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Good morning, ladies and gentlemen, welcome to the Ideal Power First Quarter 2026 Results Conference Call. At this time, all participants are in a listen-only mode, and at the end of management's remarks, there will be a question and answer session. Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one on your telephone keypad. We do ask that while posing your question, you please pick up your handset if on speakerphone. As a reminder, this event is being recorded. I would now like to turn the conference over to Mr. Jeff Christensen. Please go ahead, sir.

Thank you. Good morning, everyone. Thank you for joining Ideal Power's First Quarter 2026 Results Conference Call. On the call with me are David Somo, President and Chief Executive Officer, and Tim Burns, Chief Financial Officer. Ideal Power's First Quarter 2026 financial results press release is available on the company's website at idealpower.com. Before we begin, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and the company's prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of the associated risk. We would also refer you to the company's website for supporting company information. Now I'll turn the call over to Ideal Power's President and Chief Executive Officer. David?

Thank you, Jeff. I appreciate everyone joining us today. I'll provide an update on our commercial progress since the start of the first quarter. Afterward, I'll turn things over to Tim to discuss our financial results. We look forward to your questions after our remarks. First, our lead Asia customer project for low current solid-state circuit breakers, or SSCBs, continues to advance through product development and remains on track for prototype units for 800 volt AI data center and energy grid customer evaluations. The prototype units are expected to be available in the fourth quarter of 2026, with initial low volume sales orders to support the prototype builds. Beyond that initial project, we started two new projects with this customer.

One for a medium current SSCB designed for 800 volt DC data centers, energy storage applications, EV charging and industrial microgrids, and the second for a low current SSCB for smart industrial buildings. Second, we signed a letter of intent with an industry partner to co-develop a B-TRAN enabled intelligent SSCB prototype for evaluation by a U.S. hyperscaler in its development environment for the NVIDIA Rubin Ultra 800 volt DC AI data center power distribution system. Prototype delivery is targeted for the end of Q4 2026, with an expected purchase order for the delivery of the prototype units. This prototype is also planned to be offered to additional U.S. hyperscalers and other AI data center operators adopting the NVIDIA Rubin Ultra rack architecture or comparable 800 volt DC AI data center power distribution systems for evaluation.

Third, we delivered initial next generation B-TRAN custom package samples and development kits for evaluation to Stellantis for EV applications. We are on track to complete the remaining deliverables under our existing purchase order with Stellantis by mid 2026. Fourth, we engaged new Asia-based global suppliers of power solutions for the potential development of B-TRAN enabled SSCBs for use in solid-state transformers, or SSTs, targeting 800 volt DC AI data centers, energy storage systems, EV charging, and the energy grid. SSTs represent a meaningful opportunity for B-TRAN, and these are our first SST specific customer engagements. Fifth, we engaged several multinational customers for the potential development of B-TRAN based SSCBs across AI data centers, smart industrial building applications, energy storage systems, and the renewable energy grid. Six, strategic investment discussions with global market leading customers continue to be part of our commercial strategy.

I have ongoing discussions with potential strategic investors and plan to continue to see those through. Reflecting this progress, our sales opportunity funnel increased to over $300 million revenue opportunity today, up from approximately $200 million at the time of our investor business update call at the end of February. These opportunities continue to diversify across AI data centers, industrial and automotive applications, as well as across multiple geographies. While a growing funnel is encouraging, converting it into design wins, production orders, and revenue is the top priority. We are focused on execution and working closely with customers to complete their product development and testing to advance projects through the funnel and into volume production orders and revenue.

At the Applied Power Electronics Conference in March, we met with approximately 30 companies that expressed interest in B-TRAN during and following the conference, and some of those discussions have since progressed into qualified sales funnel opportunities. In addition, during my recent two-week business trip in Asia, my second such trip to Asia this year, I highlighted that we initiated two new projects with our lead Asia customer, our first opportunities with SST customers, and we saw strong interest in B-TRAN enabled solid-state circuit protection applications spanning AI data centers, energy storage systems, grid infrastructure, and the industrial sector. Now I'd like to briefly touch on the upcoming market inflection in the industry's transition of power architectures. We continue to see growing industry momentum in the adoption of next-generation high voltage DC power architectures for AI data centers and grid infrastructure.

Importantly, the AI data center build-out has driven extraordinary growth in GPUs, CPUs, and training chips. The power systems delivering electricity to operate the next generation of those chips are now the limiting factor, and the industry is mobilizing to address it. Legacy 400 to 400 volt AC-based data centers were designed for rack power levels of 10 to 50 kilowatts. Next-generation AI workloads are pushing those requirements to 100 to 150 kilowatts in the near term, and eventually beyond 500 kilowatts, with some industry planning scenarios targeting 1 megawatt per rack by 2030. To support that scale, the industry is transitioning to higher voltage DC or 800 volt DC power architectures, a shift NVIDIA has been actively driving through its GPU platform roadmap.

