Energous Corporation (NASDAQ: WATT), a leading developer of
RF-based charging for wireless power networks, today announced
financial results for its third quarter ended September 30,
2023.
Unaudited 2023 Third-Quarter Financial Results
For the third quarter ended September 30, 2023, Energous
reported:
- Revenue of approximately $168,708, a 44% increase over Q2
2023
- Costs and expenses of approximately $5.3 million, with
approximately $48,394 in cost of revenue, $2.5 million in research
and development expenses, and $2.5 million in sales, marketing,
general and administrative expenses
- Net loss of approximately $(4.1) million, or $(0.86) per basic
and diluted share, compared to a net loss of approximately $(6.0)
million, or $(1.54) per basic and diluted share in the third
quarter of 2022
- Adjusted net non-GAAP loss of approximately $(4.2) million
- Adjusted non-GAAP costs and expenses of $4.6 million, an 18.0%
reduction from Q3 2022
- Approximately $16.6 million in cash and cash equivalents at the
end of the third quarter, with no debt
Partnership Momentum
- Energous and WiGL — On August 8, the Company announced the next
phase of its partnership with WiGL, a developer of touchless
wireless charging for IoT devices for wireless power networks, to
develop and commercialize IoT products that will be wirelessly
powered over distance. The Air Force Research Lab at the U.S.
Department of Defense funded the first phase of the project early
last year to develop and design tWPT products for military and
commercial use. In the project's second phase, Energous’
PowerBridges will continue to provide radio frequency-based (RF)
wireless power over distance for WiGL’s tWPT networks.
- Energous and Veea — On September 20, the Company announced it
had joined with Veea Inc., a leader in integrated smart edge
connectivity, computing and security technologies, to combine
wireless power and edge computing for real-time asset tracking in
rapidly growing IoT sectors. The combined technologies were
showcased in a proof of concept at the AT&T Mexico Innovation
Lab in Mexico City that was designed to demonstrate the real-world
relevance and transformative potential of the solutions offered by
Energous and Veea in expanding the IoT landscape.
- Energous and InPlay — On September 26, the Company announced a
partnership with InPlay Inc., a fabless semiconductor company, to
demonstrate a battery-free temperature and humidity IoT sensor
solution. This innovation harnesses the strengths of Energous'
PowerBridge technology and InPlay's cutting-edge Bluetooth
low-energy beacon system.
“In the third quarter of 2023, we continued to see strong growth
in the number of customers utilizing Energous technology in proof
of concept deployments, where it is not only proving to be an
effective wireless power solution but also demonstrates its
potential to optimize IoT environments,” said Cesar Johnston, CEO
of Energous. “Aiding this growth is the expansion of our
partnership platform, as we continue to seek to bring on additional
technology, distribution and IoT System Integrator partners that
can help validate our core technology, amplify the benefits of our
solutions in key markets, and increase our commercial
potential.”
2023 Third-Quarter Conference Call
Energous will host a conference call to discuss third-quarter
financial results, recent progress and prospects for the
future.
