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Ideal Power Inc. reported results for its third quarter ended September 30, 2024.
“Our Q3 accomplishments underscore the continued execution of our B-TRAN™ commercial roadmap with several significant developments. We are collaborating with a third global automaker and recently secured initial orders from a global Tier 1 automotive supplier. We added our second and third distributors with expertise in demand-creation and they are already placing customer orders and providing quotes of our products to large global companies,” said Dan Brdar, President and Chief Executive Officer of Ideal Power. “Overall, the momentum we are building is working to advance companies to orders followed by potential custom development agreements and/or design wins to drive long-term value creation for our shareholders.”
Key Third Quarter and Recent Business Highlights
Execution to our B-TRAN™ commercial roadmap continues, including:
- Secured orders from a Global Tier 1 automotive supplier for numerous discrete B-TRAN™ devices, a SymCool® power module, a solid-state circuit breaker (SSCB) evaluation board and a driver. This customer is interested in using B-TRAN™ for solid-state electric vehicle (EV) contactor applications.
- Meeting regularly with Stellantis’ technical and production teams with Phase III expected to begin shortly after Stellantis selects a Tier 1 supplier to design and build the drivetrain inverter for its new EV platform. In a parallel initiative, Stellantis continues working with the Company and a large semiconductor company with expertise in driver control circuity for the B-TRAN™ inverter drivers.
- Collaborating with a third global automaker. This auto OEM is evaluating B-TRAN™-enabled contactors as a potential replacement for electromechanical contactors in its EVs. The Company recently delivered a SSCB evaluation board to this automaker.
- Added our second distributor, RYOSHO. RYOSHO already placed orders with Ideal Power from a large global customer interested in the Company’s products for solid-state circuit protection applications and introduced B-TRAN™ to global automakers based in Japan.
- Added our third distributor, Sekorm Advanced Technology (Shenzhen) Co., Ltd. In response to customer requests, Sekorm began quoting our products to large companies for SSCB applications.
- Initiated third-party automotive qualification and reliability testing of B-TRAN™ devices. This testing requires over a thousand packaged B-TRAN™ devices from multiple wafer runs. Initial test results are positive with no failures to date.
- Increased the current rating of our SymCool® power module from 160A to 200A, a 25% increase, based on the results of testing. In conjunction with a power module size reduction of approximately 50%, this significantly increases the power density of the SymCool® power module.
- B-TRAN™ Patent Estate: Currently at 90 issued B-TRAN™ patents with 42 of those issued outside of the United States and 50 pending B-TRAN™ patents. Current geographic coverage includes North America, China, Japan, South Korea, India, Europe, and Taiwan.
Third Quarter 2024 Financial Results
- Cash used in operating and investing activities in the third quarter of 2024 was $2.4 million compared to $1.9 million in the third quarter of 2023.
- Warrant proceeds in the third quarter of 2024 were $1.0 million.
- Cash used in operating and investing activities in the first nine months of 2024 was $6.6 million compared to $5.6 million in the first nine months of 2023.
- Cash and cash equivalents totaled $18.7 million at September 30, 2024.
- No long-term debt was outstanding at September 30, 2024.
- Operating expenses in the third quarter of 2024 were $2.9 million compared to $2.8 million in the third quarter of 2023.
- Net loss was $2.7 million in both the third quarter of 2024 and the third quarter of 2023.
2024 Milestones
For 2024, the Company has set or achieved the following milestones:
√ Successfully completed Phase II of development program with Stellantis
• Secure Phase III of development program with Stellantis
√ Completed qualification of second high-volume production fab
• Convert large OEMs in our test and evaluation program to design wins/custom development agreements
√ Added distributors for SymCool® products
• Initial sales of SymCool® IQ intelligent power module
√ Began third-party automotive qualification testingOriginal – Ideal Power
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Ideal Power Inc. announced that the Company received orders from a global Tier 1 automotive supplier, a NYSE listed company. This global customer serves many automotive OEMs and is a leading supplier of sensors and electrical protection component solutions for automobile electrification and electric vehicles (EVs). They represent the latest addition to the Company’s customer list of Tier 1 suppliers targeting the EV market.
