Ideal Power Announces Pricing of $14 Million Financing of Common Stock

Rhea-AI Summary

Ideal Power (Nasdaq: IPWR) priced an underwritten public offering of 4,458,736 shares and a concurrent private placement of pre-funded warrants for 631,332 shares, targeting aggregate gross proceeds of approximately $14.0 million. The financings are expected to close on February 25, 2026.

The company said net proceeds will fund commercialization of its B-TRAN bidirectional semiconductor switch, including design-ins, custom development, initial production ramp, and general corporate purposes. Titan Partners acted as sole bookrunner.

Positive

• Raised approximately $14.0 million in aggregate gross proceeds
• Proceeds earmarked to advance B-TRAN commercialization
• Existing institutional holders and insiders participated, showing support

Negative

• Issuance of up to 5,090,068 potential shares could dilute existing holders
• Underwriting discounts and offering expenses will reduce net proceeds

Key Figures

Public Offering shares: 4,458,736 shares Public Offering gross proceeds: $12.3 million Private Placement warrants: 631,332 shares +5 more

8 metrics

Public Offering shares 4,458,736 shares Underwritten public offering of common stock or pre-funded warrants

Public Offering gross proceeds $12.3 million Gross proceeds from underwritten public offering before expenses

Private Placement warrants 631,332 shares Pre-funded warrants to purchase common stock in private placement

Private Placement gross proceeds $1.7 million Gross proceeds from concurrent private placement

Total gross proceeds $14.0 million Aggregate gross proceeds from Public Offering and Private Placement

Closing date February 25, 2026 Expected closing date of the financings, subject to conditions

Warrant exercise price $0.001 per share Exercise price of certain pre-funded warrants in concurrent placement

Public float $43.8 million Public float as of February 20, 2026 from 424B5 filing

Market Reality Check

Price: $3.26 Vol: Volume 70,897 is below th...

low vol

$3.26 Last Close

Volume Volume 70,897 is below the 20-day average of 134,096, suggesting no unusually heavy trading ahead of this financing pricing. low

Technical At $3.26, IPWR trades below its $4.61 200-day MA, reflecting a pre-existing downtrend before this offering was priced.

Peers on Argus

IPWR fell 8.68% while several peers like FLUX (-7.28%), OESX (-6.2%) and CCTG (-...

IPWR fell 8.68% while several peers like FLUX (-7.28%), OESX (-6.2%) and CCTG (-8.32%) were also down, but no peers appeared in the momentum scanner, indicating a stock-specific move tied to this financing.

Historical Context

5 past events · Latest: 2026-02-23 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
2026-02-23	Equity offering launch	Negative	-8.7%	Announced proposed underwritten equity offering from effective S-3 shelf registration.
2025-12-09	Product rating increase	Positive	+0.5%	Raised published power rating of discrete B-TRAN device supported by testing.
2025-11-13	Q3 2025 earnings	Negative	-26.8%	Reported low revenue, sizable net loss and continued cash burn for quarter.
2025-11-04	Earnings call notice	Neutral	-6.4%	Announced logistics for upcoming Q3 2025 conference call and webcast.
2025-11-03	CEO leadership change	Positive	-7.6%	Appointed new CEO and detailed sizable inducement equity awards package.

Pattern Detected

Recent negative stock reactions have followed capital-raising and earnings events, while positive technical/commercial updates saw modest gains, indicating sensitivity to dilution and losses.

Recent Company History

Over the last six months, Ideal Power has combined technical progress on B-TRAN® with recurring capital and earnings pressures. A proposed offering on 2026-02-23 led to a -8.68% move, and Q3 2025 results on 2025-11-13 saw a -26.82% reaction amid losses. Leadership changes and conference-call notices around early November 2025 also coincided with negative moves. Against this backdrop, the newly priced ~$14.0M financing continues a pattern of equity issuance alongside ongoing commercialization efforts.

Market Pulse Summary

This announcement prices a combined public offering and private placement for total gross proceeds o...

Analysis

This announcement prices a combined public offering and private placement for total gross proceeds of $14.0 million to fund B-TRAN® commercialization and general corporate needs. It follows earlier disclosures of limited revenue, continuing net losses, and going-concern language in recent 10-Q filings. Investors may watch how efficiently this new capital supports customer design-ins, custom development programs, and initial production ramps, as well as future updates on cash usage and commercialization milestones.

Key Terms

underwritten public offering, pre-funded warrants, private placement, shelf registration statement on Form S-3, +2 more

6 terms

underwritten public offering financial

"announced the pricing of its underwritten public offering of 4,458,736 shares"

An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.

pre-funded warrants financial

"shares of common stock (or pre-funded warrants in lieu thereof)"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

private placement financial

"priced a private placement of pre-funded warrants to purchase up to 631,332 shares"

A private placement is a way for companies to raise money by selling securities directly to a small group of investors instead of through a public offering. This process is often quicker and less regulated, making it similar to offering a special, exclusive investment opportunity to select individuals or institutions. For investors, it can provide access to unique investment options that are not available on public markets.

shelf registration statement on Form S-3 regulatory

"pursuant to an effective shelf registration statement on Form S-3 (No. 333-292492)"

A shelf registration statement on Form S-3 is a pre-approved filing with the Securities and Exchange Commission that lets an eligible public company register securities in advance and sell them later in one or more offerings without repeating the full registration process. Think of it like a pre-approved funding line: it gives management the flexibility to raise capital quickly when market conditions are right, a move that can affect share supply, dilution and investor returns, so investors monitor it as a signal of potential financing activity.

prospectus supplement regulatory

"only by means of a preliminary prospectus supplement and a final prospectus supplement"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

resale registration statement regulatory

"agreed to file a resale registration statement with the SEC"

A resale registration statement is a document filed with regulators that allows existing shareholders to sell their shares to the public. It provides the necessary legal approval and information for these shares to be resold on the market, helping to increase the availability of shares for trading. For investors, it signals that shares held by current owners can be offered for sale, potentially affecting share prices and market liquidity.

