false0001575793Energous Corp00015757932023-11-092023-11-09

 

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 09, 2023

 

 

Energous Corporation

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			001-36379	46-1318953
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS 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

 

(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 Symbol(s)		Name of each exchange on which registered
Common Stock, $0.00001 par value		WATT		The Nasdaq Stock Market

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. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

On November 9, 2023, Energous Corporation announced its unaudited financial results for the quarter ended September 30, 2023. 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 Number	Description of Exhibit
99.1	Press Release, dated November 9, 2023, issued by Energous Corporation, furnished herewith.
104	The cover page on this Current Report on Form 8-K, formatted in inline XBRL.

 

 

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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 9, 2023	By:	/s/ Cesar Johnston
			Cesar Johnston President and Chief Executive Officer

 

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Exhibit 99.1

Energous Corporation Reports 2023 Third-Quarter Results

SAN JOSE, Calif. – November 9, 2023 – Energous Corporation (NASDAQ: WATT), a leading developer of RF-based charging for wireless power networks, today announced financial results for its third quarter ended September 30, 2023.

Unaudited 2023 Third-Quarter Financial Results

For the third quarter ended September 30, 2023, Energous reported:

Partnership Momentum

“In the third quarter of 2023, we continued to see strong growth in the number of customers utilizing Energous technology in proof of concept deployments, where it is not only proving to be an effective wireless power solution but also demonstrates its potential to optimize IoT environments,” said Cesar Johnston, CEO of Energous. “Aiding this growth is the expansion of our partnership platform, as we continue to seek to bring on additional technology, distribution and IoT System Integrator partners that can help validate our core technology, amplify the benefits of our solutions in key markets, and increase our commercial potential.”

 

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2023 Third-Quarter Conference Call

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

About Energous Corporation

Energous Corporation (NASDAQ: WATT) has been pioneering wireless charging over distance technology since 2012. Today, as the global leader in wireless charging over distance, its networks are safely and seamlessly powering its customers’ RF-based systems in a variety of industries, including retail, industrial, healthcare and more. Its total network solution is designed to support a variety of applications, including inventory and asset tracking, smart manufacturing, electronic shelf labels, IoT sensors, digital supply chain management, inventory management, loss prevention, patient/people tracking and sustainability initiatives. The number of industries and applications it serves is rapidly growing as it works to support the next generation of the IoT ecosystem.

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 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.

 

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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 net non-GAAP 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). Net non-GAAP loss excludes depreciation and amortization, stock-based compensation expense, severance expense, offering costs relating 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.

– Financial Tables Follow –

 

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Energous Corporation

BALANCE SHEETS

(Unaudited)

 

		As of
		September 30, 2023				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		$	16,578,659			$	26,287,293
Accounts receivable, net			120,198				143,353
Inventory			199,616				105,821
Prepaid expenses and other current assets			896,253				827,551
Total current assets			17,794,726				27,364,018
Property and equipment, net			388,505				429,035
Operating lease right-of-use assets			1,411,930				1,959,869
Total assets		$	19,595,161			$	29,752,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	768,941			$	900,765
Accrued expenses			1,672,936				1,790,414
Accrued severance expense			202,946				416,516
Warranty liability			450,000				—
Operating lease liabilities, current portion			696,573				705,894
Deferred revenue			24,341				29,727
Total current liabilities			3,815,737				3,843,316
Operating lease liabilities, long-tern portion			739,767				1,264,131
Total liabilities			4,555,504				5,107,447
Commitments and contingencies
Stockholders' equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares    authorized at September 30, 2023 and December 31, 2022;    no shares issued or outstanding at September 30, 2023 and    December 31, 2022			—				—
Common Stock, $0.00001 par value, 200,000,000 shares    authorized at September 30, 2023 and December 31, 2022;    5,046,994 and 3,947,267 shares issued and outstanding at    September 30, 2023 and December 31, 2022, respectively.			925				789
Additional paid-in capital			392,476,298				387,319,985
Accumulated deficit			(377,437,566	)			(362,675,299	)
Total stockholders' equity			15,039,657				24,645,475
Total liabilities and stockholders' equity		$	19,595,161			$	29,752,922

