Ideal Power's B-TRAN Gains Traction Amidst CEO Transition

TL;DR

**IPWR is a high-risk bet on a promising power semiconductor technology, but its minimal revenue and reliance on future design wins make it a speculative play.**

AI Summary

Ideal Power Inc. (IPWR) is solely focused on the development and commercialization of its Bidirectional bipolar junction TRANsistor ("B-TRAN") solid-state switch technology. The company generated $37,728 in commercial revenue for the fiscal year ended December 31, 2025, a decrease from $86,032 in 2024. Operations have been primarily funded through common stock and pre-funded warrant sales, including an estimated $12.6 million net proceeds from a February 2026 offering. Key business changes include the retirement of CEO R. Daniel Brdar and the appointment of David Somo on November 3, 2025. IPWR launched its first two commercial products, the discrete B-TRAN and the SymCool Power Module, targeting solid-state circuit protection and EV contactor markets. The company secured its first design win in late 2024 with a major Asian circuit protection equipment manufacturer for Solid-State Circuit Breakers (SSCBs), leading to a multi-year strategic cooperation agreement in February 2026. A significant development agreement with Stellantis for custom B-TRAN power modules for EV applications progressed, with Stellantis prioritizing the EV contactor application in 2025.

Why It Matters

Ideal Power's B-TRAN technology, designed to replace two pairs of IGBTs and diodes, promises significant efficiency gains and reduced component count in power conversion, which is critical for the booming EV, renewable energy, and data center markets. For investors, the successful commercialization and recent design win with a major Asian manufacturer, coupled with the Stellantis development agreement, signal potential for future revenue growth, though current commercial revenue remains minimal. Employees and customers could benefit from a more efficient, compact power switching solution that addresses the increasing demand for energy savings. The competitive landscape, dominated by giants like Infineon and Texas Instruments, presents both challenges and opportunities for IPWR to carve out a niche or become an attractive licensing target.

Risk Assessment

Risk Level: high — Ideal Power has a history of losses and generated only $37,728 in commercial revenue in 2025, down from $86,032 in 2024, indicating a very limited operating history and revenue generation capability. The company's future success hinges on securing 'design wins' and scaling commercialization of its B-TRAN technology, a process that can take 12-18 months for OEM products and significantly longer for automotive applications, as noted in the filing.

Analyst Insight

Investors should approach IPWR with extreme caution, recognizing its speculative nature. While the B-TRAN technology shows promise and has secured initial design wins and development agreements, the company's financial performance is currently negligible. Monitor progress on the Stellantis EV contactor program and the multi-year strategic cooperation agreement with the Asian circuit protection manufacturer for concrete signs of significant revenue ramp-up before considering a substantial position.

Financial Highlights

revenue

$37,728

revenue Growth

-56.1%

Revenue Breakdown

Executive Compensation

Key Numbers

• $37,728 — Commercial Revenue (Generated in 2025, a decrease from $86,032 in 2024.)
• $12.6 million — Estimated Net Proceeds (From February 2026 Offering to fund commercialization and development.)
• 12,089,389 — Shares of Common Stock Outstanding (As of March 25, 2026.)
• $37.5 million — Aggregate Market Value of Non-Affiliate Common Equity (As of June 30, 2025.)
• November 3, 2025 — CEO Transition Date (David Somo appointed President and CEO.)
• 2012 — Year of ARPA-E Grant (Received for bidirectional solid-state power switch development.)
• February 2026 — Strategic Cooperation Agreement (Signed with Asian circuit protection manufacturer.)

Key Players & Entities

• Ideal Power Inc. (company) — registrant
• R. Daniel Brdar (person) — former President and CEO
• David Somo (person) — current President and CEO
• Stellantis (company) — top 10 global automaker and development partner
• U.S. Department of Energy's Advanced Research Projects Agency-Energy (ARPA-E) (regulator) — grant provider for B-TRAN development
• Infineon Technologies AG (company) — leading player in global power semiconductor market
• Texas Instruments (company) — leading player in global power semiconductor market
• Nasdaq Capital Market (regulator) — exchange where IPWR common stock is registered

