Ideal Power Reports Fourth Quarter and Full Year 2024 Financial Results
Rhea-AI Summary
Ideal Power (Nasdaq: IPWR) announced its Q4 and full year 2024 results, highlighting its first design win for solid-state circuit breakers (SSCB) with a major Asian circuit protection manufacturer. The company expects this win to catalyze revenue growth starting H2 2025, potentially generating several hundred thousand dollars in the first year and exceeding $1 million in the second year.
Key financial metrics for 2024:
- Commercial revenue: $86,032 (full year), $5,408 (Q4)
- Cash position: $15.8 million
- Operating expenses: $11.1 million (full year), $2.8 million (Q4)
- Net loss: $10.4 million (full year), $2.6 million (Q4)
The company secured orders for its SymCool® IQ intelligent power module and advanced its B-TRAN® technology, targeting a $1.0 billion SSCB market opportunity followed by a $1.4 billion energy and power market opportunity. Ideal Power's patent estate includes 94 issued B-TRAN® patents.
Positive
- First design win secured with major Asian manufacturer
- Strong patent portfolio with 94 issued B-TRAN patents
- Healthy cash position of $15.8M with no long-term debt
- $2.4B total addressable market opportunity
- Advancing partnership with Stellantis for EV applications
Negative
- Minimal commercial revenue of $86,032 in 2024
- Increased net loss to $10.4M in 2024 from $10.0M in 2023
- Higher operating expenses at $11.1M vs $10.4M previous year
- Increased cash burn of $9.2M vs $7.7M in 2023
Insights
Ideal Power's Q4 and FY2024 results highlight a company approaching a critical transition from development to commercialization. The company secured its first design win with a major Asian circuit protection manufacturer, validating its B-TRAN® bidirectional semiconductor technology as an enabler for solid-state circuit breakers (SSCBs). This represents tangible commercial progress after years of R&D investment.
The financial position shows $15.8 million in cash with a quarterly burn rate of $2.6 million, suggesting approximately 6 quarters of runway at current spending levels. This timeline aligns with management's projection of revenue ramp beginning in H2 2025, though investors should note the company will likely need to demonstrate commercial traction before this cash is depleted to avoid dilutive financing.
Current commercial revenue remains minimal (
The company's addressable markets are substantial:
- Solid-state switchgear/circuit breakers:
$1.0 billion opportunity - Energy and power markets:
$1.4 billion opportunity
Progress in automotive applications continues with Stellantis and a third Global Tier 1 supplier, with automotive qualification testing expected to complete later in 2025. The extensive patent portfolio (94 issued patents across major global markets) provides a competitive moat for the B-TRAN technology, which offers significant efficiency advantages over conventional power switches.
For investors, the key inflection points to monitor in 2025 include: completion of deliverables for the first design win (Q1/Q2), additional design wins, initiation of revenue in H2, and completion of automotive qualification testing. These milestones will be critical in validating whether Ideal Power can transform its innovative technology into sustainable commercial success.
"We're thrilled with our first design win representing significant validation of B-TRAN® as an enabling technology for SSCBs and a catalyst for our anticipated revenue ramp starting in the second half of 2025. Based on the customer's projections, the opportunity from this customer's first B-TRAN®-based product alone could translate to revenue of several hundred thousand dollars in its first year of sales, with the opportunity to exceed a million dollars in revenue in the second year of sales. After the successful roll-out of this first product, we expect this OEM to expand its offerings to include a suite of B-TRAN®-enabled SSCBs with a wide range of ratings presenting a substantial opportunity for revenue growth," stated Dan Brdar, President and Chief Executive Officer of Ideal Power.
Brdar continued, "We are leveraging this design win for SSCBs to potentially secure additional design wins with other large SSCB customers in the coming months to drive long-term value creation for our shareholders. Solid-state switchgear, which includes SSCBs, is at least a
Key Fourth Quarter and Recent Operational Highlights
Execution to our B-TRAN® commercial roadmap continues, including:
- Secured first design win for solid-state circuit breakers (SSCB) with one of the largest circuit protection equipment manufacturers in
Asia serving industrial and utility markets. The program is ahead of schedule with product design, prototype builds, testing, and delivery of the SSCBs targeted for completion in late March or early April to be followed by commercial sales later in the year. - Secured order for our SymCool® IQ intelligent power module from a customer that specializes in the development and manufacture of circuit protection and power conversion solutions. This customer is interested in SymCool® IQ modules for several end markets including renewable energy, energy storage, electric vehicle (EV) charging, and data centers.