AI-generated analysis. Not financial advice.

The financing was led by the company's largest existing institutional shareholders, with participation from Ideal Power insiders, including its CEO

AUSTIN, Texas, Feb. 23, 2026 /PRNewswire/ -- Ideal Power Inc. (Nasdaq: IPWR) ("Ideal Power," the "Company," "we," or "our"), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN® bidirectional semiconductor power switch , today announced the pricing of its underwritten public offering of 4,458,736 shares of common stock (or pre-funded warrants in lieu thereof) for gross proceeds of approximately $12.3 million (the "Public Offering"). Concurrent with the Public Offering, the Company also priced a private placement of pre-funded warrants to purchase up to 631,332 shares of common stock for gross proceeds of approximately $1.7 million (the "Private Placement"). Total gross proceeds from the financings are expected to be an aggregate of approximately $14.0 million, before deducting underwriting discounts, commissions, and other offering expenses payable by the Company. The financings are expected to close on February 25, 2026, subject to customary closing conditions. The Public Offering includes participation from existing institutional shareholders and Company insiders, including our Chief Executive Officer.

The Company intends to use the net proceeds from these financings to advance commercialization of B-TRAN®, including customer design-ins, custom development programs, and initial production ramp with strategic partners, and for general corporate and working capital purposes.

Titan Partners, a division of American Capital Partners, is acting as the sole bookrunner for the financing.

The Public Offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-292492) (including a base prospectus) previously filed with the U.S. Securities and Exchange Commission (the "SEC") on December 30, 2025, and declared effective on January 9, 2026. The Public Offering is being made only by means of a preliminary prospectus supplement and a final prospectus supplement and the accompanying base prospectus that form a part of the registration statement. Before investing, prospective investors should read the preliminary prospectus supplement, the accompanying base prospectus and the documents incorporated by reference therein for more complete information about the Company and the offering. These documents, including the preliminary prospectus supplement relating to the offering, are available for free on the SEC's website at www.sec.gov. Copies of the final prospectus supplement, when available, and the accompanying base prospectus relating to the offering may be accessed for free on the SEC's website at www.sec.gov or obtained by contacting Titan Partners Group LLC, a division of American Capital Partners, LLC, 4 World Trade Center, 49th Floor, New York, NY 10007, by phone at (929) 833-1246 or by email at prospectus@titanpartnersgrp.com.

The securities issued in the Private Placement described above have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed to file a resale registration statement with the SEC for purposes of registering the resale of the shares of common stock underlying the pre-funded warrants issued in connection with the Private Placement.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Ideal Power Inc.

Ideal Power (NASDAQ: IPWR) is the developer and provider of its innovative and widely patented B-TRAN® bidirectional semiconductor power switch. B-TRAN® offers compelling advantages over conventional technologies and addresses the demanding standards of today's solid-state circuit protection and intelligent power delivery systems. It features very low conduction losses that deliver improved power efficiency, thereby reducing energy consumption and providing cost savings. The unique bidirectional capability of B-TRAN® simplifies the design, control and diagnostics of solid-state power solutions while enabling smaller, lower cost systems. B-TRAN® delivers compelling advantages for a broad spectrum of applications including solid-state circuit breakers, static transfer switches, battery disconnect units and EV contactors that are widely used in data centers, industrial power systems, energy grid and storage systems, and electric vehicles and charging infrastructure.

Safe Harbor Statement

All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding the financings and the intended use of proceeds. 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 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, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN^® technology, the rate and degree of market acceptance for our B-TRAN^®, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN^®, and uncertainties set forth in our quarterly, annual and other reports filed with the SEC. 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, except as required by applicable law.

Ideal Power Investor Relations Contact:

Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917

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SOURCE IDEAL POWER INC.

FAQ

How much did Ideal Power (IPWR) raise in the February 24, 2026 financing?

Ideal Power raised approximately $14.0 million in aggregate gross proceeds. According to the company, that includes a public offering of 4,458,736 shares and a private placement of pre-funded warrants for 631,332 shares, before underwriting discounts and offering expenses.

When will the Ideal Power (IPWR) financings close and who led them?

The financings are expected to close on February 25, 2026, subject to customary conditions. According to the company, Titan Partners acted as sole bookrunner and the public offering included participation from institutional holders and insiders.

What will Ideal Power (IPWR) use the net proceeds from the $14.0M financing for?

Ideal Power intends to use net proceeds to advance B-TRAN commercialization and for general corporate purposes. According to the company, funds will support customer design-ins, custom development programs, and initial production ramp with partners.

Did company insiders participate in the Ideal Power (IPWR) February 2026 offering?

Yes, insiders participated alongside institutional investors in the public offering. According to the company, participation included Ideal Power insiders and the chief executive officer, indicating internal support for the financings.

Are the pre-funded warrants in the Ideal Power (IPWR) private placement registered?

The pre-funded warrants issued in the private placement were not registered under the Securities Act. According to the company, it agreed to file a resale registration statement for the underlying shares of common stock.