Ideal Power Announces Global Distribution Agreement with RYOSHO U.S.A.

Rhea-AI Summary

Ideal Power Inc. (Nasdaq: IPWR) has announced a global distribution agreement with RYOSHO U.S.A, INC., a subsidiary of RYODEN This partnership marks a significant step in the commercialization of Ideal Power's B-TRAN™ bidirectional semiconductor power switch technology. RYOSHO has already placed orders from a large global customer interested in Ideal Power's products for solid-state circuit protection applications.

Dan Brdar, President and CEO of Ideal Power, highlighted the importance of adding a second distributor with RYOSHO's strong technical sales team and global reach, particularly in Asia. The company maintains an asset-light business model, focusing on B-TRAN™ technology improvements and commercialization while minimizing capital requirements.

Positive

• Secured global distribution agreement with RYOSHO U.S.A, expanding market reach
• RYOSHO has already placed orders from a large global customer
• Potential for additional orders, design wins, and custom development agreements
• Asset-light business model minimizes capital requirements

Negative

• None.

Insights

Market Research Analyst

This distribution agreement with RYOSHO U.S.A. marks a significant milestone for Ideal Power's commercialization strategy. The deal not only expands their global reach but also validates the market potential of their B-TRAN™ technology. Key points to consider:

• RYOSHO's existing order from a large global customer suggests immediate market interest, particularly in solid-state circuit protection applications.
• The partnership leverages RYOSHO's technical expertise and strong presence in Asia, potentially accelerating Ideal Power's market penetration.
• Ideal Power's asset-light business model allows for focused R&D and commercialization efforts while minimizing capital requirements, which could lead to improved profitability in the long run.

While promising, investors should monitor the conversion of these opportunities into tangible revenue growth and market share gains in the coming quarters.

Financial Analyst

This distribution agreement represents a positive development for Ideal Power's financial outlook. Here's why:

• Expanded distribution network: Adding RYOSHO as a second distributor enhances Ideal Power's ability to reach new markets and customers, potentially driving revenue growth.
• Asset-light model: This approach allows Ideal Power to leverage existing infrastructure, potentially leading to higher margins and reduced capital expenditure.
• Market validation: RYOSHO's immediate orders from a large global customer provide early evidence of market demand, which could translate into future revenue streams.

However, investors should note that the financial impact remains to be seen. It will be important to monitor future earnings reports for concrete evidence of revenue growth and profitability improvements resulting from this partnership.

Tech Expert

Ideal Power's B-TRAN™ technology represents a significant innovation in semiconductor power switches. Key technical aspects to consider:

• Bidirectional capability: This feature allows for more efficient power control in various applications, potentially reducing energy losses and improving system performance.
• Solid-state circuit protection: The interest from a large global customer in this application suggests B-TRAN™'s potential to disrupt traditional circuit protection methods.
• Scalability: The asset-light model allows Ideal Power to focus on technology improvements while leveraging existing silicon processing infrastructure, potentially accelerating innovation and market adoption.

While promising, the technology's long-term success will depend on its ability to outperform existing solutions in real-world applications and achieve widespread industry adoption.

AUSTIN, Texas, Aug. 8, 2024 /PRNewswire/ -- Ideal Power Inc. ("Ideal Power," the "Company," "we," "us" or "our") (Nasdaq: IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, today announces an agreement with RYOSHO U.S.A, INC. ("RYOSHO"), a subsidiary of RYODEN CORPORATION (TSE: 8084), for the global distribution of Ideal Power's products. RYOSHO has already placed orders with Ideal Power from a large global customer interested in the Company's products for solid-state circuit protection applications.

"This is a significant development in the commercialization of our B-TRAN™ technology as we add a second distributor for our products. RYOSHO has a strong technical sales team with expertise in securing sales for new technologies and global reach, with particular strength in Asia. We look forward to collaborating with RYOSHO to secure additional orders that may potentially lead to design wins and/or custom development agreements," said Dan Brdar, President and Chief Executive Officer of Ideal Power.

Ideal Power utilizes an asset-light business model leveraging the large investment already made in silicon processing, distribution, demand creation and support infrastructure. This business model allows the Company to continue focusing on disruptive B-TRAN™ technology improvements and commercialization while minimizing capital requirements.

About Ideal Power Inc.

Ideal Power (NASDAQ: IPWR) is pioneering the development and commercialization of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch that delivers substantial performance improvements over today's conventional power semiconductors. Ideal Power's B-TRAN™ can reduce conduction and switching losses, complexity of thermal management and operating cost in AC power switching and control circuitry. For more information, visit the Company's website at www.IdealPower.com, on LinkedIn, on Twitter, and on Facebook.

About RYOSHO U.S.A., INC.

RYOSHO U.S.A. was established in January 1999 in California's Silicon Valley, with a focus on discovering cutting-edge technologies and partners. Since then, we have been supporting the supply of semiconductor and other electronic components to Japanese companies. In recent years, we have also ventured into the business of factory automation equipment and equipment installation. Currently, we are serving our customers from four locations: San Jose, Atlanta, Indianapolis, and Detroit, with flexibility to meet our customers' requests. As our business environment is going through significant transformations, RYOSHO U.S.A. leverages the diverse range of products and support network of the RYODEN Group to expand into markets such as the automotive and industrial equipment sectors to provide valuable propositions to our customers. Going forward, our motto is to respond promptly with enthusiasm and sincerity, and we will continue to strive to be your best solution partner.

Safe Harbor Statement

All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While Ideal Power's management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Such forward-looking statements include, but are not limited to, statements regarding our collaboration with RYOSHO leading to additional orders that may potentially lead to design wins and/or custom development agreements. 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 of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the success of our B-TRAN™ technology, including whether the patents for our technology provide adequate protection and whether we can be successful in maintaining, enforcing and defending our patents, our inability to predict with precision or certainty the pace and timing of development and commercialization of our B-TRAN™ technology, including the timing of the completion of our wafer fabrication runs with our semiconductor fabrications partners, the rate and degree of market acceptance for our B-TRAN™, the impact of global health pandemics on our business, supply chain disruptions, and the expected performance of future products incorporating our B-TRAN™, and uncertainties set forth in our quarterly, annual and other reports filed with the Securities and Exchange Commission. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements, except as required by applicable law.

Ideal Power Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
703-297-6917

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SOURCE IDEAL POWER INC.

FAQ

What is the significance of Ideal Power's agreement with RYOSHO U.S.A?

The agreement with RYOSHO U.S.A is significant for Ideal Power (IPWR) as it adds a second global distributor for their B-TRAN™ technology products, potentially expanding their market reach and commercialization efforts, especially in Asia.

Has RYOSHO U.S.A placed any orders for Ideal Power's products?

Yes, RYOSHO U.S.A has already placed orders with Ideal Power (IPWR) from a large global customer interested in the company's products for solid-state circuit protection applications.

What is Ideal Power's business model for B-TRAN™ technology commercialization?

Ideal Power (IPWR) utilizes an asset-light business model for B-TRAN™ technology commercialization, focusing on technology improvements while leveraging existing silicon processing, distribution, and support infrastructure to minimize capital requirements.

What potential benefits does Ideal Power expect from the RYOSHO U.S.A partnership?

Ideal Power (IPWR) expects the partnership with RYOSHO U.S.A to lead to additional orders, potential design wins, and custom development agreements, leveraging RYOSHO's strong technical sales team and global reach, particularly in Asia.