Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _______________

Commission File Number 001-36216

IDEAL POWER INC.

(Exact name of registrant as specified in its charter)


Delaware	14-1999058
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

5508 Highway 290 West, Suite 120

Austin, Texas 78735

(Address of principal executive offices)

(Zip Code)

(512) 264-1542

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		IPWR		The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer ☒	Smaller reporting company ☒

	Emerging growth company ☐

If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the issuer is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒

As of May 10, 2024, the issuer had 7,684,238 shares of common stock, par value $0.001, outstanding.

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TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION	3

Item 1.	Unaudited Condensed Financial Statements	3

	Balance Sheets at March 31, 2024 and December 31, 2023	3
	Statements of Operations for the three months ended March 31, 2024 and 2023	4
	Statements of Cash Flows for the three months ended March 31, 2024 and 2023	5
	Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023	6
	Notes to Unaudited Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15

Item 4.	Controls and Procedures	15

PART II	OTHER INFORMATION	16

Item 1.	Legal Proceedings	16

Item 1A.	Risk Factors	16

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16

Item 3.	Defaults Upon Senior Securities	16

Item 4.	Mine Safety Disclosures	16

Item 5.	Other Information	16

Item 6.	Exhibits	17

SIGNATURES		18

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PART I-FINANCIAL INFORMATION

ITEM 1. CONDENSED FINANCIAL STATEMENTS

IDEAL POWER INC.

Balance Sheets

(unaudited)

	March 31,			December 31,
	2024			2023
ASSETS
Current assets:
Cash and cash equivalents	$	20,235,410		$	8,474,835
Accounts receivable, net		140,000			70,000
Inventory		109,362			81,450
Prepayments and other current assets		271,729			482,890
Total current assets		20,756,501			9,109,175

Property and equipment, net		350,195			359,225
Intangible assets, net		2,601,308			2,580,066
Right of use asset		170,413			186,570
Other assets		12,757			13,034
Total assets	$	23,891,174		$	12,248,070

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	382,012		$	405,098
Accrued expenses		504,418			455,112
Current portion of lease liability		72,263			70,683
Total current liabilities		958,693			930,893

Long-term lease liability		113,744			132,304
Other long-term liabilities		1,108,224			1,125,173
Total liabilities		2,180,661			2,188,370

Commitments and contingencies (Note 5)

Stockholders’ equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 7,382,699 shares issued and 7,381,378 shares outstanding at March 31, 2024 and 5,998,018 shares issued and 5,996,697 shares outstanding at December 31, 2023		7,383			5,998
Additional paid-in capital		121,235,416			107,116,362
Treasury stock, at cost, 1,321 shares at March 31, 2024 and December 31, 2023		(13,210	)		(13,210	)
Accumulated deficit		(99,519,076	)		(97,049,450	)
Total stockholders’ equity		21,710,513			10,059,700
Total liabilities and stockholders’ equity	$	23,891,174		$	12,248,070

The accompanying notes are an integral part of these condensed financial statements.

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IDEAL POWER INC.

Statements of Operations

(unaudited)

	Three Months Ended
	March 31,
	2024			2023
Commercial revenue	$	78,739		$	—
Grant revenue		—			664
Total revenue		78,739			664

Cost of commercial revenue		68,498			—
Cost of grant revenue		—			664
Total cost of revenue		68,498			664

Gross profit		10,241			—

Operating expenses:
Research and development		1,366,893			1,440,028
General and administrative		853,688			894,933
Sales and marketing		316,611			304,326
Total operating expenses		2,537,192			2,639,287

Loss from operations		(2,526,951	)		(2,639,287	)

Interest income, net		57,325			111,302

Net loss	$	(2,469,626	)	$	(2,527,985	)

Net loss per share – basic and diluted	$	(0.39	)	$	(0.41	)

Weighted average number of shares outstanding – basic and diluted		6,319,939			6,178,508

The accompanying notes are an integral part of these condensed financial statements.

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IDEAL POWER INC.

Statements of Cash Flows

(unaudited)

	Three Months Ended
	March 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(2,469,626	)	$	(2,527,985	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		81,121			53,198
Amortization of right of use asset		16,157			15,178
Write-off of fixed assets		10,217			—
Stock-based compensation		381,019			609,926
Decrease (increase) in operating assets:
Accounts receivable		(70,000	)		(664	)
Inventory		(27,912	)		—
Prepaid expenses and other assets		211,438			54,710
Increase (decrease) in operating liabilities:
Accounts payable		(23,086	)		(61,693	)
Accrued expenses and other liabilities		32,357			117,099
Lease liability		(16,980	)		(15,492	)
Net cash used in operating activities		(1,875,295	)		(1,755,723	)

Cash flows from investing activities:
Purchase of property and equipment		(29,611	)		(44,995	)
Acquisition of intangible assets		(73,939	)		(24,455	)
Net cash used in investing activities		(103,550	)		(69,450	)

Cash flows from financing activities:
Net proceeds from issuance of common stock and pre-funded warrants		13,652,663			—
Exercise of options		86,757			—
Net cash provided by financing activities		13,739,420			—

Net increase (decrease) in cash and cash equivalents		11,760,575			(1,825,173	)
Cash and cash equivalents at beginning of period		8,474,835			16,345,623
Cash and cash equivalents at end of period	$	20,235,410		$	14,520,450

The accompanying notes are an integral part of these condensed financial statements.

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IDEAL POWER INC.

