Q1 2022 Ideal Power Inc Earnings Call
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Good day and welcome to the ideal power first quarter 2022 results conference call. Today's conference is being recorded at this time I'd like to turn the conference over to Carolyn capacity Oh H eight. Please go ahead ma'am.
Thank you operator, and good afternoon, everyone. Thank you for joining ideal powers first quarter 2022 conference call with me on the call are Denver, Dar President and Chief Executive Officer, and Tim Burns Chief Financial Officer ideal powers first quarter 2022 financial results press release is available on the company's website at ideal power.
Dot 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 industry prospects are forward looking and maybe 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 and we would also refer you to the company's website for more supporting industry information now I'll turn the call over to Idaho, Power's, President and CEO , Dan <unk> Dan.
Thank you Carolyn and good afternoon, everyone and welcome to our first quarter 2022 financial results Conference call I'll begin by giving you an update on our progress and achievements on our strategy to commercialize our B Tran semiconductor technology, then I'll review, our plans and key priorities for 2022, four b drank commercialization and Jim Burns our CFO .
It will take you through the numbers after which we'll take your questions lets get started.
Well, it's only been two months since our last call. The first quarter was successful and productive as we made significant advancements along our 2022 roadmap the commercialized B Tran is a disruptive.
Efficient bi directional energy control semiconductor technology, it's always immediate needs of our target electric vehicle EV charging renewable energy energy storage UBS for data centers and solid state circuit breaker end markets. It was a very busy and exciting time at all to ideal power and we're happy to update you on our progress as well.
We remain on track to achieve our goals for 2022.
Let's begin with our test and evaluation program.
Since the year began we expanded our roster of participants in the B Tran test and evaluation programs. These new participants include a fortune 1000 global semiconductor manufacturer that serves a variety of commercial and military sectors. This OEM will evaluate b tran for its low losses in bi directional capability initially for test and measurement.
Equipment applications.
We also added an established aerospace and defense system contractor interested in evaluating Retrans for solid state circuit breakers, with whom we are jointly pursuing additional government grants.
Also as we mentioned on our last call a leading manufacturer of commercial electric vehicles, EV powertrain components and EV charging infrastructure.
And evaluate B Tran for use in power conversion applications and their commercial Evs initially for the DC to DC converter with other EV and EV charging applications potentially to follow this is our third announcement in the EV space.
We also added a space application system developer that will evaluate b Tran for solid state circuit breaker applications.
Our thermal management requirements and fewer devices needed with B Tran, our advantageous given the size and efficiency constraint to their target applications.
Finally universities that hold connections to large commercial businesses, where they officially function in the role for testing and evaluation of new technologies, such as B Tran for large commercial OEM organizations.
These program participants are all looking to incorporate innovative advanced technologies and new approaches into their product offerings to improve performance increase efficiency and lower cost and they all have the technical resources to commit to evaluating our cutting edge technology and the improvements in capabilities that can create for them and their product designs.
This interest in new technologies was clearly demonstrated in March when we exhibited B Tran the applied power Electronics conference.
In Houston.
The prevailing focus during the conference in recent years has been wide gap materials, but this year. The significant theme of the conference was focused on bi directional applications, such as electric vehicles vehicle to grid micro grids and renewables paired with energy storage. This.
This is a result of the two macro trends driving growth in the industry the adoption of both <unk> and renewable energy.
Our exhibition and presentation at the conference resulted in us, adding several medium and large companies through our target markets and our pipeline.
Two of which recently joined our test and evaluation program in the weeks following the conference.
Our technology was well received in our presentation entitled Operation and characterization of low loss bidirectional junction transistor B Tran one in apex 2022 outstanding presentation Award.
Great to see our team and technology received such recognition from the technical community.
Further we exhibited B Tran at the power conversion and intelligent motion conference in Nuremberg, Germany last week.
<unk> was again well received for its compelling benefits of bi directional capability and low losses.
Our team engage with potential customers from E mobility energy storage industrial motor drive and solid state circuit breaker applications as well as potential collaborators and the power device module packaging driver intelligent power module and semiconductor manufacturing spaces.
