Ideal Power Inc. Q2 FY2025 earnings call

• Shipped updated solid-state circuit breaker prototypes to first design win customer, with customer completing prototype testing and preparing for product launch later this year. • Entered collaboration with fourth global Tier 1 automotive supplier, with plans to launch solid-state EV contactor program. • Distributor introduced products to fourth global automaker and fifth automotive OEM, now collaborating with 5 automakers including 4 top 10 global automakers. • Stellantis issued purchase order for custom development and package devices targeting multiple EV applications. • Added partnership with Kaimei Electronic Corp. to distribute products in Asia. • Shipped solid-state circuit breaker reference designs to several large companies evaluating technology for solid-state circuit breakers or EV contactors. • Successfully completed third-party automotive prequalification and reliability testing of B-TRAN devices with 0 failures, expecting full automotive qualification later this year. • Growing interest in B-TRAN for data center solid-state switchgear (circuit breakers, transfer switches) due to ultra-low conduction losses and less waste heat. • Excitement about B-TRAN in EVs, including EV contactors, with Stellantis order targeting multiple EV applications. • Planning to add sales director and field applications engineer for Asia due to increased customer engagement. • B-TRAN patent estate continues to grow with 96 issued patents and 74 pending.

No specific financial performance data by product segments provided in the transcript.

• Q2 2025 cash burn was $2.5 million, within guidance of $2.5M to $2.7M. • Q3 2025 cash burn expected to be $2.7M to $2.9M, full year 2025 cash burn just over $10M. • Anticipate sales ramp with revenue from product development activities, first B-TRAN-enabled breaker launch, and other product sales. • Expect to complete third-party automotive qualification later this year, which would boost confidence in industrial customers. • Confident in delivering milestones for 2025, including Stellantis purchase order, first design win customer product launch, and revenue growth.

• Tariff and trade policy uncertainties, though minimal impact expected currently. • Need to continue educating the engineering community about new B-TRAN technology, as it's new compared to established technologies like silicon carbide. • Dependence on key design wins for cash flow breakeven, and pace of adoption influencing timeline.

Q: How to think about Stellantis opportunity?

A: Stellantis wants commonality across brands and EV platform, with exposure in multiple brands, though some higher-end brands may use silicon carbide.

Q: Challenges to closing sales?

A: Education process for new technology, getting engineers comfortable with B-TRAN.

Q: Automotive testing results?

A: Prequalification showed no die failures, passed 50,000 power cycles, and packaging improvements made for high-volume manufacturing.

Q: Cost comparison with IGBT?

A: B-TRAN is a lower cost alternative for bidirectional applications, with significant lifetime cost advantages due to lower losses.