 

 

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Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

 

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2023				2022				2023				2022
Revenue		$	168,708			$	223,201			$	382,517			$	672,133
Costs and expenses:
Cost of revenue			48,394				420,060				270,025				894,693
Research and development			2,460,123				2,885,830				8,418,779				9,622,886
Sales and marketing			774,141				1,093,640				3,074,163				3,865,322
General and administrative			1,698,380				1,931,386				5,763,811				5,983,845
Severance expense			269,109				—				359,419				633,444
Total costs and expenses			5,250,147				6,330,916				17,886,197				21,000,190
Loss from operations			(5,081,439	)			(6,107,715	)			(17,503,680	)			(20,328,057	)
Other income (expense):
Offering costs related to warrant liability			—				—				(591,670	)			—
Change in fair value of warrant liability			788,000				—				2,685,000				—
Interest income			178,845				142,840				648,083				192,715
Total other income			966,845				142,840				2,741,413				192,715
Net loss		$	(4,114,594	)		$	(5,964,875	)		$	(14,762,267	)		$	(20,135,342	)
Basic and diluted net loss per common share		$	(0.86	)		$	(1.54	)		$	(3.30	)		$	(5.21	)
Weighted average shares outstanding, basic and diluted			4,762,187				3,879,804				4,467,436				3,867,330

 

 

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Energous Corporation

Reconciliation of Non-GAAP Information

(Unaudited)

 

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2023				2022				2023				2022
Net loss (GAAP)		$	(4,114,594	)		$	(5,964,875	)		$	(14,762,267	)		$	(20,135,342	)
Add (subtract) the following items:
Depreciation and amortization			47,442				73,684				137,772				200,995
Stock-based compensation			368,907				698,222				1,394,877				2,071,253
Severance expense *			269,109				—				359,419				633,444
Offering costs related to warrant liability			—				—				591,670				—
Change in fair value of warrant liability			(788,000	)			—				(2,685,000	)			—
Adjusted net non-GAAP loss		$	(4,217,136	)		$	(5,192,969	)		$	(14,963,529	)		$	(17,229,650	)
* Note: Severance expense includes $87,662 in stock-based compensation for the nine months ended September 30, 2022
Total costs and expenses (GAAP)		$	5,250,147			$	6,330,916			$	17,886,197			$	21,000,190
Subtract the following items:
Depreciation and amortization			(47,442	)			(73,684	)			(137,772	)			(200,995	)
Stock-based compensation			(368,907	)			(698,222	)			(1,394,877	)			(2,071,253	)
Severance expense *			(269,109	)			—				(359,419	)			(633,444	)
Adjusted non-GAAP costs and expenses		$	4,564,689			$	5,559,010			$	15,994,129			$	18,094,498
* Note: Severance expense includes $87,662 in stock-based compensation for the nine months ended September 30, 2022
Total research and development expenses (GAAP)		$	2,460,123			$	2,885,830			$	8,418,779			$	9,622,886
Subtract the following items:
Depreciation and amortization			(42,631	)			(53,026	)			(126,980	)			(118,672	)
Stock-based compensation			(138,976	)			(273,923	)			(557,767	)			(922,447	)
Adjusted non-GAAP research and development    expenses		$	2,278,516			$	2,558,881			$	7,734,032			$	8,581,767
Total sales, marketing, general and administrative    expenses (GAAP)		$	2,472,521			$	3,025,026			$	8,837,974			$	9,849,167
Subtract the following items:
Depreciation and amortization			(4,811	)			(20,658	)			(10,792	)			(82,323	)
Stock-based compensation			(229,931	)			(424,299	)			(837,110	)			(1,148,806	)
Adjusted non-GAAP sales, marketing, general and    administrative expenses		$	2,237,779			$	2,580,069			$	7,990,072			$	8,618,038

 

 

 

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Contacts

Energous Investor Relations:

Padilla IR

IR@energous.com

Energous Corporate Communications:

SHIFT COMMUNICATIONS

energous@shiftcomm.com

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