With at least one test and evaluation agreement in place in each of our target markets and a large pipeline of potential additional collaborations we are well positioned to evaluate retrans capabilities across our target end markets. These collaborations will provide the ongoing information to drive the features and performance of our commercial product offerings.
Over time, our ongoing engagements will likely result in a variety of B Tran based modules customized towards specific applications as is common in the traditional power semiconductor market.
Now, let's move on to our work with the United States Navy.
As we've discussed previously Idaho power is collaborating with diversified technologies or DTI on a project for the Naval Sea systems command or NAV C. On the development and demonstration of our B Tran enabled direct current solid state circuit breaker.
This program is supported by the Department of Defense is rapid innovation fund, which invest to accelerate the commercialization of high value high impact technologies and as part of the U S. Navy's strategic focus on chip electrification.
Our project with DTI for NAV C is intended to develop and demonstrate a <unk> enabled high efficiency 12, kilovolt medium voltage direct current solid state circuit breaker for the U S. Navy with subsequent objective. The subsequent objective of introducing a family of medium voltage DC circuit breaker products, incorporating <unk> E Tran for sale to military.
Aerie industrial and utility markets.
Initial wafers from the latest fabrication run completed by one of our domestic fabrication partners are ready for Deicing packaging into devices, which will then be tested for delivery to DTI.
Continued to provide program and technical support through the demonstration of the B Tran enabled DC solid state breaker later this year and keep you apprised of our progress within the limitations of our NAV C confidentiality restrictions.
Let's move now to our work with the department of energy and our submissions for other government funding opportunities.
The first quarter, we announced that we delivered on our project commitments and provided our final report under our phase one small business innovation research for Spi, Our grant funded by the department of energy.
This project is our second collaboration with DTI and the SPR Grant will potentially fund the development of our B Tran based low loss of $13 eight kilovolt alternating current solid state breaker intended to be used in medium voltage power distribution and renewable energy and micro grid applications connected to the utility power grid.
<unk> based solid state circuit breaker is expected to limit fault energy by orders of magnitude compared to conventional mechanical circuit breakers due to its much much faster speed of operation.
Phase one of the project focused on the stimulation device design and the design of a multi die module packaging concept leveraging our current guide design to allow <unk> to be assembled and series or parallel configurations for higher voltage or current rating capability.
We conducted a comprehensive semiconductor device optimization.
Otherwise the B Tran device design and wafer layout for potential fabrication in phase III accommodating a multi die packaging design and with the assistance of a world class packaging firm completed the conceptual multi die packaging design with double sided cooling assessing both the thermal performance and inductors <unk>.
Our simulations and design analysis confirms the ability of <unk> multi die modules to interrupt AC power efficiently and quickly.
Last month, we collaborated with DTI on the submission of an S. B IR phase II Grant proposal to move ahead with the development and demonstration of a 13.8 kv alternating current solid state circuit breaker.
If we received a phase II grant DTI would build and test a full 50 50 megawatt 13, eight JV alternating current solid state circuit breaker using multi diaby Tran packages.
As the $13 eight kv level is commonly found in utility distribution networks, the resulting breakthrough design can be applied directly to existing utility transmission and distribution.
<unk> systems as well as micro grids.
Following that demonstration DTI would have the ability to sell the breaker to utility industrial military customers and licensed to break records on to others for sales to end users. We would also expect to partner with other circuit breaker companies. So they can design and bring your own B Tran based products to market.
We look forward to hearing back from the department of energy on our Phase II application and we'll keep you updated we expect to leverage the valuable knowledge, we now have in designing and packaging multiple devices in parallel and in series configurations, where applications such as electric vehicles as well as for other commercial applications going forward.
Our solid state circuit breaker projects with the U S Navy and department of energy has rate embraced the visibility of B Tran as enabling technology for low loss fast acting circuit breakers. During the most recent additions to our test and evaluation program, our customer specifically looking for better semiconductor solutions for circuit breaker applications.
The addressable LGBT market is large and growing rapidly. We expect there will continue to be new market segments. Not currently served by conventional semiconductors, such as solid state circuit breakers that are enabled due to the low loss by directional capability of our technology.