We believe this transition is in its earliest stages and will expand demand for solid-state circuit protection capable of handling bidirectional current flow, microsecond fault detection, and intelligent control that the traditional mechanical breakers were simply not designed to support. At the recent Applied Power Electronics Conference, we presented a paper highlighting why solid-state circuit breakers are essential for emerging 800 volt AI data center power distribution architectures. How B-TRAN effectively addresses the key design challenges customers face, including power efficiency, controllability, fast fault response, power density, and system cost. Challenges that have made silicon carbide solutions a difficult fit for this application. Building on this emerging market opportunity, we also added our first potential solid-state transformer projects to the sales funnel with prospective customers in Asia. Our addressable market opportunity is large and is expanding as the industry's power transition unfolds across multiple markets.

Shifting topics, our patent coverage spans North America, China, Taiwan, Japan, South Korea, India, and Europe, all representing our priority patent coverage geographies. As a result of our continued innovation, our list of issued B-TRAN patents is now at 103, with 50 of those issued outside of the United States. To safeguard our intellectual property further, we treat the double-sided wafer process flow we developed to make our devices as a trade secret, and do not disclose the identity of, and work under strict confidentiality with, our wafer fabrication partners. Even if a competitor studied our patents, they wouldn't have the know-how to fabricate the device. In addition, to minimize the potential for infringement, we exclusively work with foundries and packaging houses in countries that have a history of respecting intellectual property rights.

In closing, commercial momentum continues to build with prototype programs progressing with our lead Asia customer, co-development of prototype units with an industry partner for evaluation by U.S. hyperscaler, Stellantis deliverables progressing on schedule, our first opportunities for B-TRAN enabled SSTs. Engagement expanding with several new SSCB opportunities with multinational customers. The industry's transition toward high voltage DC power architectures in AI data centers and energy infrastructure is expanding the opportunity for advanced solid-state circuit protection that traditional mechanical breakers do not address. B-TRAN is uniquely positioned to meet that need. Our focus remains on converting our expanding sales funnel and customer engagements into production orders, revenue, and long-term shareholder value creation. The strategic priorities we have set are designed to achieve these goals. Now I'd like to hand the call over to Tim Burns to review our financials. Tim?

Thank you, David, and good morning, everyone. Our first quarter 2026 cash burn from operating investing activities was $2.3 million, compared to $2.1 million in the first quarter of 2025, and $2.2 million in the fourth quarter of last year. Our Q1 cash burn was below our guidance of $2.6 million-$2.8 million. We continue to manage expenses prudently and aggressively. We expect second quarter 2026 cash burn to be approximately $2.5 million-$2.7 million, with a full year 2026 cash burn of approximately $10 million-$10.5 million. This compares to a 2025 cash burn of $9.6 million.

The higher forecasted cash burn in 2026 compared to 2025 is due primarily to the hiring of additional sales and engineering personnel. Cash and cash equivalents totaled $16.4 million of March 31st, 2026. We have no debt and a clean capital structure. We did not record revenue in the first quarter of 2026. Initial orders from the companies evaluating our products for potential inclusion in their OEM products are expected to be small, with order sizes increasing as customers progress through their design cycles, perform product qualification, and build inventory for the commercialization of their B-TRAN based products. Operating expenses were $3.7 million in the first quarter of 2026, compared to $2.8 million in the first quarter of 2025, driven primarily by higher stock-based compensation expense and personnel costs.

Stock-based compensation expense increased in the first quarter of 2026 due to equity award modifications under the transition services agreement with our former CEO and inducement grants to our incoming CEO in the fourth quarter of 2025. We expect operating expenses to increase modestly in the coming quarters due to growth in our sales and engineering teams to support our commercialization efforts as well as our growing number of customer engagements. We continue to expect some quarter-to-quarter variability in operating expenses, particularly research and development spending, due to the timing of semiconductor fabrication runs, product development and other research and development activities, as well as hiring. The timing of equity award grants, vestings, and related non-cash stock-based compensation expense recognition will also cause variability in our quarterly operating expenses, as it has in the last two quarters.

