Ideal Power Inc. Announces 2013 Results
06 März 2014 - 10:00PM
Marketwired
Ideal Power Inc. Announces 2013 Results
Company Believes It Is Well Positioned for Rapid Growth in
Commercial and Industrial Grid Storage and Other Markets
AUSTIN, TX--(Marketwired - Mar 6, 2014) - Ideal Power Inc.
(NASDAQ: IPWR) ("Ideal Power" or "the Company"), a developer of a
disruptive technology in the power conversion market, today
announced results for the year ended December 31, 2013.
Fiscal 2013 Highlights
- 15 patents were issued by the US Patent and Trademark
Office. Included were 11 additional patents for its
proprietary Power Packet Switching Architecture™ (PPSA) power
converter platform technology which targets several rapidly
growing markets
- Green Charge Networks, Eos Energy Storage, and Powin
Energy selected Ideal Power's battery converters for their
energy storage systems
- NRG Energy selected Ideal Power's battery converters for
its Technology Demonstration Program in California for
electric vehicle (EV) fast-charging infrastructure
- Raised $17.25 million of gross proceeds through an initial
public offering of the Company's common stock
"We made progress on several fronts in 2013. We successfully
completed our IPO, securing the necessary capital to further
advance our technology and to continue to build and strengthen our
intellectual property portfolio. We validated our proprietary PPSA™
technology with several wins from key customers, which we believe
will lay the groundwork for more significant future opportunities,"
stated Dan Brdar, Chairman and CEO of Ideal Power. "We see
tremendous opportunities that we believe will allow us to establish
ourselves as a technology leader in commercial grid storage and EV
fast charging -- two nascent but growing market segments that we
believe represent significant opportunities."
Financial Results
- Total revenues for 2013 were $1.9 million.
- Revenues in 2013 came from ARPA-E and SBIR grants as well as
customers purchasing small quantities of our battery converters as
they progress in their design, testing and roll out of their
systems. Approximately 90% of the costs of certain of our research
and development efforts are covered under our ARPA-E grant.
- Total cash usage for 2013, excluding net cash provided by
financing activities, was $3.5 million and consisted of
approximately $3.2 million in operating cash outflows and
approximately $0.2 million of capital expenses for patents and
fixed assets.
- Interest expense, a non-cash expense for the Company, totaled
$5.5 million in 2013 as a result of the amortization of the fair
value of warrants and beneficial conversion features from pre-IPO
promissory notes as well as the accrual of interest on promissory
notes prior to conversion. All the Company's convertible notes were
converted to common shares immediately following the completion of
our initial public offering.
- Net loss for the year was $9.6 million which included a $4.1
million operating loss and $5.5 million in non-cash interest
expense.
- Cash and cash equivalents were $14.1 million at December 31,
2013 with no debt outstanding.
Outlook
Ideal Power's PPSA technology enables significant improvements
in conventional power converters for grid storage and other
applications. The Company's 30kW battery converter improves the
efficiency, reliability and installed cost of energy storage
systems. Recent independent studies conducted by Sandia Labs and
the Bonneville Power Administration indicate that Ideal Power's
product reduces energy storage system losses by 1/3 in typical
usage, improving the return on investment of these systems.
Ideal Power currently is shipping two commercial products, a
photovoltaic (PV) inverter and a battery converter, both of which
use a common two-port hardware design. The Company has begun
receiving initial commercial orders from system integrators of
commercial Energy Storage Systems (ESS) and anticipates making
customer announcements over the coming months. Initially, the
Company's battery converter product will be installed into
commercial ESS located in California and New York City. The Company
estimates that in these geographic markets commercial building
owners can achieve a payback of approximately three to five years
by installing an ESS when used to reduce demand charges from
electric utilities.
Greentech Media forecasts that 720MW of commercial-scale grid
storage will be installed in the United States by 2020, which is
estimated to be a $2 billion market. The Company believes that its
technology will ideally position it to address this
opportunity.
In development is a three-port design which will be the
foundation for both a hybrid and micro-grid converter, which the
Company believes will open up significant new market opportunities
for Ideal Power. This includes the ability to combine PV inverter
and battery storage functions into a single unit, and separately
supporting off-grid and emergency backup power systems. In
addition, the Company is working closely with the Department of
Energy (ARPA-E), on a bi-directional power switch optimized for
PPSA with the goal of significantly improving critical metrics in
power density, efficiency losses and costs. This work is under a
previously announced $2.5 million ARPA-E award which commenced in
February 2012. If successful, this innovation would enable the
Company to enter large, established markets such as PV power
conversion, with an extremely innovative and cost effective
product.
