ipwr20250930

ipwr20250930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to _______________

Commission File Number 001-36216

IDEAL POWER INC.

(Exact name of registrant as specified in its charter)

Delaware	14-1999058
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

5508 Highway 290 West, Suite 120

Austin, Texas 78735

(Address of principal executive offices)

(Zip Code)

(512) 264-1542

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		IPWR		The Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐

Non-accelerated filer ☒	Smaller reporting company ☒

	Emerging growth company ☐

If an emerging growth company, indicate by check mark whether the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the issuer is a shell company (as defined in Rule 12b‑2 of the Exchange Act). Yes ☐ No ☒

As of November 11, 2025, the issuer had 8,511,403 shares of common stock, par value $0.001, outstanding.

PART I	FINANCIAL INFORMATION	3

Item 1.	Unaudited Condensed Financial Statements	3

	Balance Sheets at September 30, 2025 and December 31, 2024	3
	Statements of Operations for the three and nine months ended September 30, 2025 and 2024	4
	Statements of Cash Flows for the nine months ended September 30, 2025 and 2024	5
	Statements of Stockholders’ Equity for the three-month periods during the nine months ended September 30, 2025 and 2024	6
	Notes to Unaudited Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16

Item 4.	Controls and Procedures	16

PART II	OTHER INFORMATION	17

Item 1.	Legal Proceedings	17

Item 1A.	Risk Factors	17

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17

Item 3.	Defaults Upon Senior Securities	17

Item 4.	Mine Safety Disclosures	17

Item 5.	Other Information	17

Item 6.	Exhibits	18

SIGNATURES		19

	September 30,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	8,394,113		$	15,842,850
Accounts receivable, net		31,500			692
Inventory		65,087			96,406
Prepayments and other current assets		184,228			356,658
Total current assets		8,674,928			16,296,606

Property and equipment, net		408,675			415,232
Intangible assets, net		2,678,387			2,611,998
Right of use asset		419,589			483,497
Other assets		44,459			19,351
Total assets	$	12,226,038		$	19,826,684

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	229,199		$	104,117
Accrued expenses		568,675			374,012
Current portion of lease liability		90,646			82,681
Total current liabilities		888,520			560,810

Long-term lease liability		334,430			403,335
Other long-term liabilities		929,247			1,007,375
Total liabilities		2,152,197			1,971,520

Commitments and contingencies (Note 5)

Stockholders’ equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 8,512,724 shares issued and 8,511,403 shares outstanding at September 30, 2025 and 8,336,812 shares issued and 8,335,491 shares outstanding at December 31, 2024		8,513			8,337
Additional paid-in capital		126,226,240			125,327,300
Treasury stock, at cost, 1,321 shares at September 30, 2025 and December 31, 2024		(13,210	)		(13,210	)
Accumulated deficit		(116,147,702	)		(107,467,263	)
Total stockholders’ equity		10,073,841			17,855,164
Total liabilities and stockholders’ equity	$	12,226,038		$	19,826,684

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2025			2024			2025			2024
Revenue	$	24,450		$	554		$	37,728		$	80,624
Cost of revenue		26,069			1,511			60,408			87,483
Gross loss		(1,619	)		(957	)		(22,680	)		(6,859	)

Operating expenses:
Research and development		1,793,162			1,684,063			5,261,173			4,613,703
General and administrative		958,938			893,969			2,755,998			2,695,041
Sales and marketing		266,598			320,642			945,791			996,992
Total operating expenses		3,018,698			2,898,674			8,962,962			8,305,736

Loss from operations		(3,020,317	)		(2,899,631	)		(8,985,642	)		(8,312,595	)

Interest income, net		79,667			209,283			305,203			490,556

Net loss	$	(2,940,650	)	$	(2,690,348	)	$	(8,680,439	)	$	(7,822,039	)

Net loss per share – basic and diluted	$	(0.32	)	$	(0.31	)	$	(0.95	)	$	(0.99	)

Weighted average number of shares outstanding – basic and diluted		9,153,407			8,767,251			9,124,115			7,870,542

					Additional											Total
	Common Stock				Paid-In			Treasury Stock					Accumulated			Stockholders’
	Shares		Amount		Capital			Shares		Amount			Deficit			Equity
Balances at December 31, 2024		8,336,812	$	8,337	$	125,327,300			1,321	$	(13,210	)	$	(107,467,263	)	$	17,855,164
Vesting of restricted stock units		12,479		12		(9,358	)		—		—			—			(9,346	)
Stock-based compensation		—		—		384,595			—		—			—			384,595
Net loss for the three months ended March 31, 2025		—		—		—			—		—			(2,703,024	)		(2,703,024	)
Balances at March 31, 2025		8,349,291		8,349		125,702,537			1,321		(13,210	)		(110,170,287	)		15,527,389
Vesting of restricted stock units		40,044		40		(82,463	)		—		—			—			(82,423	)
Exercise of pre-funded warrants		110,000		110		—			—		—			—			110
Stock-based compensation		—		—		330,030			—		—			—			330,030
Net loss for the three months ended June 30, 2025		—		—		—			—		—			(3,036,765	)		(3,036,765	)
Balances at June 30, 2025		8,499,335	$	8,499	$	125,950,104			1,321	$	(13,210	)	$	(113,207,052	)	$	12,738,341
Vesting of restricted stock units		13,389		14		(7,079	)		—		—			—			(7,065	)
Stock-based compensation		—		—		283,215			—		—			—			283,215
Net loss for the three months ended September 30, 2025		—		—		—			—		—			(2,940,650	)		(2,940,650	)
Balances at September 30, 2025		8,512,724	$	8,513	$	126,226,240			1,321	$	(13,210	)	$	(116,147,702	)	$	10,073,841

