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DATE

Thursday, Aug. 13, 2026 at 10:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer - David Somo
• Chief Financial Officer - Timothy W. Burns
• Investor Relations - Jeff Christensen

TAKEAWAYS

• Net Proceeds from May Offering -- $27.7 million, following the close of a registered direct offering of common stock and pre-funded warrants on May 18.
• Cash and Cash Equivalents -- $41.3 million as of June 30, 2026, compared to $6.1 million at the end of 2025.
• Quarterly Cash Burn -- $2.5 million, which was flat year over year and at the lower end of the company's guidance range of $2.5 million to $2.7 million.
• Third Quarter Cash Burn Guidance -- $2.7 million to $2.9 million, reflecting planned operational spending for the current period.
• Full Year 2026 Cash Burn Guidance -- $10.3 million to $10.5 million, representing an increase from $9.6 million in 2025 due to hiring in sales and engineering.
• Total Sales Funnel -- Over $400 million in potential revenue opportunity, up from 300 million in mid-May 2026.
• Revenue -- $5,800 for the quarter, reflecting initial product sampling and development kit orders.
• Operating Expenses -- $3.6 million, driven by higher stock-based compensation, personnel costs, and noncash patent impairment charges.
• Net Loss -- $3.4 million, compared to a net loss of $3.0 million in the same quarter of 2025.
• Net Loss Per Share -- $0.20, compared to $0.33 in the prior-year period.
• Common Stock Outstanding -- 16.4 million shares, with a fully diluted share count of 21.1 million including options, stock units, and pre-funded warrants.
• Issued Patents -- 105, with 51 of those issued outside of the United States.
• Inventory -- $62,425, up from $9,700 at the end of 2025 as the company prepares for commercialization.
• Asia Lead Customer Timeline -- Management stated it expected to ship low current solid-state circuit breaker prototypes by the end of Aug. 2026 for internal testing.
• Data Center Opportunity Timeline -- Prototypes for a U.S. hyperscaler's NVIDIA Rubin Ultra 800-volt DC system are targeted for delivery by the end of the fourth quarter of 2026.
• Target Gross Margin -- 40% or higher, which management believe is supported at scale by a new long-term supply agreement with an automotive-qualified foundry.
• Foundry Production Capacity -- Over 1 billion power semiconductors previously produced by the new Asia-based foundry partner, supporting high-volume industrial and automotive demand.
• Industrial Qualification Completion -- Targeted for the fourth quarter of 2026, following the start of JEDEC reliability testing in the current quarter.
• Customer Engagement -- Meetings with more than 20 potential customers in Germany led to new engagements with a European automaker and Tier 1 automotive suppliers.
• Stocking Orders -- A distribution partner placed its first stocking order for solid-state circuit breaker reference design kits for delivery in the coming weeks.
• Six-Month Net Loss -- $7.0 million, compared to a net loss of $5.7 million in the first six months of 2025.

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RISKS

• Timothy W. Burns reported that the company incurred noncash patent impairment charges during the quarter as it proactively rationalized its pending patent portfolio.
• David Somo indicated that detailed optimization work with Stellantis on system-level specifications has affected the timing of completing remaining deliverables under an existing purchase order.

SUMMARY

Management at Ideal Power Inc. (IPWR -4.59%) detailed the company's progress toward commercializing B-TRAN technology for high-voltage DC power architectures, specifically targeting AI data center and energy infrastructure. The company reported a significant expansion of its sales funnel and the establishment of a high-volume manufacturing partnership with an automotive-qualified foundry in Asia. Ideal Power increased its liquidity through a capital raise in the second quarter, which management indicated would support operations for several years. Strategic focus is currently prioritized on industrial qualification to meet the anticipated adoption of 800-volt data center power distribution systems starting in late 2027.