FAQ

Risk Factors

• Dependence on Future Funding [high — financial]: The company has historically relied on the sale of common stock and pre-funded warrants for operations. Future funding needs, especially for commercialization and potential R&D grants, are critical. An offering in February 2026 raised an estimated $12.6 million in net proceeds.
• Long Sales Cycles and Design Wins [medium — market]: Commercialization depends on securing design wins, which can lead to significant revenue growth. However, the time from design win to OEM product launch is estimated at 12-18 months, and potentially longer for automotive applications. Customer evaluation of prototypes is ongoing.
• Technology Commercialization Risk [high — operational]: The company's success hinges on the successful commercialization of its B-TRAN technology and its first two products: the discrete B-TRAN and the SymCool Power Module. Market adoption and competitive responses are key uncertainties.
• Target Market Volatility [medium — market]: The target markets include solid-state circuit protection and EV contactors. The EV market, in particular, is subject to rapid technological changes, evolving regulations, and intense competition, which could impact demand for IPWR's technology.

Industry Context

Ideal Power operates in the highly competitive power semiconductor market, focusing on niche applications within solid-state circuit protection and electric vehicle (EV) components. The EV market is experiencing rapid growth and technological advancement, driving demand for efficient and reliable power solutions. Competitors range from established semiconductor giants to specialized players, all vying for market share in areas like power modules and circuit protection.

Regulatory Implications

While the filing does not highlight specific regulatory hurdles, the company's target markets, particularly EVs, are subject to evolving safety and performance standards. Compliance with these standards will be critical for product adoption. Furthermore, any future R&D grants may come with specific compliance and reporting requirements.

What Investors Should Do

1. Monitor progress on the Stellantis development agreement for EV applications, as this represents a significant potential revenue stream.
2. Track the timeline and volume of orders following the February 2026 strategic cooperation agreement with the Asian circuit protection manufacturer.
3. Evaluate the company's ability to secure additional funding beyond the February 2026 offering to support ongoing commercialization and development.
4. Assess the competitive landscape and market adoption rates for B-TRAN technology in both circuit protection and EV contactor markets.

Key Dates

• 2025-11-03: David Somo appointed President and CEO — Marks a leadership transition, with a new CEO taking over to guide the company's commercialization efforts.
• 2025-11-02: R. Daniel Brdar retired as CEO — End of the previous CEO's tenure, coinciding with the appointment of the new CEO.
• 2026-02: Strategic Cooperation Agreement signed — Secured with a major Asian circuit protection equipment manufacturer for Solid-State Circuit Breakers (SSCBs), indicating a significant design win and potential for future revenue.
• 2026-02: Offering completed — Raised an estimated $12.6 million in net proceeds to fund commercialization and development activities.
• 2024-12: First design win secured — With a major Asian circuit protection equipment manufacturer for Solid-State Circuit Breakers (SSCBs), validating the B-TRAN technology for this application.
• 2012: ARPA-E Grant received — Provided funding for the initial development of the bidirectional solid-state power switch technology.

Glossary

B-TRAN (Bidirectional bipolar junction TRANsistor)

A type of solid-state switch technology developed by Ideal Power that allows for bidirectional current flow with very low conduction losses. (This is the core proprietary technology that Ideal Power is focused on commercializing.)

Solid-State Circuit Breaker (SSCB)

An electronic device that interrupts electrical current in case of a fault, offering faster response and lower losses compared to traditional mechanical circuit breakers. (One of the key target applications for Ideal Power's B-TRAN technology, with a design win secured in this area.)

EV Contactor

An electrically operated switch used in electric vehicles to connect or disconnect high-voltage battery packs from the powertrain or other components. (Another primary market target for Ideal Power's B-TRAN technology, particularly the SymCool Power Module.)

SymCool Power Module

A commercial product launched by Ideal Power that integrates multiple B-TRAN dies into a single module for power applications. (Represents one of the company's first commercial offerings, targeting EV contactor and circuit protection markets.)

Design Win

A situation where a customer selects a company's technology or product for integration into their own product, indicating a commitment to purchase. (Crucial for Ideal Power's revenue generation, as it signifies the initial step towards significant volume orders.)

Year-Over-Year Comparison

Commercial revenue for the year ended December 31, 2025, decreased by 56.1% to $37,728 compared to $86,032 in 2024, reflecting the early stage of commercialization and reliance on prototype sales. The company has continued to fund operations through equity offerings, with a significant $12.6 million raised in February 2026. A key development is the securing of a design win and strategic cooperation agreement with a major Asian circuit protection manufacturer, indicating progress towards commercial traction.

