Ideal Power Reports Fourth Quarter and Full Year 2021


AUSTIN, Texas, March 17, 2022 (GLOBE NEWSWIRE) — Ideal Power Inc. (“Ideal Power” or the “Company”) (Nasdaq: IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, reported results for its fourth quarter and full year ended December 31, 2021.

“Fourth quarter 2021 capped off a year of strong progress along our roadmap to commercialize B-TRAN™ as an innovative technology addressing and enabling high-growth, immediate demand markets with the potential to displace conventional power semiconductor solutions in many applications. We advanced our B-TRAN™ test and evaluation program, adding leading commercial enterprises in each of our target market segments. We also made significant progress under the U.S. Navy/Naval Sea Systems Command (NAVSEA) and Department of Energy (DOE) funded programs for B-TRAN™-enabled solid-state circuit breakers (SSCBs) in collaboration with Diversified Technologies, Inc. (DTI),” stated Dan Brdar, President and Chief Executive Officer of Ideal Power.

“Our objective for 2022 remains to introduce our first product for commercial sale. As we build on our 2021 accomplishments, we expect 2022 to be an exciting year in our commercialization of B-TRAN™ with its unique advantages of bidirectional switching capability and lower switching and conduction losses in the EV, EV charging, renewable energy and energy storage, uninterruptible power supply (UPS) systems for data centers, and SSCB markets. With a talented team, large global companies participating in our test and evaluation program and a strong balance sheet to support our development and commercial objectives, we remain focused on continued strong execution toward commercializing B-TRAN™.”

Key Fourth Quarter and Recent Operational Highlights

  • Added participants to the B-TRAN™ test and evaluation program, including
    • a leading manufacturer of commercial electric vehicles (EVs), EV powertrain components and EV charging infrastructure for use in power conversion applications in its commercial EVs
    • a Forbes 2021 Global 500 leader in diverse power management, for use in bidirectional direct current (DC) SSCB applications for solar and wind systems
    • other commercial businesses and universities that management expects may lead to additional government funding opportunities.
  • Delivered on the Company’s Phase I project commitments under the Small Business Innovation Research (SBIR) grant won in collaboration with DTI from the DOE to develop a B-TRAN™-driven low-loss 13.8 kV alternating current (AC) SSCB. DTI and Ideal Power plan to collaborate on a grant application for a Phase II project. If awarded a Phase II grant by the DOE, DTI will build and test a full 50 MW AC SSCB using Ideal Power B-TRAN™ devices.
  • Completed the fifth fabrication run under the NAVSEA program; wafers from this run will be diced and packaged into devices for testing and delivery. Ideal Power will continue to provide program support through the demonstration of the B-TRAN™ enabled DC SSCB later this year.
  • Completed the wafer fabrication qualification run of a second domestic semiconductor fabrication partner that brings bipolar fabrication experience and supports ongoing development activities.
  • Engaged a world-class packaging firm to transition to Ideal Power’s new B-TRAN™ device packaging design for volume production.
  • Appointed two new independent directors, Drue Freeman and Greg Knight, to Ideal Power’s Board of Directors, adding significant semiconductor experience and relationships in key target markets including EVs, renewable energy and energy storage and power electronics.

Fourth Quarter and Full Year 2021 Financial Results

  • Grant revenue was $128,605 in the fourth quarter of 2021 compared to $273,827 in the fourth quarter of 2020.
  • Grant revenue was $576,399 for the full 2021 compared to $428,129 for the full year 2020.
  • Operating expenses in the fourth quarter of 2021 were $1.4 million compared to $1.1 million in the fourth quarter of 2020 on higher sales and marketing and general and administrative expenses.
  • Operating expenses in the full year 2021 were $4.8 million compared to $4.1 million in the full year 2020 with sales and marketing representing $0.5 million of the increase.
  • Net loss in the fourth quarter of 2021 was $1.4 million compared to $1.1 million in the fourth quarter of 2020.
  • Net loss in the full year 2021 was $4.8 million compared to $7.8 million in the full year 2020, which included a one-time, non-cash warrant inducement expense of $3.7 million.
  • Cash used in operating activities in full year 2021 was $4.3 million compared to $3.0 million in full year 2020. Including investing activities, cash burn for the full year 2021 was $4.5 million.
  • Cash and cash equivalents totaled $23.2 million at December 31, 2021.
  • Ideal Power had no long-term debt outstanding at December 31, 2021.

Fourth 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: Thursday, March 17, 2022
Time: 4:30 p.m. EDT, 1:30 p.m. PDT
Toll-free dial-in number: 1-888-204-4368
International dial-in number: 1-323-994-2093
Conference ID: 9771825

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 https://viavid.webcasts.com/starthere.jsp?ei=1524701&tp_key=fd283c809a and via the investor relations section of the Company’s website at www.IdealPower.com.

A replay of the conference call will be available after 7:30 p.m. Eastern time on Thursday, March 17, 2022, through Sunday, April 17, 2022.

