Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 2023 Results Call. [Operator Instructions].

As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.

Jeff Christensen

good and operator, you, morning, everyone. Thank for Call. you joining Ideal Conference XXXX Quarter Second Power's Thank on call Financial me Officer; With the and Chief President Tim Executive and Burns, Chief Officer. are Dan Brdar, financial Ideal Power's company's at idealpower.com. release available on website press second the is XXXX quarter

and begin, and call that industry subject forward-looking may including we prospects, on to I'd to everyone future be of uncertainties like are could that Before those risks a made regarding statements remind the webcast, actual to filings those risks. Please results list cause and number more refer differ financial in described for industry from associated website also supporting results materially the to information. you the call. company's to And of for refer we will SEC the and company's a

the Power's Now Brdar. call CEO, Dan Ideal over and to Dan? President I'll turn

Daniel Brdar

Jeff. quarter second numbers, completion you start your as commercialize well Thank to the quarter, to everyone, I'll the which of XXXX our take for including financial morning, of progress you, welcome balance as update CFO, then through our conference priorities first since take all Burns, the of our year will call. you second the milestones on technology. and our Good the of results we'll our B-TRAN the Tim questions. semiconductor our XXXX And after successful half

areas. some commercialization about transition The in our history second included advance quarter most in recent a We're the road technology from were our we company major and map. thrilled thus development a aggressive as in XXXX to the all company, five of success of significant transformative continue to commercial B-TRAN our far company's accomplishments

manufacturable we supplier flow performance. process First, excellent our device we yield wafer fabrication as the high-volume B-TRAN our run successfully proved device at and completed that with high engineering full was

a devices diversify delivered by commercialization; complete and technologies of technical B-TRAN our work a accomplishment commercialization. development B-TRAN and NAVSEA last risk to solid-state This hundreds the for second, program. biggest the we breaker for under pivotal the far, was and cleared This prerequisite to circuit

we testing innovation control conduction an circuits losses, diodes. additional implemented than Subsequent making and and drive XX% in B-TRAN. better IGBTs we two Xx two an bidirectional Third, conventional losses how utilizing improvement in B-TRAN conduction validated

the test This a evaluation incorporated program kits completed we shipments delivered deliverables in all top test completed under improvement development B-TRAN and the successfully automaker. fourth, evaluation we fifth, into and customer large was and program; our to agreement all XX participants; to customer with we Phase the our X companies global

SymCool target the each customers product, excited to along milestones and this year. key Module our multiple I actively markets, each of more or announce We commercial developments. of couldn't other with pleased key our now our with We're progress. first engaged XXXX be of introduction our earlier about in I'll discuss the were excited Power

Our is multi-die breaker circuit module market. suited SymCool a large well solid-state product B-TRAN growing for the

as great interest maintenance associated faster and orders to they customers and traditional wear to than due arching. act since contact breakers, arching its eliminating state utility, circuit global a The is projected of by equipment of cost. grow semiconductors breakers significant billion market X.X% growth are approximately portion the annual solid associated military as can industrial electrical fire with XXXX, thereby $X.X of electromechanical well compound hazard of to rate with at a solid-state comprising to switching magnitude switching equipment the

waste which results significant the heat removed in and be of conduction been of IGBTs. losses a cost downside must as semiconductors, amount solid-state traditional increases conducting energy a and semiconductors losses that devices, breakers such breaker size. are circuit breakers circuit the the The loss high breaker, from from high traditional of large useful has generation Since continuously the of of

tens for ideal breakers, advantages B-TRAN of its market and our and to very because losses. breakers circuit initial breakers a range power low targeted conduction enabling B-TRAN the military to breaker product With can high-power industrial the electromechanical circuit volts solid-state from solid-state IGBT-based for volts. technology We applications for solid-state utility, due XXX over of application of clear thousands are be enabled control circuit an

We continue customer U.S. to the and program in significant application breaker our SymCool see product completed of with as our the solid-state a result interest Navy. circuit recently

Forbes evaluation management the power our program. includes and Global interest This participation test leaders of in XXX market two

the to compares than our data up of addition, discrete rating switching level to rating. on XX-amp device In at higher packaged conducted we This B-TRAN the discrete shown a Xx recently tests sheet, XXX in published devices amps. testing we're

SymCool of expectations result exceeding handling set customers. rating the XXX-amp prior earlier SymCool increased be planned respective a module this to As with year the this power multi-die testing, will sales, of our first

the We've cycles power design The begun Revenue in up half XXXX year. breaker expected initial sales modules relatively circuit and it's to designs. complete volume such a low solid-state start industrial fabrication for continue to for later varies, is as of typically expect SymCool to breakers, SymCool short, SymCool as second solid-state of circuit this their customers product year. initial of applications about ramp

the necessary in sales ramp our to support chain the supply second year. half next beginning turn to of Let's

with on in wafers capability. clearing run flow we wafer This the and development fabrication run with device yields manufacturability investment the commercialization. commercialization. During for produce the successful a and for second was pivotal supplier both equipment was without wafer Test fabrication line excellent accomplishment a risk engineering high technical biggest was fabrication demonstrated prerequisite results far, any need the This the performance, existing in sides. quarter, first capital Asia the wafer and from B-TRAN this high-volume and B-TRAN fabricator silicon special or qualified of a accomplished high-quality last with foundry's fabricated the by for to

