Ideal Power Reports Third Quarter 2021 Financial Results

AUSTIN, Texas, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Ideal Power Inc. (“Ideal Power” or the “Company”) (Nasdaq: IPWR), pioneering the development and commercialization of highly efficient and broadly patented B-TRAN™ bidirectional power switches, reported results for its third quarter ended September 30, 2021.

“We added several market leading companies to our test and evaluation program, including large global companies in the electric vehicle (EV), renewable energy, uninterruptible power supply (UPS) and circuit breaker markets, as well as smaller, innovative companies and research universities,” stated Dan Brdar, President and Chief Executive Officer of Ideal Power.

“We are now on our final major milestone under the U.S. Navy/Naval Sea Systems Command (NAVSEA) program under our partnership with Diversified Technologies, Inc. (DTI), and recently began work with DTI under a Phase I Small Business Innovation Research (SBIR) project funded by the Department of Energy (DOE) to develop a B-TRAN™ alternating current (AC) solid state circuit breaker (SSCB) for use in utility transmission and distribution systems. With a strong balance sheet and highly talented and capable team, we believe we are well positioned to complete a successful year of milestone achievement and to continue to execute on our plan to commercialize B-TRAN™ in the second half of 2022.”

Key Third Quarter and Recent Operational Highlights

  • Announced several B-TRAN™ test and evaluation program participants including:
    • a Forbes 2021 Global 500 leader in diverse power management markets for use in bidirectional direct current (DC) SSCB applications for solar and wind systems
    • a top 10 global automaker for EV drivetrain, power conversion, circuit protection and other EV applications
    • a top 10 global provider of power conversion solutions to the solar industry for various applications with an initial focus on UPS systems for data centers and the potential to expand to include renewable energy, EV and other applications served by this provider, and
    • an EV charging company for its portable and modular EV charging system currently under development.
  • Partnered with DTI, under a Phase I SBIR grant from the DOE, to develop a B-TRAN™-enabled low-loss AC SSCB. Ideal Power recently completed the first milestone under this program.
  • Achieved another major milestone under the NAVSEA program with the completion of the most recent wafer fabrication run.
  • Recently began the final wafer fabrication run under the NAVSEA program. Ideal Power will continue to provide program support through the demonstration of the B-TRAN™ enabled DC SSCB in mid-2022.

Third Quarter Financial Results

  • Grant revenue was $121,028 in the third quarter of 2021 compared to $147,787 in the third quarter of 2020.
  • Grant revenue was $447,794 for the nine months ended September 30, 2021 compared to $154,302 in the nine months ended September 30, 2020.
  • Operating expenses in the third quarter of 2021 were $1.2 million, flat compared to $1.2 million in the third quarter of 2020 as higher research and development and sales and marketing expenses were largely offset by lower general and administrative expenses.
  • Operating expenses in the nine months ended September 30, 2021 were $3.4 million, compared to $2.9 million in the first nine months of 2020 on higher sales and marketing and research and development expenses.
  • Net loss in the third quarter of 2021 was $1.2 million, compared to $4.9 million in the third quarter of 2020, which included a one-time, non-cash warrant inducement expense of $3.7 million.
  • Net loss in the first nine months of 2021 was $3.3 million, compared to $6.7 million in the first nine months of 2020, which included a one-time, non-cash warrant inducement expense of $3.7 million.
  • Cash used in operating activities in the first nine months of 2021 was $3.0 million compared to $2.3 million in the first nine months of 2020. Including investing activities, cash burn in the first nine months of 2021 was $3.2 million.
  • Cash and cash equivalents totaled $24.5 million at September 30, 2021.
  • Ideal Power had no long-term debt outstanding at September 30, 2021.

Third Quarter 2021 Conference Call Details

Ideal Power President and CEO Dan Brdar and CFO Tim Burns will host a conference call today, followed by a question-and-answer period.

To access the call, please use the following information:

Date: Wednesday, November 10, 2021
Time: 4:30 p.m. EST, 1:30 p.m. PST
Toll-free dial-in number: 1-866-248-8441
International dial-in number: 1-323-289-6581
Conference ID: 8756765

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact LHA Investor Relations at 1-212-838-3777.

The conference call will be broadcast live and available for replay at and via the investor relations section of the Company’s website at

A replay of the conference call will be available after 7:30 p.m. Eastern time on Wednesday, November 10, 2021, through Friday, December 10, 2021.

Toll Free Replay Number: 1-844-512-2921
International Replay Number: 1-412-317-6671
Replay ID: 8756765

About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the development of its broadly patented bidirectional power switches, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS / data center and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch able to deliver substantial performance improvements over today's conventional power semiconductors. Ideal Power believes B-TRAN™ modules will reduce conduction and switching losses, complexity of thermal management and operating cost in medium voltage AC power switching and control circuitry. For more information, visit

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 included, but are not limited to, statements regarding our plan to commercialize B-TRAN™ in the second half of 2022. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the impact of COVID-19 on our business, financial condition and results of operations, the success of our B-TRAN™ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents and our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN™ technology, including the timing of the completion of our wafer fabrication runs with our semiconductor fabrications partners and our continued success engaging companies to participate in our customer sampling program, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.