Statements of Stockholders’ Equity

For the Three Months Ended March 31, 2024 and 2023

(unaudited)

					Additional											Total
	Common Stock				Paid-In			Treasury Stock					Accumulated			Stockholders’
	Shares		Amount		Capital			Shares		Amount			Deficit			Equity
Balances at December 31, 2022		5,926,001	$	5,926	$	105,011,318			1,321	$	(13,210	)	$	(87,095,430	)	$	17,908,604
Vesting of restricted stock units		6,889		7		(7	)		—		—			—			—
Stock-based compensation		—		—		609,926			—		—			—			609,926
Net loss for the three months ended March 31, 2023		—		—		—			—		—			(2,527,985	)		(2,527,985	)
Balances at March 31, 2023		5,932,890	$	5,933	$	105,621,237			1,321	$	(13,210	)	$	(89,623,415	)	$	15,990,545

Balances at December 31, 2023		5,998,018	$	5,998	$	107,116,362			1,321	$	(13,210	)	$	(97,049,450	)	$	10,059,700
Issuance of common stock and pre-funded warrants		1,366,668		1,367		13,651,296			—		—			—			13,652,663
Exercise of options		8,334		8		86,749			—		—			—			86,757
Vesting of restricted stock units		9,679		10		(10	)		—		—			—			—
Stock-based compensation		—		—		381,019			—		—			—			381,019
Net loss for the three months ended March 31, 2024		—		—		—			—		—			(2,469,626	)		(2,469,626	)
Balances at March 31, 2024		7,382,699	$	7,383	$	121,235,416			1,321	$	(13,210	)	$	(99,519,076	)	$	21,710,513

The accompanying notes are an integral part of these condensed financial statements.

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IDEAL POWER INC.

Notes to Financial Statements

(unaudited)

Note 1 – Organization and Description of Business

Ideal Power Inc. (the “Company”) was incorporated in Texas in May 2007 under the name Ideal Power Converters, Inc. The Company changed its name to Ideal Power Inc. and re-incorporated in Delaware in July 2013. With headquarters in Austin, Texas, the Company is focused on the further development and commercialization of its Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology.

Since its inception, the Company has financed its research and development efforts and operations primarily through the sale of common stock. The Company’s continued operations are dependent upon, among other things, its ability to obtain adequate sources of funding through future revenues, follow-on stock offerings, issuances of warrants, debt financing, co-development agreements, government grants, sale or licensing of developed intellectual property or other alternatives.

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2023 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on April 1, 2024.

In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods.

Net Loss Per Share

In accordance with Accounting Standards Codification 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three months ended March 31, 2024 and 2023, the Company included pre-funded warrants to purchase shares of common stock in its computation of net loss per share. The pre-funded warrants were issued in March 2024 and November 2019 with an exercise price of $0.001. See Note 8.

In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At March 31, 2024 and 2023, potentially dilutive shares outstanding amounted to 1,630,595 and 1,630,695 shares, respectively, and exclude pre-funded warrants to purchase shares of common stock.

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements.

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Note 3 – Intangible Assets

Intangible assets, net consisted of the following:

	March 31,			December 31,
	2024			2023
	(unaudited)
Patents	$	1,601,638		$	1,530,257
Trademarks		18,352			15,794
Other intangible assets		1,843,036			1,843,036
		3,463,026			3,389,087
Accumulated amortization - patents		(290,881	)		(272,872	)
Accumulated amortization - other intangible assets		(570,837	)		(536,149	)
	$	2,601,308		$	2,580,066

At March 31, 2024 and December 31, 2023, the Company had capitalized $430,287 and $460,890, respectively, for costs related to patents that have not been awarded. Cost related to patents that have not yet been awarded are not amortized until patent issuance.

Amortization expense amounted to $52,697 and $38,226 for the three months ended March 31, 2024 and 2023, respectively. Amortization expense for the succeeding five years and thereafter is $160,934 (remaining nine months of 2024), $214,579 (2025-2028) and $1,133,419 (thereafter).

Note 4 – Lease

In March 2021, the Company entered into a lease agreement for 4,070 square feet of office and laboratory space located in Austin, Texas. The commencement of the lease occurred on June 1, 2021 and the initial term of the lease was 63 months. The actual base rent in the first year of the lease was $56,471 and was net of $18,824 in abated rent over the first three months of the lease term. The annual base rent in the second year of the lease is $77,330 and increases by $2,035 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building under this triple net lease. The lease contains a 5-year fair market renewal option. It does not contain a termination option. The Company recognized a right of use asset of $339,882 and a corresponding lease liability for this lease upon lease commencement.

For purposes of calculating the right of use asset and lease liability included in the Company’s financial statements, the Company estimated its incremental borrowing rate at 6% per annum.

Future minimum payments under the lease are as follows:

For the Year Ended December 31,
2024 (remaining)	$	60,711
2025		82,587
2026		56,132
Total lease payments		199,430
Less: imputed interest		(13,423	)
Total lease liability		186,007
Less: current portion of lease liability		(72,263	)
Long-term lease liability	$	113,744

At March 31, 2024, the remaining lease term was 29 months.

For the three months ended March 31, 2024 and 2023, operating cash flows for lease payments totaled $19,841 and $19,333, respectively. For the three months ended March 31, 2024 and 2023, operating lease cost, recognized on a straight-line basis, totaled $19,018 and $19,018, respectively.

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Note 5 – Commitments and Contingencies

License Agreements

In 2015, the Company entered into a licensing agreement which expires in February 2033. Per the agreement, the Company has an exclusive royalty-free license, included in intangible assets, associated with semiconductor power switches which enhances its intellectual property portfolio. The Company pays $100,000 annually under this agreement.

In 2023, the Company amended a 2021 license agreement which expires in February 2034. Per the agreement, the Company has an exclusive royalty-free license, included in intangible assets, associated with semiconductor drive circuitry which enhances its intellectual property portfolio. The Company pays $50,000 annually under this agreement.

At March 31, 2024 and December 31, 2023, the other long-term liability for the estimated present value of future payments under the licensing agreements was $1,108,224 and $1,125,173, respectively. The Company is accruing interest for future payments related to these agreements.

Legal Proceedings

The Company may be subject to litigation from time to time in the ordinary course of business. The Company is not currently party to any legal proceedings.

Indemnification Obligations

The employment agreements of Company executives include an indemnification provision whereby the Company shall indemnify and defend, at the Company’s expense, its executives so long as an executive’s actions were taken in good faith and in furtherance of the Company’s business and within the scope of the executive’s duties and authority.