variability Wafer results and and high-yield, die-to-die excellent characteristics. device performance minimal testing displayed

lots. often as established in facility process wafer different and the some While it's fab at production flow results is called expectation future fab, equipment improvement that transition be cleaner run expect a there's and you foundry development lot production recipes to when in first has from will reasonable an to pipe process a the a adjustments every necessary

were over was completed results run, it first really that ongoing several working we now the working larger high-volume this fabrication and B-TRAN runs to we strength month. flow we wafers wafer expected for than first be though these in validated full later with development diameter and this process developed with from expectations the the the runs Even multiple years partners. exceeded foundry We engineering with of development, run used this have of on

program XX well the global of our initial XXXX These as and runs ample automaker a under with deliveries test production our program, evaluation capability with will the top as development team. devices performance and SymCool additional SymCool both and for overall discrete third-party internal and device in testing. wafer provide of fabrication pleased and quality wafer foundries manufacturing the of technical We're the support

also with Also, and This for process foundry their second them. them last quality reflects to to standards, expect automotive I as standards quarter, quality wafer similar complete making capabilities automotive already is we're our wafer and and programs foundry wafer full in run a a Europe high-volume certified working flow a of mentioned fabrication. supplier the high with

bipolar went manufacturing detailed the The experienced review wafer in flow IGBTs second of well. is such and devices process very foundry as the

run of this a year. their at in the facility foundry and process We're production wafer expect this qualifying later to wafer begin

risk. Both partners for wafer the foundries fabrication with exposure dual foundry have will high-performance a wafer two to strategy With not source the of the as different in disparate Overall, provide secure mitigate in wafer capacity engaging. as partners components to This in will board, us supply parts no engaged dual on our eager we'll but to of customers only supply dual B-TRAN. technology and we're to services sourcing ability and us be with to capabilities large for strategy are part geographies new have experience, China. facilities sufficient production such world our sourcing necessary allow and proactively also world-class the these from sourcing capacity chain

medium Navy. program or the our our Now packaged Technologies, program. have project DOD-funded completing excited and markets NAVSEA energy shipped tested applications direct hundreds to on to with for partner under to DTI use, this work the through solar, Diversified The U.S. are We're turn wide utility, our in designed breaker devices applicability this let's project solid-state commercial electric storage breakers of military DTI installations. and wind circuit voltage by as circuit and where such will have

As I participating program companies mentioned, visible NAVSEA highly our in program. participation in our evaluation expansion the this resulted of and test in

of future ship potential family of will electrification the of part a breakers the for Navy its program. sales deliverables Navy, solid-state as introduce its As circuit part final to DTI to

applications, breaker the while utility Navy commercializing Our our for to we're of on this and SymCool year objective build to is a with with earlier breaker pursuing process work opportunities our for B-TRAN DTI solid-state the industrial that product. started other circuit solid-state circuit launch continue

basis front, On two lab did conventional the utilizing new enabled the our This the our applications die bidirectional better additional the introducing of participants intelligent this driver losses Xx B-TRAN IGBTs losses, devices than patent power XX% the technology incorporated used realize technical B-TRAN improvement be of the the diodes. an be was to program. development shipped on circuits in It the changes our design in module we conduction packaging in is to not quarter. later year test to in in also testing filed product we making to and conducted provided conduction two will one team several and we'll into or company's we DTI, evaluation require and improvement for any

low of the customers could as program, has advantages in qualified and an they fabrication to positive companies for package devices partner. to Following response our the loss customer bring our evaluation completion large completed OEM deliveries newly appreciate the NAVSEA our overwhelmingly the program new from from DTI the products. utilizing B-TRAN program it innovative, semiconductor been the shipments in very The to we test and

a and markets announced, we in evaluation management previously as program Forbes quarter, also leader to XXX Global added B-TRAN roster. second power and test the diverse This

in like energy B-TRAN electronics companies breakers, smart for and power will division. Power circuit equipment solid-state power applications. infrastructure a of initially whole variety protective for things relays management in for use company evaluate This utilities, breakers its renewable circuit converters for make high-power

participants The companies included the facilitate advice ABB Schneider, shipments in to B-TRAN providers to very and companies accelerate Eaton, that are the customer driver, like housed in you B-TRAN program space. devices, well-recognized group board power large, process. of and in package and safety power test valuation multiple the Siemens, typically think being equipment enclosure a as

program test top participants. and power automaker, a and new automotive management a provider global Global energy Forbes for X leading a date for power evaluation companies current in XXX follow two to include to Tier shipments management program industry, backup additional kits a B-TRAN solutions of the solar global supplier, participants and provider XX global with and

our know, customers the and product you potential remain feedback of in marketing to effort our and application-specific sales commercial valuable Through generation program, additional potentially evaluation next other or gather our add embedded program will a and test we'll product As process We'll and to test program. to and secure of evaluation source an on continue agreements. requirements the input their development products.

