- Completed UL 1741 Supplement A (SA) testing of our next generation SunDial™ and Stabiliti™ series power conversion systems (PCS).
- Signed a master purchase agreement with NEXTracker for our solar + storage products, utilizing the Company's SunDial™ series PV string inverter and Stabiliti™ PCS for commercial, industrial and utility sites throughout North America.
- Shipped initial units to NEXTracker and its battery partner for NX Fusion Plus development and system integration.
- Received a purchase order for, and shipped, 35 units of our Stabiliti™ 30 kilowatt (kW) PCS to Sharp Electronics Corporation for a solar + storage integration project in a California school district.
- Partnered with W Energies Solar One to deploy a grid-resilient commercial solar + storage microgrid system in Texas.
- Strengthened patent estate: currently have 72 issued patents, including 31 issued patents for B-TRAN™ with a similar number of patent applications pending.
Third Quarter 2017 Financial Results
- Q3 2017 product revenue remained unchanged at $0.4 million versus Q3 2016.
- Q3 2017 gross margins were 6% compared to negative 68% gross margins in Q3 2016.
- Q3 2017 net loss was $2.2 million compared to $2.9 million in Q3 2016, with the decrease primarily attributable to reduced operating expenses as a result of ongoing cost reduction activities and excess and obsolete inventory charges in Q3 2016 for our discontinued IBC-30 battery converter.
- Q3 2017 cash used in operating and investing activities was $1.7 million compared to $2.0 million in Q2 2017 and $2.7 million in Q3 2016.
- Cash and cash equivalents totaled $11.7 million as of September 30, 2017, with no long-term debt outstanding.
|To access the call, please use the following information:|
|Date:||Thursday, November 9, 2017|
|Time:||4:30 p.m. ET, 1:30 p.m. PT|
|Toll-free dial-in number:||1-888-438-5519|
|International dial-in number:||1-719-325-4778|
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=126703 and via the investor relations section of the Company's website at www.IdealPower.com.A replay of the conference call will be available after 7:30 p.m. Eastern time through December 9, 2017.
|Toll-free replay number:||1-844-512-2921|
|International replay number:||1-412-317-6671|
|IDEAL POWER INC.|
|September 30, 2017||December 31, 2016|
|Cash and cash equivalents||$||11,681,887||$||4,204,916|
|Accounts receivable, net||387,081||378,658|
|Prepayments and other current assets||171,147||312,593|
|Total current assets||12,567,576||6,141,314|
|Property and equipment, net||647,657||936,486|
|Intangible assets, net||2,059,645||1,905,556|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Total current liabilities||1,537,598||1,495,896|
|Other long-term liabilities||493,088||265,418|
|Commitments and contingencies (see Note 8)|
|Preferred stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430 shares issued and outstanding at September 30, 2017||1,518||—|
|Common stock, $0.001 par value; 50,000,000 shares authorized; 13,998,465 shares issued and 13,996,121 shares outstanding at September 30, 2017 and 9,560,896 shares issued and 9,559,213 shares outstanding at December 31, 2016, respectively||13,998||9,561|
|Additional paid-in capital||66,806,637||52,310,481|
|Treasury stock, at cost; 2,344 shares at September 30, 2017 and 1,683 shares at December 31, 2016, respectively||(7,489||)||(5,915||)|
|Total stockholders' equity||13,244,192||7,239,962|
|Total Liabilities and Stockholders' Equity||$||15,274,878||$||9,001,276|
|IDEAL POWER INC.|
|Statements of Operations|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Cost of product revenue||418,529||737,937||1,894,068||1,531,628|
|Gross profit (loss)||26,111||(298,667||)||(920,388||)||(273,598||)|
|Research and development||1,075,849||1,231,024||3,374,386||3,914,188|
|General and administrative||899,882||907,335||2,976,260||2,709,325|
|Sales and marketing||271,844||496,794||1,240,713||1,321,757|
|Total operating expenses||2,247,575||2,635,153||7,591,359||7,945,270|
|Loss from operations||(2,221,464||)||(2,933,820||)||(8,511,747||)||(8,218,868||)|
|Interest income, net||3,865||11,554||15,440||26,778|
|Net loss per share - basic and fully diluted||$||(0.16||)||$||(0.31||)||$||(0.66||)||$||(0.86||)|
|Weighted average number of shares outstanding - basic and fully diluted||13,990,202||9,549,011||12,964,452||9,547,580|
|IDEAL POWER INC.|
|Statements of Cash Flows|
|Nine Months Ended September 30,|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Allowance for doubtful accounts||226,557||85,375|
|Write-down of inventory||703,220||73,521|
|Depreciation and amortization||339,493||290,474|
|Write-off of capitalized patents||268,789||71,109|
|Write-off of fixed assets||53,445||6,215|
|Decrease (increase) in operating assets:|
|Prepayments and other current assets||159,366||147,061|
|Increase (decrease) in operating liabilities:|
|Net cash used in operating activities||(5,924,245||)||(7,616,314||)|
|Cash flows from investing activities:|
|Purchase of property and equipment||(44,819||)||(328,930||)|
|Acquisition of intangible assets||(220,865||)||(299,140||)|
|Net cash used in investing activities||(265,684||)||(628,070||)|
|Cash flows from financing activities:|
|Net proceeds from issuance of stock||13,657,331||—|
|Exercise of options and warrants||11,143||35,536|
|Payment of taxes related to restricted stock vesting||(1,574||)||—|
|Net cash provided by financing activities||13,666,900||35,536|
|Net increase (decrease) in cash and cash equivalents||7,476,971||(8,208,848||)|
|Cash and cash equivalents at beginning of period||4,204,916||15,022,286|
|Cash and cash equivalents at end of period||$||11,681,887||$||6,813,438|