Net loss in the first quarter of 2026 was $3.6 million, compared to $2.7 million in the first quarter of 2025. At the end of March, we had 12,112,118 shares outstanding, 1,464,226 options and stock units outstanding, and 2,238,040 pre-funded warrants outstanding. At March 31st, 2026, our fully diluted share count was 15,814,384 shares. At this time, I'd like to open up the call for questions. Operator?

Thank you. At this time, we'll be conducting our question and answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you wish to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Okay, while we wait, I will turn this call back over to Mr. Jeff Christensen to read questions submitted through the webcast. Thank you.

Thank you. Our first submitted question is, if you could leave investors with 1 message today about why Ideal Power is a compelling investment opportunity at this stage of the company's development, what would it be?

Yeah. I'll take that one, Jeff. We're at the cusp of a high voltage DC secular megatrend, where the energy infrastructure across data centers, grid, energy storage, and industrial applications are at the early stages of transitioning from AC to high voltage DC systems. This aligns very strongly to the capabilities we have and benefits of our B-TRAN product, specifically in areas like solid-state circuit breakers. As I mentioned at the beginning of my comments, it's not just a one-year phenomenon. We think this is a multi-year secular megatrend that'll continue, is just starting and will continue through 2030 and beyond. We expect that to expand the market opportunity for B-TRAN and the applications that we're targeting over that period of time.

Thank you. Jeff, do we have-

Oh, I'm sorry.

Apologies.

Yeah. The next submitted question was, any sense that electric vehicle recovery, mainly in Europe, is igniting interest in B-TRAN?

In our sales opportunities, we have multiple customers that are evaluating B-TRAN, both across automotive OEMs like Stellantis and Tier ones. Listening to some of the commentary from our peers and what I've seen in the market is that the current oil situation is driving renewed interest in EVs, and that renewed interest could lead to increased sales volumes, which increases the opportunity for B-TRAN on those programs that we have with our customers.

Thank you. The next submitted question is, please comment on how B-TRAN compares with Infineon's CoolSiC, JFET product.

Yeah. Infineon's CoolSiC JFET, that's a new form of a silicon carbide FET device. Initially, they were silicon carbide MOSFETs. The comparison between B-TRAN here is first and foremost in the inherent bidirectional conducting and blocking capability of B-TRAN. JFETs, like silicon carbide MOSFETs, require back-to-back the configuration, so at least two devices to be able to conduct and block in both directions compared to a single device for B-TRAN. In addition, like I've heard during my recent tour with customers where they are evaluating silicon carbide MOSFETs, it becomes very difficult in medium and high current applications to share current and control the turn on and turn off of the devices in SSCB applications, which is an area they areas they cite as a strength for B-TRAN.

Obviously, if we can reduce the component count, we can reduce the system size and improve the power density and reduce the cost of the overall system.

Thank you. We've gotten questions submitted. Please continue to click that button to ask a question. We look forward to answering your questions. The next submitted question is, please discuss where the company stands today in terms of manufacturing readiness.

Yeah. We're ready. We have relationships with multiple foundries and packaging firms. They'll be able to handle our sales ramp here over the next 2 years. We also have a roadmap to support business over the long term, supporting our forecasted capacity requirements while also providing significant cost reductions. From a manufacturing perspective, we're in good shape.

Thank you. Any additional color on the incremental improvements in the quality and quantity of the sales funnel? What initiatives is Ideal Power undertaking to expand its sales funnel?

Yeah. I'll take that one. As I mentioned during my prepared remarks, the sales funnel has increased by more than 50% since the end of February and the March call that we did for the full year 2025 earnings. The rigor around it has really increased as we, and I personally, sit in biweekly funnel reviews with the sales team, not only to look at the opportunities that are in there, but to also understand what is being added to the funnel, where are we in customer development projects, how are things progressing, what can we do to speed up those projects by between our sales team and our applications engineering organization. If there are any issues that come up, how do we resolve those quickly with customers to work towards keeping projects on track.

I would say the funnel rigor has certainly improved from the beginning of the year till now as we get a stronger handle on the opportunities going into the funnel and we progress those opportunities through the funnel, both through our sales team and our applications engineering team and regular engagements with customers.

Thank you. Does Ideal Power still expect to complete the automotive qualification and reliability testing this summer?

Yes, we continue to make progress towards completing automotive reliability testing, this summer.

Thank you. Next question on this thing, what is the importance of the automotive qualification to Ideal Power?

Yeah. It's a requirement by automotive customers to deploy B-TRAN in their vehicles. Customers can proceed with product development while the qualification is taking place. To put the products into vehicles to begin their field testing on the road and then to release in series models, they need to have the components automotive qualified.

Thank you. You mentioned the automotive qualification completion this summer. The other submitted question was, what other near-term catalyst that the market should be looking out for in the next three to six months?

