Expansion of Global Collaborations, New Distributors, and Production Milestones Set the Stage for Future Growth
Ideal Power (IPWR), a leader in the development and commercialization of the innovative B-TRAN bidirectional semiconductor power switch, has reported its financial results for the second quarter ending June 30, 2024. The quarter was marked by significant progress in the company’s commercial roadmap, including the expansion of global collaborations, the achievement of critical production milestones, and steady advancements in the B-TRAN test and evaluation program.
Key Developments and Strategic Collaborations
One of the standout achievements during the quarter was Ideal Power’s collaboration with a third global automaker. This auto Original Equipment Manufacturer (OEM) is evaluating B-TRAN-enabled contactors as a potential replacement for traditional electromechanical contactors in its electric vehicles (EVs). This partnership underscores the growing recognition of B-TRAN technology in the EV sector, which is increasingly seeking more efficient and reliable alternatives to conventional power switch solutions.
Ideal Power also finalized a distribution agreement with a second global distributor, significantly enhancing its reach in the Asian market. This distributor, already placing orders with Ideal Power, brings substantial strength in Asia, a region critical to the company’s expansion strategy. The successful qualification of a second high-volume wafer fabrication supplier in Europe further solidifies Ideal Power’s manufacturing capabilities. With this addition, the company now has dual sourcing for wafer fabrication in different parts of the world, ensuring ample capacity to meet anticipated customer demand over the next several years. Ideal Power’s President & CEO, Dan Brdar said“It was an exciting quarter as we added another global automotive OEM, added a second high-quality distributor for our products, qualified a second high volume wafer fabricator, and saw multiple customers from our test and evaluation program transition to placing initial orders and increased the power rating of our products.”
Another noteworthy development was the securing of orders for B-TRAN devices and circuit breaker evaluation boards from a global leader in power semiconductor and power electronics solutions. This collaboration is part of a multi-year DC power distribution system program and presents multiple opportunities for Ideal Power, particularly in industrial markets such as solid-state circuit breakers (SSCB) for industrial facilities, electric utility grid infrastructure, and renewable energy applications.
Expanding the B-TRAN Test and Evaluation Program
Ideal Power’s B-TRAN test and evaluation program continues to attract major industry players. During the second quarter, the company 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, a previously announced participant in the test and evaluation program, represents a key player in the solar market, where the demand for efficient and reliable power conversion solutions is rapidly increasing.
Additionally, Ideal Power received an order for SymCool power modules and drivers from a Forbes Global 500 power management market leader. This customer is evaluating SymCool against Insulated-Gate Bipolar Transistor (IGBT) modules for use in SSCB applications. The inclusion of such a prominent player in the test and evaluation program highlights the potential of SymCool to compete with established power modules in critical industrial applications.
The company also added a global leader in circuit protection, industrial fuses, and power conversion technology, with over a billion in annual sales, to its roster of test and evaluation program participants. This addition further validates the growing interest in B-TRAN™ technology across a diverse range of industries.
Enhancements to SymCool Power Module
In response to positive testing results, Ideal Power increased the current rating of its SymCool power module from 160A to 200A, marking a 25% improvement. Coupled with a power module size reduction of approximately 50%, this enhancement results in a dramatic increase in power density, positioning SymCool as a highly competitive solution in the market for compact and efficient power modules.
Strengthening Intellectual Property Portfolio
Ideal Power’s intellectual property (IP) portfolio continues to grow, with 87 issued B-TRAN™ patents, including 40 issued outside of the United States, and 45 pending patents. The company’s IP coverage spans North America, China, Japan, South Korea, India, and Europe, with additional pending coverage in Taiwan. This robust patent estate provides Ideal Power with a strong competitive advantage as it continues to commercialize B-TRAN technology on a global scale.
Financial Performance and Outlook
On the financial front, Ideal Power raised $15.7 million in net proceeds from a public offering, with $13.7 million received upon the initial closing in March 2024 and an additional $2.0 million from the exercise of the underwriter’s overallotment option in April 2024. As of June 30, 2024, the company held $20.1 million in cash and cash equivalents, with no long-term debt outstanding.
Operating expenses for the second quarter of 2024 totaled $2.9 million, an increase from $2.4 million in the same period in 2023, driven primarily by higher research and development spending. The net loss for the quarter was $2.7 million, compared to a net loss of $2.3 million in the second quarter of 2023. The increased investment in R&D reflects Ideal Power’s commitment to advancing its technology and expanding its market presence.
2024 Milestones and Future Prospects
Ideal Power has set ambitious milestones for 2024, several of which have already been achieved. The company successfully completed Phase II of its development program with Stellantis, a major milestone in its ongoing collaboration with the global automaker. The qualification of a second high-volume production fab and the addition of distributors for SymCool products are other key achievements that position Ideal Power for continued success.
Looking ahead, Ideal Power aims to secure Phase III of its development program with Stellantis, convert large OEMs in its test and evaluation program to design wins or custom development agreements, and initiate sales of its SymCool IQ intelligent power module. Additionally, the company plans to begin third-party automotive qualification testing, a critical step in advancing B-TRAN technology in the automotive sector.
Ideal Power’s second quarter of 2024 was marked by significant progress in the commercialization of its B-TRAN technology. The company’s strategic partnerships, expanded distribution network, and enhanced production capabilities have set the stage for continued growth and market penetration. As Ideal Power continues to execute on its 2024 milestones, it is well-positioned to capitalize on the growing demand for efficient, reliable, and innovative power solutions across a wide range of industries.
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