Core Insights - Ideal Power Inc is progressing ahead of schedule in its joint development program for solid-state circuit breakers, attributed to effective collaboration and integration processes [1][2] Group 1: Product Development and Market Strategy - The B-TRAN based solution is designed to fit seamlessly within existing circuit breaker designs, expediting the customer's time to market for their initial product [2] - Prototypes of the circuit breaker are expected to be completed and shipped by late March or early April, with commercial sales anticipated to begin in 2025 [2][8] - The customer initially sought a higher-performing alternative to their existing circuit breaker, which was not meeting performance expectations [3] Group 2: Competitive Advantage and Technology Differentiation - Ideal Power's technology offers a more efficient and cost-effective solution compared to silicon carbide-based devices, addressing critical issues like cost and conduction losses [4] - The company's solid-state circuit breaker technology is over 100 times faster than conventional electromechanical breakers, making it suitable for applications requiring rapid response [14] - The B-TRAN technology is designed to minimize conduction losses, which is essential for continuously conducting devices like circuit breakers [13][14] Group 3: Financial Outlook and Revenue Potential - The first design win for the solid-state circuit breaker could generate over $1 million in revenue in its second year, with expectations for scaling B-TRAN adoption across other customers [11] - Ideal Power has a serviceable addressable market opportunity of $1 billion in solid-state switchgear and $1.4 billion in energy and power [13] - The company has $15.8 million in cash and no long-term debt, allowing for strategic investments to support the transition from development to revenue generation starting in 2025 [15]

Investment Focus - The company focuses on growth markets, particularly in AI and biotech, while also exploring undervalued stocks with significant potential [1] - The investment strategy includes a diverse portfolio ranging from megacap to microcap stocks, primarily in the U.S. market, with occasional interest in European and Canadian stocks [1] Investment Strategy - The investment style is inspired by Warren Buffett but is applied to riskier investments, indicating a willingness to engage in more volatile sectors [1] - The portfolio includes sectors such as semiconductor, mining, shipping, and dividends, highlighting a broad investment approach [1] Professional Background - The company is led by a deputy director general in a prominent European sector organization, bringing over twenty years of experience in Brussels, which is central to European institutions [1] - The individual has a Master's Degree in Law, suggesting a strong analytical background that may benefit investment decision-making [1]

Financial Data and Key Metrics Changes - The fourth quarter cash burn was $2.6 million, an increase from $2.1 million in Q4 2023 and $2.4 million in Q3 2024, aligning with the low end of guidance [51] - Full-year 2024 cash burn totaled $8.2 million, also at the low end of guidance [51] - Cash and cash equivalents were $15.8 million at December 31, 2024, with no debt [53] - The net loss for Q4 2024 was $2.6 million, compared to $2.4 million in Q4 2023, while the full-year net loss was $10.4 million, up from $10 million in 2023 [56] Business Line Data and Key Metrics Changes - The company secured its first design win for solid-state circuit breakers, which is expected to significantly contribute to revenue growth [10][48] - An order for SimCool IQ intelligent power modules was secured, opening an estimated $1.4 billion serviceable addressable market [12] - Orders were received from a tier-one automotive supplier for B-TRAN devices and SimCool power modules, indicating strong interest in electric vehicle applications [13] Market Data and Key Metrics Changes - The solid-state circuit breaker market is projected to grow due to the increasing demand for semiconductor-based solutions in renewable energy and electric vehicles [33][35] - The automotive market is seeing engagement from three tier-one suppliers and several global automakers, with a focus on EV contactor applications [38][40] Company Strategy and Development Direction - The company aims to ramp sales and achieve positive cash flow and profitability through key milestones, including securing additional design wins and increasing current ratings of products [22][25] - The strategy includes expanding partnerships with large global companies and enhancing customer engagement in solid-state circuit breakers and EV contactors [7][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, citing positive customer feedback and an expanding pipeline of potential design wins [7][49] - The company remains confident in its technology's ability to meet the needs of the automotive and industrial markets despite potential regulatory changes in the U.S. [40][41] Other Important Information - The company has a robust patent portfolio with 94 issued patents, enhancing its competitive position in the market [45][46] - Third-party automotive qualification testing is ongoing, with positive results to date, which will support future sales to both automotive and industrial customers [21][32] Q&A Session Summary Question: Revenue expectations from the SSCB customer - Revenue of several hundred thousand is expected in the first year of sales, starting from the product launch [61][62] Question: Number of additional SSTB customers in evaluation - Over half a dozen large companies are currently evaluating the technology for solid-state circuit breaker applications [64] Question: Potential for more design wins in 2025 - The company is targeting additional design wins in 2025 [67] Question: Details on the EV contactors program with Stellantis - The program will take longer, but funding is expected in 2025 [69] Question: Insights from the program review with Stellantis - The review highlighted the need for a low-loss solid-state EV contactor, with positive feedback from Stellantis [78][79] Question: Current headcount and expected growth - Current headcount is 16, expected to grow to around 20 by the end of the year, with plans to add more sales personnel [102] Question: Automotive qualification testing standards - Automotive standards allow for a certain number of failures during testing, and the company is currently seeing no die failures [106] Question: Opportunities in hybrid vehicles - The focus is currently on full electric vehicles, but there is potential for hybrid opportunities as relationships develop [110]

