Ideal Power (IPWR) investor relations material

Executive summary

• Finalized and shipped SSCB prototypes for lead Asia customer, with initial low volume orders expected in Q4 2026 and advanced co-development for U.S. hyperscaler targeting NVIDIA Rubin Ultra 800V DC AI data center architecture.

• Delivered B-TRAN® samples and development kits to Stellantis for EV applications, with ongoing collaboration on system-level solutions.

• Broadened customer engagements across automotive, AI data centers, and industrial markets, securing a long-term wafer foundry supply agreement supporting high-volume production and targeted gross margins.

• Launched SSCB reference design kit, with first stocking order placed and multiple customer requests received.

• Advisory board established, adding industry veteran to accelerate commercialization in AI data center markets.

Financial highlights

• Cash and cash equivalents totaled $41.3 million as of June 30, 2026, up from $6.1 million at year-end 2025, with no debt.

• Raised $27.7 million in net proceeds from a registered direct offering in Q2 2026, strengthening the balance sheet.

• Q2 2026 cash burn was $2.5 million, flat year-over-year; cash used in operating and investing activities was $4.8 million for the first six months.

• Operating expenses were $3.6 million in Q2 2026, up from $3.1 million in Q2 2025, driven by higher stock-based compensation, personnel costs, and non-cash patent impairments.

• Net loss for Q2 2026 was $3.4 million, compared to $3 million in Q2 2025; six-month net loss was $7.04 million, up 23% year-over-year.

Outlook and guidance

• Q3 2026 cash burn expected to be $2.7–$2.9 million; full year 2026 cash burn forecasted at $10.3–$10.5 million, up from $9.6 million in 2025 due to increased hiring.

• Initial customer orders expected to be small, with order sizes increasing as customers progress through design cycles and product qualification.

• Operating expenses expected to increase modestly as sales and engineering teams grow.

• Industrial qualification process for B-TRAN to begin in current quarter and complete in Q4 2026; automotive qualification to align with customer timelines.

• Expects improved gross margins and revenue growth following customer design wins and OEM launches.