Ideal Power Reports Fourth Quarter and Full Year 2019 Financial Results
12 March 2020 - 7:05AM
Ideal Power Inc. (Nasdaq: IPWR), pioneering the development
and commercialization of highly efficient and broadly patented
B-TRAN™ bi-directional power switches, reported results for its
fourth quarter and full year ended December 31, 2019.
Full Year 2019 Operational
Highlights:
- Shifted to commercialization of our
patented B-TRANTM technology for the global insulated-gate bipolar
transistor market projected to be $7.4 billion by 2022.
- Completed testing of proof of
concept double-sided B-TRAN™ dies.
-
- Demonstrated bi-directional
operation with symmetrical performance in both directions;
- Measured forward voltage drop of
0.2V, consistent with our simulations. This value is substantially
lower than the corresponding junction voltage drop of approximately
1.75V for an IGBT switch; and
- Measured breakdown voltages of up
to 1200V, a characteristic required for commercial, industrial and
military applications such as data centers, battery storage,
renewable energy and traction drives.
- Design basis and test results of
initial B-TRAN™ devices meet the criteria for the engineering
prototype sampling program.
- Sold our Power Conversion Systems business and Power Packet
Switching Architecture (PPSA™) technology to CE+T Energy Solutions
for a combination of cash, CE+T Energy Solutions equity and the
assumption of certain liabilities.
- Strengthened balance sheet through the completion of a $3.5
million private placement.
Subsequent Operational
Highlights:
- Completed our second B-TRAN™ run with our international
semiconductor fabricator.
- Packaged double sided B-TRAN™ dies that are currently
undergoing testing in our laboratory to generate switching data and
evaluate the preliminary package design and build quality.
-
- Testing results to date are
consistent with our simulations, earlier unpackaged die testing and
the requirements of our engineering prototype sampling
program.
- Completed our first B-TRAN™ run with our new domestic
semiconductor fabricator.
- Initial samples will be discrete packaged devices for testing.
The primary target is an application where B-TRAN™ can be an
enabling technology and we have partnered with a third party to
pursue a technology demonstration project in the second or third
quarter of 2020.
- B-TRAN™ Patent Estate: Currently have 51 issued B-TRAN™ patents
with 15 of those issued outside of North America and 34 pending
B-TRAN™ patents. Our current geographic coverage now includes North
America, China, Japan and Europe with potential to expand coverage
into Korea and India.
Management Commentary
“2019 was a transformative year for Ideal Power,
as we shifted our focus to the development of the proprietary
B-TRAN™ power switch technology,” said Dr. Lon Bell, Chief
Executive Officer of Ideal Power. “The divestiture of our legacy
power conversion systems business has provided us with both a
singular focus and a reduced cash burn which, when paired with our
recent $3.5 million private placement, fortifies our balance sheet
for 2020.
“We believe that our technology is
transformational in both its bi-directionality and its ability to
reduce switching and conduction losses, problems which hold back
many current and potential applications. 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 potential customers for evaluation, I am more optimistic about
the future of Ideal Power than at any prior time in our history. We
have significant potential for momentum to quickly build as we
enter Phase Three of our commercialization plan, which begins with
third party validation of our B-TRAN™ technology,” concluded
Bell.
Fourth Quarter & Full Year 2019
Financial Results
- The company had no revenues from
continuing operations in the fourth quarter or full year 2019.
- Fourth quarter of 2019 operating
expenses were $0.8 million compared to $1.0 million in the fourth
quarter of 2018. FY 2019 operating expenses were $3.1 million
compared to $4.3 million in FY 2018. The decrease in operating
expense was due to lower general and administrative expenses,
partly attributable to our cost reduction activities.
- Fourth quarter of 2019 net loss was
$0.8 million compared to $1.9 million in the fourth quarter of
2018. FY 2019 net loss was $3.9 million, compared to $7.9 million
in FY 2018. The decrease in net loss was primarily due to a
significantly lower loss from discontinued operations as well as
lower operating expenses.