Ideal Power Inc. (NASDAQ:IPWR) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants Jeff Christensen - Investor Relations Dan Brdar - President & Chief Executive Officer Tim Burns - Chief Financial Officer Conference Call Participants Jesse Sobelson - D. Boral Capital Operator Good morning, ladies and gentlemen, and welcome to the Ideal Power Fourth Quarter and Full Year 2024 results call. At this time, all participants are in a listen-only mode. At the end of management's rem ...

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Financial Performance - Ideal Power reported commercial revenue of $5,408 in Q4 2024 and $86,032 for the full year 2024, compared to $61,483 and $161,483 in 2023 respectively, indicating a significant decline in revenue [20]. - The net loss for Q4 2024 was $2.6 million, slightly higher than the $2.4 million loss in Q4 2023, while the full year net loss increased to $10.4 million from $10.0 million in 2023 [6]. - Net loss for the year ended December 31, 2024, was $10,417,813, compared to a net loss of $9,954,020 in 2023, representing an increase in loss of approximately 4.6% [22]. Operating Expenses - Operating expenses in Q4 2024 were $2.8 million, up from $2.5 million in Q4 2023, primarily due to increased research and development spending [6]. - Cash used in operating and investing activities was $2.6 million in Q4 2024, compared to $2.1 million in Q4 2023, and $9.2 million for the full year 2024, up from $7.7 million in 2023 [6]. - Net cash used in operating activities increased to $8,742,580 in 2024 from $7,131,578 in 2023, reflecting a rise of about 22.6% [22]. - The company recorded stock-based compensation of $1,596,254 in 2024, down from $2,321,380 in 2023, a decrease of about 31.2% [22]. - Depreciation and amortization expenses rose to $341,045 in 2024 from $271,746 in 2023, an increase of about 25.5% [22]. - The acquisition of intangible assets amounted to $309,162 in 2024, compared to $282,121 in 2023, reflecting an increase of approximately 9.6% [22]. - The company experienced a decrease in accounts payable by $300,981 in 2024, contrasting with an increase of $274,595 in 2023 [22]. - The company reported a write-off of capitalized patents amounting to $62,073 in 2024, with no such write-off recorded in 2023 [22]. - The net cash used in investing activities decreased slightly to $506,428 in 2024 from $522,946 in 2023, a reduction of about 3.2% [22]. Cash Position - Cash and cash equivalents totaled $15.8 million as of December 31, 2024, an increase from $8.5 million in 2023 [18]. - Cash and cash equivalents at the end of the period increased to $15,842,850 in 2024, up from $8,474,835 in 2023, marking an increase of approximately 86.5% [22]. - Net cash provided by financing activities was $16,617,023 in 2024, compared to a net cash used of $216,264 in 2023, indicating a significant turnaround [22]. Market Opportunities and Product Development - Ideal Power has identified a $1.0 billion market opportunity for solid-state switchgear and a $1.4 billion opportunity in the energy and power market [3]. - The company secured its first design win for solid-state circuit breakers (SSCB) with a major Asian manufacturer, which is expected to drive revenue growth starting in the second half of 2025 [2]. - Ideal Power plans to initiate sales ramp in the second half of 2025 following the successful rollout of its first B-TRAN®-based product [2]. - The company is currently conducting third-party automotive qualification and reliability testing of B-TRAN® devices, with positive test results reported so far [6]. - The company has 94 issued B-TRAN® patents, with 45 issued outside the United States and 53 pending patents, covering multiple regions including North America and Asia [6].

