Energous Corporation d/b/a Energous Wireless Power Solutions
(NASDAQ: WATT), a pioneer in scalable, over-the-air (OTA) wireless
power networks, today announced financial results for the three
months ended June 30, 2024, and provided an update on recent
partnerships and company highlights.
Second Quarter 2024 Financial Results
- Revenue for the three months ended June 30, 2024 of
approximately $46,000 versus $0.1 million in the same 2023
period.
- As of June 30, 2024, the Company had $0.2 million in backlog,
or confirmed orders, of which approximately $0.1 million has
shipped subsequent to the end of the second quarter. This backlog
represents a significant milestone and validates growing market
adoption of Energous OTA wireless power solutions. As of August 6,
2024, the Company’s backlog is $0.2 million, with the majority
comprising follow-on orders for additional deployment phases for
large retail customers.
- Costs and expenses for the three months ended June 30, 2024
totaled $4.7 million versus $6.2 million in the same 2023 period.
Total second quarter 2024 GAAP costs and expenses consisted of
approximately $0.1 million in cost of revenue, $2.4 million in
research and development (R&D) expenses, $2.4 million in sales,
marketing, general and administrative (SG&A) expenses, and a
reversal of approximately $0.3 million in severance expenses.
- Cost reductions continued through the second quarter of 2024
with total non-GAAP costs and expenses for the three months ended
June 30, 2024 of $4.8 million decreasing from $5.6 million for the
same 2023 period, representing a cost reduction of approximately
$0.8 million, or 15%, year over year.
- Year-over-year net loss of approximately $(4.3) million, or
$(0.65) per basic and diluted share for the three months ended June
30, 2024, versus a net loss of approximately $(4.0) million, or
$(0.88) per basic and diluted share, for the same 2023 period.
- Non-GAAP net loss of approximately $(4.7) million for the three
months ended June 30, 2024 versus non-GAAP net loss of
approximately ($5.3) million for the same 2023 period, representing
an 11% improvement year over year.
- Approximately $4.9 million in cash and cash equivalents as of
June 30, 2024, with no debt.
See “Non-GAAP Financial Measures” below for additional
information.
Company Highlights
- The second quarter of 2024 represented a turning point for the
Company, with ongoing long-term Proofs of Concept (POCs) with
multinational retailers concluding and transitioning into
commercial deployments.
- In addition to transitioning a portion of the POCs from the 43
active trials as of the end of the first quarter of 2024 to
commercial deployments, the Company increased its active POCs to 47
as of June 30, 2024.
- The Company adopted Energous Wireless Power Solutions as its
trade name or “doing business as” name to reflect its commitment to
innovation and focus on delivering cutting-edge wireless power
network (WPN) solutions to its customers and partners.
- DigiKey, a leading global commerce distributor offering the
largest selection of technical components and automation products
in stock for immediate shipment, is now offering Energous 1W
PowerBridge and 1W Omnidirectional PowerBridge transmitter systems
for sale on their website.
- Peak Technologies, one of the industry’s largest providers of
end-to-end technology solutions that modernize factories, optimize
warehouses, and revolutionize retail experiences, is a new System
Integration Partner and Value-Added Reseller (VAR). Peak
Technologies is offering a complete, Energous-powered asset
tracking solution for their customers in North America and
Europe.
- Ecobyte, which develops, hosts, and supports IT systems for the
world of returnable packaging, is a new System Integration Partner.
Ecobyte is offering a complete end-to-end, Energous-powered asset
tracking solution to meet the growing demand for better supply
chain visibility in Europe.
“The second quarter was a pivotal period during which we focused
on stabilizing and optimizing our operations and technologies,
while simultaneously continuing to drive POC conversions and
growth, as evidenced by a backlog of confirmed orders,” said
Mallorie Burak, Interim Principal Executive Officer and CFO,
Energous. “As demand for enhanced supply chain management with
real-time tracking and smart inventory management grows, so does
interest in our wireless power network (WPN) solutions, which
facilitate the ‘always on’ transmission and real-time accessibility
of data and alerts, allowing our customers to proactively manage
their inventory and assets while reducing maintenance costs and
inventory-related shrinkage. We continue to align with key
technology partners who are working to integrate Energous-based
WPNs into Internet of Things (IoT) deployments for their
multinational retailer customers.”
About Energous Wireless Power Solutions
Energous Corporation d/b/a Energous Wireless Power Solutions
(NASDAQ: WATT) is pioneering scalable, over-the-air (OTA) wireless
power networks that enable unprecedented levels of visibility,
control, and intelligent business automation. The Company’s
wireless power transmitter and receiver technologies deliver
continuous access to wireless power, helping drive a new generation
of battery-free devices for asset and inventory tracking and
management—from retail sensors, electronic shelf labels, and asset
trackers, to air quality monitors, motion detectors, and more. For
more information, visit http://www.energous.com/ or follow on
LinkedIn.
