Ideal Power Inc. (NASDAQ: IPWR), an innovative power conversion
technology company, reported results for the three and six months
ended June 30, 2018.
Key Second Quarter 2018 and Subsequent
Highlights:
• Completed corporate restructuring to support recent progress
with PPSA™ and B-TRAN™ technologies. The following executive
management changes were made:
- Chairman of the Board, Dr. Lon E Bell, appointed Chief
Executive Officer and President.
- Former Chief Executive Officer Dan Brdar appointed Chief
Commercial Officer of B-TRAN™ division.
- Chief Financial Officer Tim Burns will manage Power Conversion
Systems business development, purchasing and customer support
functions in addition to his continued role as Chief Financial
Officer.
- Vice President of Engineering Uwe Uhmeyer will manage Power
Conversion Systems R&D and product development activities.
- Power electronics thought leader Ted Lesster appointed to the
company’s board of directors.
• Realigned into two separate operating divisions: Power
Conversion Systems (PPSA) and B-TRAN (Bi-directional bi-polar
junction transistor).
Power Conversion Systems
Division
- Shipped two-megawatts of our SunDial™ Plus inverters for a
large-scale deployment by Brantingham & Carroll International
Ltd. (BCI) of an advanced solar + storage solution in China. The
array is expected to be fully commissioned later this year.
- Received a 1.1-megawatt purchase order for SunDial™ Plus
inverters from NEXTracker for one of the largest solar + storage
installations in Iowa with delivery expected in Q3 2018.
- eCAMION placed multiple purchase orders with us for our
Stabiliti™ multi-port power conversion systems (PCS) with initial
units shipped in June and additional shipments planned for later
this year. eCAMION recently announced it is developing, along with
Leclanche and SGEM, a network of 34 electric vehicle (EV)
fast-charging sites along the Trans-Canada Highway.
- Selected by Coritech Services as the OEM supplier of power
electronics for their product line of bi-directional DC chargers
for electric vehicles in the United States.
- During the first six months of the year, shipped 450-kilowatts
of our Stabiliti™ PCS to Amber Kinetics, an energy storage company
focused on flywheel technology.
- PPSA™ Patent Estate: Currently have 43 issued PPSA™ patents
with five of those patents issued outside the United States,
including coverage in China and Europe. In addition, our pending
PPSA™ patent portfolio includes eight patent filings and contains
applications in additional jurisdictions such as India.
B-TRAN™ Division
- Completed the design, prototype build and qualification testing
of a B-TRAN driver circuit.
- Prototype driver fabrication scheduled for completion in Q3
2018. Drivers to be used in B-TRAN engineering evaluation units for
customer sampling.
- Engineering samples for potential customers and partners remain
on track for delivery in Q4 2018.
- Released domestic semiconductor fabricator for B-TRAN
development runs.
- Two prototype B-TRAN runs in fabrication with die delivery
scheduled for later this year.
- Through a development fabricator, working with a major U.S.
university with excellent semiconductor expertise and facilities
for die prototyping and manufacturing process development.
- Submitted the first of several multi-million dollar proposals
for government funded B-TRAN based demonstrations in collaboration
with multiple application partners.
- B-TRAN™ Patent Estate: Currently have 39 issued B-TRAN™ patents
with 8 of those patents issued outside the United States in China,
Europe and Australia. Our pending B-TRAN™ patent portfolio
includes approximately 40 patent filings and contains applications
in Japan, South Korea and India.
Management Commentary
"The second quarter of 2018 was highlighted by
purchase orders for our SunDial Plus inverters for large scale
deployments in China and Iowa as well as new customer penetration
into the charging market with our 30 kW Stabiliti™ Series power
conversion system,” said Dr. Lon Bell, Chief Executive Officer of
Ideal Power. “Our project win with BCI represents our first large
scale integration into a solar + storage system in the significant
Chinese market. I am happy to report all two-megawatts have been
delivered and the system is expected to be commissioned as early as
September 2018.”
