Energous Corporation Reports 2022 Second-Quarter Results

August 10, 2022
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SAN JOSE, Calif.--(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, 2022, and provided an update on its operational, regulatory and partnership highlights.

Unaudited 2022 Second-Quarter Financial Results

For the second quarter ended June 30, 2022, Energous reported:

  • Revenue of approximately $233,000, up 26% from $185,000 in the 2021 second quarter
  • Costs and expenses of approximately $7.3 million (GAAP), with approximately $271,000 in cost of revenue, $3.2 million in research and development, $3.2 million in selling, general and administrative expenses, and $633,000 of severance expense
  • Net loss of $(7.0) million, or $(0.09) per basic and diluted share
  • Net non-GAAP loss of $(5.8) million
  • $35.7 million in cash and cash equivalents at the end of the second quarter, with no debt

Regulatory Approvals

Operational Highlights

  • The company named Giampaolo Marino as its vice president of business development and marketing. Giampaolo brings to Energous significant experience in solidifying strategic partnerships and building platform solutions for IoT applications.

Partnership Momentum

  • Energous and Flagship, a technology company empowering retailers to make better, faster and more informed decisions for their business and customers – announced the first retail deployment of Wiliot Internet of Things IoT Pixel smart tags energized by WattUp PowerBridges has been deployed at a major retail store in Sydney. All tags in the deployment are energized by multiple Energous WattUp PowerBridges.
  • Energous and Atmosic Technologies, an innovator in energy harvesting wireless System-on-Chips (SoCs) and modules for IoT, are now taking orders for the Wirelessly Powered Sensor Evaluation Kit, which features Atmosic’s ATM3 energy harvesting Bluetooth Low Energy (BLE) SoC solution and Energous’ FCC-certified 1W WattUp PowerBridge transmitter.
  • Energous announced Sekorm as a value-added partner in China. Through its partnership with Sekorm, Energous gains access to more industrial Internet of Things (IIoT) design communities, marketing and sales capabilities, and increased awareness of its award-winning WattUp wireless power network technology in China. Energous received approval by the Ministry of Industry and Information Technology (MIIT) in China for IoT applications in April 2022.

“As we continue to establish Energous in the marketplace, we are very excited to share today the FCC’s approval of our 15W WattUp PowerBridge,” said Cesar Johnston, CEO of Energous. “This is a breakthrough approval for Energous as our new generation WattUp PowerBridges are the first to deliver 15 times more power with no distance limitations than previously authorized. Additionally, we continue to fulfill additional orders of WattUp PowerBridges. We are also excited about our work with Flagship, which represents our first deployment of a wireless power network for RF-tags. Together, these milestones highlight our significant progress advancing our RF-based charging for wireless power networks, and the success we are having securing important regulatory approvals and forming key partnerships.”

2022 Second-Quarter Conference Call

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

  • When: Wednesday, August 10, 2022
  • Time: 1:30 p.m. PT (4:30 p.m. ET)
  • Phone: 888-317-6003 (domestic); +1 412-317-6061 (international)
  • Passcode: 1959899
  • Conference replay: Accessible through August 24, 2022
    877-344-7529 (domestic); +1 412-317-0088 (international); passcode 9285851
  • Webcast: Accessible at Energous.com; archive available through August 2023

About Energous Corporation

Energous Corporation (Nasdaq: WATT) is the Wireless Power Network global leader. Its award-winning WattUp® solution is the only technology that supports both contact and distance charging through a fully compatible ecosystem. Built atop fast, efficient, and highly scalable RF-based charging technology, WattUp is positioned to offer improvements over older, first-generation coil-based charging technologies in power, efficiency, foreign device detection, freedom of movement and overall cost for industrial and retail IoT, smart homes, smart cities and medical devices. Energous develops silicon-based wireless power transfer (WPT) technologies and customizable reference designs, and provides worldwide regulatory assistance, a reliable supply chain, quality assurance, and sales and technical support to global customers. The company received the world’s first FCC Part 18 certification for at-a-distance wireless charging and has been awarded over 200 patents for its WattUp wireless charging technology to-date.

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 subsequent quarterly reports on Form 10-Q as well as in other documents that may be 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 and stock-based compensation expense. Non-GAAP costs and expenses excludes depreciation and amortization and stock-based compensation 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, 2022   December 31, 2021
ASSETS      
Current assets:      
Cash and cash equivalents

$

35,669,685

 

  

$

49,071,414

 
Accounts receivable, net

 

210,283

 

  

 

283,602

 
Inventory

 

52,153

 

  

 

-

 
Prepaid expenses and other current assets

 

1,265,895

 

  

 

874,886

 
Total current assets

 

37,198,016

 

  

 

50,229,902

 
       
Property and equipment, net

 

495,395

 

  

 

510,197

 
Right-of-use lease asset

 

2,318,717

 

  

 

618,985

 
Other assets

 

11,991

 

  

 

11,991

 
Total assets

$

40,024,119

 

  

$

51,371,075

 
       
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Accounts payable

$

1,008,932

 

  

$

1,205,957

 
Accrued expenses

 

1,472,763

 

  

 

1,523,317

 
Accrued severance

 

744,820

 

  

 

975,439

 
Operating lease liabilities, current portion

 

721,500

 

  

 

628,307

 
Deferred revenue

 

21,345

 

  

 

13,364

 
Total current liabilities

 

3,969,360

 

  

 

4,346,384

 
       
Operating lease liabilities, long-term portion

 

1,615,527

 

  

 

40,413

 
Total liabilities

 

5,584,887

 

  

 

4,386,797

 
       
Stockholders’ equity:      
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2022 and      
December 31, 2021; no shares issued or outstanding at June 30, 2022 and December 31, 2021

 

-

 

  

 

-

 
Common Stock, $0.00001 par value, 200,000,000 shares authorized at June 30, 2022 and      

December 31, 2021; 77,464,571 and 76,667,205 shares issued and outstanding at

      
June 30, 2022 and December 31, 2021, respectively.