Note 6 — Common Stock

In March 2024, the Company issued and sold 1,366,668 shares of its common stock at a price of $7.50 per share and 633,332 pre-funded warrants to purchase shares of common stock at a price of $7.499 per pre-funded warrant in an underwritten public offering (the “March 2024 Offering”). The pre-funded warrants have an exercise price of $0.001 per share. The underwriter has a 30-day option to purchase up to an additional 300,000 shares of common stock at the offering price, less the underwriting discounts and commissions. The net proceeds to the Company from the March 2024 Offering were $13.7 million as of March 31, 2024.

Note 7 — Equity Incentive Plan

In May 2013, the Company adopted the 2013 Equity Incentive Plan (as amended and restated, the “Plan”) and reserved shares of common stock for issuance under the Plan, which was last amended in June 2023. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At March 31, 2024, 453,839 shares of common stock were available for issuance under the Plan.

A summary of the Company’s stock option activity and related information is as follows:

						Weighted
				Weighted		Average
				Average		Remaining
	Stock			Exercise		Life
	Options			Price		(in years)
Outstanding at December 31, 2023		525,948		$	7.69		6.6
Exercised		(8,334	)	$	10.41
Outstanding at March 31, 2024		517,614		$	7.65		5.4
Exercisable at March 31, 2024		479,285		$	7.34		5.2

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A summary of the Company’s restricted stock unit (RSU) and performance stock unit (PSU) activity is as follows:

	RSUs			PSUs
Outstanding at December 31, 2023		171,530			114,000
Granted		50,710			—
Vested		(9,679	)		—
Outstanding at March 31, 2022		212,561			114,000

During the three months ended March 31, 2024, the Company granted 38,710 RSUs to Board members and 12,000 RSUs to employees under the Plan. The estimated fair value of these equity grants was $397,803, $82,362 of which was recognized during the three months ended March 31, 2024.

At March 31, 2024, there was $1,885,023 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 0.9 years.

Note 8 — Warrants

At March 31, 2024 and December 31, 2023, the Company had 786,420 warrants outstanding with a weighted average exercise price of $5.19 per share. At March 31, 2024 and December 31, 2023, the Company had 887,160 and 253,828 pre-funded warrants outstanding, respectively, with an exercise price of $0.001 per share. The weighted average remaining life, excluding the pre-funded warrants with no expiration date, of the outstanding warrants is 0.9 years.

At March 31, 2024, all warrants were exercisable, although the warrants held by certain of the Company’s warrant holders may be exercised only to the extent that the total number of shares of common stock then beneficially owned by such warrant holder does not exceed 4.99% (or, at the investor’s election, 9.99%) of the outstanding shares of the Company’s common stock.

Note 9 — Subsequent Events

Public Offering

In April 2024 and in connection with the March 2024 Offering, the underwriter exercised its 30-day option to purchase an additional 300,000 shares of the Company’s common stock at the offering price of $7.50 per share, less underwriting discounts and commissions. The estimated net proceeds to the Company from the March 2024 Offering, including the underwriter’s exercise of its option to purchase additional shares, are $15.7 million.

Amended Lease

In April 2024, the Company entered into a first amendment and relocation agreement (the “Amended Lease”) with our landlord. Under the Amended Lease, the Company will relocate to another, larger suite in the same office building. The Amended Lease is for 5,775 square feet of office and laboratory space and, upon occupancy, will replace the 4,070 square feet of office and laboratory space currently leased by the Company. The term of the Amended Lease will expire sixty-two (62) months from the earliest to occur of July 1, 2024 or the Company’s occupancy of all or any part of the new suite. The annual base rent for the first year of the Amended Lease is $118,388 and the annual base rent increases approximately 2.75% each year during the lease term. As with the current lease, the Company is required to pay its proportionate share of operating costs for the building under this triple net lease.

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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION CONTAINED IN THIS REPORT

This report contains 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, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. These statements include, but are not limited to, statements regarding our future financial performance, business condition and results of operations, future business plans and pursuing additional government funding. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by looking for words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “would,” “should,” “could,” “may” or other similar expressions in this report. In particular, these include statements relating to future actions, prospective products, applications, customers, technologies, future performance or results of anticipated products, expenses, and financial results. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

●

our history of losses;

●

our ability to generate revenue;

●

our limited operating history;

●

the size and growth of markets for our technology;

●

regulatory developments that may affect our business;

●

our ability to successfully develop new products and the expected performance of those products;

●

the performance of third-party consultants and service providers whom we have and will continue to rely on to assist us in development and commercialization of our B-TRAN™ and related packaging and drive circuitry;

●

the rate and degree of market acceptance for our B-TRAN™ and current and future B-TRAN™ products;

●

the time required for third parties to redesign, test and certify their products incorporating our B-TRAN™;

●

our ability to successfully commercialize our B-TRAN™ technology;

●

our ability to secure strategic partnerships with semiconductor fabricators and others related to our B-TRAN™ technology;

●

our ability to obtain, maintain, defend and enforce intellectual property rights protecting our technology;

●

the success of our efforts to manage cash spending, particularly prior to the commercialization of our B-TRAN™ technology at scale;

●

general economic conditions and events, including inflation, and the impact they may have on us and our potential partners and licensees;

●

our dependence on the global supply chain and impacts of supply chain disruptions;

●

our ability to obtain adequate financing in the future, if and when we need it;

●

the impact of global health pandemics on our business, financial condition and results of operations;

●

our success at managing the risks involved in the foregoing items; and

●

other factors discussed in this report.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this report. We undertake no obligation to publicly update or revise any forward-looking statements included in this report, except as required by applicable law. You should not place undue reliance on these forward-looking statements.

Unless otherwise stated or the context otherwise requires, the terms “Ideal Power,” “we,” “us,” “our” and the “Company” refer to Ideal Power Inc.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q as well as our audited 2023 financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023. In addition to historical information, the discussion and analysis here and throughout this Form 10-Q contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited, to those set forth under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.

Overview

Ideal Power Inc. is located in Austin, Texas. We are solely focused on the further development and commercialization of our Bidirectional bipolar junction TRANsistor (B-TRAN™) solid-state switch technology.