The to cycles their on good a design program evaluation commercial get allow and handle technology process, product will their us customers' plans.

agreement development a automaker. an into OEM. automaker's by collaboration team also last Moving development module with XX technology this to global advanced innovative in automotive power top selected a on, develop partnering a the entered custom We're B-TRAN company with we with year packaging late

successfully shipment platform. customers run, the performance deliverables a program B-TRAN-based boards as test its by drive as X the evaluation for selected. XX is already stated automakers This module B-TRAN, is of with in another represents and line the production inverters of program, is automaker XXXX We this module our on And Phase program. accelerated multiyear the to leading the custom top an time get test company, for This ready electric test use devices This including second automotive and program. world's vehicle vehicle manufacturers targeted model custom next-generation data engagement packaging support of completed global and on to our the both electric in the completion in technical drivetrain circuitry. all the they and goal and automaker wafer providing

Working the In of purchase closely await the II, agreed with of the integrate work their on the module the team the order. with and work Phase III already of be and approval scope engineering incorporating are closely of to power automotive automaker, Phase final II B-TRAN certification design. company Phase B-TRAN packaging with we'll objectives program will dive pretty standards, II we've automakers testing module which for the substantial. meet to Phase into extensive innovative custom devices

independently into working II. Phase to module really the in packaging the incorporation Power providing I in it's the us and and company So Phase company Ideal devices packaging then for

itself, testing design such EV the then breaker energy the and intelligent as cycles second will coupled the III have next-generation a This other storage, typically Shifting launch We're can quarter renewables, closer target electric their track on and stand-alone commercial multi-die design is so and charging will product module SymCool particularly year. add energy wind, driver. inverter solid-state our renewables a Similar certification markets. which end with -- And vehicles. of third all bidirectional of markets we the milestones. of the storage, upcoming packaging to solar for to be Phase and core powertrain industrial the about circuit to market, these to upon our build in product

early as in XXXX will gets module power it and cycles. into XXXX design product ramp intelligent the for start Revenue OEM through late

is largest vehicles, electric curve cost still adoption. storage, These of ahead Automotive time charging mitigate range them. simultaneously on to in largest have into of driver moving the early great and manufacturers commercialization, electric renewables, electric are anxiety. are growth stages the semiconductor improve B-TRAN Our market a second there's part production vehicle to a range the with reduce vehicle energy path when their segments B-TRAN, finding power costs, vehicles of their

losses are resource to well usable inherent bidirectionality hours lower B-TRAN improving storage, with energy systems. and making a renewables these of the renewable coupled The kilowatt energy and dispatchable from suited

marketplace In be players long be into us and have customer our in as that second our distribution and technology technology objective for capacity term, for replicating already with the allow electric vehicle large we'll that space the incorporating feedback who've as on planning. is focused sales large out to and to This approach sources product such the our what's look customers. manufacturers, to end be invested and will support. business customers capital stay this of there Our feeding supply, products service spending service to not license other in and of front semiconductor already production for the will

Looking at issues of with XX issued currently States. outside we of the our B-TRAN expanding B-TRAN estate, those XX United have patents, patent

Europe, America, patents North China, coverage Our Korea, representing all high-priority our geographic patent current our South for includes geographies. and Japan, coverage India

part the we both development our the introductions, our driver designs be include architecture itself to expanding patent bidirectional nature and high-value packaging what improvements As as in to are we're our of technology. our on product of and believe efforts to unique patents and

report. As from continued a result list our of XX our to innovation, our XX of increased last pending since patents

In process a addition, double-sided fabrication we treat our secret. as trade wafer

investment. for gone our was high-volume sale. So at the to flow amount fabricate double-sided able the double-sided and transformative commercial a summary, our even second studying learning manufacturable prove device. In quarter the as that's for devices capital have without with patents, for company the know-how an need to yield to enormous the high device wafer high-quality, be we was that foundry the B-TRAN somebody into process make of There's high-performing fabrication wouldn't

devices objectives and that are our B-TRAN of high we the for we devices. as of already strong key for performance I already met focused year the the map. commercialization milestones our remainder executing thrilled interest B-TRAN on plan, and and to the packaged for successfully improved demonstrated on hundreds to half track milestones through testing executing on XXXX. upon meet the remain The road having of first of being expectations the Market all We're outlined fabricated is

electric energy and confident breaker applications drive will conventional solid-state in storage vehicle, within displace many energy, markets. motor semiconductors renewable We're the B-TRAN power circuit

the financial second Chief quarter Tim? Burns, Tim over to call like Financial our Officer, to to results. review I'd hand our Now

Timothy Burns

second revenue Dan. on XXXX with review $XX,XXX. revenue the I additional program. work NAVSEA recognize financial recorded we We the of not results. quarter $XX,XXX revenue second you, will Thank quarter, grant In the the development of and grant will DTI and subcontract any for our completed

grant automaker. XX in revenue do a we quarter agreement development II third of result, Development top the a timing quarter. work global dependent the on third the with is under expect As our not the in revenue Phase

program over with and year, the X test $X.X and expense of automaker stock-based grants. new expenses top quarter by in head the with compensation the hire added companies the and quarter the driven count in Phase Operating were $X.X of XXXX, unit higher higher devices large compared our reflected and and in development expenses shipped weighted costs packaging part to primarily were of by under and Operating also to million second we program. impacted expenses evaluation performance associated stock personnel XX costs the XXXX, on million research second DTI global last as higher