 

775

 

  

 

767

 
Additional paid-in capital

 

385,008,963

 

  

 

383,383,550

 
Accumulated deficit

 

(350,570,506

)

  

 

(336,400,039

)
Total stockholders’ equity

 

34,439,232

 

  

 

46,984,278

 
Total liabilities and stockholders’ equity

$

40,024,119

 

  

$

51,371,075

 
Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
                 
    For the Three Months Ended June 30,   For the Six Months Ended June 30,
   

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 
                 
Revenue  

$

232,971

 

  

$

184,960

 

  

$

448,932

 

  

$

330,025

 
                 
Costs and expenses:                
Cost of revenue  

 

271,384

 

  

 

-

 

  

 

474,633

 

  

 

-

 
Research and development  

 

3,209,910

 

  

 

6,103,694

 

  

 

6,737,056

 

  

 

10,694,938

 
Sales and marketing  

 

1,158,092

 

  

 

2,441,357

 

  

 

2,771,682

 

  

 

4,235,569

 
General and administrative  

 

2,024,939

 

  

 

2,656,748

 

  

 

4,052,459

 

  

 

4,944,144

 
Severance expense  

 

633,444

 

  

 

-

 

  

 

633,444

 

  

 

-

 
Total costs and expenses  

 

7,297,769

 

  

 

11,201,799

 

  

 

14,669,274

 

  

 

19,874,651

 
Loss from operations  

 

(7,064,798

)

  

 

(11,016,839

)

  

 

(14,220,342

)

  

 

(19,544,626

)
                 
Other income (expense):                
Interest income  

 

47,049

 

  

 

1,010

 

  

 

49,875

 

  

 

3,034

 
Total  

 

47,049

 

  

 

1,010

 

  

 

49,875

 

  

 

3,034

 
                 
Net loss  

$

(7,017,749

)

  

$

(11,015,829

)

  

$

(14,170,467

)

  

$

(19,541,592

)
                 
Basic and diluted net loss per common share  

$

(0.09

)

  

$

(0.18

)

  

$

(0.18

)

  

$

(0.32

)
                 
Weighted average shares outstanding, basic and diluted  

 

77,125,105

 

  

 

62,080,250

 

  

 

77,028,549

 

  

 

61,825,044

 
Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
                 
    For the Three Months Ended June 30,   For the Six Months Ended June 30,
   

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 
                 
                 
Net loss (GAAP)  

$

(7,017,749

)

  

$

(11,015,829

)

  

$

(14,170,467

)

  

$

(19,541,592

)
Add (subtract) the following items:                
Depreciation and amortization  

 

57,192

 

  

 

61,611

 

  

 

127,311

 

  

 

126,385

 
Stock-based compensation  

 

576,125

 

  

 

4,228,324

 

  

 

1,373,031

 

  

 

6,374,550

 
Severance expense  

 

633,444

 

  

 

-

 

  

 

633,444

 

  

 

-

 
Adjusted net non-GAAP loss  

$

(5,750,988

)

  

$

(6,725,894

)

  

$

(12,036,681

)

  

$

(13,040,657

)
                 
* Note: Severance expense includes $87,662 in stock-based compensation                
                 
Total costs and expenses (GAAP)  

$

7,297,769

 

  

$

11,201,799

 

  

$

14,669,274

 

  

$

19,874,651

 
Subtract the following items:                
Depreciation and amortization  

 

(57,192

)

  

 

(61,611

)

  

 

(127,311

)

  

 

(126,385

)
Stock-based compensation  

 

(576,125

)

  

 

(4,228,324

)

  

 

(1,373,031

)

  

 

(6,374,550

)
Severance expense  

 

(633,444

)

  

 

-

 

  

 

(633,444

)

  

 

-

 
Adjusted non-GAAP costs and expenses  

$

6,031,008

 

  

$

6,911,864

 

  

$

12,535,488

 

  

$

13,373,716

 
                 
                 
Total research and development expenses (GAAP)  

$

3,209,910

 

  

$

6,103,694

 

  

$

6,737,056

 

  

$

10,694,938

 
Subtract the following items:                
Depreciation and amortization  

 

(27,963

)

  

 

(43,062

)

  

 

(65,646

)

  

 

(88,740

)
Stock-based compensation  

 

(295,481

)

  

 

(2,517,233

)

  

 

(648,524

)

  

 

(3,666,510

)
Adjusted non-GAAP research and development expenses  

$

2,886,466

 

  

$

3,543,399

 

  

$

6,022,886

 

  

$

6,939,688

 
                 
                 
Total sales, marketing, general and administrative expenses (GAAP)  

$

3,183,031

 

  

$

5,098,105

 

  

$

6,824,141

 

  

$

9,179,713

 
Subtract the following items:                
Depreciation and amortization  

 

(29,229

)

  

 

(18,549

)

  

 

(61,665

)

  

 

(37,645

)
Stock-based compensation  

 

(280,644

)

  

 

(1,711,091

)

  

 

(724,507

)

  

 

(2,708,040

)
Adjusted non-GAAP sales, marketing, general and administrative expenses  

$

2,873,158

 

  

$

3,368,465

 

  

$

6,037,969

 

  

$

6,434,028

 

 

Energous Investor Relations:
Padilla IR
IR@energous.com

Energous Public Relations :
SHIFT COMMUNICATIONS
PR@energous.com

Source: Energous Corporation

Released August 10, 2022