To date, operations have been funded primarily through the sale of common stock and we have generated $3.7 million in grant revenue for bidirectional power switch development. Grant revenue was $0 and $664 in the three months ended March 31, 2024 and 2023, respectively. We may pursue additional research and development grants, if and when available, to further develop and/or improve our technology.

We are in the process of commercializing our B-TRAN™ technology and launched our first two commercial products, the SymCool™ Power Module and SymCool™ IQ Intelligent Power Module, in 2023. We generated $78,739 in commercial revenue in the three months ended March 31, 2024.

Product Launches

In early 2023, we launched our first commercial product, the SymCool™ Power Module. This multi-die B-TRAN™ module is designed to meet the very low conduction loss needs of the solid-state circuit breaker market. We commenced shipment of SymCool™ Power Modules to fulfill customer orders in the first quarter of 2024.

In late 2023, we launched our second commercial product, the SymCool™ IQ Intelligent Power Module (IPM). The SymCool™ IQ IPM builds on the bidirectional B-TRAN™ multi-die packaging design of our SymCool™ Power Module and adds an integrated intelligent driver optimized for bidirectional operation. This product targets several markets including renewable energy, energy storage, EV charging and other industrial applications. We expect initial sales of this product as early as late 2024.

Development Agreement

During the fourth quarter of 2022, we announced, and began Phase 1 of, a product development agreement with Stellantis, a top 10 global automaker, for a custom B-TRAN™ power module for use in the automaker’s EV drivetrain inverters in its next generation EV platform. In Phase 1 of the program, we provided packaged B-TRAN™ devices, test kits and technical data to Stellantis for their evaluation. During the third quarter of 2023, we secured, and began Phase 2 of, this program. In Phase 2 of the program, we collaborated with Stellantis and the program partners, including both the program’s packaging company and the organization building the initial drivetrain inverter, to supply B-TRAN™ devices for integration into the custom power module and inverter designs. Also, as part of Phase 2, we provided Stellantis a comprehensive test plan for the testing required to achieve certification to automotive standards for B-TRAN™. The test plan was subsequently approved as submitted. In the first quarter of 2024, we successfully completed Phase 2 of the program. We recorded the remaining revenue under Phase 2 of this program in the first quarter of 2024. We are currently finalizing the scope of work for the next phase of the program with Stellantis.

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Distribution Agreement

In March 2024, we announced a global distribution agreement with Richardson Electronics, Ltd. (RELL). RELL is the first distributor for our products. We commenced shipments of our products to RELL to fulfill end customer orders late in the first quarter of 2024.

Test and Evaluation Agreements

Since the middle of 2021, we announced several test and evaluation agreements with prospective customers, including, but not limited to, a second top 10 global automaker, a top 10 global provider of power conversion solutions to the solar industry, two global diverse power management market leaders, a tier 1 automotive supplier and a global power conversion supplier. These companies, along with other current and future participants in our test and evaluation program, intend to test and evaluate the B-TRAN™ for use in their applications. We expect to incorporate the feedback from these customers into our future commercial products. We began B-TRAN™ customer shipments to program participants in mid-2023.

March 2024 Offering

In March 2024, we issued and sold 1,366,668 shares of our common stock at a price of $7.50 per share and 633,332 pre-funded warrants to purchase shares of our common stock at a price of $7.499 per pre-funded warrant in an underwritten public offering. The pre-funded warrants have an exercise price of $0.001 per share. The underwriter had a 30-day option to purchase up to an additional 300,000 shares of our common stock at the offering price, less the underwriting discounts and commissions. In April 2024, the underwriter exercised this option in full. The estimated net proceeds to us from the March 2024 Offering are $15.7 million, inclusive of the underwriter’s exercise of its option to purchase additional shares in full. We intend to use the net proceeds from the March 2024 Offering to fund further commercialization and development of our B-TRAN™ technology and general corporate and working capital purposes.

Results of Operations

Comparison of the three months ended March 31, 2024 to the three months ended March 31, 2023

Commercial Revenue. Commercial revenue was $78,739 for the three months ended March 31, 2024, compared to $0 in the three months ended March 31, 2023, as we completed Phase 2 of our development agreement with Stellantis and began to fulfill customer orders for our products.

Grant Revenue. Grant revenue was immaterial for the three months ended March 31, 2024 and 2023. We expect to pursue additional government funding that may result in additional grant revenues in the future.

Cost of Commercial Revenue. Cost of commercial revenue was $68,498 for the three months ended March 31, 2024, compared to $0 in the three months ended March 31, 2023, as we completed Phase 2 of our development agreement with Stellantis and began to fulfill customer orders for our products.

Cost of Grant Revenue. Cost of grant revenue was immaterial for the three months ended March 31, 2024 and 2023. Cost of grant revenue was equal to the associated grant revenue resulting in no gross profit. We expect no gross profit from other grants that we are pursuing or may pursue in 2024.

Research and Development Expenses. Research and development expenses decreased by $73,135, or 5%, to $1,366,893 in the three months ended March 31, 2024 from $1,440,028 in the three months ended March 31, 2023. The decrease was due to lower stock-based compensation expense of $168,612, partly offset by higher personnel costs of $78,863 and other B-TRAN™ development spending of $16,614. We expect higher research and development expenses in the remainder of 2024 as compared to 2023 as we continue development of our B-TRAN™ technology.

General and Administrative Expenses. General and administrative expenses decreased by $41,245, or 5%, to $853,688 in the three months ended March 31, 2024 from $894,933 in the three months ended March 31, 2023. The decrease was due to lower stock-based compensation expense of $65,390 and other general and administrative spending of $6,757, partly offset by higher investor relations spending of $30,902. We expect slightly higher general and administrative expenses, exclusive of stock-based compensation, in the remainder of 2024 as compared to 2023.

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Sales and Marketing Expenses. Sales and marketing expenses increased by $12,285, or 4%, to $316,611 in the three months ended March 31, 2024 from $304,326 in the three months ended March 31, 2023. The increase was due to higher personnel costs of $55,274 and other spending of $761, partly offset by lower search and placement fees of $43,750. We expect higher sales and marketing expenses in the remainder of 2024 as compared to 2023 as we further commercialize our B-TRAN™ technology.

