Ideal Power Inc. — Director's Dealing 2017

Feb 28, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: Ideal Power Inc. (IPWR)
CIK: 0001507957
Period of Report: 2017-02-24

Reporting Person: AWM Investment Company, Inc. (10% Owner)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2017-02-24	Common Stock	J	810000	$2.43	Disposed	871935	Indirect

Footnotes

F1: AWM Investment Company, Inc., a Delaware Corporation (AWM), is the investment adviser to Special Situations Fund III QP, L.P. (QP), Special Situations Cayman Fund, L.P. (CAYMAN), Special Situations Technology Fund, L.P. (Tech) & Special Situations Technology Fund II, L.P. (T2) & together with QP, CAYMAN, & Tech, the Funds). As the investment adviser to the Funds, AWM holds sole voting & investment power over 438,534 shares of Common Stock of the Issuer (the Shares) held by QP, 127,481 Shares held by CAYMAN, 45,594 Shares held by Tech & 260,326 Shares held by T2.

F2: Austin W. Marxe (Marxe), David M. Greenhouse (Greenhouse) & Adam C. Stettner (Stettner) are the controlling principals of AWM. The reporting person disclaims beneficial ownership of the Shares, except to the extent of its pecuniary interest therein. This report shall not be deemed an admission that the reporting person is the beneficial owner of the securities reported herein for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or for any other purpose.

F3: Pursuant to the Exchange Agreement dated February 24, 2017, the Funds exchanged 810,000 Common Shares for Series A Convertible Preferred Shares (the Preferred Shares). The Preferred Shares may only be exercised to the extent that the total number of Common Shares then beneficially owned does not exceed 9.99% of the outstanding shares.

F4: Fair market value, determined using the closing price on February 23, 2017