We continue to seek opportunities to participate in government funded programs that support technology development, particularly for future commercial applications.
In the first quarter, we submitted several proposals in concept papers for government funding opportunities, including proposals with three new partners. These new partners include a system integrator.
Same with packaging and drive our expertise in a university contracted to act as a technology evaluated for large commercial products OEM.
Pending on the proposal, we could either be the prime or subcontractor, if awarded funding under one or more of these submissions. These proposals cover cover several applications, including solid state circuit Breakers current source inverters and modules for electric vehicles.
Our development activities also made significant progress during the quarter.
Teledyne has been a valuable fabrication partner and we will continue to work with them as part of our government funded development projects.
Since the year began we further build out our roster of production partners to ensure we have sufficient capability to support our ongoing development activities and prepare for anticipated higher volume fabrication demand in 2023.
We completed the qualification process of our second domestic semiconductor fabrication partner. This partner brings bipolar fabrication experience supporting our ongoing development activities as well as silicon carbide fabrication experience, it's actually making them a good partner for pursuing government funding opportunities, while supporting our longer term technology roadmap to develop.
The silicon carbide B Tran.
Additionally, as we discussed on our last call. We recently began the qualification of a non domestic production level fabrication partner. This fabricator will initially be conducting engineering short loops and evaluation program involving a subset of process production steps to enable us to assess their process capability limitations and key fabrication steps.
That are crucial to making a high performing double sided device.
With the short lives are successful the next step will be a full process flow engineering run later this year.
<unk> partner capable of high volume production will drive improved quality faster runs and higher wafer output per run compared to our current development fabricators, while helping to ensure sufficient supply capacity for large customers and mitigating supply chain risks.
On the packaging side, our world class packaging partner completed design work and travel mechanical builds this now packaging. Its first b Tran devices to support device testing followed by the packaging of devices for our test and evaluation program.
We also completed a pilot run with a domestic packaging firm to support the NFC program. This firm will support not only the NAV C program, but also other potential future government funded development projects and programs.
Now, let's review our roadmap for 2022.
Our objective for this year remains to introduce our first commercial products by year and realizing the potential of <unk> unique advantages bidirectional switching capability.
Switching and conduction losses improved and more compact thermal management requirements lower user costs for OEM products in our target markets.
We made strong progress to date and to recap our key steps for this year are first we are working closely with the growing number of participants in our <unk> test and evaluation program, we'll be providing packaged devices paired with a drivers to facilitate and accelerate their evaluation process. These customers will share their testing results with us and provide application specific.
Feedback on the design and operation of the packaged devices and driver the feature set they require in their priorities for individual applications will incorporate their feedback into our commercial product offerings.
This will allow us to determine common requirements across applications for our initial commercial products.
And as our test and evaluation program will remain an ongoing aspect of our sales and marketing process will continue to work to add additional potential customers to it.
Second is our test and evaluation program progresses, we are preparing to engage a third party to support our design efforts for our initial commercial products. This effort is intended to run in parallel with the test and evaluation program with the device design Iterating and evolving through the incorporation of feedback from program participants.
Our intention is to offer a module rather than a discrete device is our first commercial product. This should accelerate b Tran commercialization and adoption are solving the hurdles, we know customers will face with respect to bi directional driver in packaging optimization.
Amy customers from having to design these themselves.
We'll be ready to design custom modules for potential customers such as those looking to apply b Tran and electric vehicles and solid state circuit breaker use cases, where multiple b Tran die maybe need to be combined into a single package either in series or parallel to accommodate higher voltages and currents.
We expect our multi dye designed from the department of energy <unk> program to become a commercial product for the solid state circuit breaker market. If were awarded phase two of the program.
Third we will continue to collaborate with DTI on our B Tran enabled solid state circuit breaker projects, specifically for NFC delivery of optimized package devices for incorporation into the demonstration with 12 kilovolt and BDC breaker later this year.
Subsequent to the demonstration and objective of this program is for DTI to introduce a family of medium voltage DC circuit breaker products, incorporating <unk> for sales to military industrial and utility markets.
