Ideal Power Inc. (IPWR): Business Model Canvas [Dec-2025 Updated]

You're looking at a semiconductor play, Ideal Power Inc., that's sitting on a massive technological bet with its B-TRAN® switch, aiming to slash power losses by up to 90% for the EV and data center crowds. Honestly, the numbers from late 2025 tell a classic early-stage story: they had about $8.4 million in the bank as of September 30th, but Q3 revenue was only $20,000 against a Q3 OpEx of $3.0 million, showing the R&D burn is real. Still, with a patent estate of 97 issued patents and a design win with Stellantis, the potential is huge, especially supporting that 800-volt shift. Dive into the full Business Model Canvas below to see exactly how they plan to turn that deep IP and those key partnerships into real sales.

Ideal Power Inc. (IPWR) - Canvas Business Model: Key Partnerships

You're looking at the core of Ideal Power Inc.'s (IPWR) strategy to commercialize its B-TRAN® technology, which really boils down to who is willing to put this novel semiconductor switch into their products. The Key Partnerships block for Ideal Power Inc. in late 2025 is heavily weighted toward securing validation and initial revenue from the automotive and industrial sectors. This asset-light approach relies on established players to handle distribution and qualification, letting IPWR focus on the chip itself.

The progress with major automotive players is a significant de-risking factor. For instance, Ideal Power Inc. secured a purchase order from Stellantis in late August 2025 for custom development and packaged B-TRAN® devices targeting multiple EV applications. That's big news. Under that order, the first of five deliverables was completed in late September 2025, with the remaining four expected next year, 2026. Management has even estimated that B-TRAN content per EV could reach $1,100 at scale, primarily in drivetrain inverters and contactors.

Beyond Stellantis, the company is actively engaged with other major auto suppliers. As of the third quarter of 2025, Ideal Power Inc. was collaborating with a fourth and fifth global Tier 1 automotive supplier, shipping them SSCB reference designs for evaluation in EV contactor applications. Furthermore, they are in early discussions with a sixth global automaker evaluating B-TRAN® for low-loss, solid-state power switching and protection in their next-generation EVs.

The industrial segment is already showing near-term revenue potential through the first design-win customer, which is a large Asian circuit-protection OEM. This customer completed testing of their updated solid-state circuit breaker (SSCB) prototype in Q3 2025 and is now finalizing designs for sampling and production, with the initial product launch targeted for late 2025. Here's the quick math on that potential: initial revenues are projected to be in the range of several hundred thousand dollars in the first year of sales, with an upside potential to exceed $1 million in year two.

To support market expansion and maintain capital efficiency, Ideal Power Inc. formalized a distribution partnership with Kaimei Electronic Corp. in Asia on June 10, 2025. Kaimei, a manufacturer of components like capacitors and fans, will distribute B-TRAN® across Asia, which is the world's largest power electronics market. This is a notable step because it is the first time Kaimei will act as a third-party distributor for an external product line, leveraging their existing sales expertise across 60 countries.

Crucially, the company is leaning on third-party automotive qualification and reliability testing firms to validate the technology for its most demanding segment. This external validation is key for customer confidence, especially since B-TRAN® is a relatively new device. The data is compelling: over 1,000 packaged devices are currently undergoing this testing with zero failures reported to date. To meet automotive standards, devices must pass 15,000 power cycles without failure; Ideal Power Inc.'s devices have already passed 50,000 cycles, exceeding the requirement by more than three times.

We can map out these critical relationships and their associated metrics:

These partnerships are directly tied to the company's financial runway. As of September 30, 2025, Ideal Power Inc. held $8.4 million in cash and cash equivalents with no long-term debt outstanding. The cash burn for Q3 2025 was $2.7 million, leading to a projected full-year 2025 burn of ~$10 million, which management stated should fund operations through at least mid-2026 absent new financing or commercial receipts. The success of converting these design wins-especially the Stellantis order with four deliverables remaining-into recurring revenue is defintely the key to extending that runway.

