Q1 2024 Ideal Power Inc Earnings Call
Operator: Good morning, ladies and gentlemen, and welcome to the Ideal Power first quarter 2024 results call. At this time, all participants are in a listen-only mode.
Good morning, ladies and gentlemen, and welcome to the ideal power first quarter 'twenty 'twenty four results call. At this time all participants are in a listen only mode. At the end of punishments remarks, there will be a question and answer session.
Operator: At the end of management's remarks, there will be a question and answer session. However, investors can submit their questions at any time during the meeting webcast by typing them into the Q&A button on the left side of their viewing screen. Analysts who publish research may ask questions on the phone lines. For analysts to ask questions on the phone lines, please press star one on your phone handset to join the queue. As a reminder, this event is being recorded. I would now like to turn the conference over to Jeff Christensen. Please go ahead.
Speaker Change: Investors can submit their questions anytime within the meeting webcast by typing them into the Q&A button on the left side of UV ink screen analysts, who publish research may ask questions on the phone lines to analysts to ask questions on the phone lines. Please press star one on your phone handset to join the key.
Speaker Change: As a reminder, this event is being recorded.
Speaker Change: I'd now like to turn the conference over to Jeff Christensen. Please go ahead.
Jeff Christensen: Thank you, operator. And good morning, everyone.
Jeff Christensen: Thank you operator, and good morning, everyone. Thank.
Jeff Christensen: Thank you for joining Ideal Power's first quarter 2024 conference call, with me on the caller Dan Bernard, President and Chief Executive Officer, and Tim Burns, Chief Financial Officer. Ideal Power's first quarter 2024 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 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.
Speaker Change: Thank you for joining ideal powers first quarter 2024 conference call.
With me on the call are Dan Bernard.
Speaker Change: President and Chief Executive Officer, and Tim Burns Chief Financial Officer.
Speaker Change: Idaho Power's first quarter 2024 financial results press release is available on the company's website at Idaho power Dot com.
Speaker Change: Before we begin I'd like to remind everyone that statements made on the call and webcast.
Speaker Change: He knows regarding future results and company 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 the associated risks.
Speaker Change: And we would also refer you to the Companys website for supporting company information.
Jeff Christensen: Please refer to the company's SEC filings for a list of the associated risks, and we would also refer you to the company's website for supporting company information. Now I'd like to turn the call over to Ideal Power's President and CEO, Dan Bernard.
Speaker Change: Now I'd like to turn the call over to ideal powers, President CEO Denver Dark Dan.
Dan Bernard: Thank you, Jeff, and everyone, for joining us on the first quarter 2024 conference call this morning. I'm eager to share some recent updates on the business since the start of the first year and review our priorities for 2024. Then I'll turn things over to Tim Burns to review our financials, and he will be pleased to answer your questions after our remarks.
Speaker Change: Thank you, Jeff and everyone for joining us on the first quarter of 2024 conference call. This morning, I'm eager to share. Some recent updates on the business since the start of the first year and review our priorities for 2024.
Speaker Change: I'll turn things over to Tim Burns to review our financials will.
Speaker Change: We'll be pleased to answer your questions. After our remarks. This was an exciting quarter for us as we made significant progress in our customer engagements and commercialization efforts as evidenced by the conversion of customers in our test and evaluation program moving to commercial orders shipping our first commercial products.
Dan Bernard: This was an exciting quarter for us as we made significant progress in our customer engagements and commercialization efforts, as evidenced by the conversion of customers in our test and evaluation program, moving the commercial orders, shipping our first commercial products, establishing our first distributor and their subsequent customer orders, successfully completing the current program phase with Stellantis and the addition of new large companies to our test and evaluation program. We'll take a look at each of these activities and some additional progress against our objectives for the year.
Speaker Change: <unk> of our first distributor and their subsequent customer orders.
Speaker Change: Successful week completing the current program space was the Lantus and the addition of new large companies to our test and evaluation program.
Speaker Change: We'll take a look at each of these activities and some additional progress against our objectives for the year, but for those new to ideal power I want to briefly address the markets, we serve and the opportunity for our technology.
Dan Bernard: But for those new to Ideal Power, I want to briefly address the markets we serve and the opportunity for our technology. Our technology, BTRAN, is a low-loss, bi-directional power semiconductor device that has wide applicability in high-power applications such as solid-state circuit breakers and circuit protection, renewable energy, energy storage, electric vehicles and EV charging, industrial motor drives, UPS systems for data centers, and power converters for a variety of industrial, utility, and military applications.
Speaker Change: Our technology B Tran is a low loss bidirectional power semiconductor device that has wide applicability in high power applications, such as solid state circuit Breakers, and circuit protection renewable energy energy storage electric vehicles, and EV charging industrial motor drives UBS cyst.
Speaker Change: <unk> for data centers and power converters for a variety of industrial utility and military applications.
Dan Bernard: Based on a recent study by Mordor Intelligence in their Global Power Electronics Market Report and company estimates, the D-Tran serviceable addressable market, or SAM, is predicted to more than double over the next five years. With a projected 16 percent compound annual growth rate, the total SAM market is forecasted to grow from three point six billion in twenty twenty three to seven point six billion in twenty twenty eight.
Speaker Change: On a recent study by Mordor intelligence in their global power Electronics market report and company estimates the Retrans serviceable addressable market, where Sam is predicted to more than double over the next five years with a projected 16% compound annual growth rate. The total Sam for B Tran is forecasted to grow from $3 6 billion.
Speaker Change: In 2023, the seven 6 billion in 2028.
Dan Bernard: Today, this market is currently served largely by conventional power semiconductor devices called IGBTs, which were invented decades ago and are largely believed to have reached the limit of their performance. The primary drivers for all of these applications I just mentioned are the need to reduce costs and improve efficiency, or the useful energy available for the end-user customer. That, in essence, is what B-Tram was specifically designed to do.
Speaker Change: Today. This market is currently served largely by conventional power semiconductor devices called <unk>, which were invented decades ago and are largely believed to have reached the limit of their performance.
Speaker Change: The primary drivers for all of these applications I, just mentioned are the need to reduce costs and improve their efficiency or the useful energy available for the end user customers.
Speaker Change: That in essence is what <unk> was specifically designed to do.
Dan Bernard: For electric vehicles, it means lower vehicle first cost and longer range. For EV charging, it means lower cost chargers and faster charging. For data centers, it means lower operating costs. For renewable energy and energy storage, it means more useful kilowatt hours at the end.
Speaker Change: For electric vehicles, it means lower vehicle first cost and longer range for EV charging it means lower cost Chargers and faster charging.
Speaker Change: For data centers, it means lower operating costs for renewable energy and energy storage. It means more useful kilowatt hours for the end customer.
Dan Bernard: Last year, we completed the highest technical risk of our technology development, which was making high performance, high quality devices in a commercial wafer fab with good yields. Our focus for this year and going forward is the commercialization of our technology and our products. We're thrilled about our continued momentum and advancement of customer engagements and meaningful steps on our B-Train Commercialization Roadmap as evidenced by these recent announcements. First, the fulfillment of initial customer orders for our SimCool Power Module.
Speaker Change: Last year, we completed the highest technical risk of our technology development, which was making high performance high quality devices, and our commercial wafer fab with good yields our focus for this year and going forward as commercialization of our technology and our products.
We're thrilled about our continued momentum and advancement of customer engagements and meaningful steps on our <unk> commercialization roadmap as evidenced by these recent announcements.