Core Insights - Ideal Power Inc. has achieved its first design win for its B-TRAN® technology, which is expected to significantly boost revenue starting in the second half of 2025 [2][3] - The company anticipates substantial growth opportunities in the solid-state circuit breaker (SSCB) market, estimated at $1.0 billion, and a $1.4 billion opportunity in the energy and power market [3] Financial Performance - In Q4 2024, Ideal Power reported commercial revenue of $5,408, a decrease from $61,483 in Q4 2023, and total revenue of $86,032 for the full year 2024, down from $198,871 in 2023 [16][18] - The net loss for Q4 2024 was $2.6 million, compared to a loss of $2.4 million in Q4 2023, while the full year net loss was $10.4 million, up from $10.0 million in 2023 [13][18] - Operating expenses in Q4 2024 were $2.8 million, an increase from $2.5 million in Q4 2023, primarily due to higher research and development spending [16][18] Operational Highlights - The company secured a multi-unit order for its SymCool® IQ intelligent power module, targeting markets such as renewable energy, energy storage, and EV charging [5] - Ideal Power is conducting third-party automotive qualification and reliability testing for B-TRAN® devices, with positive test results reported so far [5] - The company has a total of 94 issued B-TRAN® patents, with 45 issued outside the U.S. and 53 pending, covering regions including North America, China, and Europe [5] Future Outlook - Ideal Power aims to secure additional design wins with large SSCB customers and expects to initiate a sales ramp in the second half of 2025 [3][13] - The company plans to complete deliverables related to its first design win with Stellantis in the first half of 2025 and increase the current rating of its products [13]

Core Viewpoint - Ideal Power Inc. is set to discuss its fourth quarter and full year results for 2024 in a conference call scheduled for February 27, 2025, highlighting its innovative B-TRAN® technology and upcoming milestones for 2025 [1][2]. Company Overview - Ideal Power Inc. is a developer and provider of the patented B-TRAN® bidirectional semiconductor power switch, which offers efficient energy control solutions for various applications including electric vehicles and renewable energy [8]. Upcoming Events - The company will present at the Emerging Growth Virtual Conference on February 18, 2025, at 2:55 PM ET, with a live webcast available on its Investor Relations website [5]. - Ideal Power will also participate in the Planet MicroCap Showcase in Las Vegas on April 23 and 24, 2025, with a presentation on April 23 at 10:30 AM PT and one-on-one investor meetings on April 24 [6][7]. 2025 Milestones - The company aims to secure the next phase of its development program with Stellantis, complete deliverables in the first half of 2025, capture additional design wins, and start initial sales ramp in the second half of the year [9].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Company Overview - Ideal Power Inc. is a developer and provider of the patented B-TRAN® bidirectional semiconductor power switch, focusing on energy control solutions for various applications including electric vehicles and renewable energy [5]. Upcoming Events - The company will present at the Emerging Growth Virtual Conference on January 16, 2025, at 2:20 PM ET, with a live webcast available on its Investor Relations website [2]. - Ideal Power will also participate in the Planet MicroCap Showcase in Las Vegas on April 23 and 24, 2025, with a presentation webcast scheduled for April 23 at 10:30 AM PT and one-on-one investor meetings on April 24 [3][4].