• Data Center Transition: David Somo stated, "SSCBs are essential in high voltage DC systems as they enable ultrafast fault handling for reliability," noting that B-TRAN provides a safety margin for 800-volt power delivery systems.
• European Market Engagement: The company added a Europe-based sales director and met with more than 20 potential customers in Germany, resulting in engagements with a global automaker and Tier 1 suppliers regarding EV contactors and battery disconnect units.
• Strategic Investment Opportunities: Timothy W. Burns noted the company is exploring opportunities where global market leaders could take equity stakes, stating these partners "have equity branches that actually do invest in suppliers and key technologies for their OEM products."
• Industrial Qualification Priority: Management is prioritizing JEDEC industrial qualification over automotive qualification due to immediate revenue opportunities in data centers, energy storage, and grid infrastructure.
• Smart Building Applications: Beyond data centers, the company is engaged with its lead Asia customer on low current solid-state circuit breakers designed for smart industrial buildings and medium current solutions for industrial microgrids.

INDUSTRY GLOSSARY

• B-TRAN: Bi-directional bipolar junction transistor, a proprietary solid-state switch technology.
• SSCB: Solid-state circuit breaker, an electronic alternative to mechanical circuit breakers for faster fault handling.
• RDK: Reference design kit, a pre-engineered package used by customers to evaluate and accelerate product development.
• JEDEC: Joint Electron Device Engineering Council, the organization that sets standards for industrial semiconductor qualification.
• AEC-Q: Automotive Electronics Council, the standard for qualifying semiconductors for use in automotive environments.
• Hyperscaler: Large-scale cloud service providers, such as those operating massive AI data center infrastructures.
• BDU: Battery disconnect unit, a critical safety component in electric vehicle battery systems.
• NRE: Non-recurring engineering, fees charged for custom development or packaging services.

Full Conference Call Transcript

Operator: Good morning, ladies and gentlemen, and welcome to the Ideal Power Second Quarter 26 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 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 1 on your phone keypad. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.

Jeff Christensen: Thank you, Jenny, and good morning, everyone. Thank you for joining Ideal Power's second quarter 26 results conference call. On the call with me are David Somo, President and Chief Executive Officer and Timothy W. Burns, chief financial officer. Ideal Power's second quarter 26 financial results press release is available on the company's website at idealpower.com. Before we begin, I would like to remind everyone that a number of statements on this call are forward looking statements. All statements on this call that are based on historical fact are that are not based on historical fact are forward-looking statements. While management has based any forward-looking statements on its current expectations, The information which such expectations were based on may change.

These forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of risks, uncertainties and other factors. Many of which are outside the company's control. That could cause actual results to materially differ from such statements. Please refer to the company's SEC filings for some of the associated risks, uncertainties and other factors. We would also refer you to Ideal Power's website for more supporting company information. Now I would like to turn the call over to Ideal Power's president and chief executive officer, David.

David Somo: Thank you, Jeff, and thank you to everyone joining us today. I will begin with an update on our commercial progress from the start of the second quarter. Then Tim will review our financial results. And after our remarks, we look forward to your questions. Let me start with our lead Asia customer. We are finalizing our low current solid-state circuit breaker or SSCB prototype development for shipment to the customer later this month for their internal testing. E Tran enabled SSCB prototypes are expected to be available from this customer for their 800 volt AI data center and energy grid customers in the fourth quarter of 26.

With initial low volume orders to support the prototype builds, also expected in the fourth quarter. Beyond that initial project and in order of priority, we are engaged with this customer on 2 additional projects. 1 for a medium current SSCB designed for 800 volt DC data centers energy storage applications, EV charging, and industrial microgrids; and a second for a low current SSCB for smart industrial buildings. Technical discussions on the medium current SSCB are already underway.

Second, under the letter of intent we signed in the second quarter, we advanced our codevelopment with an industry partner on a B-TRAN-enabled intelligent SSCB prototype for a planned evaluation by US hyperscaler in its development for the NVIDIA Rubin Ultra 800 volt DC data center power system. We are targeting prototype delivery by the end of the fourth quarter of 2 thousand 26. This prototype is also planned to be offered to additional hyperscalers and other AI data center operators adopting the NVIDIA Rubin Ultra Power architecture or comparable 800 volt DCAI data center power distribution systems for evaluation.

