Ideal Power Inc. Q3 FY2024 earnings call

• Added new customers: A global Tier 1 automotive supplier ordered B-TRAN devices, SymCool power module, etc.; working with Stellantis on EV drivetrain, third global automaker evaluating B-TRAN-enabled contactors.
• Distributors: Added RYOSHO and Sekorm in Q3, which are engaged in demand creation and have placed orders/quotes for products.
• Automotive market: Leveraging Stellantis success to attract other OEMs/Tier 1s; EV contactor applications gaining interest due to benefits over electromechanical contactors.
• Industrial market: Focus on solid-state circuit protection, reference design to accelerate evaluation, targeting revenue ramp in H2 2025.
• Innovation: Completing next-gen B-TRAN die design, parallel device characterization shows better current sharing than IGBTs, expanding patent estate.

No detailed financial breakdown of product segments in terms of absolute revenue and contribution % provided; focuses on automotive and industrial market activities.

• Q3 2024 cash burn $2.4M, expected Q4 2024 cash burn $2.6M-$2.8M.
• Full year 2024 cash burn expected ~$8.2M-$8.4M net of $1M warrant proceeds.
• Modest revenue in Q3 due to initial evaluations, expecting order sizes to increase as customers progress in design cycles, targeting revenue ramp in H2 2025.

• Supply chain risks related to wafer fabrication with dual sourcing in different geographies.
• Uncertainty in customer adoption timing, as design cycles for industrial applications can be 12 months.

Q: Opine on the outcome of the U.S. election and its impact on green energy?

A: Short-term reaction, but global market for electric vehicles and renewables continues strongly.

Q: How do you see the relationship with new distributors developing?

A: Distributors are involved in demand creation, introducing to large customers, with introductions potentially leading to direct relationships with customers.

Q: What's the timeline for Stellantis Phase 3?

A: Stellantis technical teams continue working, aiming to start Phase 3 shortly after Tier 1 supplier selection for drivetrain inverter.

Q: Does B-TRAN have uses in data centers?

A: Yes, for circuit protection in UPS systems and server protection, and talking to customers about incorporation.

Q: How much annual revenue is needed for profitability and cash flow positive?

A: Roughly $30M-$50M annual revenue, expecting 30%+ gross margins, with long-term target of 50% margins.

Q: When will orders from October be recognized?

A: Small orders now, larger orders as customers build prototypes, with revenue recognized within immediate to 12 weeks depending on inventory.

Q: Why is it taking so long to get large orders?

A: Long design cycles in industrial applications, typically 12 months, with order sizes increasing as customers progress in design cycles.

Q: When can you disclose names of global development partners?

A: Depends on relationship stage, typically when near product launch and customers give permission.