Ideal Power Reports B-TRAN Technology Progress and Financial Results

Ideal Power Inc., 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-TRAN 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.