Investment Thesis
Ideal Power faces severe operational distress with zero revenue in the latest quarter (-89.4% YoY decline) and mounting losses of $3.6M net income, indicating a fundamental business collapse. While the balance sheet remains strong with $16.4M cash and zero debt, this provides only ~8 quarters of runway at current $2M quarterly burn rates. The complete revenue elimination suggests either a product recall, market exit, regulatory shutdown, or loss of major customer(s) that constitutes a near-terminal business condition.
Strengths
- Strong balance sheet with $16.4M in cash equivalents
- Zero long-term debt provides financial flexibility
- Exceptional liquidity ratios (11.22x current ratio) allow short-term survival and potential restructuring
Risks
- Complete revenue collapse with zero revenue and -89.4% YoY decline indicates fundamental business failure
- Negative operating and net income ($3.7M and $3.6M losses) with negative free cash flow of $2.2M
- Limited cash runway of approximately 8 quarters at current burn rate; company will require emergency restructuring or capital raise
- Minimal insider trading activity (1 Form 4 filing in 90 days) suggests management/insider lack of confidence
- Sector exposure to semiconductor/power electronics creates cyclicality and obsolescence risks
Key Metrics to Watch
- Revenue recovery trajectory and customer pipeline visibility
- Quarterly operating cash flow and cash burn rate sustainability
- Days cash on hand remaining before critical funding need
Financial Metrics
Revenue
0.0
Net Income
-3.6M
EPS (Diluted)
$-0.78
Free Cash Flow
-2.2M
Total Assets
20.5M
Cash
16.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
-20.4%
ROA
-17.8%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
11.22x
Quick Ratio
11.19x
Debt/Equity
0.00x
Debt/Assets
13.0%
Interest Coverage
-993.55x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-16T09:26:22.111091 |
Data as of: 2026-03-31 |
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