Balances at December 31, 2023		5,998,018	$	5,998	$	107,116,362			1,321	$	(13,210	)	$	(97,049,450	)	$	10,059,700
Issuance of common stock and pre-funded warrants		1,366,668		1,367		13,651,296			—		—			—			13,652,663
Exercise of options		8,334		8		86,749			—		—			—			86,757
Vesting of restricted stock units		9,679		10		(10	)		—		—			—			—
Stock-based compensation		—		—		381,019			—		—			—			381,019
Net loss for the three months ended March 31, 2024		—		—		—			—		—			(2,469,626	)		(2,469,626	)
Balances at March 31, 2024		7,382,699		7,383		121,235,416			1,321		(13,210	)		(99,519,076	)		21,710,513
Issuance of common stock and pre-funded warrants		300,000		300		2,071,855			—		—			—			2,072,155
Vesting of restricted stock units		12,539		12		(11,591	)		—		—			—			(11,579	)
Stock-based compensation		—		—		364,581			—		—			—			364,581
Net loss for the three months ended June 30, 2024		—		—		—			—		—			(2,662,065	)		(2,662,065	)
Balances at June 30, 2024		7,695,238		7,695		123,660,261			1,321		(13,210	)		(102,181,141	)		21,473,605
Exercise of warrants		439,180		439		1,018,459			—		—			—			1,018,898
Vesting of restricted stock units		9,679		10		(10	)		—		—			—			—
Stock-based compensation		—		—		418,208			—		—			—			418,208
Net loss for the three months ended September 30, 2024		—		—		—			—		—			(2,690,348	)		(2,690,348	)
Balances at September 30, 2024		8,144,097	$	8,144	$	125,096,918			1,321	$	(13,210	)	$	(104,871,489	)	$	20,220,363

For the Year Ended December 31,
2025 (remaining)	$	30,405
2026		123,297
2027		126,703
2028		130,197
2029		88,579
Total lease payments		499,181
Less: imputed interest		(74,105	)
Total lease liability		425,076
Less: current portion of lease liability		(90,646	)
Long-term lease liability	$	334,430

						Weighted
				Weighted		Average
				Average		Remaining
	Stock			Exercise		Life
	Options			Price		(in years)
Outstanding at December 31, 2024		509,414		$	7.56		4.6
Forfeited/Expired		(138,600	)	$	7.78
Outstanding at September 30, 2025		370,814		$	7.48		4.5
Exercisable at September 30, 2025		366,814		$	7.42		4.5

	RSUs			PSUs
Outstanding at December 31, 2024		331,715			114,000
Granted		131,421			80,000
Vested		(87,759	)		—
Forfeited		(98,931	)		(16,500	)
Outstanding at September 30, 2025		276,446			177,500

	●	our history of losses;

	●	our ability to generate revenue;

	●	our limited operating history;

	●	the size and growth of markets for our technology;

	●	Our ability to continue as a going concern;

	●	regulatory developments that may affect our business;

	●	our ability to successfully develop new products and the expected 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 circuitry;

	●	the rate and degree of market acceptance for our B-TRAN® and current and future B-TRAN® products;

	●	the time required for third parties to redesign, test and certify their products incorporating our B-TRAN®;

	●	our ability to successfully commercialize our B-TRAN® technology;

	●	our ability to secure strategic partnerships with semiconductor fabricators and others related to our B-TRAN® technology;

	●	our ability to obtain, maintain, defend and enforce intellectual property rights protecting our technology;

	●	the success of our efforts to manage cash spending, particularly prior to the commercialization of our B-TRAN® technology at scale;

	●	trade protectionism, tariffs, and other barriers to trade that impact the availability or cost of the raw materials and components used in our products;

	●	general economic conditions and events, including inflation, and the impact they may have on us and our potential partners and licensees;

	●	our dependence on the global supply chain and impacts of supply chain disruptions;

	●	our ability to obtain adequate financing in the future, if and when we need it;

	●	changes in management and the board of directors, and our reliance on key personnel;

	●	the impact of global health pandemics on our business, financial condition and results of operations;

	●	our success at managing the risks involved in the foregoing items; and

	●	other factors discussed in this report.

Exhibit Number		Document

31.1*		Certification of Principal Executive Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Principal Financial Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1**		Certification pursuant to 18 U.S.C. 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

10.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

	September 30,			December 31,
	2025			2024
	(unaudited)
Patents	$	1,997,653		$	1,770,374
Trademarks		26,529			22,767
Other intangible assets		1,843,036			1,843,036
		3,867,218			3,636,177
Accumulated amortization - patents		(409,868	)		(349,279	)
Accumulated amortization - other intangible assets		(778,963	)		(674,900	)
	$	2,678,387		$	2,611,998

Dated: November 13, 2025	IDEAL POWER INC.

	By:	/s/ David Somo
		David Somo
		Chief Executive Officer

	By:	/s/ Timothy W. Burns
		Timothy W. Burns
		Chief Financial Officer

SEC Form 10-Q filed by Ideal Power Inc.