Ideal Power Inc. Q4 FY2025 earnings call

Jeff Christensen starts the call. David Christensen discusses strategic cooperation with Lazen for VTRAN-enabled products, agreement with Asian power module manufacturer for DETRAN-based modules, progress with Stellantis including deliverables under PO, growth of BTRAN patent estate, and strategic priorities like expanding sales funnel, driving revenue ramp, securing orders with Lazen, completing Stellantis deliverables, and exploring strategic investments.

Fourth quarter 2025 cash burn was $2.2 million, below guidance of $2.5 to $2.7 million. Full year 2025 cash burn was $9.6 million, below guidance of approximately $10 million. No revenue in fourth quarter 2025. Operating expenses in Q4 2025 were $1.9 million vs $2.8 million in Q4 2024. Net loss in Q4 2025 was $1.9 million vs $2.6 million in Q4 2024. Full year 2025 net loss was $10.6 million vs $10.4 million in 2024.

First quarter 2026 cash burn expected to be $2.6 to $2.8 million, full year 2026 cash burn ~$10.5 million due to planned hiring. Financing strengthened balance sheet with no debt. Expect variability in operating expenses due to factors like semiconductor runs and equity grants.

Statements made are forward-looking and subject to risks and uncertainties that could cause actual results to differ materially from those described. Refer to company's FCC filings for associated risks.

Q: About SG&A and 2026 view, A: G&A expected to be relatively flat.

Q: Where Lazen uses product, A: In new builds and products like data centers, renewable energy.

Q: Stellantis milestones control, A: Four remaining deliverables are within control.

Q: NRE revenue in 2026, A: Yes with custom developments.

Q: Earliest revenue drivers, A: Solid-state breakers in data centers, etc.

Q: Expanding sales funnel, A: Adding sales leaders and using distributor network.

Q: Shortening sales cycle, A: Using reference design kits and engineering support.

Q: Lazen manufacturing, A: Likely purchase orders.

Q: Automotive qualification, A: On track to complete by summer.

Q: BTRAN bidirectional advantage, A: Important in bidirectional systems like EVs.

Q: Stellantis and Leap Motor, A: Positive for Ideal Power.

Q: Stellantis model impact, A: Expected across multiple models.

Q: Capital raise milestones, A: Accelerate BTRAN commercialization and hiring.