- Fourth quarter of 2019 cash used in
operating activities for continuing operations was $0.7 million
compared to $1.6 million in the fourth quarter of 2018. FY 2019
cash used in operating activities for continuing operations was
$2.6 million compared to $3.8 million in FY 2018.
- Cash and cash equivalents totaled
$3.1 million as of December 31, 2019, with no long-term debt
outstanding.
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: |
Wednesday, March 11, 2020 |
Time: |
4:30 p.m. EST, 1:30 p.m. PST |
Toll-free dial-in number: |
1-888-204-4368 |
International dial-in
number: |
1-323-994-2093 |
Conference ID: |
9982221 |
Please call the conference telephone number 5 to
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=138342 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 April 11, 2020.
Toll Free Replay Number: |
1-844-512-2921 |
International Replay
Number: |
1-412-317-6671 |
Replay ID: |
9982221 |
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 success of our B-TRAN™
technology, whether the patents for our technology provide adequate
protection and whether we can be successful in maintaining,
enforcing and defending our patents, our inability to predict with
precision or certainty the pace of development and
commercialization of our B-TRAN™ technology, our ability to start
our technology demonstration in the second or third quarter of
2020, our ability to maintain our reduced cash burn 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 America Chris
Tyson 949-491-8235 IPWR@mzgroup.us www.mzgroup.us
IDEAL POWER INC. Balance
Sheets
|
December 31, |
|
|
2019 |
|
|
2018 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
3,057,682 |
|
|
$ |
3,258,077 |
|
Prepayments and other current assets |
|
248,148 |
|
|
|
333,877 |
|
Current assets of discontinued operations held for sale |
|
- |
|
|
|
1,096,323 |
|
Total current assets |
|
3,305,830 |
|
|
|
4,688,277 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
47,302 |
|
|
|
63,214 |
|
Intangible assets, net |
|
1,634,378 |
|
|
|
1,396,409 |
|
Right of use asset |
|
260,310 |
|
|
|
- |
|
Other assets |
|
17,920 |
|
|
|
17,920 |
|
Total assets |
$ |
5,265,740 |
|
|
$ |
6,165,820 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
182,956 |
|
|
$ |
94,203 |
|
Accrued expenses |
|
319,135 |
|
|
|
167,755 |
|
Current portion of lease liability |
|
183,119 |
|
|
|
- |
|
Current liabilities of discontinued operations held for sale |
|
- |
|
|
|
877,755 |
|
Total current liabilities |
|
685,210 |
|
|
|
1,139,713 |
|
|
|
|
|
|
|
|
|
Long-term lease liability |
|
82,055 |
|
|
|
- |
|
Other long-term
liabilities |
|
609,242 |
|
|
|
428,163 |
|
Total liabilities |
|
1,376,507 |
|
|
|
1,567,876 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0
shares issued and outstanding at December 31, 2019; 1,518,430
shares issued and outstanding at December 31, 2018 |
|
- |
|
|
|
1,518 |
|
Common stock, $0.001 par value; 50,000,000 shares authorized;
2,101,272 shares issued and 2,099,951 shares outstanding at
December 31, 2019; 1,404,479 shares issued and 1,403,158 shares
outstanding at December 31, 2018 |
|
2,101 |
|
|
|
1,404 |
|
Additional paid-in capital |
|
71,242,256 |
|
|
|
68,022,484 |
|
Treasury stock, at cost; 1,321 shares at December 31, 2019 and
2018, respectively |
|
(13,210 |
) |
|
|
(13,210 |
) |
Accumulated deficit |
|
(67,341,914 |
) |
|
|
(63,414,252 |
) |
Total stockholders’ equity |
|
3,889,233 |
|
|
|
4,597,944 |
|
Total liabilities and stockholders’ equity |
$ |
5,265,740 |
|
|
$ |
6,165,820 |
|
|
|
|
|
|
|
|
|
IDEAL POWER INC.
