Ideal Power Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ideal Power Inc. has filed its 2023 10-K, detailing its financial performance and corporate structure, including recent equity offerings.</b>

AI Summary

Ideal Power Inc. (IPWR) filed a Annual Report (10-K) with the SEC on April 1, 2024. Ideal Power Inc. filed its 2023 Form 10-K on April 1, 2024, reporting on its fiscal year ending December 31, 2023. The company's principal business address is 5508 Highway 290 West, Suite 120, Austin, TX 78735. Ideal Power Inc. was formerly known as Ideal Power Converters, Inc., with a name change effective December 15, 2010. The filing includes information on various equity incentive plans, including the 2013 Equity Incentive Plan and the general Equity Incentive Plan. Subsequent events noted include a March 2024 offering involving prefunded warrants.

Why It Matters

For investors and stakeholders tracking Ideal Power Inc., this filing contains several important signals. This filing provides investors with a comprehensive overview of Ideal Power's financial health, operational activities, and strategic initiatives for the fiscal year 2023. The inclusion of subsequent events, such as the March 2024 offering, offers insight into the company's recent capital-raising activities and potential future financial strategies.

Risk Assessment

Risk Level: — Ideal Power Inc. shows moderate risk based on this filing. The company's financial performance and future prospects are subject to the inherent risks of the semiconductor industry, including market demand, technological advancements, and competitive pressures, as detailed in the full 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to assess Ideal Power's current financial position and future growth potential.

Key Numbers

• 2023-12-31 — Fiscal Year End (The end date of the reporting period.)
• 2024-04-01 — Filing Date (The date the 10-K was filed.)
• 2010-12-15 — Name Change Date (Effective date of the company's former name change.)

Key Players & Entities

• Ideal Power Inc. (company) — Filer of the 10-K report.
• Ideal Power Converters, Inc. (company) — Former name of Ideal Power Inc.
• Austin, TX (location) — Location of the company's business address.
• March 2024 (date) — Period of a subsequent offering event.

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-04-01: 10-K Filing Date — Date Ideal Power Inc. submitted its annual report.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the official annual financial and business overview for Ideal Power Inc.)

Prefunded Warrants

A type of warrant that is immediately exercisable upon issuance, often used in financing rounds to avoid immediate dilution. (Indicates a specific financial instrument used in a recent offering by Ideal Power Inc.)

Equity Incentive Plan

A plan established by a company to grant stock options, restricted stock, or other equity-based awards to employees and executives. (Details the company's strategy for compensating and retaining key personnel through stock-based awards.)

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share IPWR The Nasdaq Capital M
• $0 — 1,699 shares of common stock, par value $0.001, outstanding. DOCUMENTS INCORPORAT
• $3.7 million — e of common stock and we have generated $3.7 million in grant revenue for bidirectional powe
• $37,388 — r switch development. Grant revenue was $37,388 and $203,269, respectively, in the year
• $203,269 — elopment. Grant revenue was $37,388 and $203,269, respectively, in the years ended Decem
• $161,483 — ent Power Module, in 2023. We generated $161,483 in commercial revenue in the year ended
• $61,483 — ed all of the revenue under Phase 1 and $61,483 of the revenue under Phase 2 in the yea
• $7.50 — hares of our common stock at a price of $7.50 per share and 633,332 pre-funded warran
• $7.499 — hares of our common stock at a price of $7.499 per pre-funded warrant in an underwritt
• $13.6 million — to us from the March 2024 Offering are $13.6 million or $15.7 million if the underwriter exe
• $15.7 million — arch 2024 Offering are $13.6 million or $15.7 million if the underwriter exercises its option
• $29.2 billion — gence, the power electronics market was $29.2 billion in 2022 and is forecasted to grow to $3
• $37.7 billion — on in 2022 and is forecasted to grow to $37.7 billion by 2028. We are initially targeting lar
• $100,000 — intellectual property portfolio. We pay $100,000 annually under this agreement. In 2023
• $50,000 — intellectual property portfolio. We pay $50,000 annually under this agreement. At incep

