Ideal Power Inc. today announced results for the three and twelve months ended December 31, 2014.
Key 2014 and Subsequent Highlights:
Commercialized a 30kW and 125kW family of Power Packet Switching Architecture (PPSA) enabled power converters applicable to a wide range of verticals
Signed key partnerships with Sharp, Green Charge Networks, and Gexpro/Rexel
In 2014, received purchase orders for approximately 9.5 Megawatts of Ideal Power's 30kW and 125kW battery and hybrid converters to be utilized in several commercial and industrial applications, including: ?
? Commercial storage systems
? Distributed wind turbine applications
? Microgrid applications (both grid-tied and off-grid)
? Fast EV charging ?
Subsequent to the announcement of the distribution agreement with Gexpro/Rexel, received an order for approximately one Megawatt of Ideal Power's 30kW and 125kW battery converters to stock multiple Gexpro warehouses
Backlog of $2 million as of December 31, 2014
Significantly expanded the Company's patent portfolio which now consists of 19 issued US patents and 3 international patents with nearly 100 patent applications pending
Won electrical energy storage award for product innovation for the Company's hybrid converters at InterSolar Europe
Appointed industry veteran Ryan O'Keefe as SVP of Business Development to expand the Company's pipeline?
"2014 was the year we built our commercial business platform by launching a number of new products based on our PPSA technology that deliver a compelling value proposition and secured our initial volume launch customers," stated Dan Brdar, Chairman and CEO. "We believe we are now at an inflection point in the business and expect 2015 to be a year of significant revenue growth due to our increasing order backlog and expanding customer base. Our customers in commercial storage are accelerating their installations, which is translating into meaningful order flow. Our agreement with Gexpro/Rexel provides an entirely new channel and covers all the major markets in the US. Going forward, we plan to drive growth by adding new partners that broaden our market reach in both applications and geography, including international markets," concluded Mr. Brdar.
Fourth Quarter and Full Year 2014 Financial Results
Fourth quarter revenues were $504,444, including product revenues of $373,415 and ARPA-E grant revenue of $131,029, compared to fourth quarter 2013 revenues of $253,838, including product revenues of $21,003, royalty revenue of $25,000, and ARPA-E grant revenue of $207,835
Revenues for the full year 2014 were $1,794,094, including product revenues of $1,215,015 and ARPA-E grant revenue of $579,079, compared to prior year revenue of $1,892,424, including product revenues of $417,468, royalty revenue of $100,000, and ARPA-E grant revenue of $1,374,956
Fourth quarter net loss was $2.0 million compared to a fourth quarter 2013 net loss of $3.6 million
Full year 2014 net loss was $6.9 million compared to a prior year net loss of $9.6 million.
Cash used in operations for 2014 was $5.5 million, while cash used in investing activities was $760,502 for patents, property and equipment.
Cash and cash equivalents totalled $7.9 million on December 31, 2014 with no long-term debt outstanding.?
"We are pleased with our 2014 financial results and have momentum going into 2015. We expect to see significant improvement in gross margins in 2015 as our order backlog and additional orders from current and new customers drive improved scale. We ended 2014 with $7.9 million in cash which is more than sufficient to meet our 2015 operating plan," said Tim Burns, Chief Financial Officer of Ideal Power.
Business Overview
Ideal Power's patented Power Packet Switching Architecture (PPSA) technology enables significant improvements over conventional power converters, thus improving the efficiency, reliability, size and installed cost. The Company's products are made from standard industry components, are battery agnostic and software driven, which affords ultimate flexibility for customers. Ideal Power's current products include 30kW and 125kW 2-port battery and 3-port hybrid converters based on its internationally patented PPSA technology. These award winning products allow the Company to address several multi-billion dollar vertical markets, including commercial energy storage, integrated storage with solar or wind, and on and off-grid microgrid applications, in addition to non-renewable energy applications.
Ideal Power has formed key relationships with leaders in target vertical markets to support their growth initiatives. New channel relationships are expected to significantly increase penetration into target markets and may be complemented by licensing agreements, enabling high volume and international expansion.