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 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 costs related 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) (in thousands) As of June 30, 2024
December 31, 2023
ASSETS Current assets: Cash and cash
equivalents
$
4,855
$
13,876
Restricted cash
-
60
Accounts receivable, net
64
102
Inventory
556
430
Prepaid expenses and other current assets
452
539
Total current assets
5,927
15,007
Property and equipment, net
389
429
Right-of-use lease asset
866
1,240
Total assets
$
7,182
$
16,676
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable
$
1,796
$
1,879
Accrued expenses
991
1,254
Accrued severance
122
134
Warrant liability
366
620
Operating lease liabilities, current portion
703
707
Deferred revenue
10
27
Total current liabilities
3,988
4,621
Operating lease liabilities, long-term portion
186
557
Total liabilities
4,174
5,178
Stockholders’ equity: Preferred stock
-
-
Common stock
1
1
Additional paid-in capital
395,906
393,539
Accumulated deficit
(392,899
)
(382,042
)
Total stockholders’ equity
3,008
11,498
Total liabilities and stockholders’ equity
$
7,182
$
16,676
Energous Corporation STATEMENTS OF OPERATIONS
(Unaudited) (in thousands, except share and per share
amounts) For the Three Months Ended June 30, For the Six
Months Ended June 30,
2024
2023
2024
2023
Revenue
$
46
$
117
$
110
$
214
Costs and expenses: Cost of revenue
122
83
231
222
Research and development
2,439
2,880
4,788
5,959
Sales and marketing
819
1,088
1,692
2,300
General and administrative
1,586
2,104
3,421
4,065
Severance expense
(269
)
90
1,294
90
Total costs and expenses
4,697
6,245
11,426
12,636
Loss from operations
(4,651
)
(6,128
)
(11,316
)
(12,422
)
Other income (expense), net: Offering costs related to
warrant liability
-
-
-
(592
)
Change in fair value of warrant liability
336
1,897
254
1,897
Interest income
57
236
205
469
Total other income (expense), net
393
2,133
459
1,774
Net loss
$
(4,258
)
$
(3,995
)
$
(10,857
)
$
(10,648
)
Basic and diluted net loss per common share
$
(0.65
)
$
(0.88
)
$
(1.74
)
$
(2.47
)
Weighted average shares outstanding, basic and diluted
6,539,202
4,562,079
6,250,194
4,316,259
Energous Corporation Reconciliation of Non-GAAP
Information (Unaudited) (in thousands) For
the Three Months Ended June 30, For the Six Months Ended June 30,
2024
2023
2024
2023
Net loss (GAAP)
$
(4,258
)
$
(3,995
)
$
(10,857
)
$
(10,648
)
Add (subtract) the following items: Depreciation and amortization
50
44
98
90
Stock-based compensation expense *
143
504
417
1,026
Severance expense
(269
)
90
1,294
90
Offering costs related to warrant liability
-
-
-
592
Change in fair value of warrant liability
(336
)
(1,897
)
(254
)
(1,897
)
Adjusted net non-GAAP loss
$
(4,670
)
$
(5,254
)
$
(9,302
)
$
(10,747
)
* Stock-based compensation expense excludes $130 which is
included in severance expense for the six months ended June 30,
2024. Total costs and expenses (GAAP)
$
4,697
$
6,245
$
11,426
$
12,636
Subtract the following items: Depreciation and amortization
(50
)
(44
)
(98
)
(90
)
Stock-based compensation expense *
(143
)
(504
)
(417
)
(1,026
)
Severance expense
269
(90
)
(1,294
)
(90
)
Adjusted non-GAAP costs and expenses
$
4,773
$
5,607
$
9,617
$
11,430
* Stock-based compensation expense excludes $130 which is
included in severance expense for the six months ended June 30,
2024. Total research and development expenses (GAAP)
$
2,439
$
2,880
$
4,788
$
5,959
Subtract the following items: Depreciation and amortization
(42
)
(42
)
(83
)
(84
)
Stock-based compensation expense
(52
)
(210
)
(159
)
(419
)
Adjusted non-GAAP research and development expenses
$
2,345
$
2,628
$
4,546
$
5,456
Total sales, marketing, general and administrative
expenses (GAAP)
$
2,405
$
3,192
$
5,113
$
6,365
Subtract the following items: Depreciation and amortization
(8
)
(3
)
(15
)
(6
)
Stock-based compensation expense
(91
)
(294
)
(258
)
(607
)
Adjusted non-GAAP sales, marketing, general and administrative
expenses
$
2,306
$
2,895
$
4,840
$
5,752
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version on businesswire.com: https://www.businesswire.com/news/home/20240808266921/en/
Investor Relations IR@energous.com
Media Relations pr@energous.com
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