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
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version on businesswire.com: https://www.businesswire.com/news/home/20241112058055/en/
Investor Relations IR@energous.com
Media Relations pr@energous.com
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