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share IPWR The Nasdaq Capital M
• $0 — 9,389 shares of common stock, par value $0.001, outstanding. DOCUMENTS INCORPORAT
• $3.7 million — e-funded warrants and we have generated $3.7 million in grant revenue for bidirectional powe
• $37,728 — the SymCool Power Module. We generated $37,728 and $86,032, respectively, in commercia
• $86,032 — Power Module. We generated $37,728 and $86,032, respectively, in commercial revenue in
• $2.75 — hares of our common stock at a price of $2.75 per share and 952,881 pre-funded warran
• $2.749 — se shares of common stock at a price of $2.749 per pre-funded warrant in an underwritt
• $12.6 million — us from the February 2026 Offering are $12.6 million. We intend to use the net proceeds from
• $37.7 billion — tronics market is forecasted to grow to $37.7 billion by 2028. We are initially targeting mar

Filing Documents

• ipwr20251231_10k.htm (10-K) — 1025KB
• ex_930710.htm (EX-4.5) — 41KB
• ex_930709.htm (EX-23.1) — 2KB
• ex_930708.htm (EX-31.1) — 11KB
• ex_930707.htm (EX-31.2) — 12KB
• ex_930706.htm (EX-32.1) — 5KB
• 0001437749-26-009995.txt ( ) — 5558KB
• ipwr-20251231.xsd (EX-101.SCH) — 49KB
• ipwr-20251231_def.xml (EX-101.DEF) — 367KB
• ipwr-20251231_lab.xml (EX-101.LAB) — 334KB
• ipwr-20251231_pre.xml (EX-101.PRE) — 401KB
• ipwr-20251231_cal.xml (EX-101.CAL) — 48KB
• ipwr20251231_10k_htm.xml (XML) — 763KB

: BUSINESS

ITEM 1: BUSINESS 4

: RISK FACTORS

ITEM 1A: RISK FACTORS 8

: UNRESOLVED STAFF COMMENTS

ITEM 1B: UNRESOLVED STAFF COMMENTS 16

: CYBERSECURITY

ITEM 1C: CYBERSECURITY 16

: PROPERTIES

ITEM 2: PROPERTIES 17

: LEGAL PROCEEDINGS

ITEM 3: LEGAL PROCEEDINGS 17

: MINE SAFETY DISCLOSURES

ITEM 4: MINE SAFETY DISCLOSURES 17 PART II. 17

: 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 17

: [RESERVED]

ITEM 6: [RESERVED] 17

: 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 22

: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 22

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

ITEM 9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 37

: CONTROLS AND PROCEDURES

ITEM 9A: CONTROLS AND PROCEDURES 37

: OTHER INFORMATION

ITEM 9B: OTHER INFORMATION 37

: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C: DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. 38 PART III. 38

: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 38

: EXECUTIVE COMPENSATION

ITEM 11: EXECUTIVE COMPENSATION 38

: 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 38

: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

ITEM 13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 38

: PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14: PRINCIPAL ACCOUNTANT FEES AND SERVICES 38 PART IV. 39

: EXHIBITS, FINANCIAL STATEMENT SCHEDULES

ITEM 15: EXHIBITS, FINANCIAL STATEMENT SCHEDULES 39

: FORM 10-K SUMMARY

ITEM 16: FORM 10-K SUMMARY 40

Signatures

Signatures 41 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 and actual 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 circuit

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 pre-funded warrants and we have generated $3.7 million in grant revenue for bidirectional power switch development. 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 have launched our first two commercial products, the discrete B-TRAN and the SymCool Power Module. We generated $37,728 and $86,032, respectively, in commercial revenue in the years ended December 31, 2025 and 2024. CEO Transition Effective November 2, 2025, R. Daniel Brdar, the then President and Chief Executive Officer and member of the Board of Directors of the Company (the "Board"), retired from all positions with us. Effective November 3, 2025, the Board appointed David Somo as the President and Chief Executive Officer and as a member of the Board. Product Launches Our first commercial product launch was the discrete B-TRAN. This single B-TRAN die packaged for electrical connection is designed to meet the very low conduction loss needs of the solid-state circuit protection and electric vehicle ("EV") contactor markets. Our second commercial product launch was the SymCool Power Module. This multi-die B-TRAN module is also designed to meet the very low conduction loss needs of the solid-state circuit protection and EV contactor markets. Upon product launch, we design and build initial prototypes for testing and to solicit cust

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