- Conducted a comprehensive program review in
Detroit with Stellantis'U.S. and European production and engineering teams along with other major suppliers contributing to Stellantis' new EV platform. Based on the successful program review and positive feedback from Stellantis, we expect to not only continue advancing the drivetrain inverter program but also add a new high priority program for EV contactors. - Secured orders from a third Global Tier 1 automotive supplier for numerous discrete B-TRAN® devices, a SymCool® power module, a SSCB evaluation board and a driver. This customer is interested in using B-TRAN® for solid-state EV contactor applications.
- Initiated third-party automotive qualification and reliability testing of B-TRAN® devices. This testing requires well over a thousand packaged B-TRAN® devices from multiple wafer runs. Test results continue to be positive with no die failures to date. Successful completion of B-TRAN® automotive qualification and reliability testing is expected later this year.
- B-TRAN® Patent Estate: Currently at 94 issued B-TRAN® patents with 45 of those issued outside of
the United States and 53 pending B-TRAN® patents. Current geographic coverage includesNorth America ,China ,Taiwan ,Japan ,South Korea ,India , andEurope .
Fourth Quarter and Full Year 2024 Financial Results
- Cash used in operating and investing activities in the fourth quarter of 2024 was
$2.6 million $2.1 million $9.2 million $7.7 million - Cash and cash equivalents totaled
$15.8 million - No long-term debt was outstanding at December 31, 2024.
- Commercial revenue was
$5,408 $86,032 - Operating expenses in the fourth quarter of 2024 were
$2.8 million $2.5 million - Operating expenses in the full year 2024 were
$11.1 million $10.4 million - Net loss in the fourth quarter of 2024 was
$2.6 million $2.4 million $10.4 million $10.0 million
2025 Milestones
For 2025, the Company has set the following milestones:
- Secure next phase of development program with Stellantis
- Complete deliverables in 1H 2025 related to first design win
- Capture additional design wins / custom development agreements
- Start initial sales ramp in second half of year
- Increase current rating of products
- Complete third-party automotive qualification testing
Conference Call and Webcast: Fourth Quarter and Full Year 2024
The Company will hold a conference call on Thursday, February 27, 2025 at 10:00 AM Eastern Time to discuss its results and host a question-and-answer session. Analysts and investors may pose questions for management during the live conference call.
Interested persons may access the live conference call by dialing 888-506-0062 (
The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing.
Upcoming Investor Conferences
Emerging Growth Virtual Conference on March 27, 2025
Ideal Power plans to present at the Emerging Growth Virtual Conference on March 27 at 11:25 AM ET. The live, interactive webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing.
Planet MicroCap Showcase in
Ideal Power plans to participate at the Planet MicroCap Showcase in
Ideal Power's presentation webcast at the Planet MicroCap Showcase in
Planet MicroCap Showcase attendees in
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is the developer and innovative provider of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN®) semiconductor technology. B-TRAN® is a unique double-sided bidirectional AC switch that delivers substantial performance improvements over today's conventional power semiconductors. Ideal Power's B-TRAN® can reduce conduction and switching losses, complexity of thermal management and operating cost in AC power switching and control circuitry. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook.
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 our first design win being a catalyst for our anticipated revenue ramp starting in the second half of 2025, the opportunity from this customer's first B-TRAN®-based product potentially translating to revenue of several hundred thousand dollars in its first year of sales, with the opportunity to exceed a million dollars in revenue in the second year of sales, our expectation that Stellantis will proceed with a new high priority program for B-TRAN®-enabled EV contactors, the timing of successful completion of B-TRAN® automotive qualification and reliability testing and the Company's 2025 milestones. 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 Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law.