The Company is meeting regularly with this Tier 1 auto supplier and educating them on the benefits of B-TRAN™ in EV applications. As a result of these ongoing discussions, the customer placed orders for numerous discrete B-TRAN™ devices, a SymCool® power module, a solid-state circuit breaker evaluation board and a driver. This customer is interested in using B-TRAN™ for solid-state EV contactor applications.
“We are pleased to see another global Tier 1 automotive supplier securing B-TRAN™ products as part of their desire to bring lower cost, more efficient semiconductor solutions to their numerous automotive OEM customers. We are also working to advance other Tier 1 auto suppliers in our sales pipeline to orders and then to custom development agreements and/or design wins,” stated Dan Brdar, President and Chief Executive Officer of Ideal Power. “Overall, we are leveraging our success with Stellantis to attract and engage other auto OEMs as well as the Tier 1 auto suppliers that provide sub-systems to these global automakers.”
Contactors serve as cutoff switches for high voltage applications in EVs. They play a critical role in isolating the battery, inverter, and onboard charger to ensure safety when the vehicle is off or being serviced. In a collision, power must be shut off from downstream systems to prevent further complications or damage. Contactors are bidirectional and there are typically 4 to 6 high-power contactors in every EV. The high-power EV contactor market is forecasted to grow to over $3.7 billion in 2025 and the Company believes that, over time, solid-state contactors will potentially displace electromechanical contactors in half or more of this market.
Solid-state contactors provide several benefits over electromechanical contactors. They act much faster, thereby eliminating arcing and improving safety, and are more reliable as they do not include physical contacts subject to wear. In addition, they provide programmable settings for trip and current limits as well as built-in safety diagnostics. Solid-state contactors are also expected to cost less than electromechanical contactors in EV applications.
Original – Ideal Power
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Ideal Power Inc. announced the start of third-party automotive qualification and reliability testing of B-TRAN™ devices.
“This is a significant milestone in our commercialization roadmap as third-party automotive qualification and reliability testing of B-TRAN™ is now underway. Demonstration of compliance with automotive standards, the most stringent reliability standards for power semiconductor devices, is expected to accelerate the adoption of B-TRAN™ with large industrial customers as well as automotive OEMs and Tier 1 automotive suppliers,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
Ideal Power successfully performed a critical subset of reliability testing of packaged B-TRAN™ devices in its lab and at a third-party testing site to confirm readiness for third-party automotive qualification and reliability testing. This testing focused on the reliability of packaged B-TRAN™ devices in extreme environmental conditions and under high electrical and thermal stress as well as blocking voltage and shock testing.
All of the tested devices packaged by commercial packaging partner passed these tests indicating a robust B-TRAN™ packaging design. As a result, the Company engaged a third-party to commence full automotive qualification and reliability testing.
The automotive qualification and reliability testing includes a broader array of testing as required by automotive codes and standards utilizing specified parameters and a wide range of test conditions. The testing to achieve automotive qualification requires over a thousand packaged B-TRAN™ devices from multiple wafer runs.
The process includes tens of thousands of power cycles at various current levels, thermal cycling at extreme temperature and humidity levels, blocking voltage and shock and vibration testing, and visual inspection. These tests are designed to expose B-TRAN™ to conditions that are intended to accelerate failure mechanisms and demonstrate the long-term reliability of the devices. Successful completion of B-TRAN™ automotive qualification and reliability testing is expected in the first half of 2025.
Original – Ideal Power
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Ideal Power Inc. announced an agreement with Sekorm Advanced Technology (Shenzhen) Co., Ltd. for the distribution of Ideal Power’s products throughout China.