Filing Documents

• ipwr20231231_10k.htm (10-K) — 905KB
• ex_643310.htm (EX-23.1) — 2KB
• ex_643309.htm (EX-31.1) — 12KB
• ex_643308.htm (EX-31.2) — 12KB
• ex_643307.htm (EX-32.1) — 5KB
• ex_648525.htm (EX-97) — 32KB
• pic1.jpg (GRAPHIC) — 7KB
• pic2.jpg (GRAPHIC) — 17KB
• 0001437749-24-010360.txt (&nbsp;) — 5012KB
• ipwr-20231231.xsd (EX-101.SCH) — 47KB
• ipwr-20231231_def.xml (EX-101.DEF) — 340KB
• ipwr-20231231_lab.xml (EX-101.LAB) — 297KB
• ipwr-20231231_pre.xml (EX-101.PRE) — 369KB
• ipwr-20231231_cal.xml (EX-101.CAL) — 41KB
• ipwr20231231_10k_htm.xml (XML) — 682KB

: BUSINESS

ITEM 1: BUSINESS 4

: RISK FACTORS

ITEM 1A: RISK FACTORS 9

: UNRESOLVED STAFF COMMENTS

ITEM 1B: UNRESOLVED STAFF COMMENTS 17

: CYBERSECURITY

ITEM 1C: CYBERSECURITY 17

: PROPERTIES

ITEM 2: PROPERTIES 17

: LEGAL PROCEEDINGS

ITEM 3: LEGAL PROCEEDINGS 17

: MINE SAFETY DISCLOSURES

ITEM 4: MINE SAFETY DISCLOSURES 17 PART II. 18

: MARKET FOR REGISTRANT ' S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5: MARKET FOR REGISTRANT ' S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 18

: [RESERVED]

ITEM 6: [RESERVED] 18

: MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7: MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18

: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 23

: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 23

: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 38

: CONTROLS AND PROCEDURES

ITEM 9A: CONTROLS AND PROCEDURES 38

: OTHER INFORMATION

ITEM 9B: OTHER INFORMATION 39

: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. 39 PART III. 40

: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 40

: EXECUTIVE COMPENSATION

ITEM 11: EXECUTIVE COMPENSATION 40

: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 40

: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 40

: PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES 40 PART IV. 41

: EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15: EXHIBITS, FINANCIAL STATEMENT SCHEDULES 41

: FORM 10-K SUMMARY

ITEM 16: FORM 10-K SUMMARY 43

Signatures

Signatures 44 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION CONTAINED IN THIS REPORT This report contains 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, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. You can find many (but not all) of these statements by looking for words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "would," "should," "could," "may" or other similar expressions in this report. In particular, these include statements relating to future actions, prospective products, applications, customers, technologies, future performance or results of anticipated products, expenses, and financial results. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: our history of losses; our ability to generate revenue; our limited operating history; the size and growth of markets for our technology; regulatory developments that may affect our business; our ability to successfully develop new products and the expected performance of those products; the performance of third-party consultants and service providers whom we have and will continue to rely on to assist us in development and commercialization of our B-TRAN and related packaging and drive circuitry; the

BUSINESS

BUSINESS Our Company Ideal Power Inc. was formed in Texas on May 17, 2007 and converted to a Delaware corporation on July 15, 2013. Unless otherwise stated or the context otherwise requires, the terms "Ideal Power," "we," "us," "our" and the "Company" refer to Ideal Power Inc. We are solely focused on the further development and commercialization of our Bidirectional bipolar junction TRANsistor ("B-TRAN") solid-state switch technology. To date, operations have been funded primarily through the sale of common stock and we have generated $3.7 million in grant revenue for bidirectional power switch development. Grant revenue was $37,388 and $203,269, respectively, in the years ended December 31, 2023 and 2022, respectively. We may pursue additional research and development grants, if and when available, to further develop and/or improve our technology. We are in the process of commercializing our B-TRAN technology and launched our first two commercial products, the SymCool Power Module and SymCool IQ Intelligent Power Module, in 2023. We generated $161,483 in commercial revenue in the year ended December 31, 2023. Product Launches In early 2023, we launched our first commercial product, the SymCool Power Module. This multi-die B-TRAN module is designed to meet the very low conduction loss needs of the solid-state circuit breaker ("SSCB") market. We commenced shipment of SymCool Power Modules to fulfill customer orders in early 2024. In late 2023, we launched our second commercial product, the SymCool IQ Intelligent Power Module ("IPM"). The SymCool IQ IPM builds on the bidirectional B-TRAN multi-die packaging design of our SymCool Power Module and adds an integrated intelligent driver optimized for bidirectional operation. This product targets several markets including renewable energy, energy storage, electric vehicle ("EV") charging and other industrial applications. We expect initial sales of this product in late 2024. Development Agreement During the

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