Conference Call Details
CEO Dan Brdar and CFO Tim Burns will host a conference call with
investors at 4:00 pm ET on March 6, 2014. To access the call,
please use the following information:
Date: Thursday, March 6, 2014 Time: 4:00 pm ET US dial-in:
1-877-941-1428 International: 1-480-629-9665 Passcode: 4671858
Webcast: http://public.viavid.com/index.php?id=108124
A replay of the call will be available from 7:00 pm ET on March
6, 2014 until 11:59 pm ET on March 8, 2014. To listen, dial
1-877-870-5176 within the United States or 1-858-384-5517 if
calling internationally. Please use the replay pin number
4671858.
About Ideal Power Inc.
Ideal Power Inc. (NASDAQ: IPWR) has developed a novel, patented
power conversion technology called Power Packet Switching
Architecture™ (PPSA). PPSA improves the size, cost,
efficiency, flexibility and reliability of electronic power
converters. PPSA can scale across several large and growing
markets, including solar photovoltaic generation, electrified
vehicle charging, and commercial and industrial grid
storage. Ideal Power also has a licensing-based,
capital-efficient business model that can enable it to address
these markets simultaneously. Ideal Power has won multiple grants
for its PPSA technology, including a $2.5 million grant from the
Department of Energy's Advanced Research Projects Agency - Energy
program, and market-leading customers are incorporating PPSA as a
key component of their systems. For more information on Ideal
Power, visit www.IdealPower.com.
Safe Harbor Statement
All statements in this release that are not based on historical
fact are "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
While management has based any forward looking statements included
in this release on its current expectations, the information on
which such expectations were based may change. These forward
looking statements rely on a number of assumptions concerning
future events and are subject to a number of risks, uncertainties
and other factors, many of which are outside of our control, which
could cause actual results to materially differ from such
statements. Such risks, uncertainties, and other factors
include, but are not limited to, whether the patents for our
technology provide adequate protection and whether we can be
successful in maintaining, enforcing and defending our patents,
whether demand for our products, which we believe are disruptive,
will develop and whether we can compete successfully with other
manufacturers and suppliers of energy conversion products, both now
and in the future, as new products are developed and
marketed. Furthermore, we operate in a highly competitive and
rapidly changing environment where new and unanticipated risks may
arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual
results. We disclaim any intention to, and undertake no
obligation to, update or revise forward-looking statements.
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IDEAL POWER INC. |
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BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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December 31, |
|
|
December 31, |
|
|
|
2013 |
|
|
2012 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
14,137,097 |
|
|
$ |
1,972,301 |
|
|
Accounts receivable, net |
|
|
252,406 |
|
|
|
485,674 |
|
|
Inventories, net |
|
|
519,657 |
|
|
|
217,867 |
|
|
Prepayments and other current assets |
|
|
231,495 |
|
|
|
28,468 |
|
|
|
Total current assets |
|
|
15,140,655 |
|
|
|
2,704,310 |
|
Property and equipment, net |
|
|
85,718 |
|
|
|
27,903 |
|
Patents, net |
|
|
608,913 |
|
|
|
474,790 |
|
|
|
|
Total
assets |
|
$ |
15,835,286 |
|
|
$ |
3,207,003 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt, net of debt discount
of $3,828,711 at December 31, 2012 |
|
$ |
- |
|
|
$ |
1,313,146 |
|
|
Accounts payable |
|
|
539,145 |
|
|
|
684,558 |
|
|
Accrued expenses |
|
|
461,193 |
|
|
|
178,003 |
|
|
|
Total current liabilities |
|
|
1,000,338 |
|
|
|
2,175,707 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
- |
|
|
|
1,132,690 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (deficit): |
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 50,000,000 shares
authorized; 6,931,968 and 1,480,262 shares issued and outstanding
at December 31, 2013 and 2012, respectively |
|
|
6,932 |
|
|
|
1,480 |
|
|
Common stock to be issued |
|
|
151,665 |
|
|
|
- |
|
|
Additional paid-in capital |
|
|
31,431,220 |
|
|
|
7,100,297 |
|