“On the B-TRAN front, we have taken important
steps in the development of our disruptive solid-state switch
technology. Firstly, we qualified a domestic semiconductor
fabricator for development runs of prototype B-TRAN dies and now
have device runs in process at two fabricators. Secondly, we tested
a prototype driver circuit that effectively turns on and off our
B-TRAN solid-state switches. The drivers will be packaged with our
B-TRAN dies to form prototype fully functional B-TRAN power
switches. Finally, we kicked off a plan to deliver engineering
samples to potential customers and partners late this year. In
summary, we continue to see significant commercialization potential
in our proprietary B-TRAN technology and are actively pursuing
government grants to fund B-TRAN development,” continued Bell.
“As we look into the second half of 2018, we are
encouraged by solid backlog for the third quarter, the pending
commissioning of large-scale solar plus storage installation
utilizing our SunDial Plus, increased order activity with current
customers, such as Sharp and Amber Kinetics, and penetration into
new markets like EV charging with customers such as eCAMION and
Coritech,” concluded Bell.
Second Quarter 2018 Financial
Results
- Q2 2018 product revenue totalled $0.6 million versus $0.2
million in Q1 2018 and $0.3 million in Q2 2017.
- Q2 2018 gross margins were positive 5.7% compared to negative
202% in Q2 2017.
- Q2 2018 net loss was $1.7 million compared to Q2 2017 net loss
of $3.2 million.
- Q2 2018 cash used in operating activities was $1.1 million
compared to $1.9 million in Q2 2017.
- Cash and cash equivalents totalled $7.0 million as of June 30,
2018, with no long-term debt outstanding.
“The second quarter of 2018 demonstrated notable
progress across all key metrics as the demand for our Stabiliti and
SunDial products began to accelerate with new and existing
customers,” said Tim Burns, Chief Financial Officer. “On the cash
management side, we experienced our lowest quarterly cash burn rate
since our IPO, utilizing $1.2 million of cash in the quarter, due
to aggressive cost cutting initiatives and the recovery of $0.2
million as the result of legal action against a former customer for
non-payment. We believe that strong cash management and no debt
will provide Ideal Power with a stable financial runway well into
2019,” concluded Burns.
Conference Call Details
Ideal Power Chairman, CEO and President Dr. Lon Bell, CFO Tim
Burns and B-TRAN Chief Commercial Officer Dan Brdar will host the
conference call, followed by a question and answer period.
To access the call, please use the following information:
Date: |
Monday, August 13,
2018 |
Time: |
4:30 p.m. ET, 1:30 p.m.
PT |
Toll-free dial-in
number: |
1-866-575-6539 |
International dial-in
number: |
1-323-994-2082 |
Conference ID: |
6328211 |
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for
replay at http://public.viavid.com/index.php?id=130742 and via
the investor relations section of the Company’s website at
www.IdealPower.com.
A replay of the conference call will be available after 7:30
p.m. Eastern time through September 13, 2018.
Toll-free replay
number: |
1-844-512-2921 |
International replay
number: |
1-412-317-6671 |
Replay ID: |
6328211 |
About Ideal Power Inc.Ideal
Power (NASDAQ: IPWR) is a power conversion technology company that
delivers innovative solutions to system integrators and project
developers enabling distributed energy resources for applications
both on and off the grid. Ideal Power’s products deliver
reliability and compelling return on investment for renewable
energy and storage applications at a competitive cost, backed by
first-rate customer service. With its patented power conversion
technology, Ideal Power supports a broad set of growing markets,
including solar + storage, battery energy storage, electric vehicle
charging and microgrids.
Ideal Power’s patented Bi-directional Bi-polar
Junction Transistor (B-TRAN) semiconductor technology is a unique
double-sided bi-directional AC switch expected to deliver
substantial performance improvements over today's conventional
power semiconductors. B-TRANs offer the potential to improve
efficiency and system economics of a wide variety of power
converter applications including electrified vehicle traction
drives, energy storage applications, photovoltaic (PV) inverters
and wind converters, variable frequency (VFD) motor drives, and AC
and DC power control applications. For more information,
visit www.IdealPower.com.