Ideal Power Investor Relations Contact: 
LHA Investor Relations
Carolyn Capaccio, CFA
T: 212-838-3777

 Balance Sheets

    September 30,    December 31, 
       2021        2020  
Current assets:            
Cash and cash equivalents   $ 24,487,547     $ 3,157,256  
Accounts receivable, net     262,527       170,287  
Prepayments and other current assets     100,360       118,883  
Total current assets     24,850,434       3,446,426  
Property and equipment, net     62,720       37,125  
Intangible assets, net     2,038,911       1,568,903  
Right of use asset     321,248       79,719  
Other assets     11,189        
Total assets   $ 27,284,502     $ 5,132,173  
Current liabilities:            
Accounts payable   $ 57,355     $ 101,984  
Accrued expenses     625,693       475,487  
Current portion of lease liability     57,484       82,055  
Total current liabilities     740,532       659,526  
Long-term debt           91,407  
Long-term lease liability     282,847        
Other long-term liabilities     959,408       552,031  
Total liabilities     1,982,787       1,302,964  
Commitments and contingencies (Note 6)             
Stockholders’ equity:             
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,873,367 shares issued and 5,872,046 shares outstanding at September 30, 2021 and 3,265,740 shares issued and 3,264,419 shares outstanding at December 31, 2020     5,873       3,266  
Additional paid-in capital     103,794,384       78,974,964  
Treasury stock, at cost, 1,321 shares at September 30, 2021 and December 31, 2020     (13,210 )     (13,210 )
Accumulated deficit     (78,485,332 )     (75,135,811 )
Total stockholders’ equity     25,301,715       3,829,209  
Total liabilities and stockholders’ equity   $ 27,284,502     $ 5,132,173  

Statements of Operations

    Three Months Ended   Nine Months Ended
    September 30,    September 30, 
       2021        2020        2021        2020  
Grant revenue   $ 121,028     $ 147,787     $ 447,794     $ 154,302  
Cost of grant revenue     121,028       147,787       447,794       154,302  
Gross profit                        
Operating expenses:                        
Research and development     604,476       494,548       1,426,049       1,161,537  
General and administrative     500,942       657,967       1,705,146       1,753,615  
Sales and marketing     128,248       20,000       302,859       20,000  
Total operating expenses     1,233,666       1,172,515       3,434,054       2,935,152  
Loss from operations     (1,233,666 )     (1,172,515 )     (3,434,054 )     (2,935,152 )
Other income (expenses):                        
Interest expense, net     (5,012 )     (1,358 )     (6,874 )     (2,480 )
Warrant inducement expense           (3,720,866 )           (3,720,866 )
Gain on forgiveness of long-term debt                 91,407        
Total other income (expenses)     (5,012 )     (3,722,224 )     84,533       (3,723,346 )
Net loss   $ (1,238,678 )   $ (4,894,739 )   $ (3,349,521 )   $ (6,658,498 )
Net loss per share – basic and fully diluted   $ (0.20 )   $ (1.28 )   $ (0.57 )   $ (2.04 )
Weighted average number of shares outstanding – basic and fully diluted     6,125,874       3,821,717       5,868,122       3,264,860  

Statements of Cash Flows

    Nine Months Ended
    September 30, 
       2021        2020  
Cash flows from operating activities:            
Net loss   $ (3,349,521 )   $ (6,658,498 )
Adjustments to reconcile net loss to net cash used in operating activities:            
Depreciation and amortization     113,607       86,368  
Write-off of capitalized patents     528       18,235  
Stock-based compensation     247,512       434,782  
Stock issued for services     68,680       50,000  
Warrant inducement expense           3,720,866  
Gain on loan forgiveness     (91,407 )      
Decrease (increase) in operating assets:            
Accounts receivable     (92,240 )     (28,623 )
Prepaid expenses and other assets     105,687       127,632  
Increase (decrease) in operating liabilities:            
Accounts payable     (44,629 )     (116,246 )
Accrued expenses     49,040       61,845  
Net cash used in operating activities     (2,992,743 )     (2,303,639 )
Cash flows from investing activities:            
Purchase of property and equipment     (43,685 )     (12,407 )
Acquisition of intangible assets     (139,116 )     (35,836 )
Net cash used in investing activities     (182,801 )     (48,243 )
Cash flows from financing activities:            
Net proceeds from issuance of common stock     21,204,609        
Exercise of options and warrants     3,301,226       2,972,018  
Proceeds from loans           91,407  
Net cash provided by financing activities     24,505,835       3,063,425  
Net increase in cash and cash equivalents     21,330,291       711,543  
Cash and cash equivalents at beginning of period     3,157,256       3,057,682  
Cash and cash equivalents at end of period   $ 24,487,547     $ 3,769,225  

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Source: Ideal Power Inc.