Statements of Operations
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Product revenue |
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
Cost of product revenue |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Gross profit |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
245,410 |
|
|
|
128,247 |
|
|
|
1,050,151 |
|
|
|
871,742 |
|
General and administrative |
|
544,787 |
|
|
|
842,708 |
|
|
|
2,065,112 |
|
|
|
3,439,882 |
|
Total operating expenses |
|
790,197 |
|
|
|
970,955 |
|
|
|
3,115,263 |
|
|
|
4,311,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before interest |
|
(790,197 |
) |
|
|
(970,955 |
) |
|
|
(3,115,263 |
) |
|
|
(4,311,624 |
) |
Interest (income) expense,
net |
|
1,195 |
|
|
|
(3,204 |
) |
|
|
4,267 |
|
|
|
(40,021 |
) |
Loss from continuing
operations |
|
(791,392 |
) |
|
|
(967,751 |
) |
|
|
(3,119,530 |
) |
|
|
(4,271,603 |
) |
Loss from discontinued
operations |
|
(30,978 |
) |
|
|
(908,707 |
) |
|
|
(799,025 |
) |
|
|
(3,633,386 |
) |
Loss on sale of discontinued
operations |
|
– |
|
|
|
– |
|
|
|
(9,107 |
) |
|
|
- |
|
Net loss |
$ |
(822,370 |
) |
|
$ |
(1,876,458 |
) |
|
$ |
(3,927,662 |
) |
|
$ |
(7,904,989 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations per share – basic and fully diluted |
$ |
(0.36 |
) |
|
$ |
(0.69 |
) |
|
$ |
(1.89 |
) |
|
$ |
(3.05 |
) |
Loss from discontinued
operations per share – basic and fully diluted |
|
(0.01 |
) |
|
|
(0.65 |
) |
|
|
(0.49 |
) |
|
|
(2.59 |
) |
Net loss per share – basic and
fully diluted |
$ |
(0.37 |
) |
|
$ |
(1.34 |
) |
|
$ |
(2.38 |
) |
|
$ |
(5.64 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares outstanding – basic and fully diluted |
|
2,228,152 |
|
|
|
1,402,655 |
|
|
|
1,653,996 |
|
|
|
1,401,462 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC. Statements of Cash
Flows
|
For the Year Ended December 31, |
|
|
2019 |
|
|
2018 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
Loss from continuing operations |
$ |
(3,119,530 |
) |
|
$ |
(4,271,603 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
110,463 |
|
|
|
137,509 |
|
Write-off of capitalized patents |
|
14,707 |
|
|
|
56,504 |
|
Stock-based compensation |
|
184,339 |
|
|
|
730,802 |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
Prepaid expenses and other assets |
|
85,729 |
|
|
|
(58,349 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
88,753 |
|
|
|
(118,621 |
) |
Accrued expenses |
|
73,978 |
|
|
|
(308,501 |
) |
Net cash used in operating activities |
|
(2,561,561 |
) |
|
|
(3,832,259 |
) |
Net cash used in operating activities – discontinued
operations |
|
(657,096 |
) |
|
|
(2,713,957 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(4,253 |
) |
|
|
(1,088 |
) |
Acquisition of intangible assets |
|
(99,845 |
) |
|
|
(133,061 |
) |
Net cash used in investing activities |
|
(104,098 |
) |
|
|
(134,149 |
) |
Net cash provided by (used in) investing activities – discontinued
operations |
|
23,587 |
|
|
|
(78,084 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Net proceeds from issuance of common stock and pre-funded
warrants |
|
3,098,773 |
|
|
|
— |
|
Payment of taxes related to restricted stock vesting |
|
— |
|
|
|
(5,721 |
) |
Net cash provided by (used in) financing activities |
|
3,098,773 |
|
|
|
(5,721 |
) |
Net increase (decrease) in
cash and cash equivalents – continuing operations |
|
433,114 |
|
|
|
(3,972,129 |
) |
Net decrease in cash and cash
equivalents – discontinued operations |
|
(633,509 |
) |
|
|
(2,792,041 |
) |
Cash and cash equivalents at
beginning of year |
|
3,258,077 |
|
|
|
10,022,247 |
|
Cash and cash equivalents at
end of year |
$ |
3,057,682 |
|
|
$ |
3,258,077 |
|
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