And under the <unk> Grant if in collaboration with DTI were awarded a phase II grant the completion of the build out and testing of a 50 megawatt 13, eight kv AC alternating current solid state circuit breaker incorporating retrans.
Fourth we'll work toward completing the qualification run of of high volume production wafer fabricator to assess their potential to support our plans for commercial sales.
Just to have a high volume wafer fab ready to support our volume requirements for 2023 and beyond.
Lastly, we continue to work on submitting additional proposals for government funding as I mentioned.
With respect to the proposals already submitted we have the potential to be the prime our subcontractor on these proposals and we expect to collaborate with various Oems and universities on submitting proposals as funding opportunities become available.
Looking at the B Tran patent estate. We currently have 67 issued patents with 29 of those issued outside of the United States and 25 pending B Tran patents and.
In April we added to the geographic breadth of our patent portfolio with the issuance of our first patent in India.
Our current geographic coverage includes North America, China, Japan, South Korea, India, and Europe , and these along with the United States represent all of our high priority geographies for patent coverage.
And all of the first quarter was very productive and our momentum continued into the second quarter, we're making strong progress toward commercialization and are very excited about our prospects for <unk> as a disruptive technology over the coming years.
The global uncertainties that businesses must deal with today, such as supply chain disruptions Covid pandemic high inflation and rising interest rates, we remain on track to introduce our first commercial product by the end of the year. We're increasingly excited by the new customer and collaboration opportunities that were being created as a result of our government funded solid state circuit breaker.
Projects.
Four years of cash on the balance sheet.
<unk> and highly motivated team strong IP portfolio of World class fabrication of packaging partners, we're fortunate to be able to remain focused on executing our commercialization strategy.
Levering on our 2022 objectives and realizing the potential of our technology.
We will keep you updated on our progress as we hit each milestone on our roadmap.
Now I'd like to hand, the call over to Chief Financial Officer, Tim Burns for a review of our first quarter 2022 financial results Tim.
Thank you Dan I'll review first quarter 2022 financial results.
In the first quarter, we recorded $125000 in grant revenue was offsetting cost of grant revenue as we continued our work on the Navy funded NAV C program and completed our work under the Doe funded <unk> phase one grant.
We expect almost all of the remaining grant revenue under the Nasty program to be recognized in the next one to two quarters.
If our Spi our phase II application is approved we potentially expect revenue under this program to begin in the fourth quarter.
We also continue to pursue additional government funding opportunities that if awarded could result in initial revenue as early as the second half of 2022.
Consistent with our expectations operating expenses were $1 9 million in the first quarter of 2022 compared to $924000 in the first quarter of 2021.
Research and development and sales and marketing expenses trended higher on additional wafer fabrication runs and higher personnel costs for employees added over the course of the last year to support both development activities and the test and evaluation program as well as higher third party development costs.
The incremental growth in expenses was planned as we increase our development and commercialization efforts in advance of introducing our initial commercial product by the end of the year.
General and administrative expenses increased this quarter on higher Investor Relations spending and board search and placement fees as we added two independent directors to our board.
Operating expenses were also impacted by higher noncash stock based compensation expense.
Our development and commercialization plans for the balance of 2020 to include additional larger wafer fabrication runs, including a qualifying run with a high volume production wafer fabricator.
Third party testing of the B Tran.
Adding more engineering and front end talent.
Supporting our test and evaluation program.
Designing and introducing our initial commercial products and.
In other B Tran commercialization activities with potential new customers and partners.
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 and other development activities as well as the potential impact of additional government funding.
We expect general and administrative expense to be relatively flat over the remainder of the year. Despite the impact of inflation on the cost of services.
Net loss in the first quarter of 2022 was $1 9 million compared to $924000 in the first quarter of 2021.
First quarter 2022 cash used in operating and investing activities, which is net of the cost reimbursement under the <unk> program was $1 $4 million up from $874000 in the first quarter 2021.
And from $1 $3 million in the fourth quarter of 2021.
This is consistent with the expectations, we provided on our year end call.
