Energous Corporation Reports 2023 Second-Quarter Results
SAN JOSE, Calif., August 10, 2023--(BUSINESS WIRE)--Energous Corporation (NASDAQ: WATT), a leading developer of RF-based charging for wireless power networks, today announced financial results for its second quarter ended June 30, 2023.
Unaudited 2023 Second-Quarter Financial Results
For the second quarter ended June 30, 2023, Energous reported:
Revenue of approximately $117,133, a 21% increase over Q1 2023
Costs and expenses of approximately $6.2 million, with approximately $82,818 in cost of revenue, $2.9 million in research and development, and $3.2 million in sales, marketing, general and administrative expenses
Net loss of approximately $(4.0) million, or $(0.04) per basic and diluted share
Adjusted net non-GAAP loss of approximately $(5.3) million
Adjusted non-GAAP costs and expenses of $5.6 million, a 7% reduction from Q2 2022
Approximately $20.0 million in cash and cash equivalents at the end of the second quarter, with no debt
Partnership Momentum
Energous and InnoTractor — On April 12, the Company announced a partnership with InnoTractor, a European provider of IoT-based solutions for logistics and supply chain applications to integrate wireless power solutions for real-time asset tracking across various industries witnessing significant IoT growth. The partnership will integrate and deploy Energous’ PowerBridge technology and Wiliot’s IoT Pixel tags, providing customers with a solution featuring lower costs, increased mobility and improved sustainability.
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 (tWPT Project). The Air Force Research Lab at the U.S. Department of Defense (DoD) funded the first phase 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.
Company Highlights
Japan’s regulatory body has 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.
On May 9, the Company announced the launch of its 2 Watt PowerBridge transmitter, which doubles the energizing capability of Energous’ 1W transmitter currently deployed in the field, continuing towards Energous’ goal of freeing IoT devices from the constraints of replaceable batteries and charging cords and extending power and range.
"Energous’ solutions continue to gain traction in the IoT market with a growing roster of companies in several of our key verticals conducting proof-of-concept deployments," said Cesar Johnston, CEO of Energous. "Our team is actively working with these customers to ensure seamless integration with their systems and optimizing operations to ensure our technology delivers tangible results. We look forward to these customers converting to full production contracts."
2023 Second-Quarter Conference Call
Energous will host a conference call to discuss second-quarter financial results, recent progress and prospects for the future.
When: Thursday, August 10, 2023
Time: 1:30 p.m. PT (4:30 p.m. ET)
Phone: 888-317-6003 (domestic); +1 412-317-6061 (international)
Participant entry #: 8033977
Conference replay: Accessible through August 24, 2023
877-344-7529 (domestic); +1 412-317-0088 (international); passcode 1026451Webcast: Accessible at Energous.com; archive available through August 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 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 | ||||||||
(Unaudited) | ||||||||
As of | ||||||||
June 30, 2023 | December 31, 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 19,959,768 | $ | 26,287,293 | ||||
Accounts receivable, net | 168,084 | 143,353 | ||||||
Inventory | 176,786 | 105,821 | ||||||
Prepaid expenses and other current assets | 1,251,839 | 827,551 | ||||||
Total current assets | 21,556,477 | 27,364,018 | ||||||
Property and equipment, net | 389,659 | 429,035 | ||||||
Right-of-use lease asset | 1,595,869 | 1,959,869 | ||||||
Total assets | $ | 23,542,005 | $ | 29,752,922 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,053,204 | $ | 900,765 | ||||
Accrued expenses | 1,462,742 | 1,790,414 | ||||||
Accrued severance | 215,442 | 416,516 | ||||||
Warranty liability | 1,238,000 | - | ||||||
Operating lease liabilities, current portion | 699,673 | 705,894 | ||||||
Deferred revenue | 58,091 | 29,727 | ||||||
Total current liabilities | 4,727,152 | 3,843,316 | ||||||
Operating lease liabilities, long-term portion | 915,854 | 1,264,131 | ||||||
Total liabilities | 5,643,006 | 5,107,447 | ||||||
Stockholders’ equity: | ||||||||
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2023 and December 31, 2022; no shares issued or outstanding at June 30, 2023 and December 31, 2022 | - | - | ||||||