The ideal power team will be attending the open compute project global summit in October together with our industry partner to introduce this intelligent SSC prototype concept to AI data center and infrastructure providers for their consideration. Third, we delivered a second set of Gen 2 B-TRAN custom package samples and development kits to Stellantis for their evaluation. We are working closely with the customer on a detailed analysis of their solid-state contactor system-level specification to optimize the solution and align the remaining deliverables under the purchase order. While this has impacted the timing of our expected completion of deliverables under the PO, it has not delayed or otherwise impacted our expectations regarding the EV contactor opportunity with Stellantis.

The deliverables we have completed support the next project scheduled for the fourth quarter of 26. We will work to promptly complete future deliverables as they are agreed with the customer to support subsequent project milestones. Fourth, we achieved an important operational milestone. We entered into a long term supply agreement with a high volume wafer foundry in Asia not China, and achieved functional first silicon after initiating discussions with them in the first quarter of this year. Is an automotive qualified fab that has built more than 1 billion power semiconductors. This foundry has the capacity to support high volume and automotive customers at a cost structure we believe supports our targeted gross margins at scale.

Fifth, we are seeing accelerating demand to support 800 volt DC architectures from a growing number of potential customers. Including leading global electromechanical breaker manufacturers now seeking SSCB solutions. I have been asked how we are helping customers speed up adoption would like to take a moment to explain the progress we are making. We introduced a new SSCB reference design kit or RDK to assist customers with evaluating our technology and accelerate the development of their own SSCB products. This is critical to adoption as companies that have traditionally supplied electromechanical breakers may not have internal expertise with Solid State Solutions or may not have started developing SSCB products.

With the rollout of 800 volt AI data center power architectures, expected to start in the second half of next year, These companies need a close to market ready solution to enable timely product and productions. We are already seeing traction as 1 of our distribution partners has placed its first stocking order for these SSCB RDKs for delivery in the coming weeks and multiple customers have requested access to our new RDKs. Sixth, after recently adding a Europe based sales director, our team met with more than 20 potential customers at PCIM in Germany. Our European sales efforts have already led to early engagements with the European based global automaker and Tier 1 automotive suppliers.

We recently met with 1 of these global Tier 1s' pre-production and production teams. We are finding significant interest in solid-state EV contactor and battery disconnect unit solutions. We also have a new engagement with a European based circuit protection company interested in a broad set of applications, including solid-state breakers for data centers and energy storage as well as battery disconnect units for EVs. They are targeting both US and European markets on an aggressive timeline. Seventh, our newly formed advisory board now includes its first member, Dr. Sanjay Parthasarathy, chief marketing officer of Coherent Corporation.

A key supplier for AI data center infrastructure, Sanjay brings more than 35 years of leadership across data centers, optical networking, and related technology markets. Aligning with our near term revenue opportunities. His deep market expertise and industry network directly support our plans to accelerate the commercialization of our high value, high impact solutions. Let me spend a moment on the data center market. When people picture the AI boom, they think graphics chips, processors, and servers. But the bottleneck is increasingly power. Getting it to the data center, and distributing and managing it once there.

The forthcoming migration to the 800-volt DC power architectures and AI data centers and the supporting energy infrastructure is a catalyst that is accelerating the demand for high voltage power semiconductors. This is reflected in the industry's growing backlog for power semiconductors and is expected to drive rapid growth over the next several years. SSCBs are essential in high voltage DC systems as they enable ultrafast fault handling for reliability. B-TRAN provides an ideal solution for solid-state circuit protection with its inherent bidirectional operation, low conduction losses, microsecond fault handling, and 1.2-thousand-volt rated operation providing ample safety margin for 800 volt power delivery systems.