“This is a significant development in the commercialization of our B-TRAN™ technology as we add Sekorm as a third distributor for our products. Sekorm stands out for their expertise in demand creation throughout China, strong technical sales capability and securing sales for new technologies. This leading demand-creation distributor addresses B-TRAN™ target industrial and automotive markets in China, the world’s largest market for power semiconductors. We look forward to collaborating with Sekorm to secure orders that may potentially lead to design wins and/or custom development agreements,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
Ideal Power has agreements with three distributors with demand generation expertise and comprehensive customer networks that expand our global reach: Richardson Electronics, Ltd. for global distribution of Ideal Power’s products; RYOSHO U.S.A, INC. (“RYOSHO”), a subsidiary of RYODEN CORPORATION (TSE: 8084), for the global distribution of Ideal Power’s products with particular strength in Japan; and Sekorm Advanced Technology (Shenzhen) Co., Ltd. for distribution of Ideal Power’s products throughout China.
Ideal Power utilizes an asset-light business model leveraging the large investment already made in silicon processing, distribution, demand creation and support infrastructure. This business model allows the Company to continue focusing on disruptive B-TRAN™ technology improvements and commercialization while driving working capital efficiency.
Original – Ideal Power
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Ideal Power Inc. reported results for its second quarter ended June 30, 2024.
“Our B-TRAN™ commercial progress continued with several significant developments over the last three months. We are now collaborating with a third global automaker and achieved two more of our 2024 milestones with the addition of a second global distributor and the qualification of a second high volume production fab. We are pleased to see multiple large companies in our test and evaluation program advancing to place initial orders,” said Dan Brdar, President and Chief Executive Officer of Ideal Power. “We remain on track to achieve our 2024 milestones and look forward to more commercial announcements in the coming months.”
Key Second Quarter and Recent Business Highlights
Execution to our B-TRAN™ commercial roadmap continues, including:
- Collaborating with a third global automaker. This auto OEM is evaluating B-TRAN™-enabled contactors as a potential replacement for electromechanical contactors in its electric vehicles.
- Finalizing a distribution agreement with a second global distributor with particular strength in Asia. This distributor is already placing orders with us.
- Qualified a second wafer fabrication supplier with high-volume production capability. With the addition of this European partner, we are dual sourced for wafer fabrication in different parts of the world with ample capacity to support anticipated customer demand over the next few years.
- Secured orders for B-TRAN™ devices and circuit breaker evaluation boards from a global leader in power semiconductor and power electronics solutions in connection with its launch of a multi-year DC power distribution system program. This global leader presents multiple opportunities for us as it addresses several of our target industrial markets: solid-state circuit breakers (“SSCB”) for industrial facilities and electric utility grid infrastructure and renewable energy.
- Secured an order for B-TRAN™ devices for evaluation in solar inverter applications from a top 10 global provider of power conversion solutions to the solar industry. This customer is a previously announced participant in our B-TRAN™ test and evaluation program.
- Secured an order for SymCool® power modules and drivers from a Forbes Global 500 power management market leader initially in our B-TRAN™ test and evaluation program. This global power management market leader is evaluating SymCool® against IGBT modules for use in SSCB applications.
- Added a global leader in circuit protection, industrial fuses and power conversion technology with over a billion in annual sales to the roster of the B-TRAN™ test and evaluation program.
- Based on the results of testing, we increased the current rating of our SymCool® power module from 160A to 200A, a 25% increase. In conjunction with a power module size reduction of approximately 50%, this results in a dramatic increase in power density for the SymCool® power module.
- B-TRAN™ Patent Estate: Currently at 87 issued B-TRAN™ patents with 40 of those issued outside of the United States and 45 pending B-TRAN™ patents. Current geographic coverage includes North America, China, Japan, South Korea, India, and Europe, with pending coverage in Taiwan.
Second Quarter 2024 Financial Results
- Cash used in operating and investing activities in the second quarter of 2024 was $2.2 million compared to $1.8 million in the second quarter of 2023.
- Cash used in operating and investing and activities in the first half of 2024 was $4.2 million compared to $3.7 million in the first half of 2023.
- Raised $15.7 million in net proceeds from a public offering. Received net proceeds of $13.7 million upon initial closing in March 2024 followed by net proceeds of $2.0 million from the exercise of the underwriter’s overallotment option in April 2024.
- Cash and cash equivalents totaled $20.1 million at June 30, 2024.
- No long-term debt was outstanding at June 30, 2024.
