Energous Corporation Reports Third Quarter 2020 Financial Results

Rhea-AI Summary

Energous Corporation (NASDAQ: WATT) reported its third-quarter financial results for the period ending September 30, 2020, showing revenue of $61,500 and a net loss of $(7.6) million, or $(0.18) per share. Operating expenses were approximately $7.6 million, with $4.0 million in R&D. The company highlighted new partnerships and product developments, including a strategic collaboration with Xentris Wireless and the introduction of the EN7410M module. Energous ended the quarter with $17.3 million in cash, bolstering its foundation for future growth.

Positive

• NewSound received FCC approval for WattUp-enabled hearing aids, expanding market reach.
• Strategic partnership with Xentris Wireless to develop military-grade products.
• Successful field trial of an ultra-wide band tracking device with POSCO and partners.
• Introduction of the EN7410M module, enhancing product offerings.
• Class II FCC approval extending charging range up to one meter.
• Strong cash position with $17.3 million at quarter-end, providing financial stability.

Negative

• Net loss of $(7.6) million, indicating financial strain.
• Revenue of only $61,500, reflecting limited market penetration.

SAN JOSE, Calif.--(BUSINESS WIRE)--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, 2020 and provided an update on its operational progress.

Recent Highlights

• Energous partner NewSound received FCC approval for WattUp®-enabled hearing aid
• Energous announced a strategic partnership with Xentris Wireless to develop ruggedized products for demanding military applications using Energous’ radio frequency (RF) based charging technology
• POSCO, in conjunction with the partnership efforts of PiBex, SK Telesys and Energous, has successfully completed the field trial of a WattUp enabled ultra-wide band industrial tracking device
• Energous announced the introduction of the EN7410M module, a new wireless charging transmitter module
• Energous announced that it has received a Class II permissive change to the existing MS-550 FCC Grant, extending the charging zone up to one meter
• Energous appointed Sheryl Wilkerson to its Board of Directors

“Interest in our charging solutions continues to expand across a variety of vertical markets, including military, industrial, and medical sensors and tracking applications. We continue to develop partnerships to drive the ecosystems toward the broad adoption of WattUp,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “Our progress in the quarter has enabled the WattUp technology to have a smaller footprint that we believe will offer a more cost effective and appealing solution to all type of device manufacturers. We believe we are building a solid foundation for growth.”

Unaudited 2020 Third Quarter Financial Results

For the third quarter ended Sept. 30, 2020, Energous recorded:

• Revenue of $61,500
• Operating expenses of approximately $7.6 million (GAAP), comprised of $4.0 million in research and development, and $3.6 million in selling, general and administrative expenses
• Net loss of $(7.6) million, or $(0.18) per basic and diluted share
• Adjusted EBITDA (a non-GAAP financial measure) loss of $(5.5) million
• $17.3 million in cash and cash equivalents and $3.2 million in financing funds receivable (from our at-the-market “ATM” financing transaction) at the end of the third quarter, with no debt

2020 Third Quarter Conference Call

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

When: Monday, Nov. 9, 2020

Time: 1:30 p.m. PT (4:30 p.m. ET)

Phone: 888-317-6003 (domestic); 412-317-6061 (international)

Passcode: 1177008

Telephonic replay: Accessible through Nov. 23, 2020

877-344-7529 (domestic); 412-317-0088 (international); passcode 10149394

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 at a distance. 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. Energous develops silicon-based wireless power transfer (WPT) technologies and customizable reference designs. These include innovative silicon chips, antennas and software, for a large 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 the company has 227 awarded patents 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 technology developments, partner product development and wireless charging innovation. 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: the impact of the COVID-19 outbreak on the U.S. and global economies generally and on our business, regulatory approvals, product development, employees, partners, customers and potential user base; 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.

Energous Corporation
BALANCE SHEETS
(Unaudited)
	As of
	September 30, 2020				December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	17,303,234			$	21,684,089
At-the-market ("ATM") funds receivable		3,165,868				-
Accounts receivable, net		26,350				63,144
Prepaid expenses and other current assets		781,598				450,231
Total current assets		21,277,050				22,197,464
Property and equipment, net		346,836				626,524
Right-of-use lease asset		1,487,116				2,057,576
Other assets		2,410				2,410
Total assets	$	23,113,412			$	24,883,974
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,045,466			$	1,671,519
Accrued expenses		1,403,601				2,063,097
Operating lease liabilities, current portion		845,108				722,291
Deferred revenue		12,000				12,000
Total current liabilities		3,306,175				4,468,907
Operating lease liabilities, long-term portion		765,209				1,402,193
Total liabilities		4,071,384				5,871,100
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2020 and
December 31, 2019; no shares issued or outstanding.		-				-
Common Stock, $0.00001 par value, 200,000,000 and 50,000,000 shares authorized at
September 30, 2020 and December 31, 2019, respectively; 43,062,944 and 33,203,806
shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively.		431				333
Additional paid-in capital		306,541,496				282,153,201
Accumulated deficit		(287,499,899	)			(263,140,660	)
Total stockholders’ equity		19,042,028				19,012,874
Total liabilities and stockholders’ equity	$	23,113,412			$	24,883,974

Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2020				2019				2020				2019
Revenue		$	61,500			$	40,500			$	237,350			$	154,500
Operating expenses:
Research and development			4,003,642				5,190,056				12,909,378				17,505,751
Sales and marketing			1,500,068				1,242,105				4,386,881				3,985,467
General and administrative			2,117,848				1,910,408				7,240,925				8,007,548
Cost of services revenue			-				-				126,539				-
Total operating expenses			7,621,558				8,342,569				24,663,723				29,498,766
Loss from operations			(7,560,058	)			(8,302,069	)			(24,426,373	)			(29,344,266	)
Other income (expense):
Interest income			3,221				117,842				67,134				336,575
Total			3,221				117,842				67,134				336,575
Net loss		$	(7,556,837	)		$	(8,184,227	)		$	(24,359,239	)		$	(29,007,691	)
Basic and diluted net loss per common share		$	(0.18	)		$	(0.27	)		$	(0.62	)		$	(0.98	)
Weighted average shares outstanding, basic and diluted			41,861,614				30,736,736				39,116,532				29,717,361

Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2020				2019				2020				2019
Net loss (GAAP)		$	(7,556,837	)		$	(8,184,227	)		$	(24,359,239	)		$	(29,007,691	)
Add (subtract) the following items:
Interest income			(3,221	)			(117,842	)			(67,134	)			(336,575	)
Depreciation and amortization			69,361				175,403				286,990				652,266
Stock-based compensation			1,972,742				2,099,675				6,318,948				8,069,000
Adjusted EBITDA (non-GAAP)		$	(5,517,955	)		$	(6,026,991	)		$	(17,820,435	)		$	(20,623,000	)