Loss from Operations. Our loss from operations for the three months ended March 31, 2024 was $2,526,951, or 4% lower, as compared to the $2,639,287 loss from operations for the three months ended March 31, 2023, for the reasons discussed above.

Interest Income, Net. Net interest income was $57,325 for the three months ended March 31, 2024 compared to $111,302 for the three months ended March 31, 2023 as a result of the impact of a declining cash balance on the interest earned from our money market account.

Net Loss. Our net loss for the three months ended March 31, 2024 was $2,469,626, or 2% lower, as compared to a net loss of $2,527,985 for the three months ended March 31, 2023, for the reasons discussed above.

Liquidity and Capital Resources

We currently generate commercial revenue only. We have incurred losses since inception. We have funded our operations to date primarily through the sale of common stock and pre-funded warrants.

At March 31, 2024, we had cash and cash equivalents of $20.2 million. Our net working capital at March 31, 2024 was also $19.8 million. We had no outstanding debt at March 31, 2024.

We believe that our cash and cash equivalents on hand will be sufficient to meet our ongoing liquidity needs for at least the next twelve months from the date of filing this Quarterly Report on Form 10-Q; however, we may require additional funds in the future to fully implement our plan of operation and there can be no assurance that, if needed, we will be able to secure additional debt or equity financing on terms acceptable to us or at all. Although we believe we have adequate sources of liquidity over the long term, the success of our operations, the global economic outlook, and the pace of sustainable growth in our markets could each impact our business and liquidity.

Operating activities in the three months ended March 31, 2024 resulted in cash outflows of $1,875,295 which were due to the net loss for the period of $2,469,626, partly offset by stock-based compensation of $381,019, favorable balance sheet timing of $105,817 and other non-cash items of $107,495.

Operating activities in the three months ended March 31, 2023 resulted in cash outflows of $1,755,723, which were due to the net loss for the period of $2,527,985, partly offset by stock-based compensation of $609,926, favorable balance sheet timing of $93,960 and other non-cash items of $68,376.

We expect an increase in cash outflows from operating activities in the remainder of 2024 as we further develop and commercialize our B-TRAN™ technology.

Investing activities in the three months ended March 31, 2024 and 2023 resulted in cash outflows of $103,550 and $69,450, respectively, for the acquisition of intangible assets and fixed assets.

Financing activities in the three months ended March 31, 2024 resulted in cash inflows of $13,652,663 from the March 2024 Offering, as discussed above, and $86,757 from the exercise of stock options.

Critical Accounting Estimates

There have been no significant changes during the three months ended March 31, 2024 to the critical accounting estimates disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

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Trends, Events and Uncertainties

There are no material changes from trends, events or uncertainties disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company, we are not required to provide this information.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) include, without limitation, controls and procedures designed to ensure that information required to be disclosed in the Company’s reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. The Company’s disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that this information is accumulated and communicated to management, including the principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company conducted an evaluation (pursuant to Rule 13a-15(b) of the Exchange Act), under the supervision and with the participation of its Chief Executive Officer (principal executive officer) and its Chief Financial Officer (principal financial and accounting officer) of the effectiveness of the Company’s disclosure controls and procedures as of March 31, 2024 and has concluded that, as of March 31, 2024, the Company’s disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There have been no material changes in our internal controls over financial reporting that occurred during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Limitations on the Effectiveness of Controls

Control systems, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control systems’ objectives are being met. Further, the design of any system of controls must reflect the fact that there are resource constraints, and the benefits of all controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of error or mistake. Control systems can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

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PART II-OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We may be subject to litigation from time to time in the ordinary course of business. We are not currently party to any legal proceedings.

ITEM 1A. RISK FACTORS

There are no material changes from the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

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ITEM 6. EXHIBITS

Exhibit Number		Document

4.1		Form of Pre-Funded Warrant (for March 2024 offering) (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on March 28, 2024)

31.1*		Certification of Principal Executive Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Principal Financial Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1**		Certification pursuant to 18 U.S.C. 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

10.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

*	Filed herewith

**	Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: May 15, 2024	IDEAL POWER INC.

	By:	/s/ R. Daniel Brdar
		R. Daniel Brdar
		Chief Executive Officer

	By:	/s/ Timothy W. Burns
		Timothy W. Burns
		Chief Financial Officer

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, R. Daniel Brdar, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Ideal Power Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15-d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ R. Daniel Brdar
R. Daniel Brdar
Chief Executive Officer (Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302(a) OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy W. Burns, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Ideal Power Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ Timothy W. Burns
Timothy W. Burns
Chief Financial Officer (Principal Financial and
Accounting Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the periodic report of Ideal Power Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2024 as filed with the Securities and Exchange Commission (the “Report”), we, R. Daniel Brdar, Chief Executive Officer (Principal Executive Officer) and Timothy W. Burns, Chief Financial Officer (Principal Financial and Accounting Officer) of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of our knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date: May 15, 2024

/s/ R. Daniel Brdar
R. Daniel Brdar
Chief Executive Officer (Principal Executive Officer)

/s/ Timothy W. Burns
Timothy W. Burns
Chief Financial Officer (Principal Financial and
Accounting Officer)

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2024	May 10, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-36216
Entity Registrant Name	IDEAL POWER INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	14-1999058
Entity Address, Address Line One	5508 Highway 290 West, Suite 120
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78735
City Area Code	512
Local Phone Number	264-1542
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	IPWR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		7,684,238
Entity Central Index Key	0001507957
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 20,235,410	$ 8,474,835
Accounts receivable, net	140,000	70,000
Inventory	109,362	81,450
Prepayments and other current assets	271,729	482,890
Total current assets	20,756,501	9,109,175
Property and equipment, net	350,195	359,225
Intangible assets, net	2,601,308	2,580,066
Right of use asset	170,413	186,570
Other assets	12,757	13,034
Total assets	23,891,174	12,248,070
Current liabilities:
Accounts payable	382,012	405,098
Accrued expenses	504,418	455,112
Current portion of lease liability	72,263	70,683
Total current liabilities	958,693	930,893
Long-term lease liability	113,744	132,304
Other long-term liabilities	1,108,224	1,125,173
Total liabilities	2,180,661	2,188,370
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 7,382,699 shares issued and 7,381,378 shares outstanding at March 31, 2024 and 5,998,018 shares issued and 5,996,697 shares outstanding at December 31, 2023	7,383	5,998
Additional paid-in capital	121,235,416	107,116,362
Treasury stock, at cost, 1,321 shares at March 31, 2024 and December 31, 2023	13,210	13,210
Accumulated deficit	(99,519,076)	(97,049,450)
Total stockholders’ equity	21,710,513	10,059,700
Total liabilities and stockholders’ equity	$ 23,891,174	$ 12,248,070

Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized (in shares)	50,000,000	50,000,000
Common Stock, Shares, Issued (in shares)	7,382,699	5,998,018
Common Stock, Shares, Outstanding (in shares)	7,381,378	5,996,697
Treasury Stock, Common, Shares (in shares)	1,321	1,321

Statements of Operations (Unaudited) - USD ($)	3 Months Ended
Statements of Operations (Unaudited) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Total revenue	$ 78,739	$ 664
Total cost of revenue	68,498	664
Gross profit	10,241	0
Operating expenses:
Research and development	1,366,893	1,440,028
General and administrative	853,688	894,933
Sales and marketing	316,611	304,326
Total operating expenses	2,537,192	2,639,287
Loss from operations	(2,526,951)	(2,639,287)
Interest income, net	57,325	111,302
Net loss	$ (2,469,626)	$ (2,527,985)
Net loss per share – basic and diluted (in dollars per share)	$ (0.39)	$ (0.41)
Weighted average number of shares outstanding – basic and diluted (in shares)	6,319,939	6,178,508
Development Revenue [Member]
Total revenue	$ 78,739	$ 0
Total cost of revenue	68,498	0
Grant [Member]
Total revenue	0	664
Total cost of revenue	$ 0	$ 664

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
Statements of Cash Flows (Unaudited) - USD ($)	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (2,469,626)	$ (2,527,985)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	81,121	53,198
Amortization of right of use asset	16,157	15,178
Write-off of fixed assets	10,217	0
Stock-based compensation	381,019	609,926
Decrease (increase) in operating assets:
Accounts receivable	(70,000)	(664)
Inventory	(27,912)	0
Prepaid expenses and other assets	211,438	54,710
Accounts payable	(23,086)	(61,693)
Accrued expenses and other liabilities	32,357	117,099
Lease liability	(16,980)	(15,492)
Net cash used in operating activities	(1,875,295)	(1,755,723)
us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract
Purchase of property and equipment	(29,611)	(44,995)
Acquisition of intangible assets	(73,939)	(24,455)
Net cash used in investing activities	(103,550)	(69,450)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Net proceeds from issuance of common stock and pre-funded warrants	13,652,663	0
Exercise of options	86,757	0
Net cash provided by financing activities	13,739,420	0
Net increase (decrease) in cash and cash equivalents	11,760,575	(1,825,173)
Cash and cash equivalents at beginning of period	8,474,835	16,345,623
Cash and cash equivalents at end of period	$ 20,235,410	$ 14,520,450

Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock, Common [Member]	Retained Earnings [Member]	Total
Balances (in shares) at Dec. 31, 2022	5,926,001		1,321
Balances at Dec. 31, 2022	$ 5,926	$ 105,011,318	$ (13,210)	$ (87,095,430)	$ 17,908,604
Vesting of restricted stock units (in shares)	6,889		0
Vesting of restricted stock units	$ 7	(7)	$ 0	0	0
Stock-based compensation	0	609,926	0	0	609,926
Net loss	$ 0	0	$ 0	(2,527,985)	(2,527,985)
Balances (in shares) at Mar. 31, 2023	5,932,890		1,321
Balances at Mar. 31, 2023	$ 5,933	105,621,237	$ (13,210)	(89,623,415)	15,990,545
Balances (in shares) at Dec. 31, 2023	5,998,018		1,321
Balances at Dec. 31, 2023	$ 5,998	107,116,362	$ (13,210)	(97,049,450)	10,059,700
Vesting of restricted stock units (in shares)	9,679		0
Vesting of restricted stock units	$ 10	(10)	$ 0	0	0
Stock-based compensation	0	381,019	0	0	381,019
Net loss	$ 0	0	$ 0	(2,469,626)	(2,469,626)
Issuance of common stock and pre-funded warrants (in shares)	1,366,668		0
Issuance of common stock and pre-funded warrants	$ 1,367	13,651,296	$ 0	0	$ 13,652,663
Exercise of options (in shares)	8,334		0		8,334
Exercise of options	$ 8	86,749	$ 0	0	$ 86,757
Balances (in shares) at Mar. 31, 2024	7,382,699		1,321
Balances at Mar. 31, 2024	$ 7,383	$ 121,235,416	$ (13,210)	$ (99,519,076)	$ 21,710,513

Note 1 - Organization and Description of Business

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

Note 1 – Organization and Description of Business

Note 2 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

Net Loss Per Share

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements.

Note 3 - Intangible Assets

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 3 – Intangible Assets

Intangible assets, net consisted of the following:

	March 31,			December 31,
	2024			2023
	(unaudited)
Patents	$	1,601,638		$	1,530,257
Trademarks		18,352			15,794
Other intangible assets		1,843,036			1,843,036
		3,463,026			3,389,087
Accumulated amortization - patents		(290,881	)		(272,872	)
Accumulated amortization - other intangible assets		(570,837	)		(536,149	)
	$	2,601,308		$	2,580,066

Note 4 - Lease

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 4 – Lease

For purposes of calculating the right of use asset and lease liability included in the Company’s financial statements, the Company estimated its incremental borrowing rate at 6% per annum.

