Energous Wireless Power Solutions Reports 2024 Third Quarter Results

November 12, 2024
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SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 12, 2024-- Energous Corporation d/b/a Energous Wireless Power Solutions (NASDAQ: WATT), a pioneer in scalable, over-the-air (OTA) wireless power networks, today announced financial results for the three months ended September 30, 2024, and provided an update on recent partnerships and company highlights.

Third Quarter 2024 Financial Results

  • Revenue for the three months ended September 30, 2024 of $230 thousand versus approximately $169 thousand in the same 2023 period, representing a 36% increase year over year.
  • Costs and expenses for the three months ended September 30, 2024 totaled $3.8 million versus $5.3 million in the same 2023 period. Total third quarter 2024 GAAP costs and expenses consisted of approximately $0.3 million in cost of revenue, $1.7 million in research and development (R&D) expenses, $1.7 million in sales, marketing, general and administrative (SG&A) expenses, and approximately $0.1 million in severance expenses.
  • Non-GAAP costs and expenses for the three months ended September 30, 2024 were $3.5 million, decreasing from $4.6 million for the same 2023 period, representing a reduction of approximately $1.0 million, or 22%, year over year.
  • Continued operational cost reductions and increased commercial revenue yielded improved year over year net loss and loss per share of approximately $(3.4) million, or $(0.50) per basic and diluted share for the three months ended September 30, 2024, versus a net loss of approximately $(4.1) million, or $(0.86) per basic and diluted share, for the same 2023 period.
  • Non-GAAP net loss of approximately $(3.3) million for the three months ended September 30, 2024 versus non-GAAP net loss of approximately ($4.2) million for the same 2023 period, representing a 22% improvement year over year.
  • Approximately $1.5 million in cash and cash equivalents as of September 30, 2024.

See “Non-GAAP Financial Measures” below for additional information.

Company Highlights

  • As of November 8, 2024, the Company had $0.2 million in backlog, representing confirmed new and follow-on PowerBridge transmitter system orders from large retail customers, as well as engineering services. This backlog signifies growing market adoption of Energous wireless power solutions.
  • The third quarter of 2024 represented the highest quarter for commercial PowerBridge transmitter system shipments since introducing the product to the market in the fourth quarter of 2021.
  • In addition to transitioning a portion of active Proof of Concept (POCs) trials as of the end of the second quarter of 2024 to commercial deployments, the Company increased its active POCs from 47 to 56 as of October 31, 2024, representing a 19% increase and demonstrating increased interest in deploying the technology across a myriad of use cases.
  • The Company received multiple orders for its PowerBridge transmitters from a Fortune 10 multinational retail organization. The retailer will use 2W PowerBridge transmitters for improved grocery and store supply chain visibility and control and will use 1W PowerBridge transmitters to help improve transportation efficiency.
  • The 2W PowerBridge transmitter received full Federal Communications Commission (FCC) certification, making it the industry’s first certified transmitter available at this power level.
  • Energous shipped the first orders of its 2W PowerBridge transmitters to a Fortune 100 technology company. The transmitters will be used for reverse logistics processes at the company’s distribution centers.
  • The 2W PowerBridge transmitter system won a Mobile Breakthrough Award for “IoT Innovation of the Year.”
  • Energous was engaged by a global leader in RFID-based source-to-shopper solutions to develop a battery-free smart tag designed to enhance visibility and asset tracking for retail IoT applications.

“As we push the boundaries of wireless power to create a world where battery-free devices are always connected and real-time data is always accessible, we continue to focus on three key initiatives: gaining traction with significant commercial accounts, demonstrating the value of our wireless power network solutions to businesses, and optimizing our operations,” said Mallorie Burak, CEO and CFO, Energous Wireless Power Solutions. “Progress is being made on all fronts, as we carefully balance continued reductions in infrastructure costs with strategic investments in scalable growth. The third quarter sales momentum and increased interest in our WPN technology represents a solid step forward for the Company as we chart the path to profitability.”

About Energous Wireless Power Solutions

Energous Corporation d/b/a Energous Wireless Power Solutions (NASDAQ: WATT) is pioneering scalable, over-the-air (OTA) wireless power networks that enable unprecedented levels of visibility, control, and intelligent business automation. The Company’s wireless power transmitter and receiver technologies deliver continuous access to wireless power, helping drive a new generation of battery-free devices for asset and inventory tracking and management—from retail sensors, electronic shelf labels, and asset trackers, to air quality monitors, motion detectors, and more. For more information, visit http://www.energous.com/ or follow on LinkedIn.