Although or operating quarter, the in semiconductor the and spending government development hiring in expenses, the above development and variability our quarter-to-quarter development particularly in well continue second that fabrication we spending to at we and the research impact additional XXXX some higher as potential as balance to of expect and research runs funding. activities of of expect seen other due timing

compared expenses XXXX excluding compensation levels to We Sales Net and launches. associated quarter second to efforts, services. and is loss new cost XXXX stock-based the in impact of the expect increase keep in XXXX. in despite in was the second and commercialization to XXXX including of of to the XXXX of hiring modestly inflation general to XXXX marketing administrative on of product expected levels, quarter $X.X with impact expense close spending the $X.X cost million million from due

$X.X was $X.X to was in Cash was the half Cash of quarter on first from million lower first the end XXXX. in quarter million the $X burn $X.X of million. million of burn burn cash XXXX. unchanged second of XXXX the quarter Second our guidance

burn cash and Cash and $X.X $X.X quarter third million. $X to cash $X.X approximately million XXXX. year XXXX of equivalents million to XX, full expect $XX.X cash XXXX June totaled million at of We burn

Given through commercialize to as the and a as that ample program. cash operations of we we our we for remains on either participating evaluation well-capitalized technology the sheet that to our automakers planned development technology in or testing already broad modest, XXXX global to liquidity also engaged spectrum burn, balance has us have our XX be are which participate well fund that partner companies top the expect our for of B-TRAN as and

shares at XX, June from model. and We an have no the the end of capital outstanding, March X,XXX,XXX of end units the time, stock asset-light a and outstanding, X,XXX,XXX outstanding from up clean X,XXX,XXX XXX,XXX restricted X,XXX,XXX warrants Operator? Including the we and had March. shares structure debt, up At had shares outstanding we stock slightly June business outstanding options, open like I'd stock performance XX. At diluted questions. units call for at to this unchanged

Operator

Instructions]. [Operator

is Our from first David question coming Williams.

David Williams

the come a and really this year. way on progress, Congrats long it's

So definitely there. a deserving congratulations

touch could a Just one if I early about wanted the importance see received. things. a quick couple you just customer you the of on shipments. maybe And that the of initial to T&E bit talk But feedback little

Daniel Brdar

going because Part what an semiconductor is is we're through architecture. process new of it Yes. a education

in And they're getting educating we teams finding with that them devices position really ships, are is they key to about better performing hands our said of just we would. has we technical on the we've people's than before it. the getting them getting devices feedback gave The we So this that what data that the the technology get customers positive been because to is with been comfortable really sheet.

of and it supposed because I I we one, engineers, than was technology think get So new to. does we get better excited kind when that am engineers,

kit easy were that to saw and ready them they lower we got was switching they start The them the better exercising for shipped I what made hook devices So and really them losses. already instrumentation that's to it were for expecting they devices. up just this than, what think, have

exercise from we've have So to received excitement got them. of people kits their a lot that are and starting

David Williams

was reached you maybe that on realized in think or Yes, the a if some could you lab this what Or led the to What further performance improvements on the observed terms see more fantastic. want I units advantages? something color you of the of you little and devices. provide versus threshold in performance production that expand is can theoretical development on? on kind have to we just

Daniel Brdar

at we're theoretical We threshold. don't think the

from that got a our die really into already incorporated a to There's fact, fab we doing transitioned at team the level level, sort lesser the die that on. the In level we development itself. that process last couple led has design some next changes been of production in learned simulations fab, On of we they've development as the the things to of the the generation it.

conduction the drive devices had to to happened bigger and they the innovative driver in we device the a the and bunch technical the of that start lower the we submitted. the the pretty us once margins explore device the to of on failure terms What and of gave really really into the losses were ideas could test the allowed what we actually discovered whole were go to of ultimately, drive how there we've patent team even But design. driver itself. more change a Once are us that and that choosing subject forced -- and itself really efficiently, in lab some can that incorporate

David Williams

tested XXX increase the what -- amperage. both achieve I also that talked in helped about the amps. you the you Is that right? know has Xx Is

Daniel Brdar

a our and been under here over deliver. But has technology not. focus new promise It's with

you and So the was them. margin we're the sheet at find no gave out there's we is in rated what thing want to design were our or devices Because sharing conservative in customers meet with either of what initial the specs in terms what your data it of we worse, customers. even very you that for terms doesn't that last in

conservative to good be excited continue we it wanted really being because of a technologies terms So in they what were do it not didn't excited the how do. introducing way, customers us because to to supposed to just in was we was

David Williams

TAM, additional think the increased do up open power that level? you Does with

Daniel Brdar

to need to, for the parallel just your example, make levels breakers, we're to of devices. to to circuit some to is people and -- significantly because are does breaker is they're want you rating And way ultimately higher, with that the talking for. breakers if folks going get you current the devices it means solid-state less going it circuit size that power Yes, the

fewer the even because So breaker carrying effective current you them. it there's more semiconductors use in capability if to more cost makes have

David Williams

And just see towards then customer seen inbound any, acceleration lastly, wanted that here to commercial and clearly to progression an you've maybe is after activity or point recent availability just calls if the the up I the announcements guess? in the activity picked

Daniel Brdar

Yes. worked now to What these early starting we're we're really other some starting get we to names. see high-quality who already we're are. know to pretty on is we really as finding customers But approach customers,

teams they've going their ground talking been diving that that So clearly, customers, work the on questions a large technical X -- what of right B-TRAN. seeing to technology. doing we're indicate deep not in is homework these very already we're when we're background We're into to that technology from finding the starting do technology. are They're

missionary part all work the need of raise to that So we in the it's community. that awareness to technical do