Yeah. From that perspective, it's really well you communicated earlier. It's announcing additional agreements with customers, whether they're custom development agreements or new programs that potentially for custom development. It's also what we're expecting to start getting purchase orders, so we'll start to talk about those and announce those as they come in. It's really all around commercial activity. We'll continue to make progress with Stellantis. We're targeting, again, those deliverables here to be completed by mid-year. We're expecting commercial announcements here over the course of the next 3-6 months that will be meaningful for us.

Thank you. Who is the main competition for B-TRAN?

If we look at for the applications we're targeting, it would primarily be silicon carbide MOSFETs. IGBTs really aren't considered in this space because of the losses associated with them, and when you're conducting the vast majority of the time, you want to minimize those losses.

Thank you. Let me look here. The timeline for revenue. Any other comments about the timeline for meaningful revenue?

We're still on track with what we said in the business update call. Obviously, the projects we discussed on the call today we're expecting to contribute to that, but there's no change in our expectation.

Okay. Thank you. Are there any key hires planned in sales and engineering in the coming quarters?

We've already actually added to the team this year. We added a sales director in Europe, applications engineering support in Asia. We've actually added someone in the quality team that's assisting with our automotive qualification. The team's largely intact. We'll probably add just two more positions over the balance of the year, we have the core team in place to commercialize the technology.

Thank you. How are things going with You mentioned Stellantis. Any other comment about other automakers?

No, as part of the funnel, if I look at the over $300 billion in opportunities that we have, it's roughly split about 50/50 on a percentage basis between automotive and then general data center, general industrial applications. We do have other projects that are under consideration or evaluation by either automotive tier 1s or OEMs, specifically around EV contactors battery disconnect units.

Thank you. Can you elaborate or can you provide any other color on the strategic partner investment possibilities?

Not much more depth that I can go into at this time other than I have ongoing discussions, as I mentioned in my prepared remarks, from potential strategic investors. I have continued those discussions at a high level in some of the companies, and working to expand that to other areas, to consider what may be the best fit for our company and a strong validation of B-TRAN in the market based on investment of somebody who has interest in adopting our products.

Thank you. That concludes our question and answer session. David, do you have any closing remarks?

I just wanna thank everyone who joined the call today. Along with our sales team, I'll be attending PCIM in Europe next month, and I look forward to sharing updates with you in August regarding our progress as we execute on our plan to commercialize B-TRAN. In closing, I wanna recognize the company's employees for their innovation and continued hard work and thank them for their efforts. Operator, you may end the call.

Thank you. Ladies and gentlemen, this concludes today's conference. All parties may disconnect, and have a great day.

Good morning, ladies and gentlemen, and welcome to the Ideal Power Fourth Quarter and full year 2025 results conference call. At this time, all participants are in a listen-only mode. At the end of management's remarks, there will be a question-and-answer session. Investors can submit their questions any time within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one on your telephone keypad. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.

Thank you, [Holly], and good morning, everyone. Thank you for joining Ideal Power's Fourth Quarter and full year 2025 results conference call. On the call with me are David Somo, President and Chief Executive Officer, and Tim Burns, Chief Financial Officer. Ideal Power's Fourth Quarter and full year 2025 results press release is available on the company's website at idealpower.com. Before we begin, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and company prospects, are forward looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call.

Please refer to the company's SEC filings for a list of associated risks. We would also refer you to the company's website for more supporting company information. Now I'll turn the call over to Ideal Power's President and Chief Executive Officer. David?

Thank you, Jeff. I appreciate everyone joining us today. As you know, we laid out our strategy, commercial opportunities, priorities, and expectations on our recent business update webcast call. It's a plan designed to accelerate commercialization and deliver increased value to our shareholders and our customers. Now that we have set out a clear path, our focus is on disciplined execution. I won't repeat what I shared on our business update webcast call. Instead, I'll discuss our progress since the start of the fourth quarter. Afterwards, I'll turn things over to Tim to discuss our financial results. We look forward to your questions after our remarks. First, we announced a multi-year strategic cooperation agreement with Lasin for the design, development, and worldwide sales of a portfolio of B-TRAN enabled circuit protection products. Think solid-state circuit breakers, battery disconnect units, and EV contactors.

