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AUSTIN, Texas, May 01, 2019 (GLOBE NEWSWIRE) -- Ideal Power Inc. (NASDAQ: IPWR), a semiconductor and power conversion technology company, reported results for its first quarter ended March 31, 2019.
Key First Quarter 2019 and Subsequent Highlights :
Power Conversion Systems (PCS) Division
“With our new strategic focus announced in early 2019, we will become an asset light operating company focused on our B-TRAN power switch technology,” said Dr. Lon Bell, Chief Executive Officer of Ideal Power.
“This transaction allows us to focus our efforts on the development and commercialization of our proprietary B-TRAN technology. Our business model leverages capabilities at existing semiconductor fabrication facilities, collaborations with major universities and our relationships with semiconductor experts to complement our internal modeling, power switch development and characterization capabilities.
“Moreover, success of PATHION in the marketplace would directly benefit our shareholders through Ideal Power’s equity stake in PATHION. We are excited to enter into this opportunity for our shareholders and to pass the torch to PATHION to take our PPSA technology into broader distribution as part of their comprehensive energy solutions offering,” concluded Bell.
First Quarter 2019 Financial Results
“Given our new strategic focus and the presentation of our PCS division as discontinued operations, we had no revenue from continuing operations in the first quarter of 2019,” said Tim Burns, Chief Financial Officer. “We reduced our PCS division workforce and suspended further power converter system development and sales in early January. As a result of these actions and the pending sale of this division, we now estimate that annualized cash expenditures will be reduced by at least $3 million,” continued Burns.
“On the cash management side, we maintained our targeted cash burn rate, utilizing $1 million of cash in the first quarter of 2019, due to aggressive cost cutting initiatives, compared to $2.1 million in the first quarter of 2018. We believe that strong cash management, our pending PPSA sale and no debt will provide us with a stable financial runway into 2020,” concluded Burns.
Conference Call Details
Ideal Power Chairman, CEO and President Dr. Lon Bell, CFO Tim Burns and B-TRAN Chief Commercial Officer Dan Brdar will host the conference call, followed by a question and answer period.
To access the call, please use the following information:
|Date:||Wednesday, May 1, 2019|
|Time:||4:30 p.m. EDT, 1:30 p.m. PDT|
|Toll-free dial-in number:||1-800-458-4148|
|International dial-in number:||1-323-794-2597|
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact MZ Group at 1-949-491-8235.
The conference call will be broadcast live and available for replay at http://public.viavid.com/index.php?id=134182 and via the investor relations section of the Company’s website at www.IdealPower.com.
A replay of the conference call will be available after 7:30 p.m. Eastern time through June 1, 2019.
|Toll Free Replay Number:||1-844-512-2921|
|International Replay Number:||1-412-317-6671|
About Ideal Power Inc.
Ideal Power (NASDAQ: IPWR) is a semiconductor and power conversion technology company focused on its patented Bi-directional, Bi-polar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN is a unique double-sided bi-directional AC switch expected to deliver substantial performance improvements over today's conventional power semiconductors. B-TRANs offer the potential to improve efficiency and system economics of a wide variety of power converter applications including electrified vehicle traction drives, energy storage applications, photovoltaic (PV) inverters and wind converters, variable frequency (VFD) motor drives, and AC and DC power control applications. For more information, 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 that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the successful closing of the sale of our PCS business, the success of our B-TRAN technology, the success of our strategic shift and change in corporate focus, whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace of development and commercialization of our B-TRAN technology, whether we can continue as a going concern and uncertainties set forth in our quarterly and annual reports filed with the Securities and Exchange Commission. 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.
Ideal Power Investor Relations Contact:
MZ North America
IDEAL POWER INC.
|March 31, 2019||December 31, 2018|
|Cash and cash equivalents||$||2,228,664||$||3,258,077|
|Prepayments and other current assets||327,872||333,877|
|Current assets of discontinued operations held for sale||727,943||1,096,323|
|Total current assets||3,289,440||4,688,277|
|Property and equipment, net||55,600||63,214|
|Intangible assets, net||1,411,263||1,396,409|
|Right of use asset||386,624||–|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Current liabilities of discontinued operations held for sale||501,436||877,755|
|Total current liabilities||809,720||1,139,713|
|Other long-term liabilities||430,978||428,163|
|Commitments and contingencies|
|Preferred stock, $0.001 par value; 10,000,000 shares authorized; 810,000 shares issued and outstanding at March 31, 2019 and 1,518,430 shares issued at December 31, 2018, respectively||810||1,518|
|Common stock, $0.001 par value; 50,000,000 shares authorized; 14,736,020 shares issued and 14,722,840 shares outstanding at March 31, 2019 and 14,027,590 shares issued and 14,014,410 shares outstanding at December 31, 2018, respectively||14,736||14,028|
|Additional paid-in capital||67,984,046||68,009,860|
|Treasury stock, at cost, 13,180 shares at March 31, 2019 and December 31, 2018, respectively||(13,210||)||(13,210||)|
|Total stockholders’ equity||3,531,231||4,597,944|
|Total liabilities and stockholders’ equity||$||5,160,847||$||6,165,820|
IDEAL POWER INC.
Statements of Operations
Three Months Ended
|Cost of product revenue||–||–|
|Research and development||218,216||94,544|
|General and administrative||468,390||882,099|
|Sales and marketing||–||–|
|Total operating expenses||686,606||976,643|
|Loss from continuing operations before interest||(686,606||)||(976,643||)|
|Interest (income) expense, net||7,118||(1,315||)|
|Loss from continuing operations||(693,724||)||(975,328||)|
|Loss from discontinued operations||(347,175||)||(1,080,834||)|
|Loss from continuing operations per share – basic and fully diluted||$||(0.05||)||$||(0.07||)|
|Loss from discontinued operations per share – basic and fully diluted||(0.02||)||(0.08||)|
|Net loss per share – basic and fully diluted||$||(0.07||)||$||(0.15||)|
|Weighted average number of shares outstanding – basic and fully diluted||14,313,525||13,991,121|
IDEAL POWER INC.
Statements of Cash Flows
Three Months Ended
|Cash flows from operating activities:|
|Loss from continuing operations||$||(693,724||)||$||(975,328||)|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||27,595||43,704|
|Write-off of capitalized patents||–||10,873|
|Decrease (increase) in operating assets:|
|Prepayments and other current assets||6,005||29,295|
|Increase (decrease) in operating liabilities:|
|Net cash used in operating activities||(587,029||)||(885,196||)|
|Net cash used on operating activities – discontinued operations||(409,867||)||(942,176||)|
|Cash flows from investing activities:|
|Purchase of property and equipment||(1,194||)||–|
|Acquisition of intangible assets||(31,323||)||(33,561||)|
|Net cash used in investing activities||(32,517||)||(33,561||)|
|Net cash used in investing activities – discontinued operations||–||(8,046||)|
|Cash flows from financing activities:|
|Net cash provided by financing activities||–||–|
|Net decrease in cash and cash equivalents – continuing operations||(619,546||)||(918,757||)|
|Net decrease in cash and cash equivalents – discontinued operations||(409,867||)||(950,222||)|
|Cash and cash equivalents at beginning of period||3,258,077||10,022,247|
|Cash and cash equivalents at end of period||$||2,228,664||$||8,153,268|