Ideal Power Inc. Q4 FY2024 earnings call

• Secured first design win for solid-state circuit breakers with an Asia-based industrial/utility circuit protection equipment manufacturer, with prototypes ahead of schedule. • Secured order for SimCool IQ intelligent power modules from a circuit protection/power conversion solutions company for multiple end markets. • Secured orders from a global tier-one automotive supplier for B-TRAN devices, SimCool power module, etc. • Completed program review with Stellantis, leading to potential additional program for B-TRAN-enabled EV contactors. • Commenced third-party automotive qualification and reliability testing with positive results. • Outlined 2025 milestones including securing Stellantis programs, completing first design win deliverables, capturing design wins, starting sales ramp, increasing current ratings, and completing automotive qualification. • Discussed distributors and their role in expanding sales pipeline. • Mentioned innovation like smaller die and expanding B-TRAN patent estate.

No specific financial performance details for product segments in absolute terms and revenue contribution % provided in a structured way. However, mention of target industrial markets like solid-state switchgear with a $1 billion serviceable addressable market, and SimCool Power Module for that market. Also, SimCool IQ intelligent power modules open a $1.4 billion serviceable addressable market for energy and power applications.

• Fourth quarter 2024 cash burn was $2.6 million, low end of guidance. Full-year 2024 cash burn $8.2 million, low end of guidance. • Expect first-quarter 2025 cash burn $2.2 million to $2.4 million, full-year 2025 cash burn over $10 million due to hiring. • Revenue modest in Q4 2024, expect revenue ramp in second half of 2025. • Operating expenses expected to increase modestly due to hiring and development efforts.

• Forward-looking statements subject to risks and uncertainties causing actual results to differ. • Automotive qualification testing is a long process with potential for failures, though automotive standards allow some. • Adoption of new technologies by industrial customers can be conservative. • Changes in government policy in the US could potentially impact adoption of EVs and renewable energy, though global market will continue.

Q: Jesse Sabolson asked about revenue from SSCB customer in first year of sales and sales cycle length.

A: Tim Burns said it's from initial sales for first twelve months of product launch, design cycles vary with industrial closer to a year and faster than automotive.

Q: Jesse Sabolson asked about additional SSTB customers in evaluation and design wins in 2025.

A: Dan Brdar said targeting more in queue for 2025, Tim Burns said over a half dozen large companies evaluating, design cycles can be quick.

Q: Jeff Christensen asked about additional color on program review and EV contactors with Stellantis.

A: Dan Brdar said working with Stellantis had multi-group decision-making, response to EV contactor work was impressive as previous solution wasn't working.

Q: Jeff Christensen asked about how complementary technology is with DesignWin customer's products.

A: Dan Brdar said customer had silicon carbide solution not hitting metrics, B-TRAN provides better alternative.

Q: Jeff Christensen asked about size of first design win circuit breaker and market.

A: Dan Brdar said it's industrial-sized, handles several dozen amps, low losses mean little thermal management, fits in hand.

Q: Jeff Christensen asked about solid-state circuit breaker design win sales and fit.

A: Dan Brdar said not constrained, can leverage work with other companies, different ratings possible.

Q: Jeff Christensen asked about additional design wins from OEMs or distributors.

A: Tim Burns said mix, distributors introduce to large companies for funnel.

Q: Jeff Christensen asked about Stellantis and tier-one suppliers.

A: Dan Brdar said Europe had different view, will use couple of tier ones, already working with for other things.

Q: Jeff Christensen asked about expanding industrial and automotive pipeline.

A: Tim Burns said multi-pronged approach with board connections, existing team, and distributors.

Q: Jeff Christensen asked about contactors in automotive and revenue per vehicle.

A: Tim Burns said typically 5-8 per EV, content ~$200-300 per vehicle.

Q: Jeff Christensen asked about third-party automotive qualification and reliability test.

A: Dan Brdar said automotive standards allow some failures, specify performance change, failures should be packaging-related.

Q: Jeff Christensen asked about design wins for hybrid autos.

A: Dan Brdar said hybrids have same issues, OEMs focused on full EVs now, but will likely get into hybrid opportunities as progress continues.