Exhibit 99.1

 

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Energous Corporation Reports Second Quarter 2019 Financial Results

SAN JOSE, Calif. – Aug. 8, 2019 – Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary Wireless Charging 2.0 technology, today announced financial results for the second quarter ended June 30, 2019 and provided an update on its operational progress.

Recent Highlights

 

   

The Oasis-RC PSAP from Energous customer, Delight, became available on Amazon for U.S. customers on Aug. 6, marking what the Company believes to be the first and only RF-charged product available on Amazon to U.S. consumers

 

   

Energous partner, NewSound, announced that it will launch a next-generation WattUp-enabled hearing aid at the 64th Annual EUHA 2019 International Congress of Acousticians Conference October 16-18, 2019

 

   

The Company announced the availability of a developer kit for hearing aid and PSAP manufacturers

 

   

Energous obtained FCC certification of its GaN-based WattUp Near Field wireless charging transmitter

 

   

Energous obtained EU certification of GaN-based WattUp Near Field wireless charging transmitter

“With Delight’s Oasis-RC now available on Amazon, and NewSound’s announced hearing aid, we have begun to build product launch and revenue momentum that we believe will accelerate up to and throughout 2020,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “The benefits of our go-to-market strategy and our partnership with Dialog are really starting to come into focus as the Company continues to ramp revenues while lowering operating expenses which extends our cash and narrows the gap to sustainable profitability.”

Unaudited 2019 Second Quarter Financial Results

For the second quarter ended June 30, 2019, Energous recorded:

 

   

Revenue of $47,500

 

   

Operating expenses of approximately $10.0 million (GAAP), comprised of $5.5 million in research and development, and $4.5 million in selling, general and administrative expenses

 

   

Net loss of $9.8 million, or $0.32 per basic and diluted share

 

   

Adjusted EBITDA (a non-GAAP financial measure) loss of $6.9 million

 

   

$29.2 million in cash and cash equivalents at the end of the second quarter, with no debt


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Second Quarter 2019 Conference Call

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

When: Thursday, Aug. 08, 2019

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

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

Passcode: 5363496

Telephonic replay: Accessible through Sept. 08, 2019 877-344-7529 (domestic); 412-317-0088 (international); passcode 10133758

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 over-the-air. 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. As a systems solutions company, Energous develops silicon-based wireless power transfer (WPT) technologies and customizable reference designs. These include innovative silicon chips, antennas and software for a wide 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 it has more than 215 awarded patents/allowed applications 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


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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.

— Financial Tables Follow –


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Energous Corporation

BALANCE SHEETS

(Unaudited)

     As of  
     June 30, 2019     December 31, 2018  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 29,208,245     $ 20,106,485  

Accounts receivable

     47,500       44,550  

Prepaid expenses and other current assets

     486,360       637,708  

Operating lease right-of-use assets

     121,216       —    
  

 

 

   

 

 

 

Total current assets

     29,863,321       20,788,743  
  

 

 

   

 

 

 

Property and equipment, net

     914,964       1,219,016  

Other assets

     2,410       2,410  
  

 

 

   

 

 

 

Total assets

   $ 30,780,695     $ 22,010,169  
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 1,327,261     $ 1,861,385  

Accrued expenses

     2,111,116       1,778,349  

Operating lease liabilities

     127,540       —    
  

 

 

   

 

 

 

Total current liabilities

     3,565,917       3,639,734  
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2019 and December 31, 2018; no shares issued or outstanding.

     —         —    

Common Stock, $0.00001 par value, 50,000,000 shares authorized at June 30, 2019 and December 31, 2018; 30,603,534 and 26,526,303 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively.

     306       265  

Additional paid-in capital

     272,779,507       243,111,741  

Accumulated deficit

     (245,565,035     (224,741,571
  

 

 

   

 

 

 

Total stockholders’ equity

     27,214,778       18,370,435  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 30,780,695     $ 22,010,169  
  

 

 

   

 

 

 


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Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

 

     For the Three Months Ended June 30,     For the Six Months Ended June 30,  
     2019     2018     2019     2018  

Revenue

   $ 47,500     $ 205,773     $ 114,000     $ 230,773  

Operating expenses:

        

Research and development

     5,515,017       7,639,974       12,315,695       16,361,526  

Sales and marketing

     1,143,910       1,602,137       2,743,362       3,074,533  

General and administrative

     3,335,229       3,268,028       6,097,140       6,548,243  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     9,994,156       12,510,139       21,156,197       25,984,302  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (9,946,656     (12,304,366     (21,042,197     (25,753,529

Other income:

        

Interest income

     142,660       5,995       218,733       11,701  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     142,660       5,995       218,733       11,701  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (9,803,996   $ (12,298,371   $ (20,823,464   $ (25,741,828
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted net loss per common share

   $ (0.32   $ (0.48   $ (0.71   $ (1.03
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding, basic and diluted

     30,445,438       25,479,861       29,199,225       25,042,529  
  

 

 

   

 

 

   

 

 

   

 

 

 

Energous Corporation

Reconciliation of Non-GAAP Information

(Unaudited)

 

     For the Three Months Ended June 30,     For the Six Months Ended June 30,  
     2019     2018     2019     2018  

Net loss (GAAP)

   $ (9,803,996   $ (12,298,371   $ (20,823,464   $ (25,741,828

Add (subtract) the following items:

        

Interest income

     (142,660     (5,995     (218,733     (11,701

Depreciation and amortization

     241,495       275,295       476,863       574,815  

Stock-based compensation

     2,797,933       4,342,880       5,969,325       8,952,088  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (non-GAAP)

   $ (6,907,228   $ (7,686,191   $ (14,596,009   $ (16,226,626
  

 

 

   

 

 

   

 

 

   

 

 

 

Contact

 

Energous Public Relations

PR@energous.com

(408) 963-0200

Investor Relations Contact

Bishop IR

Mike Bishop

(415) 894-9633

IR@energous.com

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