Operator

Instructions]. [Operator

Grampp. Our from next is Jeff question coming

Jeffrey Grampp

schedule? behind there? kind the risk you characterize year-to-date characterize thought Curious where postmortem today And would the on here? Just a where achieving if directionally, on you of commercial a progress would we kind are versus guys start kind just of you be had do at taking of the sales step to of qualitatively, you year? maybe track, Are of the of how you'd later first on schedule, guys kind SymCool, year what as kind this biggest the back, you ahead of to

Daniel Brdar

to exactly what Year-to-date, said to this going we're we were tracking we year. do

we team we new of get which about that When and doing just and always new there's it a been -- countered all action along, surprises and out I actually in group think, what really, hard-working but come do diligent just our you're corrective place together when very surprise, we're to figure products, So technology, forward. move people. we and get a get has

said here to team go kind this and becoming because very on do for gets we we we are as going year them. real we very everything our it's were more schedule and much excited of for very, So along just more

doesn't part of a module a the that long SymCool On device itself, have it is operating is, history. it

have it's to us I doing So reliability start think here later independent some which planned little year. a we this to testing, going take bit

make how And deliberately out some is devices comfortable. themselves to the breaking the themselves much margin in design customers to find

you're go I have mean, had it's of got comfortable But that, to getting at that So see product looking thousands really carbide go tens that. operating that a all field devices in through we not GaN everybody I think on time. had of hours silicon through that's it. the the to

of supposed Even new that. convincing IGBTs it's of hiking technical do. that do device been talking of we've we've the just will we've not course we're do. been to what to designs that to, will kind community the conservative lot that gives device natural a in have It's And confidence how what the the approached think of go community the through technical I the that rating, the fact

Jeffrey Grampp

we have products my two commercial in guys for as you follow-up, look should And into market 'XX. the

do balance? kind conserving products relates you rate, But chance having capital to those burn best your philosophically, the like market. some to profile as to put that had versus guys guys sure mentioned making change how the the strike you about How kindling of the products you in it to you conserving balancing succeed. think I OpEx have enough make the maybe do proverbial wood sure think

Timothy Burns

Yes.

we cash And as see back to for very forward, judicious for us, mean, cut It's look a and to our try where use. potentially is. be can little we in try it we that's also We what I the balance. a plan bit. So major expenditures

burn out this as modest We'll XXXX cash But year. if at a have the even were . be X.X Xs in low cash be increase at year. close you burn. in somewhat in increase So coming XXXX. a next XXXX, we'll probably look still XXXX for look we They'll we to here versus probably at similar

for make really internal as that's leverage kind like things the And have, silicon Because be the we'll people, be control, instance, infrastructure and resources then we'll spend capabilities, we sure keeping we out of won't a well. rate we where adding leverage continue on that for our G&A, can the to we there. tight

act, it that one as the but I commercialize here we can a balancing So is it's do technology. think pretty we well

Daniel Brdar

Jeff, great things that to and One network too, with. build a partners we collaborate of we we've the folks is been able of do,

high-power So our we for SymCool module. testing example, do to need of

to money on it our we we'd have While to that. to lab, do like do capital in spend go

if there go do it are center. So at Austin, UT we'll semiconductor

defer our of So with having pretty access of as or we us this the own low really cost to the keeping development on avoid in investment capital can possible. by partners some side any helps as be places where aggressive working have we

Jeffrey Grampp

made might there of Is that R&D Or in an R&D you is marketing? just that a to investments the into way? lifeblood argument important, and too be the kind reallocate view sales 'XX, of company maybe to

Daniel Brdar

the I getting always is think better. competition

So out risk. not you're you to after, at the advantage company products that if going really segments putting a your market you're the bring in technology in you're and continuing invest give competitive

Operator

you. any will to the turn I through questions submitted Christensen read back call Jeff this now to webcast. Thank

Jeff Christensen

asked there analysts, wanted to Grampp and operator. that Partners. David of Group -- of Thank those David Jeff were Williams, both I asked by you, benchmark sell-side Williams. were Alliance And analysts, They're questions

questions in several question been into have portal. We posted that a webcast have ask the the

XX will over and the is, markets months? you do the next Our where see sales the revenue that to of first contribute question most products

Daniel Brdar

Yes. like converter of of going batteries. this the then with going year switching protective that storage. can to energy applications things use to be intelligent first power that incorporate activities be our where revenue of power really that solar And breakers, sort relays, be they because will take Variety is. advantage coming module It's that will that's later clearly circuit solid-state we're bidirectionality out like things are how coupled

more kind really requirements industrial we the So for cycle of while through longer the get applications and automobile sector. design certification

Jeff Christensen

anything reception released program, you surprised from the and What you. Thank test in have to and participants that B-TRAN devices seen evaluation traction you?

Daniel Brdar

were getting wanted was in initial correctly how surprised make when that data some data than the little things that the were using told them the We kit a they they actually sheet. they better we they were what the -- because excited just were to of sure

are they to they're really with too, to on it's use to energizing dig device deeply now it. team, what they're to how might pretty the us their into excited want our and So starting share the and getting, see about thoughts that for starting customers actually

Fortune and to start one with of the But in -- XXX them, few for infrastructure a other their example, we division other want realize about talk this Fortune circuit they For that's of solid-state power relays are converters as thinking to things. companies things and Global they're breaker. we test smart and bunch XXX protective like a program, evaluation our that in that

that just have So it's responding to see devices nice got a in technical really community now in way they hands. positive such the their

Jeff Christensen

center to Our next pursuing are still is, the opportunity. be question you that data promising market? was This posted appears a

Daniel Brdar

Yes.