Future minimum payments under the lease are as follows:

For the Year Ended December 31,
2024 (remaining)	$	60,711
2025		82,587
2026		56,132
Total lease payments		199,430
Less: imputed interest		(13,423	)
Total lease liability		186,007
Less: current portion of lease liability		(72,263	)
Long-term lease liability	$	113,744

At March 31, 2024, the remaining lease term was 29 months.

Note 5 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 5 – Commitments and Contingencies

License Agreements

Legal Proceedings

The Company may be subject to litigation from time to time in the ordinary course of business. The Company is not currently party to any legal proceedings.

Indemnification Obligations

Note 6 - Common Stock

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Equity [Text Block]

Note 6 — Common Stock

Note 7 - Equity Incentive Plan

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 7 — Equity Incentive Plan

A summary of the Company’s stock option activity and related information is as follows:

						Weighted
				Weighted		Average
				Average		Remaining
	Stock			Exercise		Life
	Options			Price		(in years)
Outstanding at December 31, 2023		525,948		$	7.69		6.6
Exercised		(8,334	)	$	10.41
Outstanding at March 31, 2024		517,614		$	7.65		5.4
Exercisable at March 31, 2024		479,285		$	7.34		5.2

A summary of the Company’s restricted stock unit (RSU) and performance stock unit (PSU) activity is as follows:

	RSUs			PSUs
Outstanding at December 31, 2023		171,530			114,000
Granted		50,710			—
Vested		(9,679	)		—
Outstanding at March 31, 2022		212,561			114,000

Note 8 - Warrants

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Warrants Disclosure [Text Block]

Note 8 — Warrants

Note 9 - Subsequent Events

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Subsequent Events [Text Block]

Note 9 — Subsequent Events

Public Offering

Amended Lease

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]	ITEM 5. OTHER INFORMATION During the three months ended March 31, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false
Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false

Significant Accounting Policies (Policies)	3 Months Ended
Significant Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The balance sheet at December 31, 2023 has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on April 1, 2024. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods.
Earnings Per Share, Policy [Policy Text Block]	Net Loss Per Share In accordance with Accounting Standards Codification 260, shares issuable for little or no cash consideration are considered outstanding common shares and included in the computation of basic net loss per share. As such, for the three months ended March 31, 2024 and 2023, the Company included pre-funded warrants to purchase shares of common stock in its computation of net loss per share. The pre-funded warrants were issued in March 2024 and November 2019 with an exercise price of $0.001. See Note 8. In periods with a net loss, no common share equivalents are included in the computation of diluted net loss per share because their effect would be anti-dilutive. At March 31, 2024 and 2023, potentially dilutive shares outstanding amounted to 1,630,595 and 1,630,695 shares, respectively, and exclude pre-funded warrants to purchase shares of common stock.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standard, if adopted, would have a material impact on the Company’s financial statements.

Note 3 - Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	March 31,			December 31,
	2024			2023
	(unaudited)
Patents	$	1,601,638		$	1,530,257
Trademarks		18,352			15,794
Other intangible assets		1,843,036			1,843,036
		3,463,026			3,389,087
Accumulated amortization - patents		(290,881	)		(272,872	)
Accumulated amortization - other intangible assets		(570,837	)		(536,149	)
	$	2,601,308		$	2,580,066

Note 4 - Lease (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]

For the Year Ended December 31,
2024 (remaining)	$	60,711
2025		82,587
2026		56,132
Total lease payments		199,430
Less: imputed interest		(13,423	)
Total lease liability		186,007
Less: current portion of lease liability		(72,263	)
Long-term lease liability	$	113,744

Note 7 - Equity Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2024

Notes Tables

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

						Weighted
				Weighted		Average
				Average		Remaining
	Stock			Exercise		Life
	Options			Price		(in years)
Outstanding at December 31, 2023		525,948		$	7.69		6.6
Exercised		(8,334	)	$	10.41
Outstanding at March 31, 2024		517,614		$	7.65		5.4
Exercisable at March 31, 2024		479,285		$	7.34		5.2

Share-Based Payment Arrangement, Outstanding Award, Activity, Excluding Option [Table Text Block]

	RSUs			PSUs
Outstanding at December 31, 2023		171,530			114,000
Granted		50,710			—
Vested		(9,679	)		—
Outstanding at March 31, 2022		212,561			114,000

Note 2 - Summary of Significant Accounting Policies (Details Textual) - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023	Nov. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,630,595	1,630,695
Prefunded Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001		$ 0.001	$ 0.001

Note 3 - Intangible Assets (Details Textual) - USD ($)	3 Months Ended
Note 3 - Intangible Assets (Details Textual) - USD ($)	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets, Gross	$ 3,463,026		$ 3,389,087
Amortization of Intangible Assets	52,697	$ 38,226
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year	160,934
Finite-Lived Intangible Asset, Expected Amortization, Year One	214,579
Finite-Lived Intangible Asset, Expected Amortization, Year Three	214,579
Finite-Lived Intangible Asset, Expected Amortization, Year Two	214,579
Finite Lived Intangible Asset Expected Amortization After Year Four	1,133,419
Patents and Trademarks Yet to be Awarded [Member]
Finite-Lived Intangible Assets, Gross	$ 430,287		$ 460,890

Note 3 - Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets, Gross	$ 3,463,026	$ 3,389,087
Finite-Lived Intangible Assets, Net	2,601,308	2,580,066
Patents [Member]
Finite-Lived Intangible Assets, Gross	1,601,638	1,530,257
Accumulated amortization	(290,881)	(272,872)
Trademarks [Member]
Finite-Lived Intangible Assets, Gross	18,352	15,794
Other Intangible Assets [Member]
Finite-Lived Intangible Assets, Gross	1,843,036	1,843,036
Accumulated amortization	$ (570,837)	$ (536,149)

