IDEAL POWER INC.

Statements of Cash Flows

(unaudited)

Six Months Ended June 30,

2024

2023

Cash flows from operating activities:

Net Loss

$

(5,131,691)

(4,807,791)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

163,871

121,423

Amortization of right of use asset

34,948

30,590

Write-off of capitalized patents

62,073

-

Write-off of fixed assets

14,459

-

Gain on lease termination

(15,319)

-

Stock-based compensation

745,600

1,233,207

Decrease (increase) in operating assets:

Accounts receivable

68,669

(137,388)

Inventory

1,788

-

Prepaid expenses and other current assets

160,007

(49,065)

Increase (decrease) in operating liabilities:

Accounts payable

(174,464)

(18,493)

Accrued expenses and other liabilities

135,175

250,414

Lease liability

(36,046)

(31,389)

Net cash used in operating activities

(3,970,930)

(3,408,492)

Cash flows from investing activities:

Purchase of property and equipment

(64,036)

(114,025)

Acquisition of intangible assets

(174,968)

(139,838)

Net cash used in investing activities

(239,004)

(253,863)

Cash flows from financing activities:

Net proceeds from issuance of common stock and pre-funded warrants

15,724,818

-

Exercise of options

86,757

-

Payment of taxes related to restricted stock unit vesting

(11,579)

-

Net cash provided by financing activities

15,799,996

-

Net Increase (decrease) in cash and cash equivalents

11,590,062

(3,662,355)

Cash and cash equivalents at beginning of period

8,474,835

16,345,623

Cash and cash equivalents at end of the period

$

20,064,897

$

12,683,268