Their first B-TRAN enabled solid-state circuit breaker is expected to target AI data center customers. Other potential products include SSCBs for the intelligent grid, renewable energy and energy storage systems, and EV charging infrastructure, along with contactors and battery disconnect units for EVs. For those of you not familiar with Lasin, they are a publicly traded leading circuit protection solutions provider and systems integrator in Asia that is becoming increasingly focused on expanding into the North American and European markets. Second, we signed a letter of intent with a leading power module manufacturer in Asia to develop and offer a family of B-TRAN based power modules for sale to their customers. This customer already provides a portfolio of IGBT and silicon carbide modules.

They see compelling value in B-TRAN and are interested in developing differentiated and customized B-TRAN enabled solutions due to its inherent competitive advantages in a variety of end use applications. Third, we continue to advance our relationship with Stellantis, including executing on our existing purchase order for custom development and packaged B-TRAN devices for EV applications. We completed the first of five deliverables under this PO in the second half of 2025. We expect to complete the remaining four deliverables by mid-2026. That includes the delivery of custom packaged B-TRAN devices and reference design kits for the testing and evaluation in EV applications. We also remain engaged with Stellantis on a potential development program for EV contactors. Our B-TRAN patent estate continues to grow. Currently, we have 100 issued B-TRAN patents, with 48 of those issued outside of the United States.

Our patent coverage spans North America, China, Taiwan, Japan, South Korea, India, and Europe, all representing our high-priority patent coverage geographies. As a result of our continued innovation, our list of pending B-TRAN patents is now at 78. To safeguard our intellectual property further, we treat the proven double-sided wafer process flow we developed to make our devices as a trade secret and do not disclose the identity of, and work under strict confidentiality with, our wafer fabrication partners. Even if a competitor studied our patents, they wouldn't have the know-how to fabricate the device. In addition, to minimize the potential for infringement, we exclusively work with foundries and packaging houses in countries that have a history of respecting intellectual property rights. I want to close by detailing the strategic priorities for the company. First, continuing to add new opportunities to the sales funnel.

We have a good start today with nearly 200 million of potential sales opportunities identified, but need to continuously expand the sales funnel with new engagements and opportunities. Our opportunities are global, and we added a sales leader in Asia late last year and expect to add a sales leader in Europe and a field applications manager in Asia in the near term to support the global commercialization of B-TRAN initial revenue ramp by converting sales opportunities in the funnel to design-ins and custom development agreements on the earliest possible schedule. It is not just about expanding our sales funnel. It is even more important that we execute and advance qualified opportunities through the funnel to production orders and revenue.

Secure production orders with Lasin for their first B-TRAN enabled solid-state circuit breaker product, and expand our strategic cooperation with Lasin to include solutions to address additional markets and applications. Complete the remaining deliverables under the Stellantis purchase order and continue to advance opportunities for EV contactors and battery disconnect units with Stellantis and other global automakers and tier one suppliers. Continue exploring strategic investment opportunities with global market leaders. We are engaged with a small number of global market leaders on potential strategic investments.

Strategic investors are typically motivated by two factors. First, new and innovative technologies that best solve customer solutions challenges related to market shifts. For example, the transition from AC to 800 volt DC data center power distribution systems. Second, providing additional resources and development support to guide and accelerate the commercialization of new technologies that are of significant interest to their business. While these investments take time, they offer significant validation and alignment of interest with customers. Now I'd like to hand the call over to Tim Burns to review our financials. Tim?

Thank you, David, and good morning, everyone. I'll begin by summarizing our recent capital raise. We raised $12.6 million in estimated net proceeds from a public offering and concurrent private placement that closed on February 2025th. The offering included common stock and pre-funded warrants. Pre-funded warrants are common stock equivalents included in a company's weighted average shares outstanding for EPS calculations, but not included in shares outstanding as they do not have voting rights until exercised. For those of you unfamiliar with pre-funded warrants, they are not what you think of when you have to add warrant coverage to a deal. The pre-funded warrants were effectively paid for, except for the par value of a fraction of a cent at closing rather than a sweetener added on top of common stock for little or no additional consideration.

We are excited that the financing was led by the company's largest existing institutional shareholders with participation from Ideal Power insiders, including our CEO. The offering strengthened our balance sheet. Post-offering, we still have a clean capital structure and no debt. Our fourth quarter 2025 cash burn was $2.2 million compared to $2.6 million in the fourth quarter of 2025, and $2.7 million in the third quarter of 2025. Our Q4 cash burn was well below our guidance of $2.5 million-$2.7 million. Our full year 2025 cash burn was $9.6 million compared to $9.2 million in the full year 2024. Our full year 2025 cash burn was below our guidance of approximately $10 million.