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 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 costs related 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)
(in thousands)
As of
September 30, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents

$

1,451

 

$

13,876

 

Restricted cash

 

-

 

 

60

 

Accounts receivable, net

 

152

 

 

102

 

Inventory

 

737

 

 

430

 

Prepaid expenses and other current assets

 

511

 

 

539

 

Total current assets

 

2,851

 

 

15,007

 

 
Property and equipment, net

 

404

 

 

429

 

Right-of-use lease asset

 

695

 

 

1,240

 

Total assets

$

3,950

 

$

16,676

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

1,538

 

$

1,879

 

Accrued expenses

 

956

 

 

1,254

 

Accrued severance

 

37

 

 

134

 

Warrant liability

 

207

 

 

620

 

Operating lease liabilities, current portion

 

767

 

 

707

 

Deferred revenue

 

11

 

 

27

 

Total current liabilities

 

3,516

 

 

4,621

 

 
Operating lease liabilities, long-term portion

 

-

 

 

557

 

Total liabilities

 

3,516

 

 

5,178

 

 
Stockholders’ equity:
Preferred stock

 

-

 

 

-

 

Common stock

 

1

 

 

1

 

Additional paid-in capital

 

396,744

 

 

393,539

 

Accumulated deficit

 

(396,311

)

 

(382,042

)

Total stockholders’ equity

 

434

 

 

11,498

 

Total liabilities and stockholders’ equity

$

3,950

 

$

16,676

 

Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except share and per share amounts)
 
For the Three Months Ended September 30, For the Nine Months Ended September 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 
Revenue

$

230

 

$

169

 

$

340

 

$

383

 

 
Costs and expenses:
Cost of revenue

 

306

 

 

48

 

 

537

 

 

270

 

Research and development

 

1,701

 

 

2,460

 

 

6,489

 

 

8,419

 

Sales and marketing

 

699

 

 

774

 

 

2,391

 

 

3,074

 

General and administrative

 

1,022

 

 

1,699

 

 

4,443

 

 

5,764

 

Severance expense

 

83

 

 

269

 

 

1,377

 

 

359

 

Total costs and expenses

 

3,811

 

 

5,250

 

 

15,237

 

 

17,886

 

Loss from operations

 

(3,581

)

 

(5,081

)

 

(14,897

)

 

(17,503

)

 
Other income (expense), net:
Offering costs related to warrant liability

 

-

 

 

-

 

 

-

 

 

(592

)

Change in fair value of warrant liability

 

159

 

 

788

 

 

413

 

 

2,685

 

Interest income

 

10

 

 

179

 

 

215

 

 

648

 

Total other income (expense), net

 

169

 

 

967

 

 

628

 

 

2,741

 

 
Net loss

$

(3,412

)

$

(4,114

)

$

(14,269

)

$

(14,762

)

 
Basic and diluted net loss per common share

$

(0.50

)

$

(0.86

)

$

(2.21

)

$

(3.30

)

 
Weighted average shares outstanding, basic and diluted

 

6,834,170

 

 

4,762,187

 

 

6,446,274

 

 

4,467,436

 

Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
(in thousands)
 
For the Three Months Ended September 30, For the Nine Months Ended September 30,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 
 
Net loss (GAAP)

$

(3,412

)

$

(4,114

)

$

(14,269

)

$

(14,762

)

Add (subtract) the following items:
Depreciation and amortization

 

50

 

 

47

 

 

148

 

 

138

 

Stock-based compensation expense *

 

129

 

 

369

 

 

676

 

 

1,395

 

Severance expense

 

83

 

 

269

 

 

1,377

 

 

359

 

Offering costs related to warrant liability

 

-

 

 

-

 

 

-

 

 

592

 

Change in fair value of warrant liability

 

(159

)

 

(788

)

 

(413

)

 

(2,685

)

Non-GAAP net loss

$

(3,309

)

$

(4,217

)

$

(12,481

)

$

(14,963

)

 
* Stock-based compensation expense excludes $130 which is included in severance expense for the nine months ended September 30, 2024.
 
Total costs and expenses (GAAP)

$

3,811

 

$

5,250

 

$

15,237

 

$

17,886

 

Subtract the following items:
Depreciation and amortization

 

(50

)

 

(47

)

 

(148

)

 

(138

)

Stock-based compensation expense *

 

(129

)

 

(369

)

 

(676

)

 

(1,395

)

Severance expense

 

(83

)

 

(269

)

 

(1,377

)

 

(359

)

Non-GAAP costs and expenses

$

3,549

 

$

4,565

 

$

13,036

 

$

15,994

 

 
* Stock-based compensation expense excludes $130 which is included in severance expense for the nine months ended September 30, 2024.
 
Total research and development expenses (GAAP)

$

1,701

 

$

2,460

 

$

6,489

 

$

8,419

 

Subtract the following items:
Depreciation and amortization

 

(46

)

 

(43

)

 

(129

)

 

(127

)

Stock-based compensation expense

 

(35

)

 

(139

)

 

(194

)

 

(558

)

Non-GAAP research and development expenses

$

1,620

 

$

2,278

 

$

6,166

 

$

7,734

 

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

$

1,721

 

$

2,473

 

$

6,834

 

$

8,838

 

Subtract the following items:
Depreciation and amortization

 

(4

)

 

(3

)

 

(19

)

 

(11

)

Stock-based compensation expense

 

(94

)

 

(230

)

 

(352

)

 

(837

)

Non-GAAP sales, marketing, general and administrative expenses

$

1,623

 

$

2,240

 

$

6,463

 

$

7,990

 

 

Investor Relations
IR@energous.com

Media Relations
pr@energous.com

Source: Energous Corporation