Ideal Power (IPWR) investor relations material

Executive summary

• Shipped updated solid state circuit breaker prototypes and completed deliverables for first design win ahead of schedule, with customer testing and product launches expected later in 2025.

• Entered collaborations and secured orders with global tier one automotive suppliers, automakers, and Forbes Global 500 leaders, including Stellantis, for multiple EV and power distribution applications.

• Expanded market reach through new distribution and sales partnerships in Asia and Europe, including Chime Electronic Corp and Quest Semi.

• Patent portfolio expanded to 96 issued patents and 74 pending, with broad international coverage.

• Launched global solid state circuit breaker campaign and increased technical outreach, with additional design wins and agreements expected in 2025.

Financial highlights

• Revenue remained minimal, with $12,003 in Q1 2025 and $1,275 in Q2 2025, as customers continue to evaluate technology.

• Net loss increased to $3.0M in Q2 2025 and $2.7M in Q1 2025, driven by higher R&D and operating expenses.

• Cash and cash equivalents totaled $11.1M at June 30, 2025, and $13.7M at March 31, 2025; no debt.

• Operating expenses rose due to increased wafer fabrication and engineering personnel costs.

• Gross margin remained negative due to low volume shipments, with improvement expected as production scales.

Outlook and guidance

• Initial sales ramp expected in the second half of 2025, led by industrial, SSCB, and automotive markets.

• Q3 2025 cash burn expected to increase to $2.7M–$2.9M, with full-year 2025 cash burn just over $10M, mainly due to hiring.

• Sufficient liquidity to fund operations through at least mid-2026, though additional funding may be required for full plans.

• Expects additional design wins, custom development agreements, and increased product power ratings in 2025.

• Minimal impact expected from tariffs, as power semiconductors are currently exempt.