We continue to invest in both sales and marketing and research and development and continue to expect the cash burn for full year 2022 of approximately $7 million.
With our second quarter, 2022, cash burn of $1 $7 million to $1 8 million.
Cash and cash equivalents totaled $21 7 million at March 31, 2022.
Given our planned cash burn, which remains modest our balance sheet gives us ample liquidity to fund multiple years of operations and to be a well capitalized partner for the broad spectrum of companies that are either already participating where do we expect to participate in the testing and evaluation of our B Tran technology.
As of March 31, we had $5 million 903797 shares outstanding and.
And 1 million 4200, 48 warrant outstanding.
Including 595982 stock options and restricted stock units outstanding diluted shares outstanding at March 31 totaled seven 5 million shares.
At this time I'd like to open up the call for questions operator.
Thank you if you'd like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Press Star one to ask a question.
We'll take our first question from the line of David Williams with Benchmark. Please go ahead. Your line is now open.
Hey, good afternoon, and congrats on the progress.
Thanks, Dan Thanks, David forgive.
Forgive me I jumped on a bit late here. So if you discussed this and I missed it my apologies, but I.
As you kind of think about your commercial revenue.
When do you think that that policy and I know before we thought we would have first commercial sales in <unk> is that still on track and is there anything there that's been pushed or pulled.
Yes.
The Q4 of this year is still an opportunity for our first initial revenue 2023 is really where we're going to start to see revenue just because of the timeframe that it takes to actually get through these evaluation cycles and get through design cycles, but it'll be modest. We also think there's opportunity for nonrecurring engineering dollars with some of the customers. We're working at the want us.
To do some work that is specific for them.
Products they would ultimately use.
They are OEM products.
Okay Fantastic and I know you touched on this a bit in your script, but just kind of given the the test evaluation program.
<unk> added a few this quarter what types of applications are these being tested for maybe just a little more color into that and then are you seeing new use cases develop or maybe tracks in areas not previously thought of to be an opportunity.
Yes.
Thing that.
It's actually been a little bit of a surprise to US is we initially pursued the solid state circuit breaker concept and the projects that we proposed to the Navy.
Got several players now that are in our program that it is a specific interest of theirs.
From very large players to universities to commercial companies that.
Have been kind of just patiently waiting for there to be a better solution because solid state circuit breakers can be applied in electric vehicles that can be applied in utility and distribution systems.
Protecting data centers protecting renewable energy installation. So the popularity of the sulphate circuit breaker I think catches a little bit by surprise and we have a couple of other folks that are in our program that are looking at.
Some unique applications, but we hadn't been thinking about some things that are power control sort of applications that are.
Really all about getting fast acting devices to protect equivalent a little different that circuit breakers, but really power control devices.
And then as you think about the applications the ones that we're seeing that there is sort of the most interest and it's obviously electric vehicles with several portions of the Evs the drivetrain that DC to DC charger and the onboard charger, we're seeing a lot of interest in EV charging solutions as people look at mobile EV charging solutions and stationary.
Once particularly those that might incorporate buffer batteries.
And then the interest in renewable energy, coupled with energy storage, where you need bi directionality is another one that seems to be pretty popular with the folks that are in the program.
Perfect.
And then as you.
Just wondered when you're how has your customer reception been when engaging with prospective customers in the prototypes as youre sampling and have you seen that change at all in terms of those types of customers beyond maybe what you just spoke to.
We're seeing it's really good but we're finding that we're.
As the visibility of B Tran is growing as people are learning about the projects rather than us just reaching out to the targets that are on our list, we're starting to see more and more inbounds.
So the our business development guys are having to screen out a little bit of folks that we think it makes sense to spend time with and some that maybe it's too small where we really have to think about what's the opportunity cost. If we were to get tied up with some of the smaller companies that are out there that would need a lot of technical support so just happy to see that theres more inbound and the last couple of conferences the.
Applied power Electronics Conference and then also at the power control conference here last week.
A lot of people seeking us out wanted to learn more do you think about how they can incorporate b tran into some of their potential products. So it's nice to see the recognition rising and us not having to pursue everybody directly but have them start to look to us as a way to collaborate.