The industry is in the early stages of a secular mega trend in power semiconductors that presents exciting growth opportunity. I will briefly discuss our product reliability testing and qualification plans. A simple way to think about it is that industrial and automotive qualification typically reflect the requirements of each end market. JEDEC industrial qualification supports our near term opportunities in AI data centers energy storage, and grid infrastructure markets while AEC-Q, or automotive qualification, is designed for automotive applications. Given the accelerating demand for power semiconductors to support AI data centers and energy infrastructure, which represent our nearest-term revenue opportunities, we are prioritizing work on industrial reliability testing and qualification.

We plan to begin the industrial qualification process during the current quarter and complete it in the fourth quarter. Automotive reliability testing and qualification will be planned to align with customer timelines. Importantly, automotive qualification is typically required for use in-vehicle production but is not a gating item to advance product development for automotive opportunities. Including our EV contactor opportunity with Stellantis. As such, adjusting the timing of automotive qualification is not expected to affect our sales opportunities. Our commercial progress is showing up in the size and quality of our sales funnel.

Which has grown to over 400 million in total revenue opportunity up from about 300 million at our mid May call. it is split roughly 50 between automotive and the combination of AI data centers and other industrial applications and it is global. Applications are primarily SSCBs and solid-state EV contactors with growing interest in solid-state transformers, all of which broadly fit into the category of circuit protection. While a growing funnel is encouraging, converting it into design wins production orders, and revenue remains our top priority. We are focused on execution and working closely with customers to complete their evaluations product development, and testing to advance projects through the funnel and into volume production orders and revenue growth.

In closing, commercial momentum continued to build this quarter with prototype SSCB units being finalized for internal testing by our lead Asia Customer, progress toward the planned evaluation Of A co-developed intelligent SSCB prototype for a U.S. hyperscaler, a growing pipeline of engagements with regional multinational customers across multiple markets, and the rollout and first stocking order for our new SSCB reference design kit designed to accelerate customer adoption. We also achieved an important operational milestone by entering into a long term supply agreement with a high volume automotive qualified foundry that we expect to be a cost effective partner for us for years to come.

Overall, the industry's transition to high voltage DC power architectures and AI data centers and energy infrastructure is serving as a catalyst for power semiconductors and solid-state circuit protection solutions. And B-TRAN enables a differentiated solution to fill that need. Our focus remains on advancing customer opportunities into volume production orders, revenue growth, and long term shareholder value creation. Now I would like to hand the call over to Timothy W. Burns to review our financials. Timothy?

Timothy W. Burns: Thank you, David, and good morning, everyone. I will begin by summarizing our recent capital raise. We raised $27.7 million in net proceeds from a registered direct offering of common stock and prefunded warrants that closed on May 18. We are excited that financing was led by the company's largest institutional shareholders. The offering significantly strengthened our balance sheet. At 6/30/2026, cash and cash equivalents totaled $41.3 million Post offering, we still have a clean capital structure and no debt. Our second quarter 26 cash burn was $2.5 million flat compared to $2.5 million in the second quarter of 25. And up from $2.3 million in the first quarter of 26.

Our Q2 cash burn was at the lower end of our guidance of $2.5 million to $2.7 million Even with the flexibility provided by our recent capital raise, we will continue to manage expenses prudently and aggressively. We expect third quarter 26 cash burn to be approximately $2.7 million to $2.9 million with a full year 2026 cash burn of approximately $10.3 million to $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. We recorded modest revenue in the second quarter of 26.

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 $3.6 million in the second quarter of 26, compared to $3.1 million in the second quarter of 25. The increase was driven primarily by higher stock based compensation expense personnel costs, and noncash patent impairments as we proactively rationalized our pending patent portfolio. Our 105 issued patents were unaffected by this rationalization and the streamlining of the portfolio lowers our future patent spend.

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. 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. Timing of equity award grants and performance stock unit 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 2 quarters.

Net loss in the second quarter of 26 was $3.4 million compared to $3.0 million in the second quarter of 25. At the end of June, we had 16.4 million shares outstanding 1.24 million options in stock units outstanding. And 3.41 million prefunded warrants outstanding. At 6/30/2026, our fully diluted share count was 21.1 million shares. At this time, I would like to open up the call for questions. Operator?