- When: Thursday, November 9, 2023
- Time: 1:30 p.m. PT (4:30 p.m. ET)
- Phone: 800-830-9649 (domestic); + 1-213-992-4624
(international)
- Conference replay: Accessible through November 23, 2023
800-645-7964 (domestic); + 757-849-6722 (international); passcode
7514 #
- Webcast: Accessible at Energous.com; archive available
through November 2024
About Energous Corporation
Energous Corporation (NASDAQ: WATT) has been pioneering wireless
charging over distance technology since 2012. Today, as the global
leader in wireless charging over distance, its networks are safely
and seamlessly powering its customers’ RF-based systems in a
variety of industries, including retail, industrial, healthcare and
more. Its total network solution is designed to support a variety
of applications, including inventory and asset tracking, smart
manufacturing, electronic shelf labels, IoT sensors, digital supply
chain management, inventory management, loss prevention,
patient/people tracking and sustainability initiatives. The number
of industries and applications it serves is rapidly growing as it
works to support the next generation of the IoT ecosystem.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Securities Act of 1933, as amended, the
Securities Exchange Act of 1934, as amended, and the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact included in
this press release are forward-looking statements. Forward-looking
statements may describe our future plans and expectations and are
based on the current beliefs, expectations and assumptions of
Energous. These statements generally use terms such as “believe,”
“expect,” “may,” “will,” “should,” “could,” “seek,” “intend,”
“plan,” “estimate,” “anticipate” or similar terms. Examples of
forward-looking statements in this release include but are not
limited to statements about our financial results and projections,
statements about the success of our collaborations with our
partners, statements about our technology and its expected
functionality, and statements with respect to expected company
growth. Factors that could cause actual results to differ from
current expectations include: uncertain timing of necessary
regulatory approvals; timing of customer product development and
market success of customer products; our dependence on distribution
partners; and intense industry competition. We urge you to consider
those factors, and the other risks and uncertainties described in
our most recent annual report on Form 10-K as filed with the
Securities and Exchange Commission (SEC), any subsequently filed
quarterly reports on Form 10-Q as well as in other documents that
may have been subsequently filed by Energous, from time to time,
with the SEC, in evaluating our forward-looking statements. In
addition, any forward-looking statements represent Energous’ views
only as of the date of this release and should not be relied upon
as representing its views as of any subsequent date. Energous does
not assume any obligation to update any forward-looking statements
unless required by law.
Non-GAAP Financial Measures
We have provided in this release financial information that has
not been prepared in accordance with accounting standards generally
accepted in the United States of America (“GAAP”). We use these
non-GAAP financial measures internally in analyzing our financial
results and believe they are useful to investors, as a supplement
to GAAP measures, in evaluating our ongoing operational
performance. We believe that the use of these non-GAAP financial
measures provides an additional tool for investors to use in
evaluating ongoing operating results and trends, and in comparing
our financial results with other companies in our industry, many of
which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures below.
Our reported results include certain non-GAAP financial
measures, including net non-GAAP loss, non-GAAP costs and expenses,
non-GAAP sales, marketing, general and administrative expenses
(SG&A) and non-GAAP research and development expenses
(R&D). Net non-GAAP loss excludes depreciation and
amortization, stock-based compensation expense, severance expense,
offering costs relating to warrant liability and change in fair
value of warrant liability. Non-GAAP costs and expenses excludes
depreciation and amortization, stock-based compensation expense and
severance expense. Non-GAAP SG&A excludes depreciation and
amortization and stock-based compensation expense. Non-GAAP R&D
excludes depreciation and amortization and stock-based compensation
expense. A reconciliation of our non-GAAP financial measures to
their most directly comparable GAAP measures has been provided in
the financial statement tables included below in this press
release.
Energous Corporation BALANCE SHEETS
(Unaudited) As of September 30, 2023 December 31,
2022
ASSETS Current assets: Cash and cash equivalents
$
16,578,659
$
26,287,293
Accounts receivable, net
120,198
143,353
Inventory
199,616
105,821
Prepaid expenses and other current assets
896,253
827,551
Total current assets
17,794,726
27,364,018
Property and equipment, net
388,505
429,035
Operating lease right-of-use assets
1,411,930
1,959,869
Total assets
$
19,595,161
$
29,752,922
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
768,941
$
900,765
Accrued expenses
1,672,936
1,790,414
Accrued severance expense
202,946
416,516
Warranty liability
450,000
-
Operating lease liabilities, current portion
696,573
705,894
Deferred revenue
24,341
29,727
Total current liabilities
3,815,737
3,843,316
Operating lease liabilities, long-term portion
739,767
1,264,131
Total liabilities
4,555,504
5,107,447
Commitments and contingencies Stockholders’ equity: Preferred
Stock, $0.00001 par value, 10,000,000 shares authorized at
September 30, 2023 and December 31, 2022; no shares issued or
outstanding at September 30, 2023 and December 31, 2022
-
-
Common Stock, $0.00001 par value, 200,000,000 shares authorized at
September 30, 2023 and December 31, 2022; 5,046,994 and 3,947,267
shares issued and outstanding at September 30, 2023 and December
31, 2022, respectively.
