Energous Corporation (NASDAQ: WATT), a leading developer of
RF-based charging for wireless power networks, today announced
financial results for the year ended December 31, 2023, and
provided an update on recent partnerships and company
highlights.
2023 Financial Results
- 2023 revenue of approximately $0.5 million versus $0.9 million
in 2022.
- Total costs and expenses were significantly reduced in 2023
from approximately $27.5 million in 2022 to approximately $22.6
million in 2023, representing a cost reduction of $4.9 million year
over year. The 2023 costs consist of approximately $0.3 million in
cost of revenue, $10.8 million in research and development
(R&D) expenses, $11.1 million in sales, marketing, general and
administrative (SG&A) expenses, and approximately $0.4 million
in severance expenses.
- Year-over-year net loss improvement with a net loss of
approximately $(19.4) million, or $(4.15) per basic and diluted
share for the year ended December 31, 2023, versus a net loss of
approximately $(26.3) million, or $(6.78) per basic and diluted
share, for the year ended December 31, 2022.
- Net non-GAAP unaudited loss of approximately $(19.1)
million.
- Approximately $13.9 million in cash and cash equivalents at the
end of 2023, with no debt.
Recent Partnership Momentum
- Energous and Velociti — which deploys advanced enterprise
technology solutions to some of the largest brands in the world,
joined Energous as a preferred system integration partner and
worldwide value-added reseller (VAR) for its technology. The
partnership provides expansion opportunities into new markets,
applications and customers across retail, healthcare, logistics,
warehousing and more.
- Energous and 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 (tWPT). The U.S. Department of Defense’s Air Force
Research Lab funded the project's first two phases. The third and
final milestone of the partnership to develop and design WiGL’s
touchless Wireless Power Transfer (tWPT) product was completed in
February 2024, successfully meeting Federal Communication
Commission (FCC) compliance.
- Energous and Identiv — a global digital security and
identification leader in the Internet of Things (IoT) have
partnered to bring real-time asset tracking to supply chain and
logistics applications. This collaboration aims to wirelessly power
Identiv’s ID-Pixels tags with Energous PowerBridge technology,
enabling accurate and reliable sensor measurements that can be used
throughout the supply chain, including in cold chain
logistics.
- Energous and InPlay — 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.
- Energous and Veea — 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.
Company Highlights
- On March 26, 2024, the Company announced that Cesar Johnston
was no longer serving as President & CEO of Energous. The Board
established an Office of the Chair, composed of Reynette Au, Chair
of the Board, and Mallorie Burak, Chief Financial Officer, who has
also been named Principal Executive Officer for the interim
period.
- On January 16, 2024, the Company announced the appointment of
Mallorie Burak as Chief Financial Officer. Ms. Burak has over 17
years of experience in chief financial executive roles for private,
NASDAQ, and OTCQX-listed technology companies.
- On April 6, Japan’s regulatory body approved Energous’1W WattUp
PowerBridge for unlimited power distance transmission. This enables
Energous to deploy its active energy harvesting technology
throughout the technologically advanced Japanese market.
- Energous’ 2 Watt PowerBridge transmitter was launched on May 9,
doubling the energizing capability of its 1W transmitter currently
deployed in the field and advancing Energous’ goal of freeing IoT
devices from the constraints of replaceable batteries and charging
cords and extending power and range.
- AirFuel RF, the radio frequency-based wireless charging
technology from AirFuel Alliance, was established as an industry
standard to further support the growing power needs of the rapidly
expanding IoT ecosystem of devices such as sensors, smart tags,
asset trackers and other IoT applications. Representatives of
Energous have served on the AirFuel Alliance board of directors
since 2016 and have supported the development of this new industry
standard.
“As we enter into the second year of our smart IoT-centric
strategy to introduce the power of wireless charging into complex
commercial and industrial enterprises, we are pleased with the
advances we have made in attracting more customers to our unique
solutions,” said Mallorie Burak, Principal Executive Officer and
CFO of Energous. “While revenue for the year fell below our
expectations, we successfully reduced our cost of revenue such that
we achieved a 41% gross margin, compared to negative 50% in the
prior year. In 2024, we will continue to focus on opportunities to
improve cash flow through sales, improving gross margins, and
reductions in spending.”
2023 Results Conference Call
Energous will host a conference call to discuss full-year
financial results, recent progress and prospects for the
future.