Operator: Thank you very much. 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 *1 on your phone keypad. A confirmation tone will indicate that your line is in the queue. You may press *2 if you would like to remove your question from the queue. And for participants using any speaker equipment, it might be necessary to pick up your handset before you press the keys.

Please wait a moment whilst we poll for questions. Thank you very much. Our first question is coming from Casey Ryan of Amarex. Casey, your line is live

Casey Ryan: Good morning, David and Timothy. Thanks for the update this morning. I want to ask about the hyperscaler opportunity. Are you partnered with other component makers? I am just wondering if they are really sourcing their own solutions at this point, looking for better products and better pieces. And if 1 hyperscaler is doing it, do we think all of them will start to do it, or is it sort of a personality of that hyperscaler? In terms of how much they want to control versus, you know, turning that over to external parties, I guess.

David Somo: Right. Hi, Casey. Thanks for the question, and I will take that 1. So I will use your terminology. it is more of the personality of the hyperscalers. So, okay. They are each involved in different levels depending on how they work with their partners that are supplying different, components and systems that are deployed in the data center. Other than those that are involved all the way down to kind of the component levels that could integrate into bigger that then get deployed. There are those who stay at a higher level.

The opportunity here in working with, our industry partners to deliver something that is more at a circuit protection level but bring some intelligence that is intended to help with managing how power is utilized and optimized across the power distribution system inside hyperscalers which is why we believe it has relevance to them in likely be less relevant for us just to show up with a B-TRAN. For them to evaluate. But when it is at a more of a system level that they could potentially integrate in their environment, that becomes potentially of more interest. And that is what we are working towards.

Casey Ryan: What do you think sort of the evaluation period? I mean, does it feel fair to think that maybe it is a 1 year type evaluation period? Or shorter or longer, I guess.

David Somo: Yeah, difficult to call. And what I would refer to is for those who are looking to be on the front end of the 800 volt DC data center power evolution. that is anticipated or projected to happen starting from the second half of next year. And see some aggressive adoption as we go into the end of the year and into 28. So they are evaluation timeline, if it is going to be used early in that environment, would have to line up with that schedule.

Casey Ryan: Yeah. Okay. I mean, that is actually consistent with what we have heard from a few other companies who are not in your space necessarily, but are exposed to data center as well. Are you guys-- are there conversations with other, data center component companies that you sell with or partner with? And, you know, I am not trying to draw straight line to Coherent, but I did see that you added someone there to your advisory board. And I think that is a positive, but, obviously, Coherent's a big player in data center as well. But, are you sort of with a partner or a group of companies partnering to sort of sell solutions?

Or are each of you still pursuing your own direct access to, say, a certain hyperscaler or a certain customer opportunity in a data center?

David Somo: So let me describe it this way, and I will use a automotive market analogy. If you think about the way automotive works, now, it was historically component suppliers, semiconductor suppliers like us would sell to tier ones, who then would sell to the automotive OEMs in about 8 to 10 years ago, that began to shift where the OEMs wanted direct relationships with some of the semiconductor suppliers to know what is coming down the pipe. Evaluate newer technology sooner and then have some influence over what their tier 1 suppliers are providing them at a systems level. Right. I think there is opportunity here.

Our traditional model would be us selling our semiconductor components, B-TRAN, to who is going to build a solid-state circuit breaker or a solid-state contactor for automotive. That then gets integrated by the next-level customer. And goes eventually into a data center environment or industrial grid or something along those lines. I think the opportunity here is with the rapid pace of innovation to be able to take something that is more like a circuit breaker or circuit protection level and introduce new concepts directly to those who are doing higher level system integration or even in some cases, the hyperscalers themselves. We are looking at new technology and how to prepare for this HVDC transition.

And so we want to work at each level. Direct with our more traditional customers that are building circuit protection devices, or contactors or EVs. Then their customers who may be doing the integration level and ultimately, to the hyperscaler if possible where there could be interest and they want to work at that level.

