Energous Corporation Reports Second Quarter 2018 Financial Results
August 01 2018 - 4:01PM
Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a
revolutionary wire-free, over-the-air, power-at-a-distance charging
technology, today announced financial results for the second
quarter ended June 30, 2018 and provided an update on its
operational progress.
Second Quarter Highlights
- Shipped chipsets to multiple customers, which resulted in our
first royalty from partner Dialog Semiconductor.
- World’s first WattUp-enabled hearing aids launched by Energous
customer Delight.
- Increased engineering services revenue.
- Announced the availability of a WattUp Near Field transmitter
through Energous partner, IDT International Limited.
- Reduced operating expenses from prior quarter by approximately
$1.0 million.
- Was invited to present the WattUp technology at the USPTO to
patent examiners from the U.S., Canada and Mexico.
Recent Highlights
- Energous made significant headway in the global regulatory
campaign with the addition of 54 new country approvals, including
India and Canada. To date, Energous is approved to ship in 92
countries worldwide (up from 38 countries at the end of Q1
2018).
“Continuing to execute on moving to market with WattUp, Energous
received orders and shipped chipsets to multiple customers in the
quarter,” said Stephen R. Rizzone, president and CEO. “We also
achieved additional certifications from 92 countries, and increased
our engineering services revenue from last quarter, and increased
our patent count to 167. The company’s pipeline continues to
be robust as we complete engineering milestones and make advances
toward a WattUp enabled ecosystem.”
Unaudited 2018 Second Quarter Financial
ResultsFor the second quarter ended June 30, 2018,
Energous recorded:
- Revenue of $205,773
- Operating expenses of $12.5 million (GAAP), comprised of $7.6
million in research and development, $3.3 million in general and
administrative and $1.6 million in sales and marketing
expenses
- Net loss of $12.3 million, or $0.48 per basic and diluted
share
- Adjusted EBITDA (a non-GAAP financial measure) loss of $7.7
million
- $37.1 million in cash and cash equivalents at the end of the
second quarter, with no debt
Second Quarter 2018 Conference CallEnergous
will host a conference call to discuss its financial results,
recent progress and prospects for the
future. When: Wednesday, Aug. 1, 2018
Time: 1:30 p.m. PT (4:30 p.m. ET)
Phone: 888-317-6003 (domestic); 412-317-6061
(international)Passcode: 1197275Telephonic
replay: Accessible through Aug. 15, 2018 877-344-7529
(domestic); 412-317-0088 (international); passcode
10122001Webcast: Accessible at Energous.com;
archive available for approximately one year
Note about Non-GAAP Financial MeasuresIn
addition to the unaudited results presented in accordance with
generally accepted accounting principles, or GAAP, Energous
presents adjusted EBITDA, which is a non-GAAP financial measure.
Adjusted EBITDA is determined by taking net loss and eliminating
the impacts of interest, taxes, depreciation, amortization and
stock-based compensation. The company's definition of adjusted
EBITDA may not be comparable to the definitions of similarly-titled
measures used by other companies. Energous believes that this
non-GAAP financial measure, viewed in addition to and not in lieu
of its reported GAAP results, provides useful information to
investors by providing a more focused measure of operating results.
This metric is used as part of the company's internal reporting to
evaluate its operations and the performance of senior management. A
table reconciling this measure to the comparable GAAP measure is
available in the accompanying financial tables below.
About Energous CorporationEnergous Corporation
is the developer of WattUp® -- an award-winning, wire-free charging
technology that will transform the way consumers and industries
charge and power electronic devices at home, in the office, in the
car and beyond. WattUp is a revolutionary radio frequency (RF)
based charging solution that delivers intelligent, scalable power
via radio bands, similar to a Wi-Fi router. WattUp differs from
older wireless charging systems in that it delivers contained
power, at a distance, to multiple devices -- thus resulting in a
wire-free experience that saves users from having to remember to
plug in their devices. For more information, please
visit Energous.com.
Safe Harbor Statement This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, that are intended
to be covered by the "safe harbor" created by those sections.
Forward-looking statements, which are based on certain assumptions
and describe our future plans, strategies and expectations, can
generally be identified by the use of forward-looking terms such as
"believe," "expect," "may," "will," "should," "could," "seek,"
"intend," "plan," "estimate," "anticipate" or other comparable
terms. All statements in this release that are not based on
historical facts are "forward-looking statements." Examples of
forward-looking statements include, among others, our statements
about the timing of required regulatory approvals, number and
timing of potential orders and customers' product launches, and
commercialization of our technology. While management bases its
forward-looking statements in this release on its current
expectations, the information on which those expectations were
based may change. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Many
factors could cause our actual results and financial condition to
differ materially from expectations, including: our ability
to develop commercially feasible products; receipt of necessary
regulatory approvals; timing and size of new orders and recognized
revenue; dependence on strategic relationships; fluctuations in
product development expenses such as tape-out costs; market
acceptance of our technology; competition in our industry; our
ability to protect our intellectual property; and other risks and
uncertainties described in the Risk Factors and in Management's
Discussion and Analysis of Financial Condition and Results of
Operations sections of our most recent annual report on Form 10-K
and subsequent quarterly reports on Form 10-Q. We urge you to
consider those risks and uncertainties in evaluating our
forward-looking statements. We caution you not to place undue
reliance on our forward-looking statements, which speak only as of
the date made. Except as otherwise required by law, we disclaim any
obligation to release any updates or revisions to our
forward-looking statements to reflect any change in our
expectations or other developments, conditions or circumstances on
which our statements are based.
