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The call conveyed meaningful commercial momentum—notably a 50% increase in the sales funnel to $300M, multiple prototype engagements (including a hyperscaler evaluation and Stellantis deliverables), strong IP protection (103 patents) and manufacturing readiness—while also acknowledging early-stage commercialization risks: no revenue yet, rising operating expenses (+~32% YoY), a larger net loss (+~33% YoY), and a modestly higher full-year cash burn forecast. The balance of substantive commercial progress and clear near-term catalysts against financial losses and the need to convert the funnel leads to a cautiously positive view.
Management gave detailed financial and commercial guidance: Q1 cash burn was $2.3M (below prior guidance of $2.6–2.8M and versus $2.1M in 2025 and $2.2M in Q4’25), Q2 cash burn is expected to be ~$2.5–2.7M, and full‑year 2026 cash burn is forecast at ~$10.0–10.5M (vs $9.6M in 2025); cash and cash equivalents were $16.4M at 3/31/2026 with no debt. Operating expenses were $3.7M in Q1 (vs $2.8M in Q1’25) and net loss was $3.6M (vs $2.7M), with modest OpEx increases and quarter‑to‑quarter R&D variability expected as the company hires sales and engineering staff and records higher stock‑based compensation. The company recorded no revenue in Q1, expects initial customer orders to be small as design cycles progress, and reiterated commercialization timelines and milestones: a $300M sales funnel (up from $200M in February), 103 issued B‑TRAN patents (50 outside the U.S.), lead SSCB prototypes targeted in 2026 with initial low‑volume orders, a co‑developed prototype for NVIDIA Rubin Ultra targeted end of Q4’26 (with an expected PO), Stellantis deliverables due mid‑2026, and automotive qualification/reliability testing expected this summer; fully diluted shares were ~15.8M (12.1M basic, 1.46M options/units, 2.24M prefunded warrants).
Sales opportunity funnel increased to $300 million from $200 million at the February investor update, a $100 million (50%) increase, with opportunities diversified across AI data centers, industrial and automotive applications and multiple geographies.
Advancing prototype and development projects with multiple customers: lead Asia customer prototype units expected in 2026 (800V low-current SSCB evaluations); two new projects with the lead customer (medium-current SSCB and low-current SSCB for smart industrial buildings); LOI to co-develop a B-TRAN enabled intelligent SSCB prototype for evaluation by a U.S. hyperscaler (targeted delivery end of Q4 2026); Stellantis evaluation kits delivered and remaining deliverables on track to complete by mid-2026.
Issued B-TRAN patent count at 103 (50 issued outside the U.S.), with additional IP protection via a trade-secret double-sided wafer process and selective foundry/packaging partnerships to reduce infringement risk.
Established relationships with multiple foundries and packaging houses positioned to handle the expected production ramp and a roadmap to support long-term capacity and cost reduction; engaged new Asia-based global suppliers and added first potential solid state transformer (SST) projects to the funnel.
Cash and cash equivalents of $16.4 million at 03/31/2026, no debt and a clean capital structure; Q1 2026 cash burn of $2.3 million was below guidance ($2.6–$2.8M). Management expects Q2 cash burn of ~$2.5–$2.7M and emphasized expense management while scaling sales and engineering teams.
Near-term expected catalysts include automotive qualification completion this summer, Stellantis deliverables and potential purchase orders as customers progress design cycles—company expects additional commercial announcements and small initial orders over the next 3–6 months.
Good morning, ladies and gentlemen. And welcome to the Ideal Power First Quarter 26 Results Conference Call. At this time, all participants are in a listen-only mode. And at the end of management's remarks, there will be a question and answer session. Investors can submit their questions anytime within the meeting webcast. By typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press 1 on your telephone keypad.
We do ask that while posing your question, you please pick up your handset if on speakerphone. As a reminder, this event is being recorded. And I would now like to turn the conference over to Mr. Jeff Christensen. Please go ahead, sir.
Thank you. And good morning, everyone. Thank you for joining Ideal Power's first quarter 26 results Conference Call. On the call with me are David Somo, President and Chief Executive Officer and Timothy W. Burns, chief financial officer. Power's first quarter 26 financial results press release is available on the company's website at idealpower.com. Before we begin, I would like to remind everyone that statements made on the call and webcast including those regarding future financial results and the company's prospects are forward looking may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of the associated risks.
We would also refer you to the company's w...