In that's fact, make companies they one systems. lines. program, of main of UPS our one That's evaluation the in their product and test

weeks X About here, together had So was teams it? our when we technical ago. actually meet

a kit, Just taking issuing them. and to get the talking co-development for they're them and some about to evaluation us to us through do work solicitation test

nice still to pretty it's a going long in us like looks term. be for market the it So

Jeff Christensen

[Operator Instructions].

solutions? B-TRAN benefit solutions. any conventional to additional is Our to compared has rate count? tested question compared reliability have failure or for count, Does reliability to lower correlate compact Or subcomponent does next improvement technology conventional simply B-TRAN been an the

Daniel Brdar

hundreds reliability year, issues. third we've from many this lot need multiple devices, our actually now that in sure variability to that . hundreds done testing there's fabrication when you some here we've to reliability and you of a no testing Well, but so here lot-to-lot be got going in-house, to reliability devices. actually make come of party they lots, go to Because later we're own and do they of can devices, third-party testing, need a

we used modes, IGBT, failure of wire for process. higher the reliability to within is are look to are connect is One dies at a And the is, one for that a are the you IGBT. the use typical IGBT are What if indicative of package if things -- things at bonding that seeing of high that for B-TRAN failure area wire bonds part you look electrically the in two are reasons. there inherently they as

to surfaces. does bonding. conductive called wire design soldered not chip is the what's It deliberately any everything use design, Our is where flip

So that not bond fatigue can there's a wire and fail.

that heat the to be just and we major key the it's other factor contributor reliability generate killer that a going seeing, is is looks in fact like The heat we're that less of electronics.

if validated that. design So high at temperature looking to get third to from it's other the made drive the far, terms inherently extremes we'll it But package. But some and that heat bunch really the have testing life of of you so we'll producing that the if take for out longer do party. reliability you're less in have cycling We'll you that because of a heat, encouraging all reliability package less stuff. should pretty got you've expect and whole we will choices of

Jeff Christensen

posted like compete drivetrain $XXX was are that per vehicle is for products what How content per against was I positioned that question $XX recently have? Another vehicle silicon the Onsemi companies that EVs. On for versus is stated to ICE that CEO think carbide you

Daniel Brdar

much our a material. I carbide mean, a supply. silicon work harder Well, costs I from the issue. XX%. more cost they is We $XX. wafer carbide of a process. go put expensive It's about us stake they're where silicon reduce we of own ago think Tesla in good a by to going couple it months amount their wafer, here is in challenge buy The If silicon ground it's pretty a said to know

silicon a you buy want $XXX. If carbide it's wafer, to

the coupled a fact process. it's much And you with that polish, harder take material that to to

devices much are why can see expensive. more You carbide silicon

over fact now help EV silicon because that for range broad-scale big makers is because their -- automobile OEMs But to of get of them what part from the the better they're will and improve terms the the lower-cost cost of directly cost looking that quality we're one solutions in a for carbide carbide really is of impediments in is just side for time. silicon adoption. it seeing right Now, now, is challenge

Jeff Christensen

removing the Congratulations on manufacturing risk.

Now the corresponding the remaining adoption you of speed risk the seems are to TAMs be the adoption. How in associated should about markets we targeting? with breadth and think

Daniel Brdar

Yes.

technology billion IGBTs What's market are XXXX, incremental that I $XX the And kind interesting If circuit of we made are market, presentation IGBT those because markets. our of market. targeted fits the which website, The pursuing market is you by progress because semiconductor is take haven't you that things the have where best. that some market much the idea in high-power at that is is, it's we think, what? is look like gives solid-state breaker really TAM. a a to really our the

to So cycle for addressable going adoption think to substantial shock The due products Obviously, standards, by to withstand industry. market certification we lot the is most automotive and really pretty have challenging be us. design long the a varies vibration. is

space targeting protective like converters less we're So of in that's relays, the circuit things for in why terms certifications, industrial demanding energy. things are power renewable that breakers, solid-state

be risk for Their and design be profiles time lower, helps the is. all operating and automobile volume are cycles going the where adoption sector. that the to early are their build data satisfy really lower, needed that the And will us to that's

of macro And and nicely. pretty the they together fit two behind really they energy trends these adoption renewable vehicles. them, electric So large have both

Jeff Christensen

of them. Act opportunities post them, thereon continue and forward Reduction We've Greentech the What you answering specific as and the to tailwinds to the the expect Act? questions from had massive for result look please, CHIPS are see Inflation posted, a several we

Daniel Brdar

Yes.