Great and then maybe just one last one for me just on the cusp from driver any color around that and again forgive me if I missed this but just kind of curious how that is going and maybe what the reception has been around around the custom driver.
Well the driver that we are bringing out.
It's fairly complicated because we wanted to make sure we had a driver that could pretty much do everything for everybody. So it has more features than.
The commercial version of it would have and I think what we're finding is people are appreciating the fact that.
If there is thinking about <unk> for multiple different applications. There is a driver that can kind of do it all for them and then we can start to parse out what needs to be and a driver for individual applications. As a result of their testing while we are seeing though is.
The folks that want to do their own driver in electric vehicle folks are perfect example of it they like having a driver to start with because it. The things you have to think about in terms of how you control. The bidirectional device. We've already spent a lot of time working on.
One is its been exciting for US is we had a great post Doc at Ut Austin.
Who develop the initial version of this driver and he has now joined US. So we have him as an ongoing source of all the thought that went into all of the use cases and all the things that driver is going to be capable of doing that he can speak to customers about why we made certain designed design decisions and what the frozen concept what are.
Okay.
Okay.
Okay.
Thank you we'll take our next question from the line of Orin Hirschman with <unk> investment partners. Please go ahead. Your line is now open.
Hi, congratulations on a lot of progress.
Idleness arent alkylate adult I apologize that's all then it dropped late.
Can you go through and you may have answered it. So I apologize can you go through what you think is going to be.
The first one or two or three products released and are they going to be a standard product I'm, a little confused on that or a family of standard products.
Yes. The first one is going to be a module.
It'll either be a module that includes the driver a simplified version of the driver that we have or it may be a multi die module also because were finding that there is increased interest in that where it could be used for things like the solid state circuit breaker application, where they want to put multiple dies together to achieve either higher current rating our higher voltage rating in the electric vehicle.
Folks are interested in multi die versions of a module as well so it'll be something coming out of our current effort here with solid state circuit breaker activities or an adaption of the engineering prototypes that would be useful for any power converter applications things like renewable energy or energy storage.
Is that product would it be.
Warm wear it.
We customize them.
We're a mainstream youth or it's going to be have almost for an initial usage like almost overkill in terms of capabilities and it has to be almost dummy down for most customers how should we view that.
We're really going to target something that will really hit a mainstream opportunity that does not have the long design cycles like EV.
Physical power converter applications, where we're going to take what we've got it'll be the die itself would be packaged in a form that the industry would recognize and there'll be a simpler version of the driver that takes a lot of the features and capability out that you don't need for all of the applications. We currently have it cover it so it'll be smaller simpler really targeting initial.
<unk>.
Applications that don't have the long design cycles of Evs.
Okay and just.
Can just reiterate once again that was a missile applications in it whether the customers that you've been in tests with really the lead customers there to start.
Yeah, it'll be things like solar coupled with energy storage or Standalone energy storage or.
<unk> charging.
And the initial customers are the same ones that have actually been going through tests right now or not necessarily are then plus more.
While the testing with those customers Hasnt started yet after we finish our deliveries to NAV C will be delivering.
The prototypes for the customers in the program, we've been engaged with them really going through bringing them up to speed technically on the technology on the driver design and them, bringing us up to speed on their application and how they are thinking about using it so when they get parts everybody will be able to hit the ground running with the evaluations.
Okay, great. Thank you very much.
Thanks Lauren.
Once again, if you'd like to ask a question. Please press star one and we'll take our next question from the line of Don <unk> with Winslow asset Group. Please go ahead. Your line is open.
Good afternoon, Thanks for taking my questions.
How are you doing today.
So yourself.
Good good congratulations on the APAC presentation award good job.
Yeah. Thank you it's nice to have the industry actually acknowledged what the team did good work, yes fantastic.
In regards to that.
<unk> presentation.
Technical data.
That real world manufactured B Tran devices or are we still talking about simulations because it seemed like that was actual die that were tested and then compared to simulations can you clarify that.
Okay. It was it was actual dye compared to simulations.
Congrats.
To come that close that Youre seeing.
