- Completed successful proof of concept testing of Bi-directional bi-polar junction TRANsistor (B-TRAN™) prototypes with test results supporting third-party simulations.
- Signed a master purchase agreement with NEXTracker for solar + storage products utilizing the company's SunDial™ series PV string inverter and Stabiliti™ power conversion systems (PCS) for commercial, industrial and utility sites throughout North America.
- Shipped initial units to NEXTracker and its battery partner for NEXTracker's NX Flow (previously named NX Fusion Plus) development and system integration.
- Signed a master purchase agreement with Bosch, a leading global technology and services provider, to provide Stabiliti™ power conversion systems for Bosch's high-efficiency building solutions.
- Delivered 35 units of Stabiliti™ PCS to Sharp Electronics Corporation for a solar + storage integration project in a California school district.
- Completed 750-Kilowatt purchase order with JLM Energy for Ideal Power's Stabiliti™ Series products.
- Introduced and received both UL 1741 and UL 1741 Supplement A (SA) certification of our next generation SunDial™ and Stabiliti™ series PCS.
- Shipped multiple units for microgrid applications including projects with W Energies Solar One in Texas, Azimuth Energy in New York and Civic Solar in Saint Croix, U.S. Virgin Islands.
- Solar Power World named Ideal Power's 30-kW Stabiliti™ series as one of 2017's Top Solar Inverter Products.
- Completed a $15 million private placement in March with institutional and accredited investors. All members of senior management and the Board of Directors participated in the private placement.
- Strengthened patent estate: currently have 78 issued patents, including 35 issued patents for B-TRAN™ with over 60 patent applications pending.
"2017 was a year of transition for us as we shifted our focus from the slow-to-transact commercial and industrial standalone storage market, particularly for smaller systems, to the solar + storage and, to a lesser extent, microgrids markets. We look forward to NEXTracker closing on initial projects for its NX Flow incorporating our PCS and have started to see positive indications from other integration partners such as JLM, Sharp and now Bosch."As we kickoff 2018 we are excited about the opportunity for our B-TRAN technology, a technology that has broad applicability to the power semiconductor market. With the recent completion of successful proof of concept testing of our B-TRAN™, we are looking forward to incorporating planned corrections and improvements in the B-TRAN™ manufacturing process followed by the fabrication of prototype engineering samples for potential customers and partners," concluded Brdar. Fourth Quarter and Full Year 2017 Financial Results
- 2017 product revenue decreased 26% to $1.2 million compared to 2016 product revenue of $1.6 million.
- Q4 2017 product revenue totalled $0.2 million versus $0.4 million in Q4 2016.
- 2017 gross margins were negative 85% compared to negative 19% in 2016 and Q4 2017 gross margins were negative 46% compared to negative 10% gross margins in Q4 2016. Gross margins were negatively impacted by asset impairments and warranty reserve adjustments related to our discontinued first generation 30kW and 125kW products.
- 2017 net loss was $10.3 million compared to $11.0 million in 2016.
- Q4 2017 net loss was $1.8 million compared to Q4 2016 net loss of $2.8 million.
- 2017 cash used in operating and investing activities was $7.8 million compared to $10.8 million in 2016.
- Q4 2017 cash used in operating and investing activities was $1.7 million compared to $2.6 million in Q4 2016.
- Cash and cash equivalents totalled $10.0 million as of December 31, 2017, with no long-term debt outstanding.
Conference Call DetailsIdeal Power CEO Dan Brdar and CFO Tim Burns will host the conference call, followed by a question and answer period. To access the call, please use the following information:
|Date:||Tuesday, March 6, 2018|
|Time:||4:30 p.m. ET, 1:30 p.m. PT|
|Toll-free dial-in number:||1- 800-281-7973|
|International dial-in number:||1-323-794-2093|
|Toll-free replay number:||1-844-512-2921|
|International replay number:||1-412-317-6671|
|IDEAL POWER INC. Balance Sheets|
|Cash and cash equivalents||$||10,022,247||$||4,204,916|
|Accounts receivable, net||221,084||378,658|
|Prepayments and other current assets||283,208||312,593|
|Total current assets||10,777,902||6,141,314|
|Property and equipment, net||669,571||936,486|
|Intangible assets, net||2,082,014||1,905,556|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Total current liabilities||1,430,630||1,495,896|
|Preferred stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430 shares issued and outstanding at December 31, 2017||1,518||--|
|Common stock, $0.001 par value; 50,000,000 shares authorized; 13,998,465 shares issued and 13,996,121 shares outstanding at December 31, 2017 and 9,560,896 shares issued and 9,559,213 shares outstanding at December 31, 2016, respectively||13,998||9,561|
|Additional paid-in capital||67,081,359||52,310,481|
|Treasury stock, at cost; 2,344 shares at December 31, 2017 and 1,683 shares at December 31, 2016, respectively||(7,489||)||(5,915||)|
|Total stockholders' equity||11,680,123||7,239,962|
|Total liabilities and stockholders' equity||$||13,566,987||$||9,001,276|
|IDEAL POWER INC. Statements of Operations|
|For the Quarter Ended December 31,||For the Year Ended December 31,|
|Cost of product revenues||347,614||408,084||2,241,682||1,939,712|
|Gross profit (loss)||(109,024||)||(37,374||)||(1,029,412||)||(310,972||)|
|Research and development||810,519||1,310,804||4,184,905||5,224,992|
|General and administrative||713,592||1,034,615||3,389,852||3,743,940|
|Sales and marketing||207,804||415,476||1,448,517||1,737,233|
|Total operating expenses||1,731,915||2,760,895||9,323,274||10,706,165|
|Loss from operations||(1,840,939||)||(2,798,269||)||(10,352,686||)||(11,017,137||)|
|Net loss per share - basic and fully diluted||$||(0.13||)||$||(0.29||)||$||(0.78||)||$||(1.15||)|
|Weighted average number of shares outstanding - basic and fully diluted||13,991,102||9,551,106||13,223,229||9,548,381|
|IDEAL POWER INC. Statements of Cash Flows|
|For the Year Ended December 31,|
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Allowance for doubtful accounts||192,693||85,375|
|Write-down of inventory||760,785||72,823|
|Depreciation and amortization||451,547||406,639|
|Write-off of fixed assets||54,261||47,560|
|Write-off of capitalized patents||279,982||116,969|
|Decrease (increase) in operating assets:|
|Prepaid expenses and other assets||9,805||(16,238||)|
|Increase (decrease) in operating liabilities:|
|Net cash used in operating activities||(7,415,539||)||(10,098,653||)|
|Cash flows from investing activities:|
|Purchase of property and equipment||(155,613||)||(391,088||)|
|Acquisition of intangible assets||(278,417||)||(359,904||)|
|Net cash used in investing activities||(434,030||)||(750,992||)|
|Cash flows from financing activities:|
|Net proceeds from issuance of common stock||13,657,331||—|
|Exercise of options and warrants||11,143||35,533|
|Payment of taxes related to restricted stock vesting||(1,574||)||(3,258||)|
|Net cash provided by financing activities||13,666,900||32,275|
|Net increase (decrease) in cash and cash equivalents||5,817,331||(10,817,370||)|
|Cash and cash equivalents at beginning of year||4,204,916||15,022,286|
|Cash and cash equivalents at end of year||$||10,022,247||$||4,204,916|