Speaker Change: First the fulfillment of initial customer orders for our <unk> power module.
Dan Bernard: The SimCool Power Module delivers very low conduction losses for circuit breaker and circuit protection applications in industrial, utility, electric vehicle, and military markets, and is expected to be the earliest source of our sales ramp. Second, we added our first distributor, Richardson Electronics, for discrete B-Train devices and Simcoe products. Richardson Electronics has already placed multiple orders with Ideal Power from large global customers interested in our technology for solid state circuit breaker products for the industrial market. Third, we successfully completed phase two of our development program with Stellantis, a top 10 global automaker, well ahead of schedule.
Speaker Change: A simple power module delivers very low conduction losses or circuit breaker and circuit protection applications in industrial utility electric vehicle and military markets and is expected to be the earliest source of our sales rep.
Speaker Change: Second we added our first distributor Richardson electronics for discrete B Tran devices and simple products.
Speaker Change: <unk> electronics has already placed multiple orders with ideal power from large global customers interested in our technology for solid state circuit breaker products for industrial markets.
Speaker Change: Third we successfully completed phase II of our development program was the Lantus a top 10 global automaker well ahead of schedule.
Dan Bernard: Fourth, we added a global leader in circuit protection, industrial fuses, and power conversion technology with over a billion dollars in annual sales to the roster of the B-Tran Test and Evaluation Program. And fifth, we're nearing completion of what we expect to be a successful qualification run with our second high volume wafer fabrication partner. Sixth, we released vTran and simple videos and application notes for prospective customers' technical audience, resulting in the addition of new opportunities to our sales funnel as they help engineering teams at our target customers better understand our new technology.
Speaker Change: Fourth we added a global leader in circuit protection industrial fuses and power conversion technology with over $1 billion in annual sales to the roster of the B Tran test and evaluation program.
Speaker Change: Fifth we're nearing completion of what we expect to be a successful qualification, Brian with our second high volume wafer fabrication partner.
Speaker Change: And sixth we released B, Tran and simple videos and application notes for prospective customers technical audience, resulting in the addition of new opportunities to our sales funnel as they help engineering teams at our target customers better understand our new technology and.
Dan Bernard: Videos demonstrate the testing of BTRAN devices and simple power modules and the compelling advantage BTRAN offers. Before I discuss some of these activities, I want to take a step back and highlight what customers are looking for in the advantages of our approach. Due to the increasing electrification of our society, there is a growing need for better circuit protection for industrial facilities and the electric utility transmission and distribution system as more renewable energy, energy storage, and vehicle charging installations are added to our grid. The current electric utility grid was never designed to safely accommodate the widespread adoption of intermittent generation such as solar or wind energy.
Speaker Change: The videos demonstrate the testing of B Tran devices, and simple power modules and the compelling advantage retrain offers.
Speaker Change: Before I discuss some of these activities I want to take a step back and highlight what customers are looking for and the advantages of our approach.
Dan Bernard: Electric vehicles also need enhanced circuit protection to safely control the use of lithium-based batteries and extend their range. In addition, the huge investment in vehicle charging stations needed to support the adoption of electric vehicles will require significant investment in utility and industrial infrastructure to safely allow these systems to be grid-connected, and government policies are expected to help accelerate this much needed infrastructure update and improve the overall reliability of the grid. On Monday, the U.S. Federal Energy Regulatory Commission approved its first major electric transmission policy update in over a decade to address this growing need to update our grid infrastructure.
Speaker Change: Due to the increasing electrification of our society. There is a growing need for better circuit protection for industrial facilities, and the electric utility transmission and distribution system as more renewable energy energy storage and vehicle charging installations are added to our grid.
Speaker Change: The current electric utility grid was never designed to safely accommodate the widespread adoption of intermittent generation, such as solar or wind energy electric.
Speaker Change: Electric vehicles also need enhanced circuit protection to safely control the use of lithium based batteries and extend their range in.
In addition, the huge investment and vehicle charging stations needed to support the adoption of electric vehicles will require significant investment in the utility and industrial infrastructure to safely allow these systems to be grid connected.
Speaker Change: And government policy is expected to help accelerate this much needed infrastructure update and improve the overall reliability of the grid.
Speaker Change: On Monday, the U S. Federal Energy Regulatory Commission approved its first major electric transmission policy update in over a decade to address this growing need to update our grid infrastructure. The new rule aims to speed up new inter regional transmission lines to move clean energy to meet the growing demand created by the adoption of Evs and <unk>.
Dan Bernard: The new rule aims to speed up new interregional transmission lines to move clean energy to meet the growing demand created by the adoption of EVs and EV chargers, data centers, and artificial intelligence. These trends drive the need for solid-state circuit breakers and circuit protection, which can act orders of magnitude faster than conventional mechanical breakers to safely eliminate arcing and the potential for fires and reduce the maintenance arcing imposes on traditional breakers. To make solid-state circuit protection viable, it requires a very low loss, high power semiconductor, which is what BTRAN provides.
Speaker Change: <unk> data centers and artificial intelligence.
Speaker Change: These trends drive the need for solid state circuit Breakers, and circuit protection, which can act orders of magnitude faster than conventional mechanical breakers. This safely eliminate arcing and the potential for fires and reduce the maintenance arcing imposes on traditional brokers.
Speaker Change: Solid state circuit protection viable requires a very low loss high power semiconductor, which is what <unk> provides.
Dan Bernard: The desire of large companies to bring these solutions to market is what is driving our initial customer engagements and orders and is expected to be the first source of commercial revenue for us, as it's reflected in our initial simple orders and the growing list of large companies evaluating our product. A key advantage of our Simcoe product is that it not only provides ultra-low conduction losses, but it also provides inherent bidirectionality, and it's designed so the customer can parallel as many units as they need to get to any rating they desire for their circuit protection products.
Speaker Change: The desire of large companies to bring these solutions to market is what is driving our initial customer engagements and orders and is expected to be the first source of commercial revenue for us.
Speaker Change: It's reflected in our initial Simcoe orders and the growing list of large companies evaluating our products.
Speaker Change: A key advantage of our simple product is that it not only provides ultra low conduction losses. It also provides inherent bi directionality and is designed so the customer can parallel as many units as they need to get to any rating. They desire for their circuit protection products. The scalability gives us significant flexibility in how they size products like circuit breakers.
Dan Bernard: This scalability gives them significant flexibility in how they size products like circuit breakers, which can range in size from hundreds of volts to tens of thousands of volts, while simultaneously lowering component count, energy losses, and OEM system costs.
Speaker Change: Which can range in size from one hundreds of volts depends of thousands of volts, while simultaneously lowering component count energy losses, and OEM system costs.
Dan Bernard: Our progress in this market is evidenced by the growing number of large companies in our sales funnel, focused on solid state circuit breakers and circuit protection, and by the advancement of companies in our test and evaluation program now placing commercial orders for our product. We recently received an order for SIMCOOL power modules and drivers from one of the Forbes Global 500 leaders in diverse power management markets for our BTRAN test and evaluation program. This global power management market leader is evaluating Simcool against IGBT modules for use in solid-state circuit breaker applications.
Speaker Change: Our progress in this market as evidenced by the growing number of large companies and our sales funnel focused on solid state circuit breaker in circuit protection and by the advancement of companies in our test and evaluation program now, placing commercial orders for our products.
Speaker Change: We recently received an order for a simple power modules and drivers from one of the Forbes Global 500 leaders and diverse power management markets and our <unk> test and evaluation program.