• B-TRAN® Patent Estate: 97 issued and 73 pending patents as of Q3 2025.
• Discrete B-TRAN® Power Rating Increase: 50% increase, tested to 150A.
• Q2 2025 Cash Burn: $2.5 million.

Ideal Power Inc. (IPWR) - Canvas Business Model: Key Activities

The Key Activities for Ideal Power Inc. revolve heavily around the maturation and commercial validation of its B-TRAN® technology, moving it from the lab toward high-volume integration with major OEMs. This involves intensive engineering, rigorous third-party qualification, and managing complex, multi-stage development agreements.

Research and development of B-TRAN® power switch remains central, evidenced by the continuous improvement in device specifications. You saw the discrete B-TRAN® product power rating increase by a significant 50%, moving the published rating from 50 amps to 75 amps as of September 2025. This was achieved without changing the product or packaging, relying instead on extensive testing data. To give you a sense of the margin they are working with, the device has been tested on a long-term, continuous basis at up to 150 amps.

A major activity supporting commercialization is the third-party reliability testing of packaged devices. Ideal Power Inc. has over 1,000 packaged devices currently undergoing third-party automotive qualification and reliability testing, with zero failures reported to date. This testing is crucial because, as a new semiconductor device, the data de-risks adoption for cautious industrial and automotive customers. For instance, the B-TRAN® devices passed 50,000 power cycles in testing, which is more than three times the 15,000-cycle requirement for automotive qualification.

The company is actively managing significant customer development programs. Completing custom development deliverables for Stellantis is a high-priority activity. Ideal Power Inc. secured a purchase order from Stellantis for custom B-TRAN® devices targeting multiple electric vehicle applications and successfully completed the first of five deliverables under that agreement in late September 2025. The remaining four deliverables are expected to be completed next year. This work is a precursor to a potential multiyear EV contactor program, with Stellantis evaluating B-TRAN®-based contactors across all their EV models.

Another critical activity is finalizing the first design-win product for the AI data center launch, which targets the solid-state circuit breaker (SSCB) market. The first design-win customer, a large Asian circuit-protection OEM, completed testing of the updated SSCB prototypes in Q3 2025. Ideal Power Inc. is now working with them on finalizing the product design for sampling and production. This initial product, which replaced silicon carbide devices in a prototype, demonstrated 60% lower losses and three times the power rating of the original design. Projections suggest this first product could translate to several hundred thousand dollars in revenue in its first year, with upside to exceed $1 million in the second year of sales.

Here's a quick look at the key operational and technical metrics driving these activities as of the third quarter of 2025:

The financial reality of these R&D and commercialization activities means cash management is an ongoing key activity. The cash used in operating and investing activities for the first nine months of 2025 totaled $7.4 million, leading to a cash balance of $8.4 million at September 30, 2025. Management is forecasting the full year 2025 cash burn to be approximately $10 million. This highlights the need to aggressively convert design wins into revenue streams.

The focus on expanding the technology's reach also involves securing intellectual property and engaging new partners. Key activities include:

• Sampling higher-rated B-TRAN® devices to new prospects.
• Engaging with a sixth global automaker for EV power switching.
• Shipping reference designs to large potential customers.
• Adding a direct salesperson in Asia to capture that market.

Ideal Power Inc. (IPWR) - Canvas Business Model: Key Resources

You're looking at the core assets Ideal Power Inc. (IPWR) is banking on to drive commercial success. These aren't abstract concepts; they are the tangible and intellectual property foundations supporting their B-TRAN® technology adoption. Honestly, in this stage, the IP and the cash on hand are the most critical resources keeping the lights on while they convert design wins to production revenue.

The intellectual property portfolio is definitely a cornerstone. It's not just about having patents; it's about the breadth and depth of protection around their core innovation. As of the third quarter of 2025, the numbers look like this:

The core of the business is the Core B-TRAN® bidirectional semiconductor technology itself. This isn't just another switch; it's engineered to offer ultra-low conduction losses, potentially cutting losses by 50% or more compared to conventional Insulated-Gate Bipolar Transistors (IGBTs). Plus, its inherent bidirectionality means it can replace multiple standard switches in certain applications, simplifying designs for customers in areas like EV power electronics and data center UPS systems. This technical advantage is what drives customer interest.