- Commercial revenue was $1,331 in the second quarter of 2024.
- Operating expenses in the second quarter of 2024 were $2.9 million compared to $2.4 million in the second quarter of 2023 driven primarily by higher research and development spending.
- Net loss in the second quarter of 2024 was $2.7 million compared to $2.3 million in the second quarter of 2023.
2024 Milestones
For 2024, the Company has set or achieved the following milestones:
√ Successfully completed Phase II of development program with Stellantis
• Secure Phase III of development program with Stellantis
√ Complete qualification of second high-volume production fab
• Convert large OEMs in our test and evaluation program to design wins/custom development agreements
√ Add distributors for SymCool® products
• Initial sales of SymCool® IQ intelligent power module
• Begin third-party automotive qualification testingOriginal – Ideal Power
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Ideal Power Inc. announced an agreement with RYOSHO U.S.A, INC., a subsidiary of RYODEN CORPORATION, for the global distribution of Ideal Power’s products. RYOSHO has already placed orders with Ideal Power from a large global customer interested in the Company’s products for solid-state circuit protection applications.
“This is a significant development in the commercialization of our B-TRAN™ technology as we add a second distributor for our products. RYOSHO has a strong technical sales team with expertise in securing sales for new technologies and global reach, with particular strength in Asia. We look forward to collaborating with RYOSHO to secure additional orders that may potentially lead to design wins and/or custom development agreements,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
Ideal Power utilizes an asset-light business model leveraging the large investment already made in silicon processing, distribution, demand creation and support infrastructure. This business model allows the Company to continue focusing on disruptive B-TRAN™ technology improvements and commercialization while minimizing capital requirements.
Original – Ideal Power
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Ideal Power Inc. is collaborating with a third global automaker. This global automaker is working closely and meeting regularly with Ideal Power engineers on the use of B-TRAN™-enabled contactors to potentially replace electromechanical contactors in its electric vehicles (EVs).
“We are delighted to announce this collaboration with a third global automaker for the evaluation of B-TRAN™ in a new EV application for us. Their initial focus is on EV contactors. Solid-state contactors in EVs are an emerging market and our technology is potentially enabling for this application due to its very low conduction losses and inherent bidirectionality. This represents another engagement for us with the world’s leading automakers along with our previously announced engagements with Stellantis and a second Top 10 global automaker,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
Contactors serve as cutoff switches for high voltage applications in EVs. They play a critical role in isolating the battery, inverter, and onboard charger to ensure safety when the vehicle is off or being serviced. Contactors are bidirectional and there are typically 4 to 6 high-power contactors in every EV. The high-power EV contactor market is forecasted to grow to over $3.7 billion in 2025 and the Company believes that, over time, solid-state contactors will potentially displace electromechanical contactors in half or more of this market.
Solid-state contactors provide several benefits over electromechanical contactors. They are much faster acting, thereby eliminating arcing and improving safety, and are more reliable as they do not include physical contacts subject to wear. In addition, they provide programmable settings for trip and current limits as well as built-in safety diagnostics. Solid-state contactors are also expected to cost less than electromechanical contactors in EV applications.
Original – Ideal Power
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Ideal Power Inc. announced the successful completion of its qualification of the Company’s second wafer fabrication supplier with high-volume production capability. This facility in Europe adds dual sourcing for wafer fabrication and will support future revenue growth, providing ample capacity to support anticipated customer demand over at least the next two to three years.
“We are delighted to announce this key milestone of qualifying a second high-volume wafer foundry to provide wafer fabrication for our products. This fab successfully completed a multi-wafer full process flow engineering run of double-sided B-TRAN™ wafers. By leveraging our proprietary and proven process flow, this foundry was able to produce functional, bidirectional devices on their initial run without the need for special equipment or capital investment,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
European wafer fabrication supplier highlights:
- This supplier, along with our previously qualified wafer fabricator in Asia, provides dual sourcing for wafer fabrication in disparate geographies with no exposure to China or Taiwan to mitigate supply chain risk.