Speaker Change: This global power management market leader is evaluating <unk> against <unk> modules for use in solid state circuit breaker applications.
Dan Bernard: The order for Simcoe power modules follows the customer's testing of discrete vTran devices as part of our test and evaluation program. In response to this customer's request, Ideal Power provided high-volume, multi-year quotes for SimCool Power Modules as part of their product planning activities. This customer is also evaluating our technology for its other power conversion applications. We expect to convert additional program participants into initial and follow-on orders over the course of this year as customers complete their technology evaluations and begin working on product designs incorporating SimCool.
Speaker Change: The order for simple power modules follows the customer's testing of discrete B Tran devices as part of our test and evaluation program.
Speaker Change: In response to this customer's request ideal power provided high volume multi year quotes for simple power modules as part of their product planning activities.
Speaker Change: This customer is also evaluating our technology.
Speaker Change: For its other power conversion applications.
Speaker Change: We expect to convert additional program participants into initial and follow on orders over the course of this year as customers complete their technology evaluations and begin working on product designs incorporating simple.
Dan Bernard: Also, during the first quarter, we received an order for BTRAN devices and a circuit breaker evaluation board from a global leader in power semiconductor and power electronic solutions in connection with its launch of a multi-year DC power distribution system program. This global leader presents multiple opportunities for us as it addresses several of our target industrial markets, including solid-state circuit breakers, industrial grid infrastructure, and renewable energy. We also added a global leader in circuit protection, industrial fuses, and power conversion technology with over a billion dollars in annual sales to the roster of the BTRAN Tested Evaluation Program. This program participant is expected to test and evaluate BTRAN power semiconductors for circuit protection and industrial markets, including industrial fuses, renewable energy and energy storage, power conversion, rail transportation, and EV power management.
Speaker Change: Also during the first quarter, we received an order for B Tran devices and a circuit breaker evaluation board from a global leader in power semiconductor and power electronic solutions in connection with its launch of a multiyear DC power distribution system program.
Speaker Change: This global leader presents multiple opportunities for us as it addresses several of our target industrial markets, including solid state circuit breakers, industrial and grid infrastructure and renewable energy.
Speaker Change: We also added a global leader in circuit protection industrial fuses and power conversion technology with over $1 billion in annual sales to the roster of the <unk> test and evaluation program. This.
Speaker Change: This program participant is expected to test and evaluate B Tran power semiconductors for circuit protection, and industrial markets, including industrial fuses renewable energy and energy storage power conversion rail transportation and EV power management.
Dan Bernard: As we said previously, given the evaluation and OEM product design cycles of most industrial companies, volume and revenue will be modest in 2024 as our customers go through their product planning and product design cycles, as these customers work towards releasing their products that incorporate our BTRAN technology. As part of our effort to reach additional customers and leverage the semiconductor infrastructure, we added our first distributor, Richardson Electronics, for discrete B-train devices and simple power modules.
Speaker Change: As we said previously given the evaluation and OEM product design cycles of most industrial companies volume and revenue will be modest in 2024 as our customers go through their product planning product design cycles as.
Speaker Change: As these customers work towards releasing their products that incorporate our b Tran technology.
As part of our effort to reach additional customers and leverage the semiconductor infrastructure. We added our first distributor Richardson electronics, where discrete b Tran devices and simple power modules. They.
Dan Bernard: They have strong technical sales capability, expertise in creating demand and securing sales for new technologies, robust customer support, and global reach. Our relationship with them allows us to leverage their extensive customer base and brings Richardson Electronics compelling products to add to their portfolio for their customers needing high and medium voltage power semiconductors. Riches in Electronics has already placed multiple orders with Ideal Power from large global customers interested in our technology for solid state circuit breaker products for industrial markets, including an order from a large global company not previously in Ideal Power's sales funnel.
Speaker Change: They have strong technical sales capability expertise and creating demand in securing sales for new technologies robust customer support and global reach.
Speaker Change: Our relationship with them allows us to leverage their extensive customer base and brings Richardson electronics compelling products to add to their portfolio for their customers needing high and medium voltage power semiconductors.
Ideal Power: Richardson electronics is already placed multiple orders with ideal power from large global customers interested in our technology for solid state circuit breaker products for industrial markets, including an order from a large global company not previously an ideal power sales funnel.
Dan Bernard: We already see customers, particularly in the circuit breaker and circuit protection markets, starting to be served by Richardson Electronics. We expect this trend to continue as we convert program participants initially into distribution customers and ultimately to direct customers for larger OEMs. We're also finalizing an agreement with a second distributor with particular strength in Asia. Our focus is engaging distributors like Richardson Electronics with a strong technical sales team with expertise in securing sales for new technologies and a global reach.
Ideal Power: We already see customers, particularly in the circuit breaker in circuit protection markets starting to be served by Richardson electronics. We expect this trend to continue as we convert program participants initially into distribution customers and ultimately to direct customers for large larger Oems.
We're also finalizing an agreement with a second distributor with particular strength in Asia our.
Ideal Power: Our focus is engaging distributors like Richardson electronics with a strong technical sales team with expertise in securing sales for new technologies and global reach we will add more reps and distributors over time to have comprehensive channel coverage.
Dan Bernard: We'll add more reps and distributors over time to have comprehensive channel coverage. Turning to the automotive market, automakers are looking for solutions to help them both lower costs and extend the range of electric vehicles to drive mass adoption, which is what B-Tran provides for hybrid and electric vehicles. With current solutions such as IGBTs and silicon carbide MOSFETs, there's a tradeoff between cost and range.
Ideal Power: Turning to the automotive market automakers are looking for solutions to help them, both lower cost and extend the range of electric vehicles to drive mass adoption, which is what <unk> provides for hybrid and electric vehicles.
Speaker Change: With current solutions, such as <unk> and Silicon carbide MOSFET, there's a trade off between cost and range. Our technology allows automakers to improve range at the cost of silicon rather than incurring the high cost of silicon carbide devices building.
Dan Bernard: Our technology allows automakers to improve range at the cost of silicon rather than incurring the high cost of silicon carbide devices. Building upon work done by Toyota on the impact of improving semiconductor performance, e-tron has the potential to improve the range of electric vehicles by 7 to 10% compared to conventional IGBTs, while offering significant cost savings compared to silicon carbide devices. These are the advantages that continue to be the focus for Stellantis and our funded program for their next generation EV platform.
Speaker Change: Building upon the work done by Toyota on the impact of improving semiconductor performance <unk> has the potential to improve the range of electric vehicles by 7% to 10% compared to conventional <unk>, while offering significant cost savings compared to silicon carbide devices.
Speaker Change: These are the advantages that we continue to be the focus for us to Lantus and our funded program for their next generation EV platform.
Dan Bernard: Their focus is to use a custom VTRAN power module for use in EV drivetrain inverters and also for battery circuit protection. The understated goal for the program is to have custom module production ready by 2025. We expect modest revenue from Stellantis this year as we continue to execute against program milestones and deliverables.
Speaker Change: Their focus is to use a custom nutrient power module for use in EV drivetrain Inverters and also for battery Circuit protection.
Speaker Change: Our stated goal for the program is to have a custom module production ready by 2025.
Speaker Change: We expect modest revenue from <unk>. This year as we continued to execute against program milestones and deliverables.
