Ideal Power (IPWR) Q2 2024 earnings summary

Executive summary

• Advanced B-TRAN™ commercialization with a third global automaker and added a second global distributor, expanding reach in Asia.

• Qualified a second wafer fabrication supplier in Europe, enhancing supply chain resilience and dual sourcing.

• Secured initial orders from major industrial and power management companies for B-TRAN™ and SymCool® modules.

• Increased SymCool® power module current rating by 25% and reduced module size by 50%, boosting power density.

• Achieved key 2024 milestones, including Phase II completion with Stellantis and new distributor additions.

Financial highlights

• Q2 2024 cash burn was $2.2 million, at the low end of guidance; cash and equivalents totaled $20.1 million at June 30, 2024.

• Net loss for Q2 2024 was $2.7 million, compared to $2.3 million in Q2 2023; operating expenses rose to $2.9 million from $2.4 million, mainly due to higher R&D.

• Commercial revenue for Q2 2024 was $1,331; total revenue for H1 2024 was $80,070, both down from prior year.

• Raised $15.7 million in net proceeds from a public offering; no long-term debt outstanding as of June 30, 2024.

• Gross margin negative in Q2 2024 due to low volume shipments; improvement expected with higher production.

Outlook and guidance

• Q3 2024 cash burn expected at $2.4–$2.6 million; full year 2024 cash burn projected at $8.5 million, net of warrant proceeds.

• On track to achieve 2024 milestones, including securing Phase III with Stellantis, converting OEMs to design wins, and launching SymCool® IQ.

• Anticipates modest commercial revenue growth in 2024 as more customers move from evaluation to product orders.

• Expects R&D and sales/marketing expenses to increase modestly due to hiring and commercialization efforts.

• Cash on hand expected to cover liquidity needs for at least the next 12 months.