ipwr20260630

ipwr20260630_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 June 30, 2026

☐	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 August 11, 2026, the issuer had 16,434,655 shares of common stock, par value $0.001, outstanding.

PART I	FINANCIAL INFORMATION	3

Item 1.	Unaudited Condensed Financial Statements	3

	Condensed Balance Sheets at June 30, 2026 and December 31, 2025	3
	Condensed Statements of Operations for the three and six months ended June 30, 2026 and 2025	4
	Condensed Statements of Cash Flows for the six months ended June 30, 2026 and 2025	5
	Condensed Statements of Stockholders’ Equity for the three-month periods during the six months ended June 30, 2026 and 2025	6
	Notes to Unaudited Condensed Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15

Item 4.	Controls and Procedures	15

PART II	OTHER INFORMATION	16

Item 1.	Legal Proceedings	16

Item 1A.	Risk Factors	16

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16

Item 3.	Defaults Upon Senior Securities	16

Item 4.	Mine Safety Disclosures	16

Item 5.	Other Information	16

Item 6.	Exhibits	17

SIGNATURES		18

	June 30,			December 31,
	2026			2025
ASSETS
Current assets:
Cash and cash equivalents	$	41,294,488		$	6,129,049
Accounts receivable		29,800			24,000
Inventory		62,425			9,700
Prepayments and other current assets		208,338			377,901
Total current assets		41,595,051			6,540,650

Property and equipment, net		447,195			376,717
Intangible assets, net		2,571,370			2,687,466
Right of use asset		351,608			397,397
Other assets		82,429			44,459
Total assets	$	45,047,653		$	10,046,689

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	437,103		$	408,398
Accrued expenses		956,706			471,329
Current portion of lease liability		99,194			93,435
Total current liabilities		1,493,003			973,162

Long-term lease liability		259,253			309,900
Other long-term liabilities		824,559			886,538
Total liabilities		2,576,815			2,169,600

Commitments and contingencies (Note 5)

Stockholders’ equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 16,422,841 shares issued and 16,421,520 shares outstanding at June 30, 2026 and 8,538,708 shares issued and 8,537,387 shares outstanding at December 31, 2025		16,423			8,539
Additional paid-in capital		167,557,739			125,927,443
Treasury stock, at cost, 1,321 shares at June 30, 2026 and December 31, 2025		(13,210	)		(13,210	)
Accumulated deficit		(125,090,114	)		(118,045,683	)
Total stockholders’ equity		42,470,838			7,877,089
Total liabilities and stockholders’ equity	$	45,047,653		$	10,046,689

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025
Revenue	$	5,800		$	1,275		$	5,800		$	13,278
Cost of revenue		4,008			3,477			4,008			34,339
Gross profit (loss)		1,792			(2,202	)		1,792			(21,061	)

Operating expenses:
Research and development		1,430,134			1,900,019			3,462,447			3,468,011
General and administrative		1,657,972			897,239			2,877,983			1,797,060
Sales and marketing		536,834			341,033			976,532			679,193
Total operating expenses		3,624,940			3,138,291			7,316,962			5,944,264

Loss from operations		(3,623,148	)		(3,140,493	)		(7,315,170	)		(5,965,325	)

Interest income, net		210,222			103,728			270,739			225,536

Net loss	$	(3,412,926	)	$	(3,036,765	)	$	(7,044,431	)	$	(5,739,789	)

Net loss per share – basic and diluted	$	(0.20	)	$	(0.33	)	$	(0.50	)	$	(0.63	)

Weighted average number of shares outstanding – basic and diluted		16,934,431			9,116,519			14,062,446			9,109,225

					Additional											Total
	Common Stock				Paid-In			Treasury Stock					Accumulated			Stockholders’
	Shares		Amount		Capital			Shares		Amount			Deficit			Equity
Balances at December 31, 2025		8,538,708	$	8,539	$	125,927,443			1,321	$	(13,210	)	$	(118,045,683	)	$	7,877,089
Issuance of common stock and pre-funded warrants, net		3,505,855		3,506		12,571,171			—		—			—			12,574,677
Vesting of stock units including payment of employee tax withholdings		68,876		69		(4,220	)		—		—			—			(4,151	)
Stock-based compensation		—		—		991,440			—		—			—			991,440
Net loss		—		—		—			—		—			(3,631,505	)		(3,631,505	)
Balances at March 31, 2026		12,113,439		12,114		139,485,834			1,321		(13,210	)		(121,677,188	)		17,807,550
Issuance of common stock and pre-funded warrants, net		3,220,961		3,221		27,681,477			—		—			—			27,684,698
Vesting of stock units including payment of employee tax withholdings		190,583		190		(253,027	)		—		—			—			(252,837	)
Exercise of pre-funded warrants		897,858		898		(631	)		—		—			—			267
Stock-based compensation		—		—		644,086			—		—			—			644,086
Net loss		—		—		—			—		—			(3,412,926	)		(3,412,926	)
Balances at June 30, 2026		16,422,841	$	16,423	$	167,557,739			1,321	$	(13,210	)	$	(125,090,114	)	$	42,470,838

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

For the Year Ended December 31,
2026 (remaining)	$	62,486
2027		126,703
2028		130,197
2029		88,579
Total lease payments		407,965
Less: imputed interest		(49,518	)
Total lease liability		358,447
Less: current portion of lease liability		(99,194	)
Long-term lease liability	$	259,253

						Weighted
				Weighted		Average
				Average		Remaining
	Stock			Exercise		Life
	Options			Price		(in years)
Outstanding at December 31, 2025		370,814		$	7.48		2.6
Forfeited/Expired		(30,431	)	$	18.90
Outstanding at June 30, 2026		340,383		$	6.46		2.3

	RSUs			PSUs
Outstanding at December 31, 2025		645,557			357,438
Granted		242,163			70,000
Vested		(149,813	)		(109,646	)
Forfeited		(125,315	)		(32,214	)
Outstanding at June 30, 2026		612,592			285,578

	●	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;

Exhibit Number		Document

10.1		Amended and Restated Ideal Power Inc. 2013 Equity Incentive Plan (incorporated by reference to the registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 4, 2026)

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).

Dated: August 13, 2026	IDEAL POWER INC.

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

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

	June 30,			December 31,
	2026			2025
Patents	$	2,051,182		$	2,062,262
Trademarks		34,796			26,529
Other intangible assets		1,843,036			1,843,036
		3,929,014			3,931,827
Accumulated amortization - patents		(474,618	)		(430,710	)
Accumulated amortization - other intangible assets		(883,026	)		(813,651	)
	$	2,571,370		$	2,687,466