Dan Bernard: During the quarter, we successfully completed all the phase two deliverables of the program several months ahead of schedule. Phase two deliverables completed this year included multi-wafer runs. Delivering tested and packaged devices and drivers to both the program's packaging company and the organization building the initial drive train inverter. We collaborated closely with Stellantis and the program partners to supply BTRAN devices for integration into the custom power module and inverter design. The device testing results by the Stellantis program validated the expected efficiency improvements anticipated from the use of BTRAN in the drivetrain.
Speaker Change: During the quarter, we successfully completed all of the phase II deliverables of the program several months ahead of schedule.
Speaker Change: These two deliverables completed this year included multi wafer run.
Speaker Change: Delivery is tested and package devices and drivers to both the program's packaging company and the organization building the initial drop in drivetrain in Burger.
Speaker Change: We collaborated closely with Lantus and the program partners to supply B Tran devices for integration into the custom power module and inverted designs.
Lantus program: The device testing results by the Lantus program validated the expected efficiency improvements anticipated from the use of B Tran and the drivetrain.
Dan Bernard: The successful completion of Phase 2 is customer validation of BTRAN and its potential impact on improving EV range and cost. The next phase of the program now incorporates the production side of their organization, and internally, Pistolanthus is already underway. Recently, Stellantis issued a solicitation to a large number of Tier 1 suppliers to submit their proposals for a pre-production EV inverter that includes B-TRAC.
Lantus program: Completion of Phase III, this customer valley validation of <unk> and its potential impact on improving EV range in cost.
Lantus program: The next phase of the program now incorporates the production side of their organization and internally, there's still lantus is already underway.
Speaker Change: Recently, the latest issued a solicitation for a large number of tier one suppliers to submit their proposals for a preproduction <unk> Burger that includes be trends.
Dan Bernard: Since we're already working with some of the tier one suppliers, they're well positioned to provide a competitive proposal, but it also introduces ideal power to several additional tier one suppliers that are not on our current list of engagements. These companies are the dominant suppliers to many of the global automotive OEMs, so it provides a great opportunity for us to engage other automakers as we're not constrained in any way under the terms of our agreement with Stellantis.
Speaker Change: Since we're already working with some of the tier one suppliers. They are well positioned to provide a competitive proposal, but it also introduces ideal power to several additional tier one suppliers that are not in our current list of engagements.
Speaker Change: These companies are the dominant suppliers to many of the global automotive Oems. So it provides a great opportunity for us to engage other automakers is we're not constrained in any way under the terms of our agreement was the lantus.
Dan Bernard: The proposals from Tier 1 suppliers are due in a few weeks, at which point Stellantis will down-select to a short list of Tier 1 suppliers that will be part of the engagement and scope of our Phase 3 activities.
Speaker Change: The proposals from tier one suppliers are due in a few weeks at which point the lantus will down select to a short list of tier one suppliers that will be part of the engagement and scope of our phase III activities.
Dan Bernard: As a parallel activity, we're preparing to begin our automotive qualification testing based on the test plan approved by Stellantis as part of phase two. The supplier has been selected, and the runs we intend to use for the initial testing are already in progress. While the automotive qualification process is rather lengthy, taking many months to complete, we've been working closely with a third-party firm selected for the testing to gather information on the most common failure mechanisms from previous automotive-qualified products to ensure the packaging design and wafer fabrication activities leverage the lessons learned from other semiconductor qualifications.
Speaker Change: As a parallel activity, we're preparing to begin our automotive qualification testing based on the test plan approved by the Atlantis as part of Phase III.
Speaker Change: The supplier has been selected and the runs we intend to use for the initial testing are already in progress.
Speaker Change: While the automotive qualification process is rather lengthy taking many months to complete we have been working closely with a third party firm selected for the testing to gather information on the most common failure mechanisms from previous automotive qualified products to ensure the packaging design and wafer fabrication activities leveraged the lessons learned from other semiconductor qualifications.
Speaker Change: <unk>.
Dan Bernard: The successful completion of the automotive qualification process will enable B-TRAN to be the core of the powertrain inverter for the automaker's next generation EV platform. It also strengthens the commercial readiness of our products and technology for industrial customers, as the standards for the automotive industry are the most demanding of any power semiconductor application. An advantage to our approach for the foreseeable future is that the wafers and resulting dies are all exactly the same for any application, whether it's going into a circuit breaker, electric vehicle, energy storage system, or solar installation. We can ramp up production cost effectively because we don't have to forecast wafer demand and die design mix based on that application. They're all the same for us.
Speaker Change: The successful completion of the automotive qualification process will enable <unk> to be the core of the powertrain and <unk> four.
Speaker Change: The automakers next generation EV platform.
Speaker Change: It also strengthens the commercial readiness of our products and technology for industrial customers as the standards for automotive the automotive industry or the most demanding of any power semiconductor applications.
Speaker Change: An advantage to our approach for the foreseeable future is that the wafers and resulting dies are all exactly the same for any application, whether it's going into a circuit breaker electric vehicle energy storage system or a solar installation.
Speaker Change: We can ramp up production cost effectively because we don't have to forecast wafer demand and die design mix based on that on the application they're all the same for us.
Dan Bernard: Another advantage to our approach is our ability to leverage the huge investment already made in silicon wafer fabrication and packaging for power semiconductor devices. Our asset-like business model gives us the ability to continue focusing on technology improvement while quickly incorporating customer feedback into our product roadmap. Let's look quickly at what we did to ensure the supply chain is able to support our longer-term sales and production ramp and manage costs.
Speaker Change: Another advantage to our approach is our ability to leverage the huge investment already made in silicon wafer fabrication and packaging for power semiconductor devices, our asset light business model gives us the ability to continue focusing on technology improvement, while quickly incorporating customer feedback into our product roadmap.
Speaker Change: Ah so quickly and what we're doing to ensure the supply chain is able to support our longer term sales and production ramp and manage costs.
Dan Bernard: Our second high volume wafer fabrication partner is nearing completion of a qualification. This wafer fab in Europe will support future revenue growth and add dual sourcing for wafer fabrication. We're very pleased with the capability of the team and their expertise.
Speaker Change: Our second high volume wafer fabrication partner is nearing completion of qualification runs.
Speaker Change: This wafer fab in Europe will support future revenue growth and add dual sourcing for wafer fabrication work.
Speaker Change: We're very pleased with the capability of the team and their expertise as a wafer fab that already makes high power semiconductors. They bring a high level of fabrication expertise and are eager to play a role in bringing our novel high performance product to market. That's focused on the market segments driving long term growth in the power semiconductor industry.
Dan Bernard: As a wafer fab that already makes high-power semiconductors, they bring a high level of fabrication expertise and are eager to play a role in bringing a novel, high-performance product to market that's focused on the market segments driving long-term growth in the power semiconductor industry. We're leveraging the proven process flow being used at our existing way for fab in Asia, and their progress has been excellent. The run at this European fab is nearing completion, and we're confident it will result in working devices on the first run.
Speaker Change: We're leveraging the proven process flow being used at our existing wafer fab in Asia and their progress has been excellent.
Speaker Change: This European Fab is nearing completion and we're confident it will result in working devices on the first row.
Speaker Change: We expect to complete the qualification of this fab in the coming weeks.
Dan Bernard: We expect to complete the qualification of this fab in the coming week. At our existing fab, we've been pleasantly surprised by their rapid progress. Our initial qualification run produced excellent devices with a yield much higher than expected on initial qualification. Our expectation was that through most of next year, we'd be working closely with them to drive wafer yield up to the commercial levels needed for mature technology. Our most recent few runs are already achieving the yields that we were targeting for next year, so we're excited to see this level of performance as it enhances our capacity and lowers our device cost. Looking briefly at our intellectual property, we're not aware of any competing inherently bi-directional technologies that are using anything similar to our technology.