- When: Thursday, March 28, 2024
- Time: 1:30 p.m. PT (4:30 p.m. ET)
- Phone: 888-317-6003 (domestic); +1 412-317-6061
(international)
- Participant entry #: 7297731
- Conference replay: Accessible through April 11, 2024
877-344-7529 (domestic); +1 412-317-0088 (international); passcode
6156580
- Webcast: Accessible at Energous.com; archive available
through March 25
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 any governmental approvals we may need
to operate our business, 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 non-GAAP net 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). Non-GAAP net loss excludes depreciation and
amortization, stock-based compensation expense, severance expense,
offering expenses 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 As of
December 31, 2023 December 31, 2022
ASSETS
(Unaudited) Current assets: Cash and cash equivalents
$
13,936,050
$
26,287,293
Accounts receivable, net
101,554
143,353
Inventory
429,638
105,821
Prepaid expenses and other current assets
539,145
827,551
Total current assets
15,006,387
27,364,018
Property and equipment, net
428,904
429,035
Right-of-use lease asset
1,240,042
1,959,869
Total assets
$
16,675,333
$
29,752,922
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
1,879,334
$
900,765
Accrued expenses
1,253,937
1,790,414
Accrued severance
133,598
416,516
Warrant liability
619,575
-
Operating lease liabilities, current portion
707,251
705,894
Deferred revenue
27,082
29,727
Total current liabilities
4,620,777
3,843,316
Operating lease liabilities, long-term portion
556,879
1,264,131
Total liabilities
5,177,656
5,107,447
Stockholders’ equity: Preferred Stock, $0.00001 par value,
10,000,000 shares authorized at December 31, 2023 and December 31,
2022; no shares issued or outstanding at December 31, 2023 and
December 31, 2022.
-
-
Common Stock, $0.00001 par value, 200,000,000 shares authorized at
December 31, 2023 and December 31, 2022; 5,471,121 and 3,947,267
shares issued and outstanding at December 31, 2023 and December 31,
2022, respectively.
930
789
Additional paid-in capital
393,538,809
387,319,985
Accumulated deficit
(382,042,062
)
(362,675,299
)
Total stockholders’ equity
11,497,677
24,645,475
Total liabilities and stockholders’ equity
$
16,675,333
$
29,752,922
Energous Corporation STATEMENTS OF OPERATIONS
For the Twelve Months Ended
December 31,
2023
2022
(Unaudited)
Revenue
$
474,184
$
851,321
Costs and expenses: Cost of revenue
279,083
1,277,565
Research and development
10,810,570
12,497,781
Sales and marketing
3,852,393
4,884,959
General and administrative
7,272,464
8,078,950
Severance expense
359,419
798,391
Total costs and expenses
22,573,929
27,537,646
Loss from operations
(22,099,745
)
(26,686,325
)
Other (expense) income: Offering costs related to warrant
liability
(591,670
)
-
Change in fair value of warrant liability
2,515,425
-
Interest income
809,227
411,065
Total
2,732,982
411,065
Net loss
$
(19,366,763
)
$
(26,275,260
)
Basic and diluted net loss per common share
$
(4.15
)
$
(6.78
)
Weighted average shares outstanding, basic and diluted
4,663,594
3,874,295
Energous Corporation Reconciliation of Non-GAAP
Information (Unaudited)
For the Twelve Months Ended
December 31,
2023
2022
Net loss (GAAP)
$
(19,366,763
)
$
(26,275,260
)
Add (subtract) the following items: Depreciation and amortization
187,209
246,156
Stock-based compensation *
1,677,950
2,666,228
Severance expense
359,419
798,391
Offering costs related to warrant liability
591,670
-
Change in fair value of warrant liability
(2,515,425
)
-
Adjusted net non-GAAP loss
$
(19,065,940
)
$
(22,564,485
)
* Note: Stock-based compensation excludes $252,609 which is
included in severance expense for the twelve months ended December
31, 2022. Total costs and expenses (GAAP)
$
22,573,929
$
27,537,646
Subtract the following items: Depreciation and amortization
(187,209
)
(246,156
)
Stock-based compensation *
(1,677,950
)
(2,666,228
)
Severance expense
(359,419
)
(798,391
)
Adjusted non-GAAP costs and expenses
$
20,349,351
$
23,826,871
* Note: Stock-based compensation excludes $252,609 which is
included in severance expense for the twelve months ended December
31, 2022. Total research and development expenses (GAAP)
$
10,810,570
$
12,497,781
Subtract the following items: Depreciation and amortization
(169,409
)
(160,201
)
Stock-based compensation
(658,041
)
(1,134,106
)
Adjusted non-GAAP research and development expenses
$
9,983,120
$
11,203,474
Total sales, marketing, general and administrative
expenses (GAAP)
$
11,124,857
$
12,963,909
Subtract the following items: Depreciation and amortization
(17,800
)
(85,955
)
Stock-based compensation
(1,019,909
)
(1,532,122
)
Adjusted non-GAAP sales, marketing, general and administrative
expenses
$
10,087,148
$
11,345,832
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version on businesswire.com: https://www.businesswire.com/news/home/20240328455188/en/
Energous Investor Relations: Padilla IR
IR@energous.com
Energous Corporate Communications: SHIFT COMMUNICATIONS
energous@shiftcomm.com
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