of CHIPS Let going on where to there's focused go. And me initially wafer R&D. relate a is start that fabrication, after with the programs investment lot to that come going be out to CHIPS Act. then Act, is The

is on pursuing facilities be military, the funding. here to of fab market, building it they as more the the create certainly domestic want activities a important will interestingly investment kind that for is particularly where for sourcing. should the opportunity R&D of our for in wafer markets, us capability But production into have domestic We like come some us goes which for out

think generally because I process. long a go just opportunities it's get think government going while these side term, it's But on get be and beneficial. fab the solicitation funded, collaboration. So both through we'll while R&D going to to the quite I wafer future their see and formed, to in a to to programs Unfortunately, take take

and that for because and battery resource more them into fits more fast-switching need very, It bidirectional the deployed, Greentech, of and for really it well. to solar devices that operate going efficiently possible, start push the really to what makes our continue intermittency. what is can are sweet costs and we to spot decline, storage coupling as valuable creates very here as energy we're as their a really need them it do with wind On because as more you see

a us to intelligent module particular really great as for think the create opportunity I So going to it's global power marketplace. the bring we

Jeff Christensen

for Dan [indiscernible] buys? market in second and quarter, the the those For open Tim were

Daniel Brdar

they Yes, all were. They're buys. open market

Jeff Christensen

able to who development some your you of do When being expect partners disclose are?

Daniel Brdar

for particularly We're hoping That's up a side can to that with start start material we them to development. the they on that their us as spending question. relationship pressure good on for automobile ramp us, it's some put

case. of it's For case the of kind rest by them,

them, they doing. know of most think they're want I don't their competitors to what

they ones, but I they're Obviously, I mentioned markets. naming like point, In our companies, program. start say written for we'll comments, be who some in won't are which I at companies along, when named But some to far enough able test power in are. I management the the think of are that and my some example, evaluation

able to to as further start actually we some So that specific buy from hope be and more get these us. be product along companies to about of

Jeff Christensen

think about top other the should offerings? or expect offerings, auto How across OEMs to model your SymCool the implement modules and we or whether drivetrain custom revenue your it's for

Timothy Burns

modest there overall, so the product initially, sales. will with model probably for some relatively be revenue revenue, development So

there of semiconductor longer the the large product players will product be of our that of strategy have focus to already B-TRAN we out offering. to term, So licensing technology and initial well is expand part our sales start to some as in are are the the infrastructure open sales. But on that the place overall

to module is half this power ramp year it production For into the And and until will the XXXX the terms then but really when X the ramp in intelligent sales to we're those that for probably really will here due initial models behind it to revenue again, revenue the sale. we cycles see ramp. have start be going be months with you to of timing will in after overall probably the EV SymCool, OEMs, start it's X and of that the incorporated really as design the see later 'XX, second

Jeff Christensen

the expecting revenue? its in include to product would is deliver models, and to realize B-TRAN the If expect to automaker when automaker company the XXXX EV

Daniel Brdar

a to to spend matter to in it's they a see get need start that the bit certification of all need that reliability actually they're quite and tens because of We'll modules through dollars. take the to to testing going automotive through 'XX all not They've process, to revenue certification do. built get of got thousands to

ready in in while years. won't support production the So from actually we subsequent cars that have plan vehicle revenue their yet, the production will it of design be to in a see XXXX start we'll coming in to out to

Jeff Christensen

Power the recognize? will is per vehicle electric Ideal What that revenue range

Daniel Brdar

been drivetrain our places We've as point to going vary of vehicle where applies. first this. It's on technology the inverter vehicle. somewhat there's based the also other in the the But targeting

DC to converters DC protection so in forth. vehicles, the circuit the and of Some that's chargers, onboard

published, at what's are been XX% tend vehicle an up of vehicle. to full production electric to the semiconductors cost about make look the X% that in you If the of

tell to $XX,XXX the the that where So if now, in be it's $X,XXX. are that range, you $XXX in you to range of to is are think they about would which $XXX,XXX cars going

be to do they cost So going substantial. use of function us, cost per it's really they But pretty out vehicle a products. do of is drive how semiconductors, the the how for

surprised are are component. semiconductors highest cost batteries, I that people think the second the after most the

Timothy Burns

for it vehicle about estimate your based it's that's on sure time average per EV. there, in power $X,XXX out $X,XXX that I'm we over some semiconductor data devices now, somewhat. And decrease But right will to

Jeff Christensen

that vehicles XXXX? in the What in does have production XXXX ready that they'd mean mean their OEM. in for Does automotive

Daniel Brdar

has coming the subsequent been there so that can been costs means certifications you in made That No. design it see is it's and it design a volumes It's year. the model the to it, vehicle sufficient been tested. already incorporating that that would vehicle the completed. be is and of standards, into at that expect rest through It's proven in sufficient probably been automobile

Jeff Christensen

outstanding. are bring When the that company? exercised, they are warrants cash will The into those

Timothy Burns

Yes, they will.

a different those warrants. couple there's tranches of of So

$X.XX at All money. are as $X.XX of some the some and them warrants well. highly There's in

expire actually The November XXXX. warrants in of first

we're cash those November 'XX. So again in for warrants, forecasting coming in

The August other is large XXXX. it's -- tranche warrants of of in I believe

over we'd there's price million there that $X that So of out exercise overall, anticipate over period.

