They have a good amount of cash and no debt to speak of.- Addressable market is huge.
COMPANY DESCRIPTION
Ideal Power is focused on the development and commercialization of its B-TRAN™
technology. Its patented Bidirectional,Bipolar Junction Transistor(B-TRAN™)
semiconductor technology is a unique double-sided bidirectional AC switch able to
deliver substantial performance improvements over today’s conventional power
semiconductors. The bidirectional switch is a highly efficient and eco-friendly control
solution for electric vehicles, electric vehicle charging, renewable energy, energy storage,
UPS/data center,solid-state circuit breaker, and other industrial and military
applications. Ideal Power believes its B-TRAN modules will reduce conduction and
switching losses, complexity of thermal management and operating costs in medium
voltage AC power switching and control circuitry.
SUMMARY
•Disruptive semiconductor technology–IdealPower’sB-TRAN™
semiconductor technology is a unique double-sided bidirectional AC switch able to
deliver substantial performance improvements over today’s conventional power
semiconductors.The Company believes its B-TRAN™modules will reduce
conduction and switching losses,complexity of thermal management and
operating costs in medium voltage AC power switching and control circuitry.All of
which should provide it with competitive advantages vs. existing solutions.
•Patent portfolio protection–The Company’s technology is protected by 65
issued patents along with 23pending patents globally. The patents cover the B-
TRAN™ device architecture, control methodologies and techniques, double-sided
device manufacturing techniques, and application specific uses of B-TRAN™.
•Large and expanding market–The total addressable market for the
Company’s B-TRAN™ technology is estimated at ~$6B in 2020 and is forecasted
to reach $11B by 2026, representing an approximate 11% CAGR.The Company’s
initial focus will be on the EV and EV charging market, along with renewable, and
data center UPS, which combined,represents ~ 50% of the overall market. The
Company is also targeting the solid-state circuit breaker market.<----!
•Government funded demo underway–Ideal Power signed a $1.2M
subcontract under a2-yeargrantinJun’20to supply B-TRAN™devices to the US
Navy/NAVSEA for the development and demonstration of a B-TRAN™ enabled
high-efficiency DC circuit breaker. The device is part of mission critical technology
for the ship electrification program.Additionally,the Company recently
announced a SBIR Phase I award from the Department of Energy for an AC circuit
breaker.The Company anticipates it ability to leverage the demonstrations to enter
military, industrial, and utility DC markets.
•Recent test and evaluation agreements point positive–YTD,Ideal Power
announced multiple testing and evaluation collaborations for its B-TRAN™ device
that include (1)a top 10 global automaker, (2) a top 10 global solar power
conversion providers, (3) an EV charging company and most recently,(4) a Forbes
Global 500 leader in power management.Feedback and data from the testing will
be shared with Ideal Power for incorporation into its commercial intelligent power
modules.This is all leading toa2H22commerciallaunch of its B-TRAN™.
•Ample current liquidity with low burn–In Feb’21, the Company completed
a public offering of ~1.4M shares at $17.00per share for net proceeds of$21.2M.
With Q3F21 cash at $24.5M, and a projected F21 cash burn of ~ $4.5M, the
Company has ample liquidity to continue the development and commercialization
of its B-TRAN™technology.
•Valuation–Given the early-stage nature of Ideal Power, we are using a potential
2026market share scenario analysis to help frame valuation. To this end, we are
making various, long-term assumptions and discounting the value to present day.
Our various assumptions arrive at a valuation range of$13.00to $55.50, with a
mid-point of $30.75.