- Demonstrated expertise in commercial manufacturing of high power, bipolar devices such as IGBTs. This expertise provides proven process recipes, capability and equipment that can be readily used or adapted for B-TRAN™ double-sided wafer fabrication.
- Qualified manufacturer of semiconductor wafers to multiple Tier 1 automotive suppliers. This will help Ideal Power to attract and engage prospective automotive OEMs and Tier 1 automotive suppliers as customers.
- ISO 9001 and ISO 14001 certified to globally recognized standards for quality and environmental management systems.
Ideal Power’s patented semiconductor power switch, B-TRAN™, can reduce power losses by 50% or more over conventional power switches, depending on the application. B-TRAN™’s higher efficiency results in less heat being generated and therefore significantly lower thermal management requirements, requiring significantly smaller surface area to dissipate heat and giving rise to potentially smaller original equipment manufacturer products.
B-TRAN™ offers the industry’s only symmetric bidirectional operation, reducing the number of components required for an application by 75% compared to a conventional bidirectional switch utilizing IGBTs and diodes. This highly efficient and unique symmetric operation provides a strong competitive advantage in bidirectional applications, which are growing rapidly as transportation electrifies and power generation shifts to renewable energy coupled with energy storage.
Original – Ideal Power
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Ideal Power Inc. reported results for its first quarter ended March 31, 2024.
“Commercial momentum continues as we commenced shipments of SymCool™ power modules to fulfill customer orders in the first quarter. We expect industrial markets, particularly the solid-state circuit breaker market served by our SymCool™ power module, to be the earliest source of our sales ramp,” said Dan Brdar, President and Chief Executive Officer of Ideal Power.
“In addition, all of our Phase II deliverables with Stellantis were successfully completed ahead of schedule and we added our first distributor, Richardson Electronics. They placed multiple orders with Ideal Power including an order from a company not previously in our sales funnel.”
Key First Quarter and Recent Business Highlights
Execution to B-TRAN™ commercial roadmap continues, including:
- Commenced commercial shipment of SymCool™ power modules to fulfill customer orders. The SymCool™ power module targets several applications including solid-state switchgear and circuit protection, renewable energy inverters for solar and wind, industrial inverters, hybrid and electric vehicles (“EVs”) and EV charging.
- Received an order for SymCool™ power modules and drivers from one of the two Forbes Global 500 leaders in diverse power management markets in Ideal Power’s B-TRAN™ test and evaluation program. This global power management market leader is evaluating SymCool™ against IGBT modules for use in solid-state circuit breaker (“SSCB”) applications.
- Received an order for B-TRAN™ devices and a circuit breaker evaluation board from a global leader in power semiconductor and power electronics solutions in connection with its launch of a multi-year DC power distribution system program. This global leader presents multiple opportunities as it addresses several of our target industrial markets: SSCBs, industrial and grid infrastructure and renewable energy.
- Successfully completed Phase II of a product development program with Stellantis, a top 10 global automaker. All Phase II deliverables were completed ahead of schedule including a wafer run and deliveries of tested B-TRAN™ devices, drivers and a Stellantis approved comprehensive reliability test plan for automotive qualification. Ideal Power is partnering with Stellantis’ advanced technology development team to develop a custom B-TRAN™ power module for use in EV drivetrain inverters in Stellantis’ next generation EV platform.
- Added the first distributor, Richardson Electronics, for discrete B-TRAN™ device and SymCool™ power modules. Richardson Electronics placed multiple orders with Ideal Power including an order from a company not previously in Ideal Power’s sales funnel.
- Added a global leader in circuit protection, industrial fuses and power conversion technology with over a billion in annual sales to the roster of the B-TRAN™ test and evaluation program.
- Released B-TRAN™ and SymCool™ videos and application notes for the technical audience at prospective customers, resulting in the addition of new opportunities to the sales funnel. The videos demonstrate the testing of discrete B-TRAN™ devices and SymCool™ power modules and the compelling advantages B-TRAN™ offers to SSCB applications.
- Nearing completion of a qualification run with the second high-volume wafer fabrication partner. This wafer fab in Europe will support future revenue growth and add dual sourcing for wafer fabrication.