-- Financial Tables Follow --
Energous
Corporation |
BALANCE SHEETS |
(Unaudited) |
|
|
|
|
|
As of |
|
June 30, 2018 |
|
December 31, 2017 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
37,076,181 |
|
|
$ |
12,795,254 |
|
Accounts
receivable |
|
205,773 |
|
|
|
- |
|
Prepaid
expenses and other current assets |
|
589,950 |
|
|
|
1,026,310 |
|
Prepaid
rent, current |
|
80,784 |
|
|
|
80,784 |
|
Total
current assets |
|
37,952,688 |
|
|
|
13,902,348 |
|
|
|
|
|
Property and equipment,
net |
|
1,387,902 |
|
|
|
1,413,917 |
|
Prepaid rent,
non-current |
|
16,276 |
|
|
|
56,668 |
|
Other assets |
|
32,512 |
|
|
|
32,512 |
|
Total
assets |
$ |
39,389,378 |
|
|
$ |
15,405,445 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
2,385,992 |
|
|
$ |
2,024,690 |
|
Accrued
expenses |
|
1,833,543 |
|
|
|
1,622,025 |
|
Total
current liabilities |
|
4,219,535 |
|
|
|
3,646,715 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
Preferred
Stock, $0.00001 par value, 10,000,000 shares authorized at June 30,
2018 and |
|
|
|
December
31, 2017; no shares issued or outstanding. |
|
- |
|
|
|
- |
|
Common Stock, $0.00001 par value, 50,000,000 shares
authorized at June 30, 2018 and |
|
|
|
December 31, 2017; 25,561,610 and 22,584,588 shares issued
and outstanding at |
|
|
|
June 30, 2018 and December 31, 2017, respectively. |
|
254 |
|
|
|
225 |
|
Additional paid-in capital |
|
234,812,866 |
|
|
|
185,659,954 |
|
Accumulated deficit |
|
(199,643,277 |
) |
|
|
(173,901,449 |
) |
Total
stockholders’ equity |
|
35,169,843 |
|
|
|
11,758,730 |
|
Total
liabilities and stockholders’ equity |
$ |
39,389,378 |
|
|
$ |
15,405,445 |
|
|
|
|
|
Energous
Corporation |
STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
205,773 |
|
|
$ |
299,506 |
|
|
$ |
230,773 |
|
|
$ |
874,874 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
|
7,639,974 |
|
|
|
8,692,003 |
|
|
|
16,361,526 |
|
|
|
17,045,187 |
|
Sales and
marketing |
|
|
1,602,137 |
|
|
|
1,187,313 |
|
|
|
3,074,533 |
|
|
|
2,782,765 |
|
General
and administrative |
|
|
3,268,028 |
|
|
|
3,341,563 |
|
|
|
6,548,243 |
|
|
|
6,444,314 |
|
Total
operating expenses |
|
|
12,510,139 |
|
|
|
13,220,879 |
|
|
|
25,984,302 |
|
|
|
26,272,266 |
|
Loss from
operations |
|
|
(12,304,366 |
) |
|
|
(12,921,373 |
) |
|
|
(25,753,529 |
) |
|
|
(25,397,392 |
) |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Loss on
sales of property and equipment, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(726 |
) |
Interest
income |
|
|
5,995 |
|
|
|
2,363 |
|
|
|
11,701 |
|
|
|
5,968 |
|
Total |
|
|
5,995 |
|
|
|
2,363 |
|
|
|
11,701 |
|
|
|
5,242 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,298,371 |
) |
|
$ |
(12,919,010 |
) |
|
$ |
(25,741,828 |
) |
|
$ |
(25,392,150 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share |
|
$ |
(0.48 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.03 |
) |
|
$ |
(1.23 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, basic and diluted |
|
|
25,479,861 |
|
|
|
20,643,261 |
|
|
|
25,042,529 |
|
|
|
20,564,561 |
|
|
|
|
|
|
|
|
|
|
Energous
Corporation |
Reconciliation of Non-GAAP
Information |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (GAAP) |
|
$ |
(12,298,371 |
) |
|
$ |
(12,919,010 |
) |
|
$ |
(25,741,828 |
) |
|
$ |
(25,392,150 |
) |
Add (subtract) the
following items: |
|
|
|
|
|
|
|
|
Interest
income |
|
|
(5,995 |
) |
|
|
(2,363 |
) |
|
|
(11,701 |
) |
|
|
(5,968 |
) |
Income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Depreciation and amortization |
|
|
275,295 |
|
|
|
355,422 |
|
|
|
574,815 |
|
|
|
681,985 |
|
Stock-based compensation |
|
|
4,342,880 |
|
|
|
4,365,963 |
|
|
|
8,952,088 |
|
|
|
7,904,154 |
|
Adjusted EBITDA
(non-GAAP) |
|
$ |
(7,686,191 |
) |
|
$ |
(8,199,988 |
) |
|
$ |
(16,226,626 |
) |
|
$ |
(16,811,979 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energous Public
RelationsPR@energous.com408-963-0200
Investor Relations Contact: Bishop IRMike
Bishop(415) 894-9633IR@energous.com
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