Ideal Power Inc. Q1 FY2025 earnings call

• Completed solid-state circuit breaker prototypes 3 months ahead of schedule, with customer initial testing completed and ongoing collaboration. - Potential new EV contactor program with Stellantis advanced, with internal approval secured. - Secured order from a Forbes Global 500 power management market leader for solid-state circuit breakers. - Sekorm secured order for discrete B-TRAN devices, etc., from new customer focused on solid-state circuit breaker applications. - Shipped solid-state circuit breaker evaluation boards to potential design win customers. - Secured sales representative partnership with Quest Semi to expand reach in Europe and Asia. - Growing awareness and interest in B-TRAN technology for solid-state circuit protection and EV contactors. - First engineering run of next generation B-TRAN die successfully completed, with multiple engineering runs in fabrication. - Currently has 94 issued B-TRAN patents with 45 outside the US, and 70 pending patents.

First quarter 2025 cash burn was $2.1 million, up from $2 million in Q1 2024 and down from $2.6 million in Q4 2024. Revenue was modest in Q1, with modest volume expected in Q2 2025 commercial revenue and revenue ramp starting in the second half of 2025. Operating expenses in Q1 2025 were $2.8 million, up from $2.5 million in Q1 2024. Net loss in Q1 2025 was $2.7 million, up from $2.5 million in Q1 2024.

• Expect initial revenue ramp starting in the second half of 2025. - Second quarter 2025 cash burn expected to be approximately $2.5 million to $2.7 million. - Full year 2025 cash burn over $10 million, primarily due to 2024 and planned 2025 hiring. - Modest volume in commercial revenue expected in Q2 2025, with revenue ramp starting in the second half of 2025.

• Uncertainty related to recently enacted tariffs and shifting trade policies, though minimal impact currently. - Supply chain risks, needing geographical diversification to mitigate cost and revenue impacts of tariffs and future supply chain disruptions.

Q: Can you talk a little bit about the Sekorm order? When will shipments occur and when will revenues occur?

A: That order, we just started shipping, it's partially fulfilled right now. It's a good opportunity for us obviously in the market. It's another one of these transactions that could result in a design win here later on in the year. So we're getting real good traction from our distribution partners and it's really on the demand creation side in terms of introducing us to new customers that want to evaluate our technology. While they are involved in order taking, for some, it's just really the introduction and we kind of run with it from there. So it really does create a lot of opportunities for us.

Q: What does the PO process at Stellantis mean in terms of time?

A: Stellantis, because they've come together as a result of all these acquisitions and mergers. They are a big company with a lot of bureaucracy, but what they've emphasized to us repeatedly is because they already had a program underway and are kind of having to shift directions, this is a high priority program for them. So I think we're going to see this in a relatively short-time period compared to what things normally happen in Stellantis. It will probably take several weeks to get through that process, but it's not something that we're going to be looking at a couple of quarters from now still waiting for. We think it's going to be in the Stellantis timeline relatively near term.