|
Treasury stock |
|
|
(2,657 |
) |
|
|
(2,657 |
) |
|
Accumulated deficit |
|
|
(16,752,212 |
) |
|
|
(7,200,514 |
) |
|
|
Total stockholders' equity (deficit) |
|
|
14,834,948 |
|
|
|
(101,394 |
) |
|
|
|
Total
liabilities and stockholders' equity (deficit) |
|
$ |
15,835,286 |
|
|
$ |
3,207,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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IDEAL POWER INC. |
|
STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
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Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2013 |
|
|
2012 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Products and services |
|
$ |
417,468 |
|
|
$ |
319,550 |
|
|
Royalties |
|
|
100,000 |
|
|
|
100,000 |
|
|
Grants |
|
|
1,374,956 |
|
|
|
707,357 |
|
|
|
Total revenue |
|
|
1,892,424 |
|
|
|
1,126,907 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
Products and services |
|
|
716,175 |
|
|
|
413,910 |
|
|
Grant research and development costs |
|
|
1,430,798 |
|
|
|
709,954 |
|
|
|
Total cost of revenue |
|
|
2,146,973 |
|
|
|
1,123,864 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
(254,549 |
) |
|
|
3,043 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
2,139,036 |
|
|
|
1,769,857 |
|
|
Research and development |
|
|
1,212,298 |
|
|
|
1,050,157 |
|
|
Sales and marketing |
|
|
457,292 |
|
|
|
221,336 |
|
|
|
Total operating expenses |
|
|
3,808,626 |
|
|
|
3,041,350 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(4,063,175 |
) |
|
|
(3,038,307 |
) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
5,488,523 |
|
|
|
1,608,912 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,551,698 |
) |
|
$ |
(4,647,219 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share - basic and fully diluted |
|
$ |
(4.90 |
) |
|
$ |
(3.17 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding - basic
and fully diluted |
|
|
1,950,171 |
|
|
|
1,465,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDEAL POWER INC. |
|
STATEMENTS OF CASH FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31 |
|
|
December 31 |
|
|
|
2013 |
|
|
2012 |
|
Cash
flows from operating activities: |
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(9,551,698 |
) |
|
$ |
(4,647,219 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
29,711 |
|
|
|
52,139 |
|
Write-down of inventory |
|
|
23,651 |
|
|
|
- |
|
Stock-based compensation |
|
|
458,983 |
|
|
|
64,596 |
|
Common stock to be issued for services |
|
|
151,665 |
|
|
|
78,994 |
|
Fair
value of warrants issued for services |
|
|
37,145 |
|
|
|
670,947 |
|
Amortization of debt discount |
|
|
5,318,257 |
|
|
|
1,472,904 |
|
Issuance of note payable in connection with services |
|
|
213,293 |
|
|
|
86,707 |
|
Accrued interest on promissory note |
|
|
72,406 |
|
|
|
80,000 |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
233,268 |
|
|
|
(382,314 |
) |
Inventories |
|
|
(325,441 |
) |
|
|
(87,849 |
) |
Prepaid expenses |
|
|
(203,027 |
) |
|
|
(27,468 |
) |
Increase (decrease) in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(145,413 |
) |
|
|
435,892 |
|
Accrued expenses |
|
|
446,408 |
|
|
|
(48,818 |
) |
Net
cash used in operating activities |
|
|
(3,240,792 |
) |
|
|
(2,251,489 |
) |
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(78,941 |
) |
|
|
(5,961 |
) |
Acquisition of patents |
|
|
(142,708 |
) |
|
|
(323,074 |
) |
Certificate of deposit |
|
|
- |
|
|
|
20,000 |
|
Net
cash used in investing activities |
|
|
(221,649 |
) |
|
|
(309,035 |
) |
|
|
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
|
|
|
Borrowings on notes payable, net of debt raising costs |
|
|
611,256 |
|
|
|
4,400,150 |
|
Net
proceeds from issuance of common stock |
|
|
15,015,985 |
|
|
|
52,000 |
|
Cashless exercise of warrants |
|
|
(4 |
) |
|
|
- |
|
Repayment of line of credit |
|
|
- |
|
|
|
(20,000 |
) |
Net
cash provided by financing activities |
|
|
15,627,237 |
|
|
|
4,432,150 |
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash equivalents |
|
|
12,164,796 |
|
|
|
1,871,626 |
|
Cash
and cash equivalents at beginning of period |
|
|
1,972,301 |
|
|
|
100,675 |
|
Cash
and cash equivalents at end of the period |
|
$ |
14,137,097 |
|
|
$ |
1,972,301 |
|
Ideal Power Media Contact: Mercom Communications Wendy Prabhu
1.512.215.4452 Email Contact www.mercomcapital.com Investor
Relations Contact: MZ North America Matt Hayden 1.949.259.4986
Email Contact www.mzgroup.us
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