We continue to manage expenses prudently and aggressively. We expect first quarter 2026 cash burn to increase to approximately $2.6 million-$2.8 million with a full year 2026 cash burn of approximately $10.5 million, with the year-over-year increase primarily due to planned 2026 hiring, including expanding the direct sales team, as David had mentioned. This compares to a 2025 cash burn of $9.6 million. Cash and cash equivalents totaled $6.1 million at December 31, 2025, which does not include the $12.6 million of estimated net proceeds from our recent capital raise. We did not record revenue in the fourth quarter of 2025.

Initial orders from the companies evaluating our products for potential inclusion in their OEM products are expected to be small, with order sizes increasing as customers progress through their design cycles, perform product qualification, and build inventory for the commercialization of their B-TRAN based products. Operating expenses were $1.9 million in the fourth quarter of 2025 compared to $2.8 million in the fourth quarter of 2024, driven primarily by lower stock-based compensation expense and personnel costs. The lower stock-based compensation included the forfeiture and modification of certain equity awards in connection with the retirement and transition services agreement the company entered into with our prior CEO. Due to the accounting rules around equity award modifications, the company expects significantly higher stock-based compensation in the first quarter, tapering off in the second quarter.

We continue to expect some quarter-to-quarter variability in operating expenses, particularly our research and development spending, due to the timing of semiconductor fabrication runs, product development, other research and development activities, as well as hiring. The timing of equity grants and related non-cash stock-based compensation expense recognition will also cause variability in our quarterly operating expenses. Net loss in the fourth quarter of 2025 was $1.9 million compared to $2.6 million in the fourth quarter of 2024. Net loss in the full year 2025 was $10.6 million compared to $10.4 million in the full year 2024.

At the end of December 2025, we had 8,537,387 shares outstanding. Our fully diluted share count was 10,565,023 shares. Upon closing of our recent capital raise, it is detailed in the final prospectus supplement we filed with the SEC on February 25. We had 12,089,289 shares outstanding, 2,238,040 pre-funded warrants outstanding, and 1,486,955 stock options and stock units outstanding, for a fully diluted share count of 15,814,384 shares. At this time, I'd like to open up the call for questions. Operator?

Thank you. At this time, we are conducting a question-and-answer session. Investors can submit their questions within the meeting webcast by typing them into the Q&A button on the left side of your viewing screen. Analysts who publish research may ask questions on the phone line. For analysts to ask questions on the phone line, please press star one on your telephone keypad. Please hold while we poll for questions. Your first question for today is from Casey Ryan with WestPark Capital.

Hey, good morning, gentlemen. This is a good segue as we exit 2025 and look forward to 2026. Tim, thanks for the breakdown on the operating expense line. I think that was gonna be my first question. You talked about R&D being tied to production, you know, sort of delivering samples to customers. What's the deal on SG&A? I'm just sort of, you know, thinking up from 4Q, but maybe, you know, looking back, typically it's been, you know, $300,000 kinda has been the number. Is that sort of a good range to think about for 2026, or will that also vary quite a bit?

Yeah. On a cash basis, it will not vary, right? The only thing that could cause variation really is stock-based compensation expense.

Okay.

We're expecting actually to keep G&A relatively flat. It may be up low single digits in terms of percent. Our goal is to keep

Mm-hmm.

G&A flat every year.

Okay. Terrific. That's very helpful. You know, I feel like the opportunities with Lasin sound exciting and encouraging for sure. Can you tell us a little bit about if where they use your product, will that typically be new builds and new products, or is there actually sort of a retrofit and maybe like upgrade and repair kind of opportunity given that it's a better solution than what might already be in the field in some locations?

Yeah. I'll take that one, Casey. Lasin has a portfolio of what are the older style mechanical breakers, and those are deployed in a variety of different applications. They're developing their solid-state circuit breaker portfolio now and building that out, and that's where we have the opportunity to participate in a portfolio of products from them, starting with areas like solid-state circuit breakers and static transfer switches that can go into the first target for them in data centers, and then also renewable energy, battery energy storage systems, and grid applications. That's likely to be the first end markets for their portfolio of the solid-state circuit breakers they're developing, where we have an opportunity to participate with them with B-TRAN.

Okay. Just to the extent that you know the process, do you think data centers, when we talk about the transition to the power systems, are those also like greenfield, meaning it's a whole new building, or is it possible that an existing data center could be fully retrofitted, and so it would be new from the standpoint of how it operates inside its four walls, but maybe its location might not be new?

Yeah. Interesting question, because primarily we're focused on new greenfield build-outs, but I also think.

Mm-hmm.

There are some opportunities for brownfield, particularly as you have data centers stood up that are either 400 volt, single-phase AC, three-phase AC, and if they're going to adopt the new Nvidia platforms, which could drive the power distribution systems to 800 volt, then there's a need to replace the infrastructure across the data center. I think-

Right.