Speaker Change: At our existing Fabs, we've been pleasantly surprised by their rapid progress.
Speaker Change: Our initial qualification run produced excellent devices with a yield much higher than expected an initial qualification runs.
Speaker Change: Our expectation was that through most of next year, we'd be working closely with them to drive wafer yield up to the commercial levels needed for a mature technology.
Speaker Change: Our most recent few runs are already achieving the yields that we were targeting for next year. So we're excited to see this level of performance as it enhances our capacity and lowers our device cost.
Looking briefly at our intellectual property were not aware of any competing inherently bidirectional technologies that are using anything similar to our technology and.
Dan Bernard: In addition, we treat the proven process flow we use to make our devices as a trade secret and work under strict confidentiality with our wafer fabrication partner. Looking at our expanding B-Tran Patent Estate, we currently have 86 issued B-Tran patents, with 39 of those issued outside of the United States. Our current geographic coverage for our patents includes North America, China, Japan, South Korea, India, and Europe, with pending coverage in Taiwan, all representing our high priority patent coverage geography.
Speaker Change: In addition, we treat the proven process flow, we use to make our devices as a trade secret and work under strict confidentiality with our wafer fabrication partners.
Speaker Change: Looking at our expanding <unk> patent estate. We currently have 86 issued B Tran patents with 39 of those issued outside of the United States.
Speaker Change: Our current geographic coverage for our patents includes North America, China, Japan, South Korea, India, India, and Europe with pending coverage in Taiwan, all representing our high priority patent covered geographies.
Dan Bernard: As part of our product development and introductions, we've expanded our patent efforts to include what we believe to be high-value patents for our driver design, controls, and packaging designs, as both are unique to the bidirectional nature of our technology. As a result of our continued innovation, our list of pending BTRAM patents is now at 41.
Speaker Change: Part of our product development and introductions, we've expanded our patent efforts to include what we believe to be high value patents for our driver design controls and packaging designs as both are unique to the bidirectional nature of our technology.
As a result of our continued innovation our list of pending B B Tran patents is now at 41.
Dan Bernard: We've seen significant commercial progress this quarter and remain very much on track to complete our stated 2024 milestones for our commercialization roadmap. We started fulfilling customer orders for Simcool. We completed phase two of our program with Stellantis ahead of schedule. We added a global distributor that's already securing orders for us. We advanced companies from our test and evaluation program to placing commercial orders, and we expanded the roster of test and evaluation program participants while growing our sales funnel.
Speaker Change: We've seen significant commercial progress this quarter and remain very much on track to complete our stated 2024 milestones for our commercialization roadmap we.
Speaker Change: We started fulfilling customer orders for simple we completed phase II of our program was to Lantus ahead of schedule. We added a global distributor is already securing orders for US we advanced companies from our test and evaluation program displacing commercial orders and we expanded the roster of test and evaluation program participants while growing our sales funnel.
Dan Bernard: Strong momentum continues, and we remain on track to achieve our 2024 milestones, which include converting large OEMs and our test and evaluation programs to design wins and or custom development agreements, selling simple power modules to existing and additional target industrial customers, and adding one or more additional distributors for our Simcoe products. Securing phase three of and continuing the strong execution on our development program with Stellantis, and completing the qualification of a second high-volume production fab.
Speaker Change: Strong momentum continues and we remain on track to achieve our 2024 milestones which include converting large Oems and our test and evaluation programs to design wins and our customer development agreements.
Speaker Change: Selling simple power modules to existing and additional target industrial customers.
Speaker Change: Adding one or more additional distributors for our simple products.
Speaker Change: Securing phase III and continuing our strong execution on our development program was to Lantus.
Speaker Change: Completing the qualification of a second high volume production fab.
Dan Bernard: Beginning third-party automotive qualification testing and capturing initial orders for our simple IQ intelligent power module. We look forward to several announcements in the coming months as we complete the key objectives we've outlined for the year. We'll maintain our relentless focus on executing our vTran commercialization roadmap and growing customer engagement. I'd like to hand the call over to our Chief Financial Officer, Tim Burns, to review our financials. Tim? Thank you.
Beginning of third party automotive qualification testing and.
Speaker Change: Capturing initial orders for our simple IQ intelligent power module we.
Speaker Change: We look forward to several announcements in the coming months as we complete the key objectives, we've outlined for the year, we will maintain our relentless focus on executing our <unk> commercialization roadmap and growing customer engagements.
Speaker Change: I'll hand, the call over to our Chief Financial Officer, Tim Burns to review our financials, yes.
Timothy W. Burns: Thank you, Dan. I will review the first quarter 2024 financial results. We recorded $79,000 in commercial revenue for the first quarter. We'll get the balance of 2024; we expect modest commercial revenue from both product sales and development agreements. Operating expenses were $2.5 million in the first quarter of 2024, down from $2.6 million in the first quarter of 2023. We continue to expect some quarter to quarter variability in operating expenses, particularly our research and development spending through the timing of semiconductor fabrication runs, product development, other research and development activities, and hiring.
Timothy W. Burns: Thank you Dan I will review the first quarter 2024 financial results.
Timothy W. Burns: We recorded $79000 in commercial revenue for the first quarter.
Timothy W. Burns: Looking at the balance of 2024, we expect modest commercial revenue from both product sales and development agreements.
Timothy W. Burns: Operating expenses were $2 5 million in the first quarter of 2024 down from $2 $6 million in the first quarter of 2023.
Timothy W. Burns: We continue to expect some quarter to quarter variability in operating expenses, particularly in our research and development spending due to the timing of semiconductor fabrication runs products as element other research and development activities and hiring.
Timothy W. Burns: The timing of equity grants and related stock based compensation expense may also cause variability in our quarterly operating expenses.
Timothy W. Burns: The timing of equity grants and related stock-based compensation expense may also cause variability in our quarterly operating expenses. We expect general and administrative expenses to be up modestly in the second quarter of 2024, due partly to the timing of our annual shareholder meeting and associated costs. Sales and marketing spending is expected to continue to increase modestly in coming quarters due to hiring and costs associated with our commercialization.
Timothy W. Burns: We expect general and administrative expenses to be up modestly in the second quarter of 2024, due partly to the timing of our annual shareholder meeting and associated costs.
Timothy W. Burns: Sales and marketing spending is expected to continue to increase modestly in coming quarters due to hiring and costs associated with our commercialization efforts.
Timothy W. Burns: Net loss in the first quarter of 2024 was $2.5 million, flat compared to the first quarter of 2023. First quarter 2024 cash burn, which excludes the net proceeds from our public offering, was $1.9 million, below our guidance of $2.3 to $2.4 million due to the timing of spending and related payments. We continue to manage expenses prudently and aggressively.
Timothy W. Burns: Net loss in the first quarter of 2024 was $2 $5 million flat compared to the first quarter of 2023.
Timothy W. Burns: First quarter 2020 for cash burn, which excludes the net proceeds from our public offering was $1 $9 million below our guidance of two three to $2 $4 million due to the timing of spending and related payments.
Timothy W. Burns: We continue to manage expenses prudently and aggressively.
