Exhibit 99.1

 

 

Energous Corporation Reports Second Quarter 2017 Financial Results

 

SAN JOSE, CA Aug. 8, 2017 Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary wire-free, over-the-air, power-at-a-distance charging technology, today announced financial results for the second quarter ended June 30, 2017, and provided an update on its operational progress.

 

Recent Highlights

 

·Energous received the first orders for production quantities of its chipsets from three customers in the second quarter, with anticipated shipment in the third quarter; end products from these customers are expected to reach consumers before the end of the year
·In advance of Certification, Energous completed identified tests to demonstrate compliance with FCC rules for the first substantial power-at-a-distance transmitter, anticipates formal certification before the forecasted release of products utilizing Energous’ Mid Field transmitter technology by the end of 2017
·Received additional $15 Million investment from strategic component supplier, Dialog Semiconductor
·Increased its patent count to 54, from 48 in the prior quarter
·Expanded the number of active customer engagements to 76, from 68 in the prior quarter
·Successfully completed key milestone projects with the company’s strategic partners
·Recognized approximately $300,000 in engineering services revenue for the 2017 second quarter
·Reduced cash spending in the 2017 second quarter

 

This quarter, Energous marked a major milestone in its advancement towards commercialization: the company’s first orders for WattUp chipsets.  Further towards that goal, we completed previously identified tests for FCC certification for our Mid Field transmitter, and increased the number of active international customer engagements.  We are driving an increasing number of customers to the final stages of WattUp integration, and we continue to expect consumer availability of these products later this year,” said Stephen R. Rizzone, president and CEO. “Due to the broad appeal of truly wire-free charging and our significant company progress, we are seeing increasing interest from multiple potential partners and customers for our technology, and we are driving the global advancement of the ecosystem through conversations and demonstrations with regulators, partners and customers.”

 

 

 

 

Unaudited 2017 Second Quarter Financial Results

 

For the second quarter ended June 30, 2017, Energous recorded:

 

·Revenue of approximately $300,000
·Operating expenses of $13.2 million (GAAP), comprised of $8.7 million in research and development, $3.3 million in general and administrative costs, and $1.2 million in sales and marketing expenses
·Net loss of $12.9 million, or a loss of $0.63 per basic and diluted share
·Adjusted EBITDA (a non-GAAP financial measure) loss of $8.2 million
·$13.1 million in cash and cash equivalents at the end of the second quarter, with no debt

 

2017 Second Quarter Conference Call

 

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

 

When:Tuesday, August 8, 2017
Time:1:30 p.m. PT (4:30 p.m. ET)
Phone:866-235-9911 (domestic); 412-317-1083 (international)
Replay:Accessible through August 15, 2017

877-344-7529 (domestic); 412-317-0088 (international); passcode 10110812

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

 

 

 

 

Note about Non-GAAP Financial Measures

 

In addition to the unaudited results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, Energous presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is determined by taking net loss and eliminating the impacts of interest, taxes, depreciation, amortization, and stock-based compensation. The company’s definition of adjusted EBITDA may not be comparable to the definitions of similarly-titled measures used by other companies. Energous believes that this non-GAAP financial measure, viewed in addition to and not in lieu of its reported GAAP results, provides useful information to investors by providing a more focused measure of operating results. This metric is used as part of the company’s internal reporting to evaluate its operations and the performance of senior management. A table reconciling this measure to the comparable GAAP measure is available in the accompanying financial tables below.

 

About Energous Corporation

 

Energous Corporation is the developer of WattUp® – an award-winning, wire-free charging technology that will transform the way consumers and industries charge and power electronic devices at home, in the office, in the car and beyond. WattUp is a revolutionary radio frequency (RF) based charging solution that delivers intelligent, scalable power via radio bands, similar to a Wi-Fi router. WattUp differs from older wireless charging systems in that it delivers contained power, at a distance, to multiple devices – thus resulting in a wire-free experience that saves users from having to remember to plug in their devices. 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 our partnership with Dialog, development of market demand, production and deployment of products. 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: unexpected delays in our ability to develop commercially feasible technology; uncertain timing of necessary regulatory approvals; timing of customer orders and success of customer products; our dependence on distribution partners; market acceptance of our technology; 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.