Beyond the patents, the company possesses the specialized semiconductor engineering and IP know-how. This tacit knowledge, the 'how-to' of fabricating the device using their proven double-sided wafer process flow, is key. Even if a competitor studied the patents, they wouldn't have the know-how to actually manufacture the device effectively, which is a significant barrier to entry.

To move from the lab to the field, Ideal Power Inc. has been actively deploying physical assets to potential partners. You can see this progress in their deployment of reference designs and prototypes:

• SSCB prototypes related to the first design win were shipped to the customer ahead of schedule.
• Additional SSCB reference designs have been shipped to large, potential customers, including another global power management market leader.
• Discrete B-TRAN® devices with a 50% higher power rating have been sampled to prospects.

The financial resource, the cash and equivalents of $8.4 million as of September 30, 2025, is what funds the ongoing R&D, fabrication runs, and engineering salaries. Management noted this liquidity was expected to fund operations through at least mid-2026, absent new commercial receipts or financing, so managing this runway is a primary operational concern.

Finance: draft 13-week cash view by Friday.

Ideal Power Inc. (IPWR) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Ideal Power Inc. (IPWR)'s B-TRAN® technology over established solutions. It's about tangible performance gains and enabling next-generation systems, not just incremental improvements.

The primary value proposition centers on the patented Bidirectional, Bipolar Junction Transistor (B-TRAN®) semiconductor technology itself. This switch is designed to offer superior performance in high-power AC switching and control circuitry across several key sectors.

The key performance advantages Ideal Power Inc. delivers are:

• B-TRAN® reduces conduction and switching losses by 50-90%
• Enables higher power density and simplified thermal management
• Bidirectional switching with one device instead of two conventional IGBTs
• Low-loss, fast-acting solid-state circuit breaker (SSCB) solution
• Supports the shift to 800-volt architectures in EV and data centers

To give you a clearer picture of where these propositions translate into real-world metrics and commercial progress as of late 2025, here's a look at the numbers we're seeing:

The push toward higher voltage systems is a major driver for Ideal Power Inc. You see this clearly in the data center space, where AI data centers are planning a migration to 800-volt rack architectures starting around 2027. Similarly, the automotive sector is adopting 800-volt battery systems, which necessitates low-loss, high-power switching components like B-TRAN® for traction inverters, charging systems, and contactors.

Furthermore, the technology's core benefit of bidirectional switching is critical for enhancing grid infrastructure, supporting system-to-grid and grid-to-system power transfer, which is a growing trend. The increased power rating on their discrete product also shows a tangible step forward; the power rating was increased by 50% and sampling of these higher-rated devices commenced in Q3 2025. This capability directly supports the need for higher power in industrial and military applications, which are also part of the Ideal Power Inc. target market.

Financially, the company's focus on R&D to deliver these value propositions is reflected in its spending. Cash used in operating and investing activities for the first nine months of 2025 was $7.4 million. The full-year 2025 cash burn was forecasted to be approximately $10 million. Cash and cash equivalents stood at $8.4 million at September 30, 2025, with no long-term debt outstanding.

Finance: draft 13-week cash view by Friday.

Ideal Power Inc. (IPWR) - Canvas Business Model: Customer Relationships

You're looking at how Ideal Power Inc. builds and maintains its connections with customers, which right now is heavily focused on securing design wins in the electric vehicle (EV) and industrial power electronics space. This isn't a mass-market play; it's deep technical collaboration.

Direct engagement with global automakers and Tier 1 suppliers

Ideal Power Inc. is actively engaged with major players in the automotive supply chain. As of the latest reports in late 2025, the company is collaborating with a total of 5 automakers, which includes 4 of the top 10 global automakers. Furthermore, they are working with five global Tier 1 automotive suppliers. They are also in early discussions with a sixth global automaker evaluating B-TRAN® for next-generation high-voltage EV power switching and protection applications.

