AUSTIN, TX / ACCESSWIRE / May 13, 2020 / Ideal Power Inc. (NASDAQ:IPWR) ("Ideal Power, the "Company," "we" and "our"), pioneering the development and commercialization of highly efficient and broadly patented B-TRAN™ bi-directional power switches, reported results for its first quarter ended March 31, 2020.
First Quarter 2020 Operational Highlights
Subsequent Operational Highlights:
COVID-19 Impact to Operations:
First Quarter 2020 Financial Results Conference Call:
Management Commentary
"The first quarter of 2020 marked an important period in the maturation of our efforts to deliver discrete packaged B-TRAN™ device samples to potential industry partners as part of Phase Two of our commercialization plan," said Dan Brdar, President and Chief Executive Officer of Ideal Power. "Now that we have our fabrication partners securely in place both domestically and internationally, our technology continues to mature towards commercialization.
"Most recently, we were notified of our first award to participate in a government-funded technology demonstration project, where B-TRAN™ will act as an enabling technology in an exciting application. The project represents a key milestone in our commercialization program. Our proprietary B-TRAN technology continues to generate interest from both industry and governmental entities, who see it as a potentially significant improvement over conventional power switch technologies for bi-directional applications as well as an enabling technology for new applications across many industries.
"We believe that we have built a solid foundation upon which to execute in 2020 and are strategically positioning ourselves to develop commercial partnerships. We believe that our technology is transformational in both its bi-directionality and its ability to reduce switching and conduction losses, problems holding back many current and potential applications that would benefit from solid state electric power control. As we make further progress on Phase Two of our commercialization plan, which entails the fabrication of parts with partners and the delivery of samples to our targeted potential customers for evaluation, I am optimistic about our anticipated progress towards commercialization in 2020 and the long-term future of Ideal Power.
"We look forward to sharing more on our developing story at the upcoming Virtual Summer Summit investor event in June 2020 as well as on our second quarter conference call later this year," concluded Mr. Brdar.
First Quarter 2020 Financial Results
About Ideal Power Inc.Ideal Power (NASDAQ:IPWR) is pioneering the development of its broadly patented bi-directional power switches, creating highly efficient and ecofriendly energy control solutions for industrial, alternative energy, military and automotive applications. The Company is focused on its patented Bi-directional, Bi-polar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bi-directional AC switch able to deliver substantial performance improvements over today's conventional power semiconductors. Ideal Power believes B-TRAN™ modules will reduce conduction and switching losses, complexity of thermal management and operating cost in medium voltage AC power switching and control circuitry. For more information, visit www.IdealPower.com.
Safe Harbor Statement All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the impact of COVID-19 on our business, financial condition and results of operations, the success of our B-TRAN™ technology, including the success of our government-funded technology demonstration project, whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents and our inability to predict with precision or certainty the pace of development and commercialization of our B-TRAN™ technology, our ability to secure additional financing on commercially reasonable terms or at all, especially in light of the market volatility and uncertainty as a result of the COVID-19 outbreak, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.
Ideal Power Investor Relations Contact: MZ North AmericaChris Tyson949-491-8235IPWR@mzgroup.uswww.mzgroup.us
IDEAL POWER INC.Balance Sheets
March 31,2020 | December 31,2019 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,219,992 | $ | 3,057,682 | ||||
Prepayments and other current assets | 253,902 | 248,148 | ||||||
Total current assets | 2,473,894 | 3,305,830 | ||||||
Property and equipment, net | 52,165 | 47,302 | ||||||
Intangible assets, net | 1,608,121 | 1,634,378 | ||||||
Right of use asset | 216,518 | 260,310 | ||||||
Other assets | 17,920 | 17,920 | ||||||
Total assets | $ | 4,368,618 | $ | 5,265,740 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 138,920 | $ | 182,956 | ||||
Accrued expenses | 319,342 | 319,135 | ||||||
Current portion of lease liability | 188,678 | 183,119 | ||||||
Total current liabilities | 646,940 | 685,210 | ||||||
Long-term lease liability | 33,149 | 82,055 | ||||||
Other long-term liabilities | 613,300 | 609,242 | ||||||
Total liabilities | 1,293,389 | 1,376,507 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock, $0.001 par value; 50,000,000 shares authorized; 2,101,272 shares issued and 2,099,951 shares outstanding at March 31, 2020 and December 31, 2019 | 2,101 | 2,101 | ||||||
Additional paid-in capital | 71,358,753 | 71,242,256 | ||||||
Treasury stock, at cost, 1,321 shares at March 31, 2020 and December 31, 2019 | (13,210 | ) | (13,210 | ) | ||||
Accumulated deficit | (68,272,415 | ) | (67,341,914 | ) | ||||
Total stockholders' equity | 3,075,229 | 3,889,233 | ||||||
Total liabilities and stockholders' equity | $ | 4,368,618 | $ | 5,265,740 | ||||
IDEAL POWER INC.Statements of Operations
Three Months EndedMarch 31, | ||||||||
2020 | 2019 | |||||||
Product revenue | $ | - | $ | - | ||||
Cost of product revenue | - | - | ||||||
Gross profit | - | - | ||||||
Operating expenses: | ||||||||
Research and development | 350,664 | 218,216 | ||||||
General and administrative | 579,770 | 468,390 | ||||||
Total operating expenses | 930,434 | 686,606 | ||||||
Loss from continuing operations before interest | (930,434 | ) | (686,606 | ) | ||||
Interest expense, net | 67 | 7,118 | ||||||
Loss from continuing operations | (930,501 | ) | (693,724 | ) | ||||
Loss from discontinued operations | - | (347,175 | ) | |||||
Net loss | $ | (930,501 | ) | $ | (1,040,899 | ) | ||
Loss from continuing operations per share - basic and fully diluted | $ | (0.31 | ) | $ | (0.49 | ) | ||
Loss from discontinued operations per share - basic and fully diluted | - | (0.24 | ) | |||||
Net loss per share - basic and fully diluted | $ | (0.31 | ) | $ | (0.73 | ) | ||
Weighted average number of shares outstanding - basic and fully diluted | 2,968,394 | 1,433,069 | ||||||
IDEAL POWER INC.Statements of Cash Flows
Three Months EndedMarch 31, | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Loss from continuing operations | $ | (930,501 | ) | $ | (693,724 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 28,113 | 27,595 | ||||||
Write-off of capitalized patents | 17,344 | - | ||||||
Stock-based compensation | 116,497 | 26,621 | ||||||
Decrease in operating assets: | ||||||||
Prepayments and other current assets | (5,754 | ) | 1,044 | |||||
Increase (decrease) in operating liabilities: | ||||||||
Accounts payable | (44,036 | ) | 36,253 | |||||
Accrued expenses | 4,710 | 15,182 | ||||||
Net cash used in operating activities | (813,627 | ) | (587,029 | ) | ||||
Net cash used in operating activities - discontinued operations | - | (409,867 | ) | |||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (10,678 | ) | (1,194 | ) | ||||
Acquisition of intangible assets | (13,385 | ) | (31,323 | ) | ||||
Net cash used in investing activities | (24,063 | ) | (32,517 | ) | ||||
Net decrease in cash and cash equivalents - continuing operations | (837,690 | ) | (619,546 | ) | ||||
Net decrease in cash and cash equivalents - discontinued operations | - | (409,867 | ) | |||||
Cash and cash equivalents at beginning of period | 3,057,682 | 3,258,077 | ||||||
Cash and cash equivalents at end of period | $ | 2,219,992 | $ | 2,228,664 | ||||
SOURCE:Ideal Power Inc.
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