 

 

– Financial Tables Follow –

 

 

 

 

 Energous Corporation

BALANCE SHEETS

(Unaudited)

 

   As of 
   June 30, 2017   December 31, 2016 
ASSETS          
Current assets:          
Cash and cash equivalents  $13,084,360   $31,258,637 
Accounts receivable   250,500    149,500 
Prepaid expenses and other current assets   819,300    1,374,585 
Prepaid rent, current   80,784    80,784 
Total current assets   14,234,944    32,863,506 
           
Property and equipment, net   1,944,157    2,209,475 
Prepaid rent, non-current   97,060    137,452 
Other assets   38,888    48,507 
Total assets  $16,315,049   $35,258,940 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Accounts payable  $2,377,871   $4,707,763 
Accrued expenses   1,645,696    1,867,995 
Deferred revenue   29,136    131,959 
Total current liabilities   4,052,703    6,707,717 
           
Stockholders’ equity:          
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2017 and December 31, 2016; no shares issued or outstanding.   -    - 
Common Stock, $0.00001 par value, 50,000,000 shares authorized at June 30, 2017 and December 31, 2016; 20,862,152 and 20,367,929 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively.   207    202 
Additional paid-in capital   162,178,863    153,075,595 
Accumulated deficit   (149,916,724)   (124,524,574)
Total stockholders’ equity   12,262,346    28,551,223 
Total liabilities and stockholders’ equity  $16,315,049   $35,258,940 

 

 

 

 

 Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

 

   For the Three Months
Ended June 30,
   For the Six Months
Ended June 30,
 
   2017   2016   2017   2016 
                 
Revenue:                    
Engineering product development  $299,506   $181,818   $874,874   $318,182 
Total revenue   299,506    181,818    874,874    318,182 
                     
Operating expenses:                    
Research and development   8,692,003    7,462,360    17,045,187    15,136,453 
Sales and marketing   1,187,313    646,177    2,782,765    1,453,244 
General and administrative   3,341,563    2,360,453    6,444,314    4,816,066 
Total operating expenses   13,220,879    10,468,990    26,272,266    21,405,763 
Loss from operations   (12,921,373)   (10,287,172)   (25,397,392)   (21,087,581)
                     
Other income (expense):                    
Loss on sales of property and equipment, net   -    -    (726)   - 
Interest income   2,363    2,617    5,968    6,483 
Total   2,363    2,617    5,242    6,483 
                     
Net loss  $(12,919,010)  $(10,284,555)  $(25,392,150)  $(21,081,098)
                     
Basic and diluted net loss per common share  $(0.63)  $(0.62)  $(1.23)  $(1.27)
                     
Weighted average shares outstanding, basic and diluted   20,643,261    16,721,332    20,564,561    16,563,780 

 

 Energous Corporation

Reconciliation of Non-GAAP Information

(Unaudited)

 

   For the Three Months
Ended June 30,
   For the Six Months
Ended June 30,
 
   2017   2016   2017   2016 
                 
Net loss (GAAP)  $(12,919,010)  $(10,284,555)  $(25,392,150)  $(21,081,098)
Add (subtract) the following items:                    
Interest income   (2,363)   (2,617)   (5,968)   (6,483)
Depreciation and amortization   355,422    182,468    681,985    374,572 
Stock-based compensation   4,365,963    1,591,677    7,904,154    3,545,211 
Adjusted EBITDA (non-GAAP)  $(8,199,988)  $(8,513,027)  $(16,811,979)  $(17,167,798)

 

 

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Energous Public Relations

PR@energous.com

408-963-0200

 

Investor Relations Contact: 

Bishop IR

Mike Bishop

(415) 894-9633

IR@energous.com