X0306 4 2017-02-24 1 0001507957 Ideal Power Inc. IPWR 0001535264 AWM Investment Company, Inc. 527 MADISON AVENUE SUITE 2600 NEW YORK NY 10022 0 0 1 0 Common Stock 2017-02-24 4 J 0 810000 2.43 D 871935 I By Limited Partnerships 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. 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. 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. Fair market value, determined using the closing price on February 23, 2017 Adam C. Stettner 2017-02-28