Safe Harbor StatementAll
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
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, market acceptance of our products in the solar +
storage market, the success of our B-TRAN technology, the success
of our corporate reorganization and management changes, whether the
patents for our technology provide adequate protection and whether
we can be successful in maintaining, enforcing and defending our
patents, the timing and impact of regulatory developments affecting
the markets for our products, our inability to predict with
precision or certainty the pace of development and
commercialization of our advanced technologies, the uncertainty of
whether the demand for energy storage products will grow at a pace
consistent with our expectations, whether our backlog will
translate into revenue in future periods, whether demand for our
products will develop, and whether we can compete successfully with
other manufacturers and suppliers of power conversion products,
both now and in the future, as new products are developed and
marketed, whether our cost reduction efforts will continue to be
successful and other risks and uncertainties set forth in our
quarterly and annual 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. The availability and amount of government incentive programs
affect our customers spending patterns, and adverse changes or
developments in such programs – such as the SGIP in California –
have materially and adversely affected our orders, net sales, gross
profit and net income in the past, and may do so again in the
future. 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 America Chris Tyson
949-491-8235IPWR@mzgroup.us www.mzgroup.us
IDEAL POWER INC.Balance
Sheets
|
|
June 30,2018 |
|
December 31,2017 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
6,980,213 |
|
|
$ |
10,022,247 |
|
Accounts
receivable, net |
|
170,792 |
|
|
221,084 |
|
Inventories, net |
|
239,407 |
|
|
251,363 |
|
Prepayments and other current assets |
|
503,808 |
|
|
283,208 |
|
Total
current assets |
|
7,894,220 |
|
|
10,777,902 |
|
|
|
|
|
|
Property and equipment,
net |
|
513,153 |
|
|
669,571 |
|
Intangible assets,
net |
|
2,096,692 |
|
|
2,082,014 |
|
Other assets |
|
55,420 |
|
|
37,500 |
|
Total
Assets |
|
$ |
10,559,485 |
|
|
$ |
13,566,987 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
517,770 |
|
|
$ |
449,475 |
|
Accrued
expenses |
|
1,149,883 |
|
|
1,081,155 |
|
Total
current liabilities |
|
1,667,653 |
|
|
1,530,630 |
|
|
|
|
|
|
Other long-term
liabilities |
|
462,199 |
|
|
456,234 |
|
Total
liabilities |
|
2,129,852 |
|
|
1,986,864 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
Preferred
stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430
shares issued and outstanding at June 30, 2018 and December 31,
2017, respectively |
|
1,518 |
|
|
1,518 |
|
Common
stock, $0.001 par value; 50,000,000 shares authorized; 14,004,465
shares issued and 14,000,342 shares outstanding at June 30, 2018
and 13,998,465 shares issued and 13,996,121 shares outstanding at
December 31, 2017, respectively |
|
14,004 |
|
|
13,998 |
|
Additional paid-in capital |
|
67,711,659 |
|
|
67,081,359 |
|
Treasury
stock, at cost; 4,123 shares at June 30, 2018 and 2,344 shares at
December 31, 2017 |
|
(9,677 |
) |
|
(7,489 |
) |
Accumulated deficit |
|
(59,287,871 |
) |
|
(55,509,263 |
) |
Total
stockholders’ equity |
|
8,429,633 |
|
|
11,580,123 |
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
10,559,485 |
|
|