Here's a snapshot of the current customer engagement level:

Custom development agreements for specific OEM applications

A key part of the relationship involves formal agreements for tailored development. Ideal Power Inc. secured a purchase order from Stellantis for custom development and packaged B-TRAN® devices targeting multiple EV applications. Under this Stellantis purchase order, the company completed its first of five deliverables in late September 2025, with the remaining deliverables expected next year. These development activities are a source of near-term funds, alongside product sales.

Technical support during prototype testing and design finalization

The consultative process includes hands-on technical support. The first design win customer successfully completed testing of their updated solid-state circuit breaker (SSCB) prototype breakers with enhanced capabilities during the third quarter of 2025. Ideal Power Inc. is currently working with this customer on the finalization of their first product design. To support this, more than 1,000 packaged B-TRAN® devices from multiple wafer runs have been in third-party automotive testing with no failures to date.

High-touch, consultative sales process for early adoption

Early adoption is driven by demonstrating clear technical superiority. The B-TRAN® technology offers ultra-low conduction losses and inherent bidirectionality, which is a key differentiator compared to other semiconductor technologies for EV contactors. The company also increased the power rating of its discrete B-TRAN® product by 50% and began sampling these higher-rated devices, which sparked greater interest from prospects.

• B-TRAN®-enabled solid-state EV contactors can reduce the number of semiconductor switches needed by 50% due to bidirectionality.
• The company has a patent estate of 97 issued B-TRAN® patents as of late 2025.
• Cash and cash equivalents stood at $8.4 million at September 30, 2025, with no long-term debt.

Long-term relationship focus for multi-year product integration

The design-in process for automotive is long, but commitment leads to sticky, high-volume revenue. The first design win customer's initial B-TRAN®-based product was projected to translate to revenue of several hundred thousand dollars in its first year of sales, with the potential to exceed a million dollars in revenue in the second year of sales. The expectation is that this OEM will expand its offerings to include a full family of B-TRAN®-enabled SSCBs across various power ratings after the initial product rollout.

Finance: draft 13-week cash view by Friday.

Ideal Power Inc. (IPWR) - Canvas Business Model: Channels

You're looking at how Ideal Power Inc. gets its B-TRAN® technology into the hands of customers as of late 2025. It's a mix of direct engagement for big design wins and leveraging partners for broader reach, which fits their asset-light model.

Direct sales to large Original Equipment Manufacturers (OEMs)

The direct channel focuses on securing significant, technology-validating design wins. As of the third quarter of 2025, Ideal Power Inc. is engaged with a sixth global automaker evaluating B-TRAN® for high-voltage EV power switching. Furthermore, they secured a purchase order from Stellantis in late August 2025 for custom development and packaged B-TRAN® devices targeting multiple EV applications; they completed the first of five deliverables under that order in late September 2025. This direct approach also includes engagements with major players in the power management space; by the first quarter of 2025, Ideal Power Inc. was engaged with three Forbes Global 500 power management market leaders. The first design win customer, a large Asian circuit protection OEM, completed testing of updated Solid-State Circuit Breaker (SSCB) prototypes and is finalizing their product design for sampling/production, which is expected to lead to initial revenues in the range of several hundred thousand dollars, with upside potential to exceed $1 million in the second year of sales. The sales cycle here is clearly long, reflected in the $2.9 million net loss reported for Q3 2025, but the potential payoff is substantial.

Strategic distribution partners like Kaimei Electronic Corp. in Asia

To address the Asian market, which CEO Dan Brdar noted moves faster in adopting new technology, Ideal Power Inc. entered a distribution agreement with Kaimei Electronic Corp. in June 2025. Kaimei will distribute Ideal Power Inc.'s products throughout Asia, leveraging its established sales expertise and customer network across 60 countries in Asia, Europe, and the Americas. This partnership is notable because B-TRAN® will be the first product line for which Kaimei operates as a third-party distributor, aligning with Ideal Power Inc.'s asset-light strategy.

