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Energous Corporation Reports Fourth Quarter and Full Year 2019 Financial Results

Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary Wireless Charging 2.0 technology, today announced financial results for the fourth quarter and full year ended December 31, 2019 and provided an update on its operational progress.

Recent Highlights

  • Japan regulatory approval received for its WattUp wireless charging technology
  • Energous announced that its partners PiBEX and SK Telesys are developing an ultra-wideband (UWB) tracking tag for POSCO, which will include integration with the WattUp RF wireless charging technology
  • Announced the availability of its smart glasses developer kits

"With the Japan certification, combined with both the technological and customer progress, we have increasing confidence in a revenue ramp in 2020," said Stephen R. Rizzone, president and CEO of Energous Corporation. "We are on track to forge ahead with several partnerships and other opportunities, including ZPower and POSCO, to help broaden the installed base of WattUp."

Unaudited 2019 Fourth Quarter Financial Results

For the fourth quarter ended Dec. 31, 2019, Energous recorded:

  • Revenue of $45,643
  • Operating expenses of approximately $9.5 million (GAAP), comprised of $5.7 million in research and development, and $3.8 million in selling, general and administrative expenses
  • Net loss of $9.4 million, or $0.29 per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $6.8 million
  • $21.7 million in cash and cash equivalents at the end of the fourth quarter, with no debt

Unaudited 2019 Full-Year Financial Results

For the year ended December 31, 2019, Energous recorded:

  • Revenue of approximately $200,000
  • Operating expenses of $39.0 million, comprised of $23.2 million in research and development, and $15.8 million in selling, general and administrative costs
  • Net loss of $38.4 million, or a loss of $1.27 per basic and diluted share.
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $27.4 million.

2019 Fourth Quarter and Year End Conference Call

Energous will host a conference call to discuss its financial results, recent progress and prospects for the future.

When: Wednesday, Feb. 26, 2020

Time: 1:30 p.m. PT (4:30 p.m. ET)

Phone: 888-317-6003 (domestic); 412-317-6061 (international)

Passcode: 4409078

Telephonic replay: Accessible through Mar. 11, 2020

877-344-7529 (domestic); 412-317-0088 (international); passcode 10138670

Webcast: Accessible at Energous.com; archive available for approximately one year

About Energous Corporation

Energous Corporation (Nasdaq: WATT) is leading the next generation of wireless charging – wireless charging 2.0 – with its award-winning WattUp® technology, which supports fast, efficient contact-based charging, as well as charging at a distance. WattUp is a scalable, RF-based wireless charging technology that offers substantial improvements in contact-based charging efficiency, foreign object detection, orientation freedom and thermal performance compared to older, coil-based charging technologies. The technology can be designed into many different sized electronic devices for the home and office, as well as the medical, industrial, retail and automotive industries, and it ensures interoperability across products. Energous develops silicon-based wireless power transfer (WPT) technologies and customizable reference designs. These include innovative silicon chips, antennas and software, for a large variety of applications, such as smartphones, fitness trackers, hearables, medical sensors and more. Energous received the world’s first FCC Part 18 certification for at-a-distance wireless charging, and the company has 220 awarded patents for its WattUp wireless charging technology to-date. For more information, please visit Energous.com

Safe Harbor Statement

This press release contains forward-looking statements that describe our future plans and expectations. These statements generally use terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or similar terms. Examples of our forward-looking statements in this release include our statements about FCC certification of our technology, regulatory approvals internationally, and customer releases of products utilizing our technology. Our forward-looking statements speak only as of this date; they are based on current expectations and we undertake no duty to update them. Factors that could cause actual results to differ from what we expect 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 and subsequent quarterly reports on Form 10-Q, in evaluating our forward-looking statements.