925
789
Additional paid-in capital
392,476,298
387,319,985
Accumulated deficit
(377,437,566
)
(362,675,299
)
Total stockholders’ equity
15,039,657
24,645,475
Total liabilities and stockholders’ equity
$
19,595,161
$
29,752,922
Energous Corporation STATEMENTS OF OPERATIONS
(Unaudited) For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2023
2022
2023
2022
Revenue
$
168,708
$
223,201
$
382,517
$
672,133
Costs and expenses: Cost of revenue
48,394
420,060
270,025
894,693
Research and development
2,460,123
2,885,830
8,418,779
9,622,886
Sales and marketing
774,141
1,093,640
3,074,163
3,865,322
General and administrative
1,698,380
1,931,386
5,763,811
5,983,845
Severance expense
269,109
-
359,419
633,444
Total costs and expenses
5,250,147
6,330,916
17,886,197
21,000,190
Loss from operations
(5,081,439
)
(6,107,715
)
(17,503,680
)
(20,328,057
)
Other income (expense): Offering costs related to warrant
liability
-
-
(591,670
)
-
Change in fair value of warrant liability
788,000
-
2,685,000
-
Interest income
178,845
142,840
648,083
192,715
Total other income
966,845
142,840
2,741,413
192,715
Net loss
$
(4,114,594
)
$
(5,964,875
)
$
(14,762,267
)
$
(20,135,342
)
Basic and diluted net loss per common share
$
(0.86
)
$
(1.54
)
$
(3.30
)
$
(5.21
)
Weighted average shares outstanding, basic and diluted
4,762,187
3,879,804
4,467,436
3,867,330
Energous Corporation Reconciliation of Non-GAAP
Information (Unaudited) For the Three Months
Ended September 30, For the Nine Months Ended September 30,
2023
2022
2023
2022
Net loss (GAAP)
$
(4,114,594
)
$
(5,964,875
)
$
(14,762,267
)
$
(20,135,342
)
Add (subtract) the following items: Depreciation and amortization
47,442
73,684
137,772
200,995
Stock-based compensation
368,907
698,222
1,394,877
2,071,253
Severance expense *
269,109
-
359,419
633,444
Offering costs related to warrant liability
-
-
591,670
-
Change in fair value of warrant liability
(788,000
)
-
(2,685,000
)
-
Adjusted net non-GAAP loss
$
(4,217,136
)
$
(5,192,969
)
$
(14,963,529
)
$
(17,229,650
)
* Note: Severance expense includes $87,662 in stock-based
compensation for the nine months ended September 30, 2022
Total costs and expenses (GAAP)
$
5,250,147
$
6,330,916
$
17,886,197
$
21,000,190
Subtract the following items: Depreciation and amortization
(47,442
)
(73,684
)
(137,772
)
(200,995
)
Stock-based compensation
(368,907
)
(698,222
)
(1,394,877
)
(2,071,253
)
Severance expense *
(269,109
)
-
(359,419
)
(633,444
)
Adjusted non-GAAP costs and expenses
$
4,564,689
$
5,559,010
$
15,994,129
$
18,094,498
* Note: Severance expense includes $87,662 in stock-based
compensation for the nine months ended September 30, 2022
Total research and development expenses (GAAP)
$
2,460,123
$
2,885,830
$
8,418,779
$
9,622,886
Subtract the following items: Depreciation and amortization
(42,631
)
(53,026
)
(126,980
)
(118,672
)
Stock-based compensation
(138,976
)
(273,923
)
(557,767
)
(922,447
)
Adjusted non-GAAP research and development expenses
$
2,278,516
$
2,558,881
$
7,734,032
$
8,581,767
Total sales, marketing, general and administrative
expenses (GAAP)
$
2,472,521
$
3,025,026
$
8,837,974
$
9,849,167
Subtract the following items: Depreciation and amortization
(4,811
)
(20,658
)
(10,792
)
(82,323
)
Stock-based compensation
(229,931
)
(424,299
)
(837,110
)
(1,148,806
)
Adjusted non-GAAP sales, marketing, general and administrative
expenses
$
2,237,779
$
2,580,069
$
7,990,072
$
8,618,038
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109226745/en/
Energous Investor Relations: Padilla IR
IR@energous.com
Energous Corporate Communications: SHIFT COMMUNICATIONS
energous@shiftcomm.com
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