Jeff Christensen

How margin should your we about profile? think

Timothy Burns

in we're margins at XX% roughly expecting volume, So range. the

gross at look if margin. So you

we So even XX% probably in up because lower volumes, is have we're obviously, right target technology, volume to Initially, probably longer I be shouldn't think we sales very B-TRAN the to would if initial going say well number. But expecting the we just here, work to to volume the term. gross that number. of scale profit start on it

Daniel Brdar

will about second that ultimately with company a source, who revenue to a is gross licensing going another automakers think arrangement be and licensing margin. semiconductor in essentially XXX% want we are put place you as And particularly that the

Jeff Christensen

as shareholders the The that with dilution -- company committed future long-term of rewarding to benefit shareholders an the Ideal to company's growth? shareholder-friendly is commencement shareholder Ideal and maximizing

Timothy Burns

Yes.

minimizing be be goal. would it would say first, our I'd future Jeff, dilution So

raise the terms money good the we're to how don't our and current yes, need deal will of and raise approach look when we as when So why we those because that take you to shareholder want considered very -- on existing to we have money don't that, money investors. the That's base. that's you impact just try can, when

consider anytime the So anything the on we existing impact base we capital. involving shareholder evaluate

Jeff Christensen

as entering interested with Do are or such into exclusivity agreements you any in anticipate automakers? customers

Daniel Brdar

no. you going long know give if an company, agreements. what exclusive too the customers early-stage volume awful I the don't But get personally, to you're are think typically term. really you early up And lot. us I them, like for particularly Me to for it's be an in who

just is drive more markets. opens our helps as customers it get and to let's many as be, going volume So engaged down, objective drive possible. cost It really

in terribly an particularly company. So we exclusivity, stage such the in early would not at be interested

Jeff Christensen

Can competitors? are your switch? you talk about other companies developing Who this bidirectional power

Daniel Brdar

the is using are many back of so interest going into losses. Yes, storage out doubling that and topologies bidirectional just just lot result to existing back But fact we've of that approaches there's are are a applications. what energy in devices a there switching basically that their putting seen and

in -- of conference and Our were week. technical them at fact, this a some team

to we is dramatically multiple It's for the MOSFETs see is routinely convenient multiple scan bring impact going that losses connection, way being can. significant B-TRAN to any that bidirectional losses. And innovative switch really IGBTs bidirectional terms the doesn't or in terribly seen switching. there so be of haven't repackaging a electrical a what's way to we of make just but that for And might as improvement pretty anything done these out

Jeff Christensen

about Do those? you in EV have you comment any charging? opportunities specific Can

Daniel Brdar

Yes.

faster In folks our are in test fact, involved on a EV focused some evaluation and charging is is program. really EV have we couple charging. that charging One of in things.

So it more if you in push charging amount you're can you power can into time. of a a battery, charge it, lower

stop we're home from are a is that errands. The the people, folks for out the seeing some the charging way the coming what models their they work, electric with for EV store their they're of charging on vehicles buffer lot they're are or of at incorporating finding other thing if is batteries because to business chargers EV grocery run stop actually

rates if charged them, then use grid highest and and couple at with can of the the peak to demand charge batteries night being day vehicles they they vehicles. are the during batteries from those those charge electric So the backup the

that there's business bidirectionality EV sophisticated in more as and an there. get people interest models So we're charging seeing the out

I marketplace have to evolving business innovate get think so good that more useful going them to vehicles. certainly looking they hours are pretty opportunities some kilowatt helps and be into because those there's in So for us models that something the that

Jeff Christensen

capital about players from garnering of you some support with? these major What are dealing

Daniel Brdar

think form some customer in an to if more gives of opportunity certainly open among relationship them, a validation, be would little certainly with strategic particularly it to because is the you there I that we base. others discussion

with market. engagement product they're I terms just a products, along of them how us but actually get their into bit something we I in think finished we some starting terms and we where in our incorporate how the that think relationships strategic further OEM to to the grow be it's could of capital important and of actual access have pretty little for

Jeff Christensen

supply, to to date? impact ramp the technology semiconductor chain the is as will company How start And be commercialize and impacted disruptions volumes? what you the

Daniel Brdar

through in we we the as development Well, going work, fabs U.S. use development were the

disruption we So any what we see in doing. were didn't really

that on you're working there's looking when certain issues our we that were you alternative. with packaging. an should there's we who of been be, But board, As for, But are in with wafer driver, is saw one not some that designing close it's parts availability. our you're a a they get very we generally, if who fabs circuit as our it should where to much terms can partnering for focus resistor be,

work those with and who look as think prominently in like. what figure I of the in So our the we result very disruptions thinking that saw industry COVID arrangements terms of a

Fortunately, they're since IGBT you that working we wafers in typically are we kind the same in commonly available, use make the silicon, specs of are would with.

in in places around many the they're volume world. So made high

that capability we who's So wafers we've doing it's focus your got sure geography. and terms who's making diversity your really on packaging fabricating of that in and

interrupting there the ourselves disruption we done if chains, business. the best do supply in global from So we've to can insulate that is another

Jeff Christensen

remarks? of looks all we're like Dan, you time. have out do any It closing

Daniel Brdar

track introduction on commercial next share also I community. progress actively path our next advance to our successful to forward to our of our the everybody with continue thank and want technology, to great we'll some and our our We've very made look in commercialize just team of talented for to joining We our a on announcements our call investment call. the marketplace, for is story product XXXX. update

call. us. So at for thank to this point, end may I'd you joining like And the everybody operator,

Operator

this and may Ladies We Thank lines this thank you at your disconnect participation. you today's you. for and gentlemen, time. conference, your concludes

Ideal Power (IPWR) 10 Aug 232023 Q2 Earnings call transcript