Energous Corporation
BALANCE SHEETS
(Unaudited)
 
As of
December 31, 2019December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents

$

21,684,089

 

$

20,106,485

 

Accounts receivable, net

 

63,144

 

 

44,550

 

Prepaid expenses and other current assets

 

450,231

 

 

581,040

 

Prepaid rent, current

 

-

 

 

56,668

 

Total current assets

 

22,197,464

 

 

20,788,743

 

 
Property and equipment, net

 

626,524

 

 

1,219,016

 

Right-of-use lease assets

 

2,057,576

 

 

-

 

Other assets

 

2,410

 

 

2,410

 

Total assets

$

24,883,974

 

$

22,010,169

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

1,671,519

 

$

1,861,385

 

Accrued expenses

 

2,063,097

 

 

1,778,349

 

Operating lease liabilities, current portion

 

722,291

 

 

-

 

Deferred revenue

 

12,000

 

 

-

 

Total current liabilities

 

4,468,907

 

 

3,639,734

 

 
Operating lease liabilites, long-term portion

 

1,402,193

 

 

-

 

Total liabilities

 

5,871,100

 

 

3,639,734

 

 
Commitments and contingencies
 
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at December 31, 2019 and December 31, 2018; no shares issued or outstanding.

 

-

 

 

-

 

Common Stock, $0.00001 par value, 50,000,000 shares authorized at December 31, 2019 and December 31, 2018; 33,203,806 and 26,526,303 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively.

 

333

 

 

265

 

Additional paid-in capital

 

282,153,201

 

 

243,111,741

 

Accumulated deficit

 

(263,140,660

)

 

(224,741,571

)

Total stockholders’ equity

 

19,012,874

 

 

18,370,435

 

Total liabilities and stockholders’ equity

$

24,883,974

 

$

22,010,169

 

Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
 

For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

2019

2018

2019

2018

 
 
Revenue

$

45,643

 

$

56,050

 

$

200,143

 

$

514,823

 

 
Operating expenses:
Research and development

 

5,723,059

 

 

8,067,461

 

 

23,228,810

 

 

32,871,685

 

Sales and marketing

 

1,433,500

 

 

1,564,399

 

 

5,418,967

 

 

6,185,159

 

General and administrative

 

2,352,718

 

 

2,948,110

 

 

10,360,266

 

 

12,387,389

 

Total operating expenses

 

9,509,277

 

 

12,579,970

 

 

39,008,043

 

 

51,444,233

 

Loss from operations

 

(9,463,634

)

 

(12,523,920

)

 

(38,807,900

)

 

(50,929,410

)

 
Other income (expense):
Interest income

 

79,699

 

 

70,917

 

 

416,274

 

 

89,288

 

Loss on retirement of property and equipment

 

(7,463

)

 

-

 

 

(7,463

)

 

-

 

Total

 

72,236

 

 

70,917

 

 

408,811

 

 

89,288

 

 
Net loss

$

(9,391,398

)

$

(12,453,003

)

$

(38,399,089

)

$

(50,840,122

)

 
Basic and diluted net loss per common share

$

(0.29

)

$

(0.48

)

$

(1.27

)

$

(1.99

)

 
Weighted average shares outstanding, basic and diluted

 

31,880,706

 

 

26,066,151

 

 

30,262,642

 

 

25,486,270

 

 
Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
 
For the Three Months Ended December 31,For the Twelve Months Ended December 31,

2019

2018

2019

2018

 
 
Net loss (GAAP)

$

(9,391,398

)

$

(12,453,003

)

$

(38,399,089

)

$

(50,840,122

)

Add (subtract) the following items:
Interest income

 

(79,699

)

 

(70,917

)

 

(416,274

)

 

(89,288

)

Depreciation and amortization

 

128,963

 

 

234,006

 

 

781,229

 

 

1,054,720

 

Stock-based compensation

 

2,577,580

 

 

3,949,010

 

 

10,646,580

 

 

16,753,754

 

Adjusted EBITDA (non-GAAP)

$

(6,764,554

)

$

(8,340,904

)

$

(27,387,554

)

$

(33,120,936

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200226005875/en/

Contacts

Energous Public Relations
PR@energous.com
(408) 963-0200

Investor Relations Contact
Bishop IR
Mike Bishop
(415) 894-9633
IR@energous.com