Casey Ryan: Right. Okay. Thank you. that is actually very, very helpful for me to hear that and sort of get a better understanding of that. On the on the capacity agreement, getting those feels positive, but it also maybe feels encouraging because perhaps customers were asking you about capacity and wanted you to sort of demonstrate a plan which would sort of suggest some interest on their side. So I am curious how much getting this sort of, you know, penciled out and contracted was sort of part of maybe satisfying some of the sales conversations that you are having with certain potential end customers.

David Somo: Yeah. So with the existing fabs that we have, I mean, we had capacity for, you know, 2 plus years with the existing relationships. But for us, particularly as you look longer term, you look at things like the automotive market, Our new long term supply agreement really supports the long term scaling of our business and probably even more importantly, at a cost structure that we believe supports our targeted gross margins. Right? So we have publicly stated we are looking for gross margins of 40%+ and we have a long term relationship now that will we believe will support that

Casey Ryan: Mhmm. Yeah. 40% plus. Okay. Alright. Terrific. And then last question, I guess, with Stellantis, you know, we always are encouraged by any progress there. But I guess, what do you think is Stellantis, you know, sort of-- for you for you and there is no way to sort of say, will they sort of start to integrate some of these, you know, products or make a decision you know, in a definitive way, how do we think about that? And has the opportunity narrowed or widened? Since maybe we first started talking about them 18 months ago, 24 months ago?

David Somo: Yeah. So I will take that 1, Casey. We are now at the level of depth in the discussions with Stellantis towards working toward the solid-state contactor program has definitely increased. Over the past couple of months. We were working with them very closely on the definition of their system solution level to understand how B-TRAN can be used in their environment to be able to optimize the performance and the capabilities of their system. Looking even evaluating different alternatives that extend beyond our contribution to the system. It includes things like packaging and so forth. That need to be considered as the total system solution.

And so I am encouraged with the improved depth of the conversations that we have as we continue to work closely with them toward the contactor program. And so that is for me, helps to understand is the discussions deepen, you get into more details. that is typically a positive sign of where things are progressing.

Casey Ryan: Yeah. I would agree. You know, I think, all in all, this has been a great update. Those are my questions, and I appreciate the time today.

David Somo: Alright. Thanks.

Timothy W. Burns: Thank you, Casey.

Operator: Thank you very much. Well, we appear to have reached the end of our question-and-answer session on the phone lines. I will now turn the call back to Jeff Christensen to read questions submitted through the webcast.

Jeff Christensen: Thank you. Thanks, Jenny. The first question submitted is why are the foundry agreement and functional first silicon so important for ideal power?

David Somo: Yeah. And I kind of addressed this in responding to 1 of Casey's questions, but 1, it is a long term supply agreement, right? So this will allow us not just to get through the initial ramp, which we had already planned for with our existing fabs, but really gets us in a place where several years out when things like automotive volumes are potentially much more significant, we have an existing relationship now that will support that The other thing, obviously, is in a larger fab, a more established fab, there is a better cost structure. Right?

So I would mentioned, in answering Casey that we can believe it can get to our targeted gross margins at scale with this new foundry relationship that we have. And it does provide confidence, you know, to customers. Because they will recognize the fab if we disclose it to them under NDA. And they will know that we will be able to supply them even if their volumes grow very rapidly.

Jeff Christensen: Thank you. Investors can submit a question via the webcast. You know, there is an ask a question button there. Our next submitted question was what gives management confidence that Ideal Power was successfully commercialized?

David Somo: Yeah. I will take that 1, Jeff. And I think you laid that out during the prepared remarks, but, essentially, there are 3 items I would say. 1 is that B TRAN, the possesses benefits and advantages for the applications that we are targeting primarily around solid state circuit protection that is span data centers, energy infrastructure, and EV applications. We think we have some unique and differentiated capabilities that I described during the call that serve us well. Make us very competitive in those applications. The second is the continued expansion of customer engagements in our sales opportunity funnel I am seeing continued progress with adding new opportunities to the funnel deepening engagements with customers.