So that's that.
Fantastic.
Another just another question that came to mind was you had mentioned on our previous call.
That you were talking to a major auto company about maybe a large number of device samples would be accustomed project.
And maybe result in some development revenue.
Could you just maybe give us an update on what's going on there.
Well in terms of engaging with them.
We are increasingly understanding why car designs takes along.
She had equipment manufacturers, they're slow we're still engaged with that customer they have a program that they were working on.
For them when you think about it I mean, we do things at very large scale. So their development work and their programs to evaluate technology are pretty in depth with a lot of resources a lot of rules that they got a fall in terms of how they structure programs, how they get funded so.
It's been.
A long process with them, but I think we're getting there with them. It's just I wish they can move more quickly, but it's just the nature of the industry.
Well I mean, I realize that the automotive sector is going to be your longest adoption cycle just from the nature of that business, so that doesn't make sense.
And so it looks like the solid state circuit breakers would be the kind of the low hanging fruit.
Is that accurate.
Yes. It is we continue to be surprised by the number of car.
I wanted to do something on the solid state circuit breaker sized companies that have good power electronics products do other things like power converters and so forth.
And view the sulphate circuit breaker, just kind of a logical extension of their capability, which is a pleasant surprise and I think they'll probably be some other ones as b Tran becomes just more widely known and that type of community.
Fantastic Thanks for.
Taking my questions and congratulations on all the progress and look forward to hearing more in the future.
Thanks Dawn.
We'll take our last question from the line of Kelly Atamian private Investor. Please go ahead. Your line is now open.
Hey, Dan Tim Thanks for taking my question I was wondering as far as scaling up.
On the circuit breakers for especially the Navy do you guys see any any issues at all scaling up to a large run on those once an order is placed.
No we don't because part of the way. We've approached this is the actual die itself is going to be the same regardless of the applications. Because we really wanted to make sure that the changes were dealt with either in the packaging of the die or in the driver. So if we had to make a lot of devices for circuit breaker.
Or for our power converter or.
<unk>.
We're in the EDA guys, if they want to test something for traction drive in terms of what we would do at the wafer fab. It's the exact same wafers that we would run in the changes all happened and how they get by stop and packaged.
Okay and next question.
Are you guys going to have any kind of formal announcement about the companies that you picked up.
At these conferences.
Our hope is that as we get a little bit further with them, particularly those where we're going to do a program where they might be funding something we'll be able to announce them.
Okay and last question.
Are any JBT companies.
Interested and testing B Tran and how are you going to handle that when that situation occurs.
We do have a semiconductor company that is actually into our test and evaluation programs. They have some specific applications they're interested in.
Theyre not wanted to giant players.
But.
Our approach is going to be we want to be able to collaborate with these guys. Because the large end user customers like the automobile folks are going to want to have an alternate source of supply other than just a small company like ideal power. So if we think if somebody where there's a good fit we would want to explore some kind of a collaboration where we can leverage the front end.
The industry, they've already built with sales and service and support and distribution networks and potentially even license the technology to them.
Where they can leverage the scale that they have in wafer fab.
And final question is when do you think the the circuit breaker for the Navy will be finalized world they'll actually be able to purchase a large quantity of them.
It's going to be part of a program with with the Navy because the Navy is looking for this family of products that <unk> needs to propose to them at the end of that program.
The Navy program is great because it's great validation, but we think the alternating current circuit breaker that we're doing with the department of energy is going to be a much quicker opportunity for products.
Really the market that's here today at the utility and distribution network is alternating current the customers that are coming to us that want a partner to do evaluations for circuit breakers, they're thinking alternating current so we think thats actually the quicker opportunity for product revenue.
Alright, Thanks for taking my question.
Thanks Kelly.
Sure.
There are no further questions at this time, Mr. <unk> I'd like to turn the conference back to you for any additional or closing remarks.
I just want to thank everybody for joining us on the call today, we will be participating in the HC Wainwright Global investment conference in May and we look forward to giving you another update on our second quarter call have a great day everyone.
This.
Today's call. Thank you for your participation you may now disconnect.
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