BusinessWire

Energous Corporation Reports Second Quarter 2020 Financial Results

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 second quarter ended June 30, 2020 and provided an update on its operational progress.

Recent Highlights

  • Energous announced a partnership with one of the world’s leading battery manufacturers in China, Grepow Battery
  • Energous announced a collaboration with E Ink Holdings, "E Ink" (8069.TWO), a leading innovator in electronic ink technology, to develop WattUp-enabled Electronic Paper Display (EPD) tags for IoT displays such as logistics tags, electronic shelf labels and retail signage, offering wireless charging at distances of up to 15 feet
  • Energous completed an offering of shares of its common stock, pursuant to an at-the-market equity program, raising $9.2 million in net proceeds in the second quarter
  • Frost & Sullivan awarded Energous the 2020 Global Technology Innovation Award for its WattUp wireless charging technology
  • Energous announced the availability of the WattUp PowerHub developer kit, based on new low cost, small footprint wireless charging technology
  • Energous announced partnership with 28Gorilla to develop a wirelessly charged equestrian health tracking sensor for American Equus

“With the announcement of our WattUp PowerHub developer kit and possible expansion of the application of our technology, we’ve seen additional prospective customer interest in our next generation wireless charging solutions,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “We believe we are on track to demonstrate quarterly sequential revenue growth into 2021 and we expect to see the WattUp-enabled NewSound Primo W hearing aid reach consumers soon, after delays due to the COVID-19 pandemic impacted the anticipated earlier release to the market.”

Unaudited 2020 Second Quarter Financial Results

For the second quarter ended June 30, 2020, Energous recorded:

  • Revenue of $114,375
  • Operating expenses of approximately $8.3 million (GAAP), comprised of $4.3 million in research and development, $3.9 million in selling, general and administrative expenses, and $86,995 in cost of services revenue
  • Net loss of $(8.2) million, or $(0.20) per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $(6.0) million
  • $23.4 million in cash and cash equivalents at the end of the second quarter, with no debt

2020 Second Quarter Conference Call

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

When: Wednesday, Aug. 5, 2020

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

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

Passcode: 4342538

Telephonic replay: Accessible through Aug. 20, 2020

877-344-7529 (domestic); 412-317-0088 (international); passcode 10142689

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 225 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

June 30, 2020

 

 

December 31, 2019

ASSETS
Current assets:
Cash and cash equivalents

$

23,408,940

 

$

21,684,089

 

Accounts receivable, net

 

105,226

 

 

63,144

 

Prepaid expenses and other current assets

 

662,958

 

 

450,231

 

Total current assets

 

24,177,124

 

 

22,197,464

 

 
Property and equipment, net

 

408,895

 

 

626,524

 

Right-of-use lease asset

 

1,678,983

 

 

2,057,576

 

Other assets

 

2,410

 

 

2,410

 

Total assets

$

26,267,412

 

$

24,883,974

 

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable

$

1,340,982

 

$

1,671,519

 

Accrued expenses

 

1,633,637

 

 

2,063,097

 

Operating lease liabilities, current portion

 

803,760

 

 

722,291

 

Deferred revenue

 

12,000

 

 

12,000

 

Total current liabilities

 

3,790,379

 

 

4,468,907

 

 
Operating lease liabilities, long-term portion

 

979,660

 

 

1,402,193

 

Total liabilities

 

4,770,039

 

 

5,871,100

 

 
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2020 and
December 31, 2019; no shares issued or outstanding.

 

-

 

 

-

 

Common Stock, $0.00001 par value, 50,000,000 shares authorized at June 30, 2020 and
December 31, 2019; 41,685,310 and 33,203,806 shares issued and outstanding at
June 30, 2020 and December 31, 2019, respectively.

 

417

 

 

333

 

Additional paid-in capital

 

301,440,018

 

 

282,153,201

 

Accumulated deficit

 

(279,943,062

)

 

(263,140,660

)

Total stockholders’ equity

 

21,497,373

 

 

19,012,874

 

Total liabilities and stockholders’ equity

$

26,267,412

 

$

24,883,974

 

Energous Corporation
STATEMENTS OF OPERATIONS
(Unaudited)
 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 
Revenue

$

114,375

 

$

47,500

 

$

175,850

 

$

114,000

 

 
Operating expenses:
Research and development

 

4,330,433

 

 

5,515,017

 

 

8,905,736

 

 

12,315,695

 

Sales and marketing

 

1,438,904

 

 

1,143,910

 

 

2,886,813

 

 

2,743,362

 

General and administrative

 

2,470,683

 

 

3,335,229

 

 

5,123,077

 

 

6,097,140

 

Cost of services revenue

 

86,995

 

 

-

 

 

126,539

 

 

-

 

Total operating expenses

 

8,327,015

 

 

9,994,156

 

 

17,042,165

 

 

21,156,197

 

Loss from operations

 

(8,212,640

)

 

(9,946,656

)

 

(16,866,315

)

 

(21,042,197

)

 
Other income (expense):
Interest income

 

7,974

 

 

142,660

 

 

63,913

 

 

218,733

 

Total

 

7,974

 

 

142,660

 

 

63,913

 

 

218,733

 

 
Net loss

$

(8,204,666

)

$

(9,803,996

)

$

(16,802,402

)

$

(20,823,464

)

 
Basic and diluted net loss per common share

$

(0.20

)

$

(0.32

)

$

(0.45

)

$

(0.71

)

 
Weighted average shares outstanding, basic and diluted

 

40,641,264

 

 

30,445,438

 

 

37,728,909

 

 

29,199,225

 

Energous Corporation
Reconciliation of Non-GAAP Information
(Unaudited)
 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

2020

 

 

 

2019

 

 

 

2020

 

 

 

2019

 

 
 
Net loss (GAAP)

$

(8,204,666

)

$

(9,803,996

)

$

(16,802,402

)

$

(20,823,464

)

Add (subtract) the following items:
Interest income

 

(7,974

)

 

(142,660

)

 

(63,913

)

 

(218,733

)

Depreciation and amortization

 

95,930

 

 

241,495

 

 

217,629

 

 

476,863

 

Stock-based compensation

 

2,069,907

 

 

2,797,933

 

 

4,346,206

 

 

5,969,325

 

Adjusted EBITDA (non-GAAP)

$

(6,046,803

)

$

(6,907,228

)

$

(12,302,480

)

$

(14,596,009

)

 


Contacts

Energous Public Relations
PR@energous.com
(408) 963-0200

Investor Relations Contact
Bishop IR
Mike Bishop
(415) 894-9633
IR@energous.com