Both are possible. Certainly greenfield as all new opportunity.

Mm-hmm.

There will likely also be some brownfield.

Okay. Terrific. Terrific. Then, I was trying to jot this down, but you mentioned in 2026, you guys have, I think, four or five milestones with Stellantis that you're, you know, planning on achieving, which is terrific. I'm just curious if you could qualify the nature of those. Like, are those, you know, tasks and accomplishments that the Ideal Power team can drive, or in some cases, are you know, gated because they're dependent on some process over at Stellantis? I'm just wondering how much is in your control, sort of just in terms of we need to execute A, B, C, D.

Yeah. Overall, there were five deliverables. One of them we completed.

Okay.

Late last year, there's four remaining deliverables. Under that PO, it's custom development work, it's custom packaging for the device. There's two variants of packaging that they want us to deliver, as well as just some reference design kits that they can evaluate the technology further in the applications that they're looking at. Those are the four deliverables. They are completely within our control.

Perfect.

We expect to complete those by mid-2026.

Yeah, that's terrific, Tim. Thank you. Listen, I think between, you know, today and the update last week, I think we have a good sense of what's possible for 2026. Thanks for the terrific update and we'll look forward to the rest of the year making progress. Thank you.

Thanks. Appreciate it, Casey.

Thank you.

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

Thank you, [Holly]. I wanted to mention that the business update webcast call is available. The link to it is available on our investor relations webpage. I encourage you to watch it. Our first question, gentlemen, is what product development work is still required by Ideal Power to match the product line with customer needs?

Yeah. Our current B-TRAN product, the first gen product that we have today and have been widely sampling to customers, meets the target applications that we have prioritized for accelerating our commercialization. That includes areas like solid-state circuit breakers, static transfer switches, EV contactors. There's really no further modifications required at a device level. Where we're spending our time with customers now is really on their specific product development, where we're working with them to incorporate B-TRAN from optimizing drivers in the power supply circuitry to thermal solutions to fit into their enclosures and so forth, working with our device. Really the products are set for initial applications that we've targeted, and it's more working with the customer through their product development now.

Thank you. The next submitted question is, what are the main hurdles to cross the sizable orders?

Yeah. First and foremost, we need to work with the customers to complete their product development and qualifications. Once they have that, design complete and they've got their qualification package for things like solid-state circuit breakers that they can deliver to their customers, then it's really on our customers to go win the business at their end customers. Getting to those sizable orders requires getting through the product development qualification with our customers, them going to their customers, introducing the products as part of their sales process, and then having the customers adopt those, systems and start to scale out and build.

Thank you. The next question, on the possible strategic partners, what do these partners need to see in order to make a decision?

Yeah. Part of this is they'll need to evaluate and confirm that B-TRAN advantages can best solve the design challenges that they're seeing in systems requirements. As they consider how to best meet some of the needs of end customers with the systems they're developing, they wanna confirm that B-TRAN provides the advantages to solve some of the challenges that they have. That then can move them forward with the strategic partner engagement.

Thank you. We've had several submitted questions, and we encourage you to click that Ask a Question button. Our next question is, are there opportunities for NRE revenue in 2026?

The short answer is yes on that one. As we work across many different customers and have discussions with them, where there are opportunities for some custom development, similar to what we've done with Stellantis or other customers who may want something either a bit different or want additional engineering support on the development of their products, that would present NRE revenue opportunities for us.

Thanks. What Ideal Power solutions will drive the earliest revenue?

Yeah. Here again, if I look at it from a product perspective, it'll be things like solid-state circuit breakers and static transfer switches that are used in markets that adopt new technologies faster. The data center, battery energy storage systems, and grid applications is where we see the first opportunities and earliest revenue potential for B-TRAN-based products.

Thanks. Please comment on your plans to expand the sales funnel.

Okay. Well, two approaches here. The first, as you heard during the prepared remarks, we're expanding and investing in our own sales resources here. Late last year, we added a sales leader in Asia. We now are adding an applications engineering manager there, so that is able to sit in the lab with customers to help them accelerate their product development. And new customers evaluate B-TRAN for their potential products.

The second area is really leaning into our distributor network, where we're putting new tools in place that can help them sell B-TRAN and actually some programs that will incentivize them to go out and get design ins and design wins and customer evaluations with our products. That'll help us fill the top of the funnel. In fact, a knot in our funnel today is more than 100 different opportunities that we're vetting. Once qualified, I would expect many of those to move into the funnel.

