Ideal Power (IPWR) Q3 2024 earnings summary

Executive summary

• Advanced B-TRAN™ commercialization with new collaborations, including a third global automaker and initial orders from a tier 1 automotive supplier, and expanded distribution with RYOSHO and Sekorm.

• Progressed with Stellantis on B-TRAN power module for EV drivetrain, completing Phase II and preparing for Phase III after tier 1 supplier selection.

• Commenced third-party automotive qualification testing of B-TRAN devices, with positive initial results and no failures to date.

• Increased SymCool Power Module current rating by 25% and reduced module size by 50%, enhancing power density and reducing cost.

• Expanded patent estate to 90 issued patents, including first in Taiwan and 42 outside the US.

Financial highlights

• Q3 2024 cash burn was $2.4 million, up from $1.9 million in Q3 2023 and $2.2 million in Q2 2024, at the low end of guidance.

• Net loss for Q3 2024 was $2.7 million, unchanged from Q3 2023; net loss per share was $(0.31) in Q3 2024.

• Operating expenses were $2.9 million in Q3 2024, up slightly from $2.8 million in Q3 2023.

• Cash and cash equivalents totaled $18.7 million as of September 30, 2024, with no debt.

• Commercial revenue for Q3 2024 was $554, down from $1,557 in Q3 2023; nine-month commercial revenue was $80,624.

Outlook and guidance

• Modest revenue expected in the near term as customers evaluate B-TRAN and build prototypes, with revenue ramp targeted for the second half of 2025.

• Q4 2024 cash burn projected at $2.6–$2.8 million.

• Long-term profitability expected at $30–$50 million in annual revenue with gross margins above 30%, targeting 50% at scale.

• Automotive qualification for B-TRAN expected to complete in first half of 2025.

• Cash on hand expected to cover liquidity needs for at least the next twelve months, but additional funding may be required for full operational plans.