Note 4 - Lease (Details Textual)		3 Months Ended
Note 4 - Lease (Details Textual)	Mar. 31, 2021 USD ($) ft²	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Operating Lease, Right-of-Use Asset		$ 170,413		$ 186,570
Lessee, Operating Lease, Discount Rate	6.00%
Lessee, Operating Lease, Remaining Lease Term		29 months
Operating Lease, Payments		$ 19,841	$ 19,333
Operating Lease, Cost		$ 19,018	$ 19,018
Office and Laboratory Space [Member]
Area of Real Estate Property \| ft²	4,070
Lessee, Operating Lease, Term of Contract	63 months
Operating Leases, Future Minimum Payments, Due In One Year	$ 56,471
Lessee Operating Lease, Abated Rent	18,824
Lessee, Operating Lease, Liability, to be Paid, Year Two	77,330
Operating Leases, Increases In Base Rent, Amount	$ 2,035
Lessee, Operating Lease, Renewal Term	5 years
Operating Lease, Right-of-Use Asset	$ 339,882

Note 4 - Lease - Future Minimum Payments (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
2023 (remaining)	$ 60,711
Lessee, Operating Lease, Liability, to be Paid, Year One	82,587
Lessee, Operating Lease, Liability, to be Paid, Year Two	56,132
Total lease payments	199,430
Less: imputed interest	(13,423)
Total lease liability	186,007
Less: current portion of lease liability	(72,263)	$ (70,683)
Long-term lease liability	$ 113,744	$ 132,304

Note 5 - Commitments and Contingencies (Details Textual) - Licensing Agreements [Member] - USD ($)	Mar. 31, 2024	Dec. 31, 2023	Apr. 30, 2023	Dec. 31, 2015
Commitments, Annual Payment			$ 50,000	$ 100,000
Contractual Obligation	$ 1,108,224	$ 1,125,173

Note 6 - Common Stock (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Nov. 30, 2019
Prefunded Warrants [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
March 2024 Offering [Member]
Stock Issued During Period, Shares, New Issues (in shares)	1,366,668
Shares Issued, Price Per Share (in dollars per share)	$ 7.5
Issuance of Stock, Underwriter Options, Number of Shares (in shares)	300,000
Proceeds from Issuance or Sale of Equity	$ 13.7
March 2024 Offering [Member] \| Prefunded Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	633,332
Warrants Issued, Price Per Warrant (in dollars per share)	$ 7.499
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001

Note 7 - Equity Incentive Plan (Details Textual)	3 Months Ended
Note 7 - Equity Incentive Plan (Details Textual)	Mar. 31, 2024 USD ($) shares
Restricted Stock Units (RSUs) [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	50,710
The 2013 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant	453,839
Share Based Compensation Arrangement By Share Based Payment Award, Grants In Period, Fair Value \| $	$ 397,803
Share-Based Payment Arrangement, Expense \| $	82,362
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $	$ 1,885,023
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition	10 months 24 days
The 2013 Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	12,000
The 2013 Equity Incentive Plan [Member] \| Restricted Stock Units (RSUs) [Member] \| Board Member [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Granted	38,710

Note 7 - Equity Incentive Plan - Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Outstanding, options (in shares)	525,948
Outstanding, weighted average exercise price (in dollars per share)	$ 7.69
Outstanding, weighted average remaining life (Year)	5 years 4 months 24 days	6 years 7 months 6 days
Exercised (in shares)	(8,334)
Exercised, weighted average exercise price (in dollars per share)	$ 10.41
Outstanding, options (in shares)	517,614	525,948
Outstanding, weighted average exercise price (in dollars per share)	$ 7.65	$ 7.69
Exercisable, options (in shares)	479,285
Exercisable, options, exercise price (in dollars per share)	$ 7.34
Exercisable, options, remaining life (Year)	5 years 2 months 12 days

Note 7 - Equity Incentive Plan - Other Award Activity (Details)	3 Months Ended
	Mar. 31, 2024 shares
Restricted Stock Units (RSUs) [Member]
Outstanding at December 31, 2022 (in shares)	171,530
Granted (in shares)	50,710
Vested (in shares)	(9,679)
Outstanding at March 31, 2022 (in shares)	212,561
Performance Stock Units (PSUs) [Member]
Outstanding at December 31, 2022 (in shares)	114,000
Granted (in shares)	0
Vested (in shares)	0
Outstanding at March 31, 2022 (in shares)	114,000

Note 8 - Warrants (Details Textual) - $ / shares	3 Months Ended
Note 8 - Warrants (Details Textual) - $ / shares	Mar. 31, 2024	Dec. 31, 2023	Nov. 30, 2019
Maximum Beneficial Ownership Percentage of Warrants	4.99%
Maximum Beneficial Ownership Percentage of Warrants Upon Investor's Election	9.99%
Warrant [Member]
Class of Warrant or Right, Outstanding	786,420	786,420
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 5.19	$ 5.19
Warrants and Rights Outstanding, Term	10 months 24 days
Prefunded Warrants [Member]
Class of Warrant or Right, Outstanding	887,160	253,828
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 0.001	$ 0.001	$ 0.001

Note 9 - Subsequent Events (Details Textual)	1 Months Ended	3 Months Ended
Note 9 - Subsequent Events (Details Textual)	Apr. 30, 2024 USD ($) ft² $ / shares shares	Mar. 31, 2024 USD ($) $ / shares shares	Mar. 31, 2023 USD ($)	Mar. 31, 2021 ft²
Proceeds from Issuance of Common Stock		$ 13,652,663	$ 0
Office and Laboratory Space [Member]
Area of Real Estate Property \| ft²				4,070
Lessee, Operating Lease, Term of Contract				63 months
Subsequent Event [Member] \| Amended Lease [Member]
Area of Real Estate Property \| ft²	5,775
Lessee, Operating Lease, Term of Contract	62 months
Lessee, Operating Lease, Base Rent	$ 118,388
Lessee, Operating Lease, Base Rent Increase Percentage	2.75%
March 2024 Offering [Member]
Issuance of Stock, Underwriter Options, Number of Shares (in shares) \| shares		300,000
Shares Issued, Price Per Share (in dollars per share) \| $ / shares		$ 7.5
March 2024 Offering [Member] \| Subsequent Event [Member]
Issuance of Stock, Underwriter Options, Number of Shares (in shares) \| shares	300,000
Shares Issued, Price Per Share (in dollars per share) \| $ / shares	$ 7.5
Proceeds from Issuance of Common Stock	$ 15,700,000

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