$ |
13,566,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER
INC.Statements of
Operations(unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Product revenue |
|
$ |
619,942 |
|
|
$ |
253,370 |
|
|
$ |
801,442 |
|
|
$ |
529,040 |
|
Cost of product
revenue |
|
584,800 |
|
|
764,609 |
|
|
919,763 |
|
|
1,475,539 |
|
Gross
profit (loss) |
|
35,142 |
|
|
(511,239 |
) |
|
(118,321 |
) |
|
(946,499 |
) |
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
905,541 |
|
|
1,108,368 |
|
|
1,663,324 |
|
|
2,298,537 |
|
General
and administrative |
|
817,672 |
|
|
1.170,415 |
|
|
1,709,660 |
|
|
2,076,378 |
|
Sales and
marketing |
|
69,989 |
|
|
427,336 |
|
|
324,232 |
|
|
968,869 |
|
Total
operating expenses |
|
1,793,202 |
|
|
2,706,119 |
|
|
3,697,216 |
|
|
5,343,784 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(1,758,060 |
) |
|
(3,217,358 |
) |
|
(3,815,537 |
) |
|
(6,290,283 |
) |
|
|
|
|
|
|
|
|
|
Interest income,
net |
|
35,614 |
|
|
7,034 |
|
|
36,929 |
|
|
11,575 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,722,446 |
) |
|
$ |
(3,210,324 |
) |
|
$ |
(3,778,608 |
) |
|
$ |
(6,278,708 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share –
basic and fully diluted |
|
$ |
(0.12 |
) |
|
$ |
(0.23 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.50 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding – basic and fully diluted |
|
13,992,791 |
|
|
13,989,282 |
|
|
13,991,961 |
|
|
12,443,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER
INC.Statements of Cash
Flows(unaudited)
|
|
Six Months Ended June 30, |
|
|
2018 |
|
2017 |
Cash flows from
operating activities: |
|
|
|
|
Net
loss |
|
$ |
(3,778,608 |
) |
|
$ |
(6,278,708 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Allowance
for doubtful accounts |
|
(98,337 |
) |
|
273,727 |
|
Write-down of inventory |
|
5,458 |
|
|
712,083 |
|
Depreciation and amortization |
|
216,920 |
|
|
224,926 |
|
Write-off
of capitalized patents |
|
15,478 |
|
|
202,343 |
|
Write-off
of fixed assets |
|
7,055 |
|
|
15,036 |
|
Stock-based compensation |
|
630,306 |
|
|
498,006 |
|
Decrease
(increase) in operating assets: |
|
|
|
|
Accounts
receivable |
|
148,629 |
|
|
(100,715 |
) |
Inventories |
|
6,498 |
|
|
166,529 |
|
Prepayments and other current assets |
|
(238,520 |
) |
|
77,981 |
|
Increase
(decrease) in operating liabilities: |
|
|
|
|
Accounts
payable |
|
68,295 |
|
|
(133,783 |
) |
Accrued
expenses |
|
74,693 |
|
|
(5,627 |
) |
Net cash
used in operating activities |
|
(2,942,133 |
) |
|
(4,348,202 |
) |
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchase
of property and equipment |
|
(18,525 |
) |
|
(18,146 |
) |
Acquisition of intangible assets |
|
(79,188 |
) |
|
(171,134 |
) |
Net cash
used in investing activities |
|
(97,713 |
) |
|
(189,280 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net
proceeds from issuance of stock |
|
- |
|
|
13,657,331 |
|
Payment
of taxes related to restricted stock vesting |
|
(2,188 |
) |
|
- |
|
Exercise
of options and warrants |
|
- |
|
|
11,143 |
|
Net cash
provided by financing activities |
|
(2,188 |
) |
|
13,668,474 |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
(3,042,034 |
) |
|
9,130,992 |
|
Cash and cash
equivalents at beginning of period |
|
10,022,247 |
|
|
4,204,916 |
|
Cash and cash
equivalents at end of period |
|
$ |
6,980,213 |
|
|
$ |
13,335,908 |
|
Ideal Power (NASDAQ:IPWR)
Historical Stock Chart
From Apr 2024 to May 2024
Ideal Power (NASDAQ:IPWR)
Historical Stock Chart
From May 2023 to May 2024