Shipments of SSCB reference designs for customer evaluation

A key part of the evaluation channel involves shipping reference designs to potential high-volume customers. In the second quarter of 2025, Ideal Power Inc. shipped SSCB reference designs to several large companies, specifically mentioning two previously announced Forbes Global 500 power management market leaders, alongside the fourth and fifth global Tier 1 automotive suppliers for evaluation in SSCB or EV contactor applications. By the third quarter of 2025, they shipped additional SSCB reference designs to large, potential customers, including another global power management market leader.

Sampling of discrete B-TRAN® devices with higher power ratings

Product sampling is being driven by technical enhancements. In the third quarter of 2025, Ideal Power Inc. increased the power rating of its discrete B-TRAN® product by 50% and commenced sampling of these higher-rated devices. The new power rating is 75A, tested up to 150A. To build confidence for automotive adoption, over 1,000 packaged devices are currently undergoing third-party automotive reliability testing, reporting zero failures to date. This technical step is designed to spark greater interest from prospects in the sales pipeline.

Industry conferences and direct technical presentations

Direct technical engagement remains a channel for education and pipeline building. Ideal Power Inc. was scheduled to present at the H.C. Wainwright 27th Annual Global Investment Conference on September 8, 2025. This type of event supports the direct technical presentations that are necessary to educate engineers on the B-TRAN® value proposition, especially given the company's cash and runway situation, with cash at $8.4 million at September 30, 2025, and a projected full-year 2025 cash burn of approximately $10 million.

Here is a summary of the key customer engagement metrics as of late 2025:

The company is using a mix of direct sales for deep OEM integration and distribution for market breadth. You can see the focus on securing design wins is paramount, as evidenced by the specific tracking of deliverables and engagement with the sixth automaker. The modest Q1 2025 commercial revenue of $12,003 shows the channel is still in the pre-revenue or early-revenue evaluation phase, which is typical for this type of deep-tech semiconductor adoption.

• SSCB Prototypes for First Design Win: Completed testing ahead of schedule.
• Stellantis Engagement: Purchase order secured for EV applications.
• New Salesperson Hired: Added a direct salesperson in Asia.
• Discrete B-TRAN Sampling: Commenced with higher power rating devices.
• Industry Conference Attendance: Presentation scheduled for September 8, 2025.

Ideal Power Inc. (IPWR) - Canvas Business Model: Customer Segments

You're looking at the specific groups Ideal Power Inc. is targeting with its B-TRAN® technology as of late 2025. The focus is clearly on high-power, high-efficiency switching applications across several key sectors.

Electric Vehicle (EV) manufacturers (e.g., Stellantis)

• Secured a purchase order from Stellantis in late August 2025 for custom development and packaged B-TRAN® devices targeting multiple EV applications.
• Ideal Power Inc. completed the first of five deliverables under the Stellantis purchase order in late September 2025.
• The remaining deliverables for the Stellantis order are expected to be completed next year (2026).
• Engaged with a sixth global automaker evaluating B-TRAN® for low-loss, solid-state solutions for EV power switching and protection applications.
• In Q1 2025, the CEO noted advancing the drivetrain inverter program with Stellantis and adding a new high-priority program for EV contactors.

Global Tier 1 automotive suppliers for EV contactors

This segment is closely linked to the EV manufacturers, as the technology is being developed for EV contactors and power switching. The engagement with the sixth global automaker suggests active discussions with Tier 1s or direct OEM collaboration on these components.

AI data center and industrial circuit protection equipment makers

• The first design-win customer, a large Asian circuit-protection OEM, completed testing of updated Solid-State Circuit Breaker (SSCB) prototypes.
• This first design-win customer is working on the finalization of their first product design, which targets AI data center customers.
• Potential initial revenues from this first design-win customer are estimated in the several hundred thousand dollars range, with upside to >$1M in year two.
• The company shipped additional SSCB reference designs to large, potential customers including another global power management market leader.
• The company expects industrial markets, particularly the SSCB market, to be the earliest source of initial sales ramp starting in the second half of 2025.

