replay ID: |
|
8858685 |
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 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 wafer fabrication
runs with our semiconductor fabrications partners and our continued
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 |
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
December 31,2020 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
25,716,977 |
|
|
$ |
3,157,256 |
|
Accounts receivable, net |
|
|
132,371 |
|
|
|
170,287 |
|
Prepayments and other current assets |
|
|
135,835 |
|
|
|
118,883 |
|
Total current assets |
|
|
25,985,183 |
|
|
|
3,446,426 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
58,576 |
|
|
|
37,125 |
|
Intangible assets, net |
|
|
2,048,537 |
|
|
|
1,568,903 |
|
Right of use asset |
|
|
335,211 |
|
|
|
79,719 |
|
Other assets |
|
|
11,189 |
|
|
|
– |
|
Total assets |
|
$ |
28,438,696 |
|
|
$ |
5,132,173 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
159,107 |
|
|
$ |
101,984 |
|
Accrued expenses |
|
|
546,071 |
|
|
|
475,487 |
|
Current portion of lease liability |
|
|
37,393 |
|
|
|
82,055 |
|
Total current liabilities |
|
|
742,571 |
|
|
|
659,526 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
– |
|
|
|
91,407 |
|
Long-term lease liability |
|
|
297,883 |
|
|
|
– |
|
Other long-term
liabilities |
|
|
951,717 |
|
|
|
552,031 |
|
Total liabilities |
|
|
1,992,171 |
|
|
|
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 June
30, 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 |
|
|
103,700,516 |
|
|
|
78,974,964 |
|
Treasury stock, at cost, 1,321 shares at June 30, 2021 and
December 31, 2020 |
|
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
|
(77,246,654 |
) |
|
|
(75,135,811 |
) |
Total stockholders’ equity |
|
|
26,446,525 |
|
|
|
3,829,209 |
|
Total liabilities and stockholders’ equity |
|
$ |
28,438,696 |
|
|
$ |
5,132,173 |
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC.Statements of
Operations |
|
|
|
|
|
|
|
|
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Grant revenue |
|
$ |
84,705 |
|
|
$ |
6,515 |
|
|
$ |
326,766 |
|
|
$ |
6,515 |
|
Cost of grant revenue |
|
|
84,705 |
|
|
|
6,515 |
|
|
|
326,766 |
|
|
|
6,515 |
|
Gross profit |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
560,693 |
|
|
|
316,325 |
|
|
|
821,573 |
|
|
|
666,989 |
|
General and administrative |
|
|
603,518 |
|
|
|
515,878 |
|
|
|
1,204,204 |
|
|
|
1,095,648 |
|
Sales and marketing |
|
|
112,033 |
|
|
|
– |
|
|
|
174,611 |
|
|
|
– |
|
Total operating expenses |
|
|
1,276,244 |
|
|
|
832,203 |
|
|
|
2,200,388 |
|
|
|
1,762,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(1,243,431 |
) |
|
|
(832,203 |
) |
|
|
(2,200,388 |
) |
|
|
(1,762,637 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income) expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
1,856 |
|
|
|
1,055 |
|
|
|
1,862 |
|
|
|
1,122 |
|
Gain on forgiveness of long-term debt |
|
|
(91,407 |
) |
|
|
– |
|
|
|
(91,407 |
) |
|
|
– |
|
Total other (income) expenses |
|
|
(89,551 |
) |
|
|
1,055 |
|
|
|
(89,545 |
) |
|
|
1,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,186,693 |
) |
|
$ |
(833,258 |
) |
|
$ |
(2,110,843 |
) |
|
$ |
(1,763,759 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share – basic and
fully diluted |
|
$ |
(0.19 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
|
6,125,874 |
|
|
|
2,998,350 |
|
|
|
5,737,109 |
|
|
|
2,983,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC.Statements of Cash
Flows |
|
|
|
|
|
|
Six Months EndedJune 30, |
|
|
|
2021 |
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,110,843 |
) |
|
$ |
(1,763,759 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
70,343 |
|
|
|
57,248 |
|
Write-off of capitalized patents |
|
|
528 |
|
|
|
18,235 |
|
Stock-based compensation |
|
|
153,644 |
|
|
|
226,168 |
|
Stock issued for services |
|
|
68,680 |
|
|
|
50,000 |
|
Gain on loan forgiveness |
|
|
(91,407 |
) |
|
|
– |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
37,916 |
|
|
|
6,515 |
|
Prepaid expenses and other assets |
|
|
(57,663 |
) |
|
|
35,715 |
|
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
57,123 |
|
|
|
(135,623 |
) |
Accrued expenses |
|
|
70,584 |
|
|
|
8,144 |
|
Net cash used in operating activities |
|
|
(1,801,095 |
) |
|
|
(1,497,357 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(32,919 |
) |
|
|
(10,678 |
) |
Acquisition of intangible assets |
|
|
(112,100 |
) |
|
|
(23,288 |
) |
Net cash used in investing activities |
|
|
(145,019 |
) |
|
|
(33,966 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock |
|
|
21,204,609 |
|
|
|
– |
|
Exercise of options and warrants |
|
|
3,301,226 |
|
|
|
175,816 |
|
Proceeds from loans |
|
|
– |
|
|
|
91,407 |
|
Net cash provided by financing activities |
|
|
24,505,835 |
|
|
|
267,223 |
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
|
22,559,721 |
|
|
|
(1,264,100 |
) |
Cash and cash equivalents at
beginning of period |
|
|
3,157,256 |
|
|
|
3,057,682 |
|
Cash and cash equivalents at
end of period |
|
$ |
25,716,977 |
|
|
$ |
1,793,582 |
|
|
|
|
|
|
|
|
|
|
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