Timothy W. Burns: We expect a second quarter 2024 cash burn of approximately 2.2 to 2.4 million dollars, partly due to timing reversals from the first quarter, and a full year 2024 cash burn of $8 to $8.5 million net of an expected $1 million benefit from proceeds from expiring heavily on the money warrants. Cash and cash equivalents totaled $20.2 million at March 31, 2024. We have no debt in a clean capital structure. Despite a difficult capital market for small and micro-cap companies, we completed a public offering which added multiple years of cash to our balance sheet.
Timothy W. Burns: We expect second quarter 2020 for cash burn of approximately two 2% to $2 $4 million, partly due to timing reversals from the first quarter and.
Timothy W. Burns: In our full year 2020 for cash burn of $8 to $8 $5 million net of an expected $1 million benefit from proceeds from expiring heavily in the money warrants.
Timothy W. Burns: Cash and cash equivalents totaled $20 2 million at March 31, 2024.
Timothy W. Burns: We have no debt and a clean capital structure.
Timothy W. Burns: Despite a difficult capital market for small and micro cap companies, we completed a public offering which added multiple years of cash to our balance sheet.
Timothy W. Burns: A strong balance sheet is critical to our commercialization efforts as the large companies we're engaged with need to know we have the capital support to ramp up our business. The public offering closed in late March with net proceeds of $13.7 million. Subsequently, the over allotment was exercised by the underwriters in April, bringing the total net proceeds to $15.7 million. It was a clean transaction, common stock only. Our largest existing institutional holders closed the deal, and we added exclusively high-quality, long-only new investment. The book was more than two times over subscribed. With the public offering completed, our sole focus is on commercialization.
Timothy W. Burns: Our strong balance sheet is critical to our commercialization efforts as the large companies. We are engaged with need to know we have the capital support ramping our business.
Timothy W. Burns: Public offering closed in late March with net proceeds of $13 7 million.
Timothy W. Burns: Subsequently the over allotment was exercised by the underwriters in April bringing the total net proceeds to $15 $7 million.
It was a clean transaction common stock only.
Speaker Change: Our largest existing institutional holders, where the deal and we added exclusively high quality long only new investors.
The book was more than two times over subscribed.
Speaker Change: It's a public offering completed our sole focus is on commercialization.
Speaker Change: At the end of March we had 7 million 381378 shares outstanding.
Speaker Change: <unk> hundred 87160 pre funded warrants outstanding.
Speaker Change: 844175 options and stock units outstanding.
Speaker Change: The 786420 warrants outstanding.
Speaker Change: 444180 of these warrants outstanding are set to expire in November of this year.
Speaker Change: Not exercised before.
Speaker Change: At March 31, 2020 for our fully diluted share count was $9 million 899133 shares.
In April 300000 shares outstanding were added to this total due to the closing of the over allotment option from our public offering.
Timothy W. Burns: At the end of March, we had 7,381,378 shares outstanding and 887,160 pre-funded warrants outstanding. 844,175 options and stock units outstanding, and 786,420 warrants outstanding. 444,180 of these warrants outstanding are set to expire in November of this year if not exercised beforehand. At March 31, 2024, our fully diluted share count was 9,899,133 shares. In April, 300,000 shares outstanding were added to this total due to the closing of the over allotment option from our public offer. At this time, I'd like to open up the call for questions. Operator?
Speaker Change: At this time I'd like to open up the call for questions.
Speaker Change: Operator.
Operator: Thank you very much. We will now be conducting a question and answer session. Investors can submit their questions within the meeting by typing them in at the Q&A button on the left side of your viewing screen. Analysts who publish research may also ask questions on the phone lines. For analysts to ask questions on the phone line, please press star 1 on your phone handset to join the queue. A confirmation tone will indicate your line is in the question queue.
Speaker Change: Thank you very much we will now be conducting a question and answer session investors can submit that questions within the meeting.
Speaker Change: By typing them in to the Q&A button on the left side of your viewing screened unless you published research May also ask questions on the phone lines to analysts to ask a question on the phone line. Please press star one on your phone handset to join the keys a confirmation tone will indicate your line is in the question Keith You May Press Star two if.
I would like to remove your question from Nicky So any participants using speaker equipment. It may be necessary to pick up your handset before pressing the keys. Please wait a moment while speed poll for questions.
Operator: You may press star 2 if you would like to remove your question from the queue. For any participants using speaker equipment, it may be necessary to pick up your handset before you press the key. Please wait a moment while we poll for questions. Thank you. Your first question is coming from Brian Dobson of Chardon. Brian Dobson, your line is live.
Speaker Change: Thank you. Your first question is coming from Brian Dobson of Chardan, Brian Dobson Your line is live.
Brian H. Dobson: Good morning. Thanks very much for taking my questions. So, I guess, first on Stellantis, that's some exciting news about Phase 2 being completed. I guess, as you've given us some really good color on that already, how do you think progressing through this process with a, call it, Tier 1 OEM like Stellantis, has helped you in your approach to perhaps other OEMs? Do you find that there's a lot of synergy there in terms of improving your product? All right.
Brian H. Dobson: Good morning, Thanks, very much for taking my questions.
Speaker Change: Sure. So I guess first on the Atlantis that some exciting news about phase two being completed.
Speaker Change: I guess as you've as you.
Speaker Change: Given us some really good color on that already.
Speaker Change: How do you think progressing through this process with the call it tier one OEM <unk> Atlantis.
Speaker Change: This helped you in your approach to perhaps other Oems do you find that there's a lot of synergy there in terms of improving your product.
Dan Bernard: I tell you, a great question. You know, one of the things that we are happy about is that we're not really constrained in what we're doing under the Cilantis program. So we are literally taking test results that we've generated for Cilantis and going to other Tier Ones and other automotive OEMs. So the, you know, the things that they're focused on, the kind of data they want, how they want testing done, we basically get a lot of repeatability out of it.
Speaker Change: Great question, one of the things that we are happy about is that we're not really constrained in what we're doing under this lantus program. So we are literally taking test results that we've generated forced atlantis and going to other tier ones and other automotive OEM. So the things that they're focused on the kind of data they want.
Speaker Change: How they want testing done.
Speaker Change: We basically get a lot of repeat ability out of it and the fact that.
Dan Bernard: When we go to these other OEMs and other Tier 1s, when it's clear that we understand how the testing needs to be done for the automobile sector, it gives them confidence that we actually have our arms around what the requirements are. So it's been really beneficial that we don't have limitations as a result of what we're doing with Stellantis.
Speaker Change: When we go to these other Oems and other tier ones when it's clear that we understand how the testing needs to be done for the automobile sector. It gives them confidence that we actually really got our arms around what the requirements are so it's been really beneficial.
Speaker Change: We don't have limitations as a result of what we're doing with store anthos.
Brian H. Dobson: Yeah, very good. And so the order activity around SimCool is interesting. When do you think you might have more color in terms of feedback from those modules? Have you received any early feedback from those two S&P 500 companies?
Speaker Change: Yes, very good.
Speaker Change: So the order activity around Sim cool is interesting.
Speaker Change: When do you think you might have more color in terms of feedback from those modules have you received any early feedback.
Speaker Change: From those two.
Speaker Change: 500 companies.
Dan Bernard: So we're actively engaged with both of them. Obviously, one has already ordered SimCool products from us.
Speaker Change: So we're actively engaged with both of them obviously one is already.
Speaker Change: Ordered Sim cool product from Us I would say, it's a little bit early to get detailed feedback I mean, we are in discussions with one of them in particular for a potentially a development program for a product line that they are working to potentially rollout for solid state circuit breakers. So I think it's something where we're just staying actively engaged with these companies and once they kind of graduate.