Renewable energy and energy storage system integrators

• Ideal Power Inc. secured an order from a third Forbes Global 500 power management market leader interested in B-TRAN® for circuit protection for power distribution systems.
• This order specifically focuses on DC microgrids for solar and wind applications.

UPS/data center and military application developers

The company overview explicitly lists UPS/data center and military applications as target areas for its B-TRAN® technology. The work with the first design-win customer on SSCBs directly addresses the UPS/data center circuit protection need.

Here's a quick look at the product validation and scale as of the Q3 2025 report:

The company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology, which is a unique double-sided bidirectional AC switch.

Ideal Power Inc. (IPWR) - Canvas Business Model: Cost Structure

You're hiring before product-market fit, so managing the cash burn from development and manufacturing setup is key to your runway. Here's the quick math on Ideal Power Inc.'s cost structure as of late 2025.

The primary cost drivers for Ideal Power Inc. revolve around the intensive development and initial scaling of the B-TRAN® technology. This is reflected directly in the operating expenses and cash usage.

• High research and development (R&D) spending drove the Operating Expenses (OpEx) for the third quarter of 2025 to $3.0 million.
• The company noted that OpEx is expected to increase modestly due to recent and future hiring and commercialization efforts.
• The patent estate, critical to the business, stands at 97 issued and 73 pending B-TRAN® patents as of September 30, 2025.

The costs associated with bringing the B-TRAN® to market are significant, particularly in the supply chain and human capital required for specialized work. For instance, the third quarter of 2025 saw higher wafer fabrication costs at the second foundry, contributing to the OpEx increase.

The overall cash consumption for the year-to-date period ending September 30, 2025, shows a clear outflow trend:

Regarding the intellectual property costs, while specific legal defense expenses aren't itemized, the maintenance of the patent estate is a necessary, ongoing cost. You should note that the United States Patent and Trademark Office (USPTO) implemented fee increases effective January 19, 2025, which impacts ongoing maintenance fees by about 7.5% at each interval.

Personnel costs are a major component of the OpEx, supporting the specialized engineering and commercial teams necessary for B-TRAN® development and customer engagement, such as the recent Stellantis purchase order.

• Personnel costs are tied to the expected modest increase in OpEx due to recent and future hiring.
• Semiconductor fabrication and packaging costs are a variable cost component, evidenced by the higher wafer fabrication expenses noted in Q3 2025.
• The company had $8.4 million in cash and cash equivalents on hand at September 30, 2025, against the $7.4 million used year-to-date.

Finance: draft 13-week cash view by Friday.

Ideal Power Inc. (IPWR) - Canvas Business Model: Revenue Streams

Initial revenue from custom development work and device sales is currently being realized as customers progress through evaluation and prototyping phases.

Q3 2025 revenue was modest at $20,000. This compares to the Q1 2025 commercial revenue of $12,003.

Future royalties or licensing fees from B-TRAN® integration are anticipated once OEM partners move into mass production of their B-TRAN®-enabled products.

Sales of discrete B-TRAN® semiconductor power switches are occurring, with sampling of higher-rated devices underway.

Sales of B-TRAN® enabled Solid-State Circuit Breakers (SSCBs) represent a key initial revenue source, with the first design win customer expected to launch a product incorporating the technology.

The revenue potential from the first design win customer is detailed below:

Custom development work is also a current revenue component, evidenced by the Stellantis purchase order for custom B-TRAN® devices, for which the first of five deliverables was completed in September 2025.

The revenue streams Ideal Power Inc. is pursuing include:

• Initial product sales from the first design win customer.
• Revenue from the Stellantis purchase order for custom devices.
• Sales of discrete B-TRAN® semiconductor power switches.
• Sales of B-TRAN® enabled Solid-State Circuit Breakers (SSCBs).
• Potential revenue from new programs, such as the expected EV contactor program with Stellantis.