- B-TRAN™ Patent Estate: Currently at 86 issued B-TRAN™ patents with 39 of those issued outside of the United States and 41 pending B-TRAN™ patents. Current geographic coverage includes North America, China, Japan, South Korea, India, and Europe, with pending coverage in Taiwan.
First Quarter 2024 Financial Results
- Completed a public offering, raising net proceeds of $15.7 million. The initial closing in late March resulted in net proceeds of $13.7 million and the exercise of the underwriter’s overallotment option in April resulted in additional net proceeds of $2.0 million.
- Commercial revenue increased to $78,739 in the first quarter of 2024 from $0 in the first quarter of 2023.
- Operating expenses in the first quarter of 2024 were $2.5 million compared to $2.6 million in the first quarter of 2023.
- Net loss in the first quarter of 2024 was $2.5 million compared to $2.5 million in the first quarter of 2023.
- Cash used in operating, investing and financing activities in the first quarter of 2024, excluding the net proceeds from the public offering, was $1.9 million compared to $1.8 million in the first quarter of 2023 and down from $2.3 million in the fourth quarter of 2023.
- Cash and cash equivalents totaled $20.2 million at March 31, 2024.
- No long-term debt was outstanding at March 31, 2024.
2024 Milestones
For 2024, the Company has set or achieved the following milestones:
- Successfully completed Phase II of development program with Stellantis
- Secure Phase III of development program with Stellantis
- Complete qualification of second high-volume production fab
- Convert large OEMs in test and evaluation program to design wins/custom development agreements
- Add distributors for SymCool™ products
- Initial sales of SymCool™ IQ intelligent power module
- Begin third-party automotive qualification testing
Original – Ideal Power
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Ideal Power Inc. announced a global leader in circuit protection, industrial fuses and power conversion electronics with over a billion in annual sales entered into an agreement with Ideal Power to test and evaluate B-TRAN™ power semiconductors for circuit protection in industrial markets including industrial fuses, renewable energy and energy storage power conversion, rail/transportation, and electric vehicle (“EV”) power management.
“We are excited to collaborate with a global leader in circuit protection, industrial fuses and power conversion technology interested in B-TRAN™ as an enabling technology,” said Dan Brdar, President and Chief Executive Officer of Ideal Power. “This global supplier presents multiple opportunities for us as they address several of our target markets. We look forward to gathering their feedback on their application-specific requirements to drive our product roadmap and to potentially secure design wins and/or a customer development agreement with them.”
Circuit protection is required for renewable energy grid interfaces and EV power connections. B-TRAN™ technology has clear advantages in applications including EV power transfer, DC microgrids, energy storage systems and railway substations. These applications require fast-acting circuit protection to minimize electrical faults. In addition, B-TRAN™-based circuit protection also provides dramatically lower conduction losses and bidirectional capability thereby enabling greater efficiency while simultaneously lowering component count and system costs.
Ideal Power’s patented semiconductor power switch, B-TRAN™, can reduce power losses by 50% or more over conventional power switches, depending on the application. B-TRAN™’s higher efficiency results in less heat being generated and therefore significantly lower thermal management requirements, requiring significantly smaller surface area to dissipate heat and giving rise to potentially smaller original equipment manufacturer products. B-TRAN™ offers the industry’s only symmetric bidirectional operation, reducing the number of components required for an application by 75% compared to a conventional bidirectional switch utilizing IGBTs and diodes.
This highly efficient and unique symmetric operation provides a strong competitive advantage in bidirectional applications, which are growing rapidly as transportation electrifies and power generation shifts to renewable energy coupled with energy storage. For more information on B-TRAN™, visit here.
Ideal Power plans to continue adding potential customers to the test and evaluation program. The program is expected to remain an embedded process in the Company’s sales and marketing effort and a source of input for its next generation of products. The Company’s outreach continues to generate significant new interest resulting in inquiries from potential customers about B-TRAN™, the SymCool™ power module, the SymCool™ IQ intelligent power module and participation in the test and evaluation program.
Original – Ideal Power
