SOURCE: Energous Corporation

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August 08, 2017 16:01 ET

Energous Corporation Reports Second Quarter 2017 Financial Results

SAN JOSE, CA--(Marketwired - August 08, 2017) - 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, 2017, and provided an update on its operational progress.

Recent Highlights

  • Energous received the first orders for production quantities of its chipsets from three customers in the second quarter, with anticipated shipment in the third quarter; end products from these customers are expected to reach consumers before the end of the year
  • In advance of Certification, Energous completed identified tests to demonstrate compliance with FCC rules for the first substantial power-at-a-distance transmitter, anticipates formal certification before the forecasted release of products utilizing Energous' Mid Field transmitter technology by the end of 2017
  • Received additional $15 Million investment from strategic component supplier, Dialog Semiconductor
  • Increased its patent count to 54, from 48 in the prior quarter
  • Expanded the number of active customer engagements to 76, from 68 in the prior quarter
  • Successfully completed key milestone projects with the company's strategic partners
  • Recognized approximately $300,000 in engineering services revenue for the 2017 second quarter
  • Reduced cash spending in the 2017 second quarter

"This quarter, Energous marked a major milestone in its advancement towards commercialization: the company's first orders for WattUp chipsets. Further towards that goal, we completed previously identified tests for FCC certification for our Mid Field transmitter, and increased the number of active international customer engagements. We are driving an increasing number of customers to the final stages of WattUp integration, and we continue to expect consumer availability of these products later this year," said Stephen R. Rizzone, president and CEO. "Due to the broad appeal of truly wire-free charging and our significant company progress, we are seeing increasing interest from multiple potential partners and customers for our technology, and we are driving the global advancement of the ecosystem through conversations and demonstrations with regulators, partners and customers."

Unaudited 2017 Second Quarter Financial Results

For the second quarter ended June 30, 2017, Energous recorded:

  • Revenue of approximately $300,000
  • Operating expenses of $13.2 million (GAAP), comprised of $8.7 million in research and development, $3.3 million in general and administrative costs, and $1.2 million in sales and marketing expenses
  • Net loss of $12.9 million, or a loss of $0.63 per basic and diluted share
  • Adjusted EBITDA (a non-GAAP financial measure) loss of $8.2 million
  • $13.1 million in cash and cash equivalents at the end of the second quarter, with no debt

2017 Second Quarter Conference Call

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

When: Tuesday, August 8, 2017
Time: 1:30 p.m. PT (4:30 p.m. ET)
Phone: 866-235-9911 (domestic); 412-317-1083 (international)
Replay: Accessible through August 15, 2017
877-344-7529 (domestic); 412-317-0088 (international); passcode 10110812
Webcast: Accessible at Energous.com; archive available for approximately one year

Note about Non-GAAP Financial Measures

In addition to the unaudited results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, 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 Corporation

Energous 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 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 our partnership with Dialog, development of market demand, production and deployment of products. 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: unexpected delays in our ability to develop commercially feasible technology; uncertain timing of necessary regulatory approvals; timing of customer orders and success of customer products; our dependence on distribution partners; market acceptance of our technology; 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.

-- Financial Tables Follow --

Energous Corporation  
BALANCE SHEETS  
(Unaudited)  
   
  As of  
  June 30, 2017  December 31, 2016  
ASSETS       
Current assets:       
 Cash and cash equivalents $ 13,084,360  $ 31,258,637  
 Accounts receivable 250,500  149,500  
 Prepaid expenses and other current assets 819,300  1,374,585  
 Prepaid rent, current 80,784  80,784  
 Total current assets 14,234,944  32,863,506  
        
Property and equipment, net 1,944,157  2,209,475  
Prepaid rent, non-current 97,060  137,452  
Other assets 38,888  48,507  
 Total assets $ 16,315,049  $ 35,258,940  
        
        
LIABILITIES AND STOCKHOLDERS' EQUITY       
Current liabilities:       
 Accounts payable $ 2,377,871  $ 4,707,763  
 Accrued expenses 1,645,696  1,867,995  
 Deferred revenue 29,136  131,959  
  Total current liabilities 4,052,703  6,707,717  
        
Stockholders' equity:       
 Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2017 and       
  December 31, 2016; no shares issued or outstanding. -  -  
 Common Stock, $0.00001 par value, 50,000,000 shares authorized at June 30, 2017 and       
  December 31, 2016; 20,862,152 and 20,367,929 shares issued and outstanding at       
  June 30, 2017 and December 31, 2016, respectively. 207  202  
 Additional paid-in capital 162,178,863  153,075,595  
 Accumulated deficit (149,916,724 )(124,524,574 )
  Total stockholders' equity 12,262,346  28,551,223  
  Total liabilities and stockholders' equity $ 16,315,049  $ 35,258,940  
Energous Corporation  
STATEMENTS OF OPERATIONS  
(Unaudited)  
   
  For the Three Months Ended June 30,  For the Six Months Ended June 30,  
  2017  2016  2017  2016  
              
Revenue:             
 Engineering product development $ 299,506  $ 181,818  $ 874,874  $ 318,182  
  Total revenue 299,506  181,818  874,874  318,182  
              
Operating expenses:             
 Research and development 8,692,003  7,462,360  17,045,187  15,136,453  
 Sales and marketing 1,187,313  646,177  2,782,765  1,453,244  
 General and administrative 3,341,563  2,360,453  6,444,314  4,816,066  
  Total operating expenses 13,220,879  10,468,990  26,272,266  21,405,763  
   Loss from operations (12,921,373 )(10,287,172 )(25,397,392 )(21,087,581 )
              
Other income (expense):             
 Loss on sales of property and equipment, net -  -  (726 )-  
 Interest income 2,363  2,617  5,968  6,483  
  Total 2,363  2,617  5,242  6,483  
              
Net loss $ (12,919,010 )$ (10,284,555 )$ (25,392,150 )$ (21,081,098 )
              
Basic and diluted net loss per common share $ (0.63 )$ (0.62 )$ (1.23 )$ (1.27 )
              
Weighted average shares outstanding, basic and diluted 20,643,261  16,721,332  20,564,561  16,563,780  
Energous Corporation  
Reconciliation of Non-GAAP Information  
(Unaudited)  
              
  For the Three Months Ended June 30,  For the Six Months Ended June 30,  
  2017  2016  2017  2016  
              
              
Net loss (GAAP) $ (12,919,010 )$ (10,284,555 )$ (25,392,150 )$ (21,081,098 )
Add (subtract) the following items:             
 Interest income (2,363 )(2,617 )(5,968 )(6,483 )
 Depreciation and amortization 355,422  182,468  681,985  374,572  
 Stock-based compensation 4,365,963  1,591,677  7,904,154  3,545,211  
Adjusted EBITDA (non-GAAP) $ (8,199,988 )$ (8,513,027 )$ (16,811,979 )$ (17,167,798 )

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