Dan Bernard: I would say it's a little bit early to get detailed feedback. I mean, we're in discussions with one of them in particular about potentially a development program for a product line that they're looking to potentially roll out for solid-state circuit breakers. So I think it's something where we're just saying actively engage with these companies. And once they kind of graduate, so to speak, from the test and evaluation program, there's still going to be initially low volume orders that, you know, follow-on orders will increase in size over time.
Speaker Change: So to speak from the test and evaluation program. There is still going to be initially will volume orders that fall.
Follow on orders will increase in size over time, but it's not a it's not a process where you are.
Dan Bernard: But it's not a process where you want to graduate from the test and evaluation program. And the next day is a design win, right? It's an ongoing process, and we think the process really is about a 12 month process. So we would expect to see some of these companies here potentially later this year and design wins for products that would be ready to roll out either later this year or into early next year.
Speaker Change: Clinical and graduate from the test and evaluation.
Speaker Change: Program in the next days of design win right, it's an ongoing process and we think the.
Speaker Change: The process really it's about a 12 months month process. So we would expect to convert some of these companies here potentially later this year and have design wins for products they would be.
Speaker Change: We're ready to roll out either very late this year or into early next year.
Brian H. Dobson: Yeah, very good. Um, you mentioned a lot of areas for growth on the call. But if you had to narrow it down to say one or two that you're most excited about for 2025, 26? What would those be? Where were you looking to devote the lion's share of your management's time and efforts? Yeah, I think it's
Speaker Change: Yes, very good.
Speaker Change: You mentioned a lot of areas for growth on the call, but if you had to narrow down to say one or two that you're most excited about for 2025 26.
Speaker Change: What would those be where youre looking to devote the lion's share of call. It management's management's time and efforts.
Dan Bernard: Yeah, I think it's really things that are around circuit protection, for one, because that is a shorter cycle. But in the timeframe you're talking about, we're also going to be pretty well into the programs with certainly Stellantis and hopefully others. So we've got sort of a short-term opportunity and a longer-term opportunity that's even bigger. So we're kind of trying to leverage what we're doing for both of those and be responsive to both, because they are both just driven by really fundamental changes going on in the automobile industry and the need to upgrade our electric infrastructure.
Speaker Change: Yes, I think it's really things that are around the circuit protection for one because that is a shorter cycle, but in the timeframe. You are talking about we're also going to be pretty well into the programs with certainly still lantus and hopefully others. So we've got.
Speaker Change: Sort of a short term opportunity longer term opportunity that's even bigger so we're kind of trying to leverage what we're doing for both of those and be responsive to both because they both are just driven by its really fundamental changes going on in the.
Speaker Change: The automobile industry and the need to upgrade our electric infrastructure.
Brian H. Dobson: Excellent. Thanks very much.
Speaker Change: Excellent thanks very much.
Speaker Change: Yes.
Operator: Thank you very much. Just as a reminder, for anyone that wishes to ask a question on the phone lines, you may press star one on your phone handset to join the queue. That's analysts for questions on the phone lines. If you wish to ask a question during the meeting webcast, you can type them into the Q&A button on the left side of your screen and hit submit. Thank you. Okay, I will now turn this call back to Jeff Christensen to read any questions that have been submitted through the webcast. Thank you.
Speaker Change: Thank you very much just as a reminder, that so anyone that wishes to ask a question on the phone lines. You May press star one on your phone handset joined the key that analysts for questions on the phone lines. If you wish to ask a question on the meeting webcast you can type them into the Q&A button on the next slide.
Sydney: Your screen Sydney.
Sydney: Thank you.
Sydney: <unk>.
Sydney: Okay I will now turn this call back to Jeff Christianson to read any questions that have been submitted through the webcast.
Speaker Change: Thanks, operator.
Jeff Christensen: And our first question is, have all the companies involved in the company in our test and evaluation program been announced, or are there some that you just have not announced? So, yeah, there are.
And our first question is.
Of all the companies involved in the company in our test and evaluation program been announced or are there. Some that you just have not announced.
Jeff Christensen: So yeah, there are some that we haven't announced. I mean, we focus our announcements really on what we think are the biggest opportunities. So there's companies that have not not been announced that are in that program. I would also say there are companies that may be very large companies that just won't participate in the test and evaluation program that go straight to buying our sim cool product because they really want to get a head start in evaluating that product from their solid state circuit breaker and circuit protection products. So it will be a mix. But yeah, we'll. I will continue to announce the very large companies that have joined the program, but in general, no, we will not announce every entrant into that tested evaluation program.
Jeff Christensen: So yes, there are some that we haven't announced I mean, we focus our announcements really on what we think are the largest opportunities. So.
Speaker Change: There's companies that are.
Speaker Change: Not.
Speaker Change: Not announced that are in that program I would say also there's companies that may be very large companies that just won't participate in the test and evaluation program that goes straight to buying our Sim cool product because they really want to get a head start in evaluating that product from there. So I would say circuit breaker and circuit protection products. So it will be a mix, but yes. It will.
Speaker Change: I continue to.
Speaker Change: Since the very large companies that have joined the program, but in general now we will not announce every entrant into that that test and evaluation program.
Speaker Change: Okay. Thank you.
Speaker Change: <unk>.
Jeff Christensen: Is the arrangement with Richardson exclusive in any way? And why? Why was Richardson selected? Yeah.
Speaker Change: As the arrangement with Richardson exclusive in any way and why why was Richardson selected.
Jeff Christensen: Yeah, it is not exclusive. There was a little bit of confusion when Richardson had their earnings call. They were so excited about what we're doing together. I think the speaker kind of got a little carried away, and we had to go back to them and let them know that the individual unfortunately misspoke.
Speaker Change: Yes, it is not exclusive.
Speaker Change: There was a little bit of confusion when Richardson had their earnings call there.
Speaker Change: There are so excited about what we're doing together I think the speaker kind of got a little carried away, but our and we had to go back to them and let them know that the individual Unfortunately misspoke our relationship with them is not exclusive.
Jeff Christensen: Our relationship with them is not exclusive. We really selected them because while they're not the biggest distributor out there, they really have unique expertise in technical sales as it relates to new technology and new products. They don't really focus on the commodity parts that you find with some of the other really, really large distributors where it's just turning parts out, you know, at the lowest cost.
Speaker Change: We really selected them because while they are not the biggest distributor out there they really have unique expertise and technical sales as it relates to new technology and new products. They don't really focus on the commodity parts that you find with some of the other really really large distributors, where it's just turning parked out at the lowest.
Jeff Christensen: They really have the technical expertise to actually support their customers as new technology comes to market, and I think they're just kind of a great fit for what we need. But, as I mentioned in my prepared comments, we're going to be adding some others because we do realize that, you know, while they've got a great customer base, there are customers they don't reach. So we want to make sure that we've got really good channel coverage globally in terms of the opportunities that the BTRM presents for us.
Speaker Change: They really have the technical expertise to actually support their customers as new technology comes to market and I think they are just kind of a great fit for what we need but as I mentioned in my prepared comments, we're going to be adding some others because we do realize that while they have got a great customer base. There are customers. They don't reach so we want to make sure that we've got really good channel.
Speaker Change: Coverage globally in terms of the opportunities that <unk> presents for us.
Speaker Change: Thank you.
Jeff Christensen: And just want to do, we've got several questions in the queue here on the webcast from the ask a question button. So look forward to your questions there. You can submit them into that. Ask a question button. Our next question is, what is the product that Ideal Power is the circuit breaker for? What circuit breaker product do we replace with our, with our, with our product?