Common Stock, $0.00001 par value, 200,000,000 shares authorized at June 30, 2023 and December 31, 2022; 92,040,276 and 78,944,954 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively. | 921 | 789 | ||||||
Additional paid-in capital | 391,221,050 | 387,319,985 | ||||||
Accumulated deficit | (373,322,972 | ) | (362,675,299 | ) | ||||
Total stockholders’ equity | 17,898,999 | 24,645,475 | ||||||
Total liabilities and stockholders’ equity | $ | 23,542,005 | $ | 29,752,922 | ||||
Energous Corporation | ||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 117,133 | $ | 232,971 | $ | 213,809 | $ | 448,932 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of revenue | 82,818 | 271,384 | 221,631 | 474,633 | ||||||||||||
Research and development | 2,880,132 | 3,209,910 | 5,958,656 | 6,737,056 | ||||||||||||
Sales and marketing | 1,088,084 | 1,158,092 | 2,300,022 | 2,771,682 | ||||||||||||
General and administrative | 2,103,971 | 2,024,939 | 4,065,431 | 4,052,459 | ||||||||||||
Severance expense | 90,310 | 633,444 | 90,310 | 633,444 | ||||||||||||
Total costs and expenses | 6,245,315 | 7,297,769 | 12,636,050 | 14,669,274 | ||||||||||||
Loss from operations | (6,128,182 | ) | (7,064,798 | ) | (12,422,241 | ) | (14,220,342 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Offering costs related to warrant liability | - | - | (591,670 | ) | - | |||||||||||
Change in fair value of warrant liability | 1,897,000 | - | 1,897,000 | - | ||||||||||||
Interest income | 236,016 | 47,049 | 469,238 | 49,875 | ||||||||||||
Total other income (expense) | 2,133,016 | 47,049 | 1,774,568 | 49,875 | ||||||||||||
Net loss | $ | (3,995,166 | ) | $ | (7,017,749 | ) | $ | (10,647,673 | ) | $ | (14,170,467 | ) | ||||
Basic and diluted net loss per common share | $ | (0.04 | ) | $ | (0.09 | ) | $ | (0.12 | ) | $ | (0.18 | ) | ||||
Weighted average shares outstanding, basic and diluted | 91,241,080 | 77,125,105 | 86,351,876 | 77,028,549 | ||||||||||||
Energous Corporation | ||||||||||||||||
Reconciliation of Non-GAAP Information | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net loss (GAAP) | $ | (3,995,166 | ) | $ | (7,017,749 | ) | $ | (10,647,673 | ) | $ | (14,170,467 | ) | ||||
Add (subtract) the following items: | ||||||||||||||||
Depreciation and amortization | 44,533 | 57,192 | 90,330 | 127,311 | ||||||||||||
Stock-based compensation | 503,893 | 576,125 | 1,025,970 | 1,373,031 | ||||||||||||
Severance expense * | 90,310 | 633,444 | 90,310 | 633,444 | ||||||||||||
Offering costs related to warrant liability | - | - | 591,670 | - | ||||||||||||
Change in fair value of warrant liability | (1,897,000 | ) | - | (1,897,000 | ) | - | ||||||||||
Adjusted net non-GAAP loss | $ | (5,253,430 | ) | $ | (5,750,988 | ) | $ | (10,746,393 | ) | $ | (12,036,681 | ) | ||||
* Note: Severance expense includes $87,662 in stock-based compensation | ||||||||||||||||
Total costs and expenses (GAAP) | $ | 6,245,315 | $ | 7,297,769 | $ | 12,636,050 | $ | 14,669,274 | ||||||||
Subtract the following items: | ||||||||||||||||
Depreciation and amortization | (44,533 | ) | (57,192 | ) | (90,330 | ) | (127,311 | ) | ||||||||
Stock-based compensation | (503,893 | ) | (576,125 | ) | (1,025,970 | ) | (1,373,031 | ) | ||||||||
Severance expense | (90,310 | ) | (633,444 | ) | (90,310 | ) | (633,444 | ) | ||||||||
Adjusted non-GAAP costs and expenses | $ | 5,606,579 | $ | 6,031,008 | $ | 11,429,440 | $ | 12,535,488 | ||||||||
Total research and development expenses (GAAP) | $ | 2,880,132 | $ | 3,209,910 | $ | 5,958,656 | $ | 6,737,056 | ||||||||
Subtract the following items: | ||||||||||||||||
Depreciation and amortization | (41,592 | ) | (27,963 | ) | (84,349 | ) | (65,646 | ) | ||||||||
Stock-based compensation | (210,060 | ) | (295,481 | ) | (418,791 | ) | (648,524 | ) | ||||||||
Adjusted non-GAAP research and development expenses | $ | 2,628,480 | $ | 2,886,466 | $ | 5,455,516 | $ | 6,022,886 | ||||||||
Total sales, marketing, general and administrative expenses (GAAP) | $ | 3,192,055 | $ | 3,183,031 | $ | 6,365,453 | $ | 6,824,141 | ||||||||
Subtract the following items: | ||||||||||||||||
Depreciation and amortization | (2,941 | ) | (29,229 | ) | (5,981 | ) | (61,665 | ) | ||||||||
Stock-based compensation | (293,833 | ) | (280,644 | ) | (607,179 | ) | (724,507 | ) | ||||||||
Adjusted non-GAAP sales, marketing, general and administrative expenses | $ | 2,895,281 | $ | 2,873,158 | $ | 5,752,293 | $ | 6,037,969 | ||||||||
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Contacts
Energous Investor Relations:
Padilla IR
IR@energous.com
Energous Corporate Communications:
SHIFT COMMUNICATIONS
energous@shiftcomm.com