What are the company's plans to shorten the prospect sales cycle?

Yeah, really, because B-TRAN is a new technology and different from conventional solutions that customers understand well, like IGBTs and silicon carbide, FETs, we need to help the customers both evaluate our products for their systems and then accelerate product development where we have a different, power supply driving structure for the devices. The first is reference design kits. We continue to work on optimized reference design kits that serve as a very good point for customers to start their design and accelerate their product development by doing a good part of the work for them, specific to the B-TRAN subsystem of their end-product. The second is to use our applications engineering resources here within the company.

As customers get into their product development and have questions, we're providing direct support to them through our engineering team with application notes, as well as supporting them on calls or as needed, sitting in the lab with them. The final area is leverage our distributors. We work with distributors like Richardson Electronics, that has significant experience in the power industry. They actually build power systems as well as sell components. They have a technical sales organization and field apps engineers that can help customers understand how to develop with our B-TRAN products.

Thank you. We've again continue to get questions submitted. We encourage you to click that Ask a Question button. The next submitted question is, will Lasin manufacture the product? What's the thinking on that? Relative to the company has talked about licensing the technology.

Yeah. I would expect Lasin and other similar customers to really be on a purchase order relationship, potentially over time, maybe a longer-term supply agreement. That would be buying products manufactured by Ideal Power. Where it may come up from a licensing perspective is as we deal with large multinational customers that typically want to ensure there's multi-source or reduce the risk in their supply chain.

That's where we would be open to consider a licensing agreement, with either, if we should be unable to supply for whatever reason, gives the customer confidence that they can have the product manufactured for them, either by themselves or somebody else. Certainly, in that scenario, were it to come about, while we're open to licensing, I would want to maintain a favorable position there and kind of first right of supply.

Thank you. Any update on the automotive qualification testing?

What we've said is that we expect to complete the automotive reliability testing by this summer, and I believe we're on track to do that.

Thank you. Why is B-TRAN bidirectional such an important advantage?

Yeah. Two different scenarios I'll describe here. One is you think about in the context of battery energy storage systems or EVs, where you have a battery system that's both discharging and then charging again, you have to conduct current in both directions. That's an obvious advantage where the system has to be bidirectional. If you look at particularly the new 800 volt distribution systems and data centers, here you get into a situation where the current doesn't cross zero like it does in AC-based systems.

Without trying to make this too technical, what it means is when you have constant current and voltage, when fault conditions arise, current can actually be caused to flow backwards in both directions. You want to be able to ensure that you can identify where that's happening, be able to contain it, and be able to control how that ripples through the system. From that perspective, it's something referred to as selectivity inside the 800 volt power distribution system. You need to have bidirectional capabilities in the circuit protection systems.

Thank you. What are your thoughts on the recent announcement of Stellantis sharing more electric vehicle technology with Leapmotor of China? Will that have any effect on your relationship, either positive or negative?

No, I think it could be a positive for Ideal Power. We've for some time now worked closely with Stellantis. As Tim mentioned in his comments, we're preparing a custom package, devices for their evaluation and EV platforms, as well as working with them towards an EV contactor program. To the extent that they would be sharing some of that technology, would open up a bigger market opportunity for us out of the same investment in the design and development of the product.

Thanks. In the Stellantis program, or any other vehicle EV program, how do you think about will it be one model, multiple models of vehicles? What's how do you think about it? How should investors think about that?

Yeah. The automotive companies rarely invest in a technology to build for one model. They typically wanna take it across multiple models to get the economies of their investment, economies of scale there. Our expectation would be with any of the automotive OEMs or tier ones considering our product if we're successful in them adopting B-TRAN, that it would play across more of their EV fleet, multiple models, as opposed to just a single model.

Thank you. Are there a couple of milestones that Ideal Power will achieve with the recent capital raise?

Yeah, I think primarily it's to expand and accelerate the commercialization of B-TRAN and our sales initiatives in support of it. I mentioned the new hires that we're bringing on board, sales leader in Europe, an applications manager in Asia, and then to engage and ensure we're getting our unfair share of mind at our distributors. As a smaller company with design evaluation, design in, design win registration programs that we can fund to really have the distributors excited about selling our products. It's focusing both our internal resources and our distributor network on accelerating B-TRAN commercialization.

Thank you. That concludes our question and answer session. I'd like now to turn the call over to David for closing remarks.

I just wanna thank everyone who joined the call with us today and appreciate the questions. We are committed to executing on our plan and sharing our progress as we move forward. Operator, you may end the call.

Thank you. This concludes today's conference. All parties may disconnect and have a great day.