Speaker Change: And just wanted to do we've got several questions in the queue here on the webcast from the ask a question button. So look forward to your questions. There you can submit it into that.
Speaker Change: Ask a question button. Our next question is what is.
Speaker Change: What is the product that ideal powers circuit breaker.
Speaker Change: With circuit breaker product that we replace.
Speaker Change: With our with our with.
Speaker Change: With our product.
Jeff Christensen: Yeah, I mean, we, well, it's a circuit breaker that will be designed by other companies that make industrial equipment and utility equipment companies like, you know, Siemens, Eaton, ABB. What it's replacing is the traditional electromechanical breaker. If you look at any utility infrastructure, you go to a substation, they all use these electromechanical breakers that while they have low conduction losses, they act very slowly. A semiconductor-based device can literally act more than a hundred times faster, which means you don't have arcing. Arcing causes fires, and it wears the contacts in the breaker.
Speaker Change: Yes.
Speaker Change: It's a circuit breaker that will be designed by others companies that make industrial equipment and utility equipment companies like Siemens Eaton ABB, what it's replacing is the traditional electromechanical breaker.
Speaker Change: If you look at any utility infrastructure to go to a substation that they all use these electromechanical breakers.
Speaker Change: While they have low conduction losses, They act very slowly.
Speaker Change: The conductor based device can literally asked more than 100 times faster, which means you don't have arcing arcane causes fires arcing, whereas the contacts and the breaker.
Jeff Christensen: So, the need to actually have faster-acting breakers as we have more and more distributed energy put into the system. And as we have more distributed loads, like EV charging, requires better, faster-acting breakers. And that's really the opportunity that it's presenting for us. Solid State Circuit Breakers have actually been around for a while, but the problem has been those that are IGBT based just have too high a conduction loss to make them a practical solution. So, we actually function as an enabling technology for circuit breaker replacement.
Speaker Change: The need to actually have faster acting breakers, as we have more and more distributed energy.
Put into the system and as we have more distributed loads like EV charging requires better faster acting breakers and thats really the opportunity that is presenting for us.
Speaker Change: Solid state circuit breakers have actually been around for a while but the problem has been those that are at GBT based I've just had to higher production loss to make them a practical solution. So we've actually function as an enabling technology for the circuit breaker replacements.
Speaker Change: Thank you.
Jeff Christensen: Can you provide any updates on any of the other companies in the test and evaluation program beyond what you mentioned?
Speaker Change: Can you provide any updates on any of the other companies in the test and evaluation program beyond what you mentioned.
Jeff Christensen: So we're actively engaged with all of them, and the one that's probably most notable is the other top 10 automakers that are in that program. They became, I would say, particularly actively engaged after we were able to name Stellantis back in December. We continue discussions with them on a regular basis. We're talking about actually multiple different ideas right now for potential custom development programs with them. So I would say that's probably the biggest update.
Speaker Change: So we're actively engaged with all of them and the one that's probably most notable is the other top 10 automaker thats in that program.
Dan: They became I would say, particularly active we engaged after we were able to names to Lantus back in December we continue discussions with them on a regular basis, we're talking about actually multiple different ideas right now for potential custom development program with them. So I would say that's probably the the biggest update I mean, Dan in his prepared remarks went through us.
Jeff Christensen: I mean, Dan, in his prepared remarks, went through us converting some of the companies, including a Forbes Global 500 Power Management Market Leader, into actually starting to buy products and place orders with us. So I think that's kind of the expectation is that as companies get through their initial valuation, they'll start to actually place orders for relatively small quantities so that they can continue their evaluation, particularly if they're looking at the SimCool for the solid state circuit breaker application, the actual test and evaluation program is designed around the discrete B-Tran device.
Dan: Converting some of the companies, including a Forbes global 500 power management market leader.
Dan: And to actually starting to my products and place orders with us. So I think that's kind of the expectation is that as companies get through their initial valuation they'll start to actually place orders for relatively small quantities. So that they can continue their evaluation, particularly if theyre looking at the same cool for the solid state circuit breaker application the actual.
Speaker Change: <unk> is an evaluation program is designed around the discrete b Tran devices on a single die not this multi die Simcoe module.
Jeff Christensen: So a single die, not this multi-die SimCool module that we released as our first commercial product. So we think that's going to kind of be the evolution, really, test and evaluation programs will transition to ordering and obviously follow on orders and ultimately design wins or custom development agreements.
Speaker Change: We released our first commercial product, so we think thats going to kind of.
Speaker Change: B the evolution really is test and evaluation programs will transition to ordering and obviously follow on orders and ultimately design wins or custom development agreements.
Jeff Christensen: And for the audience, if you have a question, go ahead and just submit one at a time. I want to make sure we get your questions in. You don't feel like you're going to need to group them all together to ask. Our next question is, can you provide us with any other information on Tier 1s and OEMs besides Stellantis in the automotive industry?
Speaker Change: Thank you and.
Speaker Change: For the audience.
Speaker Change: If a question go ahead and just submit one at a time.
Speaker Change: I want to make sure we get to your questions in and don't feel like you can need to group them all together.
Speaker Change: Our next question is can you provide us with any other information on tier ones and Oems Besides the lantus and Automotives.
Unknown Speaker: We can't name any of them. There are a couple that we actually meet with on a regular basis, and now, I guess it's actually starting today, those that were in the solicitation from Stellantis, we're now engaging with a broader group of them. So, the Tier 1s ultimately know that they're going to be the ones providing these systems. So, those that are the big players that you would expect to be providing the space are already engaged with us to understand the technology, understand the benefits that it can bring, and to understand how the automakers that we're working with are thinking about using the technology. My hope is that, particularly as we get through this next phase with Stellantis, we'll be able to start naming some of these Tier 1s because, if you know the automobile industry, you'll recognize their names.
Unknown Speaker: Unknown Speaker We can't name it.
Speaker Change: We can't name any of them. There is there are a couple that we actually meet with on a regular basis and now I guess, it's actually starting today those that were in the solicitation from still Lantus.
Engaging with a broader group of them so the tier ones.
Speaker Change: Ultimately know that theyre going to be once provided new system. So.
Speaker Change: Those that are the big players that you would expect to be providing the space are already engaged with us to understand the technology to understand the benefits that it can bring and to understand how the automakers that we're working with are thinking about using the technology and my hope is that particularly as we get through this next phase was to Lantus will be able to start naming some of these these tier ones because if you know the <unk>.
Speaker Change: The mobile industry Youll recognize their names.
Speaker Change: Great. Thank you.
Speaker Change: <unk>.
Jeff Christensen: You know, that's all the time we have questions for. And, Dan, do you have any closing remarks?
Speaker Change: So that's all the time, we have questions for.
Speaker Change: And do you have any closing remarks.
Dan Bernard: I just want to thank everybody for joining our call. You know, we made great progress on our path to commercialize our technology, and our talent team is on track for a very successful 2024. We look forward to continuing commercial announcements before our next update call. Operator, you may end the call.
Speaker Change: I just want to thank everybody for joining our call. We made great progress on our path to commercialize our technology and our talented team is on track for a very successful 2024, we look forward to continuing commercial announcements before our next update call. So operator, you may end the call.
Operator: Thank you very much. This concludes today's conference. All parties may disconnect, and have a great day.
Speaker Change: Thank you very much. This concludes today's conference all parties may disconnect and have a great day.