Toll Free Replay Number: 1-844-512-2921
International Replay Number: 1-412-317-6671
Replay ID: 9771825

About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is pioneering the development 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 able to deliver substantial performance improvements over today’s conventional power semiconductors. Ideal Power believes B-TRAN™ 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 www.IdealPower.com

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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 introduce our first product for commercial sale in 2022, our expectations regarding our commercialization efforts for B-TRAN™ in 2022, our expectation that other commercial businesses and universities in our test and evaluation program may lead to additional government funding opportunities, our plan to collaborate with DTI on a grant application for a Phase II project and our plans to continue to provide program support through the demonstration of the B-TRAN™ enabled DC SSCB later this year. 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
IdealPowerIR@lhai.com

IDEAL POWER INC.
Balance Sheets

    December 31,  
    2021     2020  
ASSETS            
Current assets:                
Cash and cash equivalents   $ 23,170,149     $ 3,157,256  
Accounts receivable, net     233,262       170,287  
Prepayments and other current assets     43,900       118,883  
Total current assets     23,447,311       3,446,426  
                 
Property and equipment, net     56,158       37,125  
Intangible assets, net     2,055,650       1,568,903  
Right of use asset     307,172       79,719  
Other assets     11,189        
Total assets   $ 25,877,480     $ 5,132,173  
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 130,500     $ 101,984  
Accrued expenses     353,507       475,487  
Current portion of lease liability     58,864       82,055  
Total current liabilities     542,871       659,526  
                 
Long-term debt           91,407  
Long-term lease liability     267,584        
Other long-term liabilities     917,100       552,031  
Total liabilities     1,727,555       1,302,964  
                 
Commitments and contingencies                
                 
Stockholders’ equity:                
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2021 and 2020            
Common stock, $0.001 par value; 50,000,000 shares authorized; 5,893,767 shares issued and 5,892,446 shares outstanding at December 31, 2021; 3,265,740 shares issued and 3,264,419 shares outstanding at December 31, 2020     5,894       3,266  
Additional paid-in capital     104,063,321       78,974,964  
Treasury stock, at cost; 1,321 shares at December 31, 2021 and 2020, respectively     (13,210 )     (13,210 )
Accumulated deficit     (79,906,080 )     (75,135,811 )
Total stockholders’ equity     24,149,925       3,829,209  
Total liabilities and stockholders’ equity   $ 25,877,480     $ 5,132,173  

IDEAL POWER INC.
Statements of Operations

    Three Months Ended
December 31,
    Year Ended
December 31,
 
    2021     2020     2021     2020  
Grant revenue   $ 128,605     $ 273,827     $ 576,399     $ 428,129  
Cost of grant revenue     128,605       273,827       576,399       428,129  
Gross profit                        
                                 
Operating expenses:                                
Research and development     501,694       559,356       1,927,743       1,720,893  
General and administrative     703,279       553,474       2,408,425       2,307,089  
Sales and marketing     209,948       20,000       512,807       40,000  
Total operating expenses     1,414,921       1,132,830       4,848,975       4,067,982  
                                 
Loss from operations     (1,414,921 )     (1,132,830 )     (4,848,975 )     (4,067,982 )
                                 
Other income (expenses):                                
Gain on forgiveness of long-term debt                 91,407        
Interest expense, net     (5,827     (2,569 )     (12,701     (5,049
Warrant inducement expense                       (3,720,866 )
Total other income (expenses)     (5,827 )     (2,569 )     78,706       (3,725,915 )
                                 
Net loss   $ (1,420,748 )   $ (1,135,399 )   $ (4,770,269 )   $ (7,793,897 )
                                 
Net loss per share – basic and diluted   $ (0.23 )   $ (0.26 )   $ (0.80 )   $ (2.20 )
                                 
Weighted average number of shares outstanding – basic and diluted     6,143,452       4,356,324       5,937,520       3,539,217  

  

IDEAL POWER INC.
Statements of Cash Flows

    For the Year Ended December 31,  
    2021     2020  
Cash flows from operating activities:                
Net loss   $ (4,770,269 )   $ (7,793,897 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     157,564       122,152  
Write-off of capitalized patents     528       20,660  
Stock-based compensation     352,313       868,648  
Stock issued for services     207,980       50,000  
Warrant inducement expense           3,720,866  
Gain on forgiveness of long-term debt     (91,407 )      
Decrease (increase) in operating assets:                
Accounts receivable     (62,975 )     (170,287
Prepaid expenses and other assets     176,223       147,185  
Increase (decrease) in operating liabilities:                
Accounts payable     28,516       (80,972
Accrued expenses     (279,337     96,613  
Net cash used in operating activities     (4,280,864 )     (3,019,032 )
Cash flows from investing activities:                
Purchase of property and equipment     (44,267 )     (13,940 )
Acquisition of intangible assets     (192,668 )     (53,220 )
Net cash used in investing activities     (236,935 )     (67,160 )
Cash flows from financing activities:                
Net proceeds from issuance of common stock     21,204,609        
Exercise of options and warrants     3,326,083       3,094,359  
Proceeds from loans           91,407  
Net cash provided by financing activities     24,530,692       3,185,766  
Net increase in cash and cash equivalents     20,012,893       99,574  
Cash and cash equivalents at beginning of year     3,157,256       3,057,682  
Cash and cash equivalents at end of year   $ 23,170,149     $ 3,157,256  

Ideal Power Inc



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