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 supplier, and expanded distribution with RYOSHO and Sekorm, both placing initial orders and quoting to large customers, especially in Asia.

• Progressed with Stellantis on the EV drivetrain inverter program, completing Phase II and preparing for Phase III pending 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%, improving power density and reducing cost.

• Launched first commercial B-TRAN™ products in 2023, with initial shipments and customer evaluation orders in 2024.

Financial highlights

• Q3 2024 net loss was $2.7 million, flat year-over-year, with operating expenses of $2.9 million, up slightly from $2.8 million in Q3 2023.

• 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.

• 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, down from $100,000 year-over-year.

• Warrant proceeds in Q3 2024 were $1.0 million.

Outlook and guidance

• Modest revenue expected in the near term as customers evaluate and prototype products; revenue ramp targeted for the second half of 2025.

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

• Long-term cash flow breakeven projected at $30–$50 million in annual revenue, with gross margins above 30% at that level and a long-term target of 50%.

• Automotive qualification for B-TRAN™ expected to complete in the 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.