That helps move us along that development time line and working towards, production systems. And then the final is that we are actually kind of in the right place at the right time from a market perspective. With respect to the growth outlook and cellular megatrend that is taking place around high voltage DC, for data centers and energy infrastructure, and that fits well with where we have targeted B-TRAN from an applications perspective and from a growth opportunity.

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

Timothy W. Burns: Yeah. So for us, I mean, strategy does not change in how we are attacking the market. We do not expect enormous increases in our spend just because we have more capital on the sheet. We will continue to be aggressive in managing our cash spend. So what it does do is we have over $40 million over $41 million actually on the balance sheet at June 30. So we have a strong balance sheet that will be viewed very favorably by both vendors and customers, as we move forward. So it puts us in a better position to commercialize our technologies and give our partners the confidence that we have adequate capital for several years.

Jeff Christensen: Thank you. The company issued a shelf registration on July 10 and any additional commentary on that?

Timothy W. Burns: Yeah. So from my perspective, it is good housekeeping. So our former our prior shelf was expiring. Or expired, and we wanted to put up a shelf. We have no intention on raising capital right now. We will have it available to issue registered shares if there is a strategic investment. That comes along. We are in discussions with companies on that possibility. Obviously, that would be great for validation of the technology and for revenue generation as well. But, again, it is does not indicate that we have any intent to raise capital. It is just good housekeeping. it is a 3-year instrument.

So 2, 3 years from now, there is a reason for us to raise capital or if a strategic investment opportunity that comes along. It just gives us the flexibility to use shares.

Jeff Christensen: Thank you. The next submitted question is, company includes in its strategic priorities the press release and in the presentation to continue to explore strategic opportunities with global market leaders. Is that the question about that was does that mean corporate investors taking equity stakes or and or is that the investment community?

Timothy W. Burns: So it would be customers. Right? So this would be a customer that is going to potentially adopt our technology, It gives them an incentive for us to succeed. could potentially, you know, have a very positive relationship in terms of driving revenue growth. And we have a lot of the large companies that we are talking to in terms of prospective customers have equity branches that actually do invest in suppliers and key technologies for their OEM products. So that is what we are potentially looking at there.

Jeff Christensen: Thank you. Again, if you have any submitted questions, please submit it in an ask a question button. The next submitted question was what third-party validations exist around B-TRAN Any comment on that?

Timothy W. Burns: So we are in the process of and, David, talked about this extensively in his comments, but going through JEDEC qualification for the industrial markets, which key for our near term revenue opportunities. We also will align our timeline for, automotive qualification with the automotive opportunities in our pipeline, including Stellantis. We have worked with, multiple actual third party testing houses to generate a lot of data. On B-TRAN. A lot of that is included in the data sheets that we have published on our website. And all of our customers just do not take for granted what is in the data sheet. They evaluate the technology. They bring it into their lab.

They test it themselves to understand the operating conditions and how it operates under different conditions. So, from that perspective, I think we are in really good shape.

Jeff Christensen: Thank you. Next submitted question is, can you help investors understand the types of current customer paid engagements?

Timothy W. Burns: Yeah. So for us right now, there is a couple, really. So 1 is product sampling and development kits, and these are generally will be small volume orders where they want to get the technology in their lab and evaluate it for use in their applications. The other thing is potentially NRE fees for custom development projects. So if prospective customer wants, for instance, a custom package, for their application, that is something that we would potentially do to earn NRE dollars for doing that. So those are the main types of revenue near term. Then longer term, obviously, we will be looking at much higher volume orders.

As some of these companies actually adopt our technology for their end products.

Operator: Thank you. That concludes our question-and-answer session. I would now like to turn the call back over to David Somo for closing remarks.

David Somo: Thanks, Jeff. I want to thank our employees. Their innovation and hard work are what is driving our progress. And thank you to everyone who joined us today in your support. I look forward to our next quarterly results call in November as we execute on our plan to commercialize B-TRAN. Operator, you may end the call.

Operator: Thank you very much. This concludes today's conference call. All parties may disconnect and have a great day.