Ideal Power Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917
IDEAL POWER INC. | ||||
Balance Sheets | ||||
(unaudited) | ||||
December 31, | December 31, | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 15,842,850 | $ | 8,474,835 |
Accounts receivable, net | 692 | 70,000 | ||
Inventory | 96,406 | 81,450 | ||
Prepayments and other current assets | 356,658 | 482,890 | ||
Total current assets | 16,296,606 | 9,109,175 | ||
Property and equipment, net | 415,232 | 359,225 | ||
Intangible assets, net | 2,611,998 | 2,580,066 | ||
Right of use asset | 483,497 | 186,570 | ||
Other assets | 19,351 | 13,034 | ||
Total assets | $ | 19,826,684 | $ | 12,248,070 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ | 104,117 | $ | 405,098 |
Accrued expenses | 374,012 | 455,112 | ||
Current portion of lease liability | 82,681 | 70,683 | ||
Total current liabilities | 560,810 | 930,893 | ||
Long-term lease liability | 403,335 | 132,304 | ||
Other long-term liabilities | 1,007,375 | 1,125,173 | ||
Total liabilities | 1,971,520 | 2,188,370 | ||
Stockholders' equity: | ||||
Common stock | 8,337 | 5,998 | ||
Additional paid-in capital | 125,327,300 | 107,116,362 | ||
Treasury stock | (13,210) | (13,210) | ||
Accumulated deficit | (107,467,263) | (97,049,450) | ||
Total stockholders' equity | 17,855,164 | 10,059,700 | ||
Total liabilities and stockholders' equity | $ | 19,826,684 | $ | 12,248,070 |
IDEAL POWER INC. | |||||||||
Statements of Operations | |||||||||
(unaudited) | |||||||||
Quarter Ended December 31, | Year Ended December 31, | ||||||||
2024 | 2023 | 2024 | 2023 | ||||||
Commercial revenue | $ | 5,408 | $ | 61,483 | $ | 86,032 | $ | 161,483 | |
Grant revenue | - | - | - | 37,388 | |||||
Total revenue | 5,408 | 61,483 | 86,032 | 198,871 | |||||
Cost of commercial revenue | 5,926 | 46,425 | 93,409 | 123,225 | |||||
Cost of grant revenue | - | - | - | 37,388 | |||||
Total cost of revenue | 5,926 | 46,425 | 93,409 | 160,613 | |||||
Gross profit | (518) | 15,058 | (7,377) | 38,258 | |||||
Operating expenses: | |||||||||
Research and development | 1,593,515 | 1,405,957 | 6,207,218 | 5,743,211 | |||||
General and administrative | 913,495 | 850,432 | 3,608,536 | 3,533,383 | |||||
Sales and marketing | 251,052 | 243,563 | 1,248,044 | 1,113,752 | |||||
Total operating expenses | 2,758,062 | 2,499,952 | 11,063,798 | 10,390,346 | |||||
Loss from operations | (2,758,580) | (2,484,894) | (11,071,175) | (10,352,088) | |||||
Interest income, net | 162,806 | 79,146 | 653,362 | 398,068 | |||||
Net loss | $ | (2,595,774) | $ | (2,405,748) | $ | (10,417,813) | $ | (9,954,020) | |
Net loss per share – basic and fully diluted | $ | (0.29) | $ | (0.39) | $ | (1.28) | $ | (1.61) | |
Weighted average number of shares outstanding – basic and fully diluted | 9,043,901 | 6,206,469 | 8,165,485 | 6,190,746 | |||||
IDEAL POWER INC. | ||||
Statements of Cash Flows | ||||
(unaudited) | ||||
Year Ended December 31, | ||||
2024 | 2023 | |||
Cash flows from operating activities: | ||||
Net Loss | $ | (10,417,813) | (9,954,020) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 341,045 | 271,746 | ||
Amortization of right of use asset | 75,476 | 62,150 | ||
Write-off of capitalized patents | 62,073 | - | ||
Write-off of property and equipment | 15,371 | - | ||
Gain on lease termination | (15,319) | - | ||
Stock-based compensation | 1,596,254 | 2,321,380 | ||
Decrease (increase) in operating assets: | ||||
Accounts receivable | 69,308 | (4,064) | ||
Inventory | (14,956) | (81,450) | ||
Prepaid expenses and other current assets | 119,915 | 6,630 | ||
Increase (decrease) in operating liabilities: | ||||
Accounts payable | (300,981) | 274,595 | ||
Accrued expenses and other liabilities | (198,898) | 36,052 | ||
Lease liability | (74,055) | (64,597) | ||
Net cash used in operating activities | (8,742,580) | (7,131,578) | ||
Cash flows from investing activities: | ||||
Purchase of property and equipment | (197,266) | (240,825) | ||
Acquisition of intangible assets | (309,162) | (282,121) | ||
Net cash used in investing activities | (506,428) | (522,946) | ||
Cash flows from financing activities: | ||||
Net proceeds from issuance of common stock and pre-funded warrants | 15,724,818 | - | ||
Exercise of options and warrants | 1,120,513 | - | ||
Payment of taxes related to restricted stock unit vesting | (228,308) | (216,264) | ||
Net cash provided by (used in) financing activities | 16,617,023 | (216,264) | ||
Net Increase (decrease) in cash and cash equivalents | 7,368,015 | (7,870,788) | ||
Cash and cash equivalents at beginning of period | 8,474,835 | 16,345,623 | ||
Cash and cash equivalents at end of the period | $ | 15,842,850 | $ | 8,474,835 |
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SOURCE IDEAL POWER INC.
FAQ
What is the expected revenue impact of IPWR's first design win for solid-state circuit breakers?
How much cash does IPWR have as of December 31, 2024?
What was IPWR's commercial revenue for full year 2024?
What is the total market opportunity for IPWR's solid-state switchgear technology?
How many B-TRAN patents does IPWR currently hold?
