UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2019
ENERGOUS CORPORATION
(Exact Name of Registrant as Specified in Charter)
| Delaware | 001-36379 | 46-1318953 | ||
| (State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
3590 North First Street, Suite 210
San Jose, California 95134
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (408) 963-0200
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange | ||
| Common Stock, $0.00001 par value | WATT | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 7, 2019, Energous Corporation announced its unaudited financial results for the quarter ended September 30, 2019. A copy of the press release announcing the results is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit |
Description of Exhibit | |
| 99.1 | Press Release, dated November 7, 2019, issued by Energous Corporation, furnished herewith. | |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ENERGOUS CORPORATION | ||||||
| Date: November 7, 2019 | By: | /s/ Brian Sereda | ||||
| Brian Sereda | ||||||
| Senior Vice President & Chief Financial Officer | ||||||
3
Exhibit 99.1
Energous Corporation Reports Third Quarter 2019 Financial Results
SAN JOSE, Calif. – Nov. 7, 2019 – Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary Wireless Charging 2.0 technology, today announced financial results for the third quarter ended Sept. 30, 2019 and provided an update on its operational progress.
Recent Highlights
| • | Energous and ZPower formed partnership to develop WattUp-enabled ZPower rechargeable microbatteries |
| • | The Oasis-RC PSAP from Energous customer, Delight, shipped to consumers, marking the first WattUp enabled device to be widely available |
| • | Announced the availability of its hearable developer kits for manufacturers for fast-charging of devices that require higher power levels |
| • | Energous partner, NewSound, announced the launch of a next-generation WattUp-enabled hearing aid at the 64th Annual EUHA 2019 International Congress of Acousticians Conference October 16-18, 2019 |
| • | Added deep semiconductor expertise to the Board with the addition of three new directors |
“In this quarter, the first fully commercialized, WattUp enabled product, the Oasis RC PSAP, shipped to consumers, tangible evidence that our technology is now entering the marketplace starting with the significant and growing hearables space,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “The second product, NewSound’s Primo-W hearing aid, will be available in the coming months, demonstrating the momentum we are building to launch Wireless Charging 2.0. We have made significant progress in our regulatory efforts and have significantly reduced our operating expenses as we focus on ramping revenue.”
Unaudited 2019 Third Quarter Financial Results
For the third quarter ended Sept. 30, 2019, Energous recorded:
| • | Revenue of $40,500 |
| • | Operating expenses of approximately $8.3 million (GAAP), comprised of $5.2 million in research and development, and $3.2 million in selling, general and administrative expenses |
| • | Net loss of $8.2 million, or $0.27 per basic and diluted share |
| • | Adjusted EBITDA (a non-GAAP financial measure) loss of $6.0 million |
| • | $22.8 million in cash and cash equivalents at the end of the third quarter, with no debt |
Third Quarter 2019 Conference Call
Energous will host a conference call to discuss its financial results, recent progress and prospects for the future.
When: Thursday, Nov. 7, 2019
Time: 1:30 p.m. PT (4:30 p.m. ET)
Phone: 888-317-6003 (domestic); 412-317-6061 (international)
Passcode: 9107820
Telephonic replay: Accessible through Nov. 21, 2019
877-344-7529 (domestic); 412-317-0088 (international); passcode 10136301
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
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 –
Energous Corporation
BALANCE SHEETS
(Unaudited)
| As of | ||||||||
| September 30, 2019 |
December 31, 2018 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 22,800,024 | $ | 20,106,485 | ||||
| Accounts receivable |
85,500 | 44,550 | ||||||
| Prepaid expenses and other current assets |
596,543 | 637,708 | ||||||
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| Total current assets |
23,482,067 | 20,788,743 | ||||||
| Property and equipment, net |
750,685 | 1,219,016 | ||||||
| Operating lease right-of-use assets |
2,244,336 | — | ||||||
| Other assets |
2,410 | 2,410 | ||||||
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| Total assets |
$ | 26,479,498 | $ | 22,010,169 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 1,305,235 | $ | 1,861,385 | ||||
| Accrued expenses |
1,603,746 | 1,778,349 | ||||||
| Operating lease liabilities, current portion |
682,163 | — | ||||||
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| Total current liabilities |
3,591,144 | 3,639,734 | ||||||
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| Operating lease liabilities, long-term portion |
1,610,319 | — | ||||||
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| Total liabilities |
5,201,463 | 3,639,734 | ||||||
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| Stockholders’ equity: |
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| Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2019 and December 31, 2018; no shares issued or outstanding. |
— | — | ||||||
| Common Stock, $0.00001 par value, 50,000,000 shares authorized at September 30, 2019 and December 31, 2018; 30,844,921 and 26,526,303 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively. |
309 | 265 | ||||||
| Additional paid-in capital |
275,026,988 | 243,111,741 | ||||||
| Accumulated deficit |
(253,749,262 | ) | (224,741,571 | ) | ||||
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| Total stockholders’ equity |
21,278,035 | 18,370,435 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 26,479,498 | $ | 22,010,169 | ||||
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The accompanying notes are an integral part of these condensed financial statements.
Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue |
$ | 40,500 | $ | 228,000 | $ | 154,500 | $ | 458,773 | ||||||||
| Operating expenses: |
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| Research and development |
5,190,056 | 8,442,698 | 17,505,751 | 24,804,224 | ||||||||||||
| Sales and marketing |
1,242,105 | 1,546,227 | 3,985,467 | 4,620,760 | ||||||||||||
| General and administrative |
1,910,408 | 2,891,036 | 8,007,548 | 9,439,279 | ||||||||||||
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| Total operating expenses |
8,342,569 | 12,879,961 | 29,498,766 | 38,864,263 | ||||||||||||
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| Loss from operations |
(8,302,069 | ) | (12,651,961 | ) | (29,344,266 | ) | (38,405,490 | ) | ||||||||
| Other income: |
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| Interest income |
117,842 | 6,670 | 336,575 | 18,371 | ||||||||||||
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| Total |
117,842 | 6,670 | 336,575 | 18,371 | ||||||||||||
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| Net loss |
$ | (8,184,227 | ) | $ | (12,645,291 | ) | $ | (29,007,691 | ) | $ | (38,387,119 | ) | ||||
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| Basic and diluted net loss per common share |
$ | (0.27 | ) | $ | (0.49 | ) | $ | (0.98 | ) | $ | (1.50 | ) | ||||
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| Weighted average shares outstanding, basic and diluted |
30,736,736 | 25,742,171 | 29,717,361 | 25,519,868 | ||||||||||||
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The accompanying notes are an integral part of these condensed financial statements.
Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
| For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
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| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net loss (GAAP) |
$ | (8,184,227 | ) | $ | (12,645,291 | ) | $ | (29,007,691 | ) | $ | (38,387,119 | ) | ||||
| Add (subtract) the following items: |
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| Interest income |
(117,842 | ) | (6,670 | ) | (336,575 | ) | (18,371 | ) | ||||||||
| Depreciation and amortization |
175,403 | 245,899 | 652,266 | 820,714 | ||||||||||||
| Stock-based compensation |
2,099,675 | 3,852,656 | 8,069,000 | 12,804,744 | ||||||||||||
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| Adjusted EBITDA (non-GAAP) |
$ | (6,026,991 | ) | $ | (8,553,406 | ) | $ | (20,623,000 | ) | $ | (24,780,032 | ) | ||||
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The accompanying notes are an integral part of these condensed financial statements.
Contact
Energous Public Relations
PR@energous.com
(408) 963-0200
Investor Relations Contact
Bishop IR
Mike Bishop
(415) 894-9633
IR@energous.com