SAN JOSE, CA --(Marketwired - November 08, 2017) - Energous Corporation (
Recent Highlights
- Energous completed first ever commercial shipment of silicon chips in October through its partner Dialog Semiconductor
- Increased its patent count to 89 as of November 8, from 69 as of September 30, and 54 as of June 30
Third Quarter Highlights
- Continued toward FCC certification for Mid Field transmitter with Energous successful completion of additional tests
- Introduced GaN-based high power near field charging solution, designed for larger devices such as smartphones, tablets and smart speakers
- Received additional $15 Million investment from strategic component supplier, Dialog Semiconductor
- Successfully completed key engineering milestone projects with the company's Tier 1 strategic partner
- Recognized $250,000 in engineering services revenue for the 2017 third quarter
- Reduced cash burn rate to $7.8 million in the quarter, on lower cash expenses
"Energous recently marked another major milestone by shipping, through our partner Dialog, our first ever WattUp chipsets in October. In the third quarter we worked with our Telecommunications Certification Board, or TCB, to successfully complete additional tests and provide additional documentation in the form of a compliance document to the FCC as part of the certification process for the first at-a-distance wireless charging transmitter. We also focused our resources on a sub-set of opportunities that represent the fastest path to shipment of WattUp enabled consumer products and meaningful revenues," said Stephen R. Rizzone, president and CEO. "We continue to execute on the long-term vision of delivering the next generation of wireless power solutions that provide high power, fast charging contact-based solutions along with the unique ability to charge at-a-distance, offering the utility and flexibility consumers are seeking."
Unaudited 2017 Third Quarter Financial Results
For the third quarter ended September 30, 2017, Energous recorded:
- Revenue of $250,000
- Operating expenses of $13.0 million (GAAP), comprised of $8.7 million in research and development, $3.1 million in general and administrative costs, and $1.1 million in sales and marketing expenses
- Net loss of $12.7 million, or a loss of $0.58 per basic and diluted share
- Adjusted EBITDA (a non-GAAP financial measure) loss of $7.9 million
- $20.2 million in cash and cash equivalents at the end of the third quarter, with no debt, inclusive of the investment by Dialog Semiconductor
2017 Third Quarter Conference Call
Energous will host a conference call to discuss its financial results, recent progress and prospects for the future.
When : Wednesday, November 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 November 15, 2017 877-344-7529 (domestic); 412-317-0088 (international); passcode 10113490 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 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 fact are "forward-looking statements." Examples of forward-looking statements include, among others, our statements about our ability to develop and successfully commercialize important new technology, and the timing for receipt of required regulatory approvals, chipset orders and customers' product launches. While management has based its forward-looking statements in this release on its current expectations, the information on which those expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to develop a commercially feasible technology; receipt of necessary regulatory approvals; timing and amount of new revenues; dependence on an exclusive component provider for WattUp technology for sales and distribution; ability to find and maintain development partners and licensees, market acceptance of our technology, the amount and nature of competition in our industry; our ability to protect our intellectual property; and the 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 any subsequent quarterly reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
-- Financial Tables Follow --
| Energous Corporation | |||||||||||
| BALANCE SHEETS | |||||||||||
| (Unaudited) | |||||||||||
| As of | |||||||||||
| September 30, 2017 | December 31, 2016 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 20,223,859 | $ | 31,258,637 | |||||||
| Accounts receivable | 250,500 | 149,500 | |||||||||
| Prepaid expenses and other current assets | 719,931 | 1,374,585 | |||||||||
| Prepaid rent, current | 80,784 | 80,784 | |||||||||
| Total current assets | 21,275,074 | 32,863,506 | |||||||||
| Property and equipment, net | 1,724,500 | 2,209,475 | |||||||||
| Prepaid rent, non-current | 76,864 | 137,452 | |||||||||
| Other assets | 32,512 | 48,507 | |||||||||
| Total assets | $ | 23,108,950 | $ | 35,258,940 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 2,169,930 | $ | 4,707,763 | |||||||
| Accrued expenses | 1,658,816 | 1,867,995 | |||||||||
| Deferred revenue | 29,136 | 131,959 | |||||||||
| Total current liabilities | 3,857,882 | 6,707,717 | |||||||||
| Stockholders' equity: | |||||||||||
| Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2017 and | |||||||||||
| December 31, 2016; no shares issued or outstanding. | - | - | |||||||||
| Common Stock, $0.00001 par value, 50,000,000 shares authorized at September 30, 2017 and | |||||||||||
| December 31, 2016; 22,162,643 and 20,367,929 shares issued and outstanding at | |||||||||||
| September 30, 2017 and December 31, 2016, respectively. | 220 | 202 | |||||||||
| Additional paid-in capital | 181,915,820 | 153,075,595 | |||||||||
| Accumulated deficit | (162,664,972 | ) | (124,524,574 | ) | |||||||
| Total stockholders' equity | 19,251,068 | 28,551,223 | |||||||||
| Total liabilities and stockholders' equity | $ | 23,108,950 | $ | 35,258,940 | |||||||
| Energous Corporation | |||||||||||||||||||
| STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
| Revenue: | |||||||||||||||||||
| Engineering product development | $ | 250,000 | $ | 1,003,973 | $ | 1,124,874 | $ | 1,322,155 | |||||||||||
| Total revenue | 250,000 | 1,003,973 | 1,124,874 | 1,322,155 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 8,743,434 | 7,944,465 | 25,788,621 | 23,080,918 | |||||||||||||||
| Sales and marketing | 1,141,852 | 736,751 | 3,924,617 | 2,189,995 | |||||||||||||||
| General and administrative | 3,116,337 | 2,450,778 | 9,560,651 | 7,266,843 | |||||||||||||||
| Total operating expenses | 13,001,623 | 11,131,994 | 39,273,889 | 32,537,756 | |||||||||||||||
| Loss from operations | (12,751,623 | ) | (10,128,021 | ) | (38,149,015 | ) | (31,215,601 | ) | |||||||||||
| Other income (expense): | |||||||||||||||||||
| Loss on sales of property and equipment, net | - | - | (726 | ) | - | ||||||||||||||
| Interest income | 3,375 | 2,958 | 9,343 | 9,441 | |||||||||||||||
| Total | 3,375 | 2,958 | 8,617 | 9,441 | |||||||||||||||
| Net loss | $ | (12,748,248 | ) | $ | (10,125,063 | ) | $ | (38,140,398 | ) | $ | (31,206,160 | ) | |||||||
| Basic and diluted net loss per common share | $ | (0.58 | ) | $ | (0.57 | ) | $ | (1.81 | ) | $ | (1.83 | ) | |||||||
| Weighted average shares outstanding, basic and diluted | 21,958,729 | 17,912,743 | 21,034,391 | 17,016,717 | |||||||||||||||
| Energous Corporation | |||||||||||||||||
| Reconciliation of Non-GAAP Information | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Net loss (GAAP) | $ | (12,748,248 | ) | $ | (10,125,063 | ) | $ | (38,140,398 | ) | $ | (31,206,160 | ) | |||||
| Add (subtract) the following items: | |||||||||||||||||
| Interest income | (3,375 | ) | (2,958 | ) | (9,343 | ) | (9,441 | ) | |||||||||
| Depreciation and amortization | 317,411 | 254,041 | 999,396 | 628,613 | |||||||||||||
| Stock-based compensation | 4,568,716 | 1,860,697 | 12,472,870 | 5,405,908 | |||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | (7,865,496 | ) | $ | (8,013,283 | ) | $ | (24,677,475 | ) | $ | (25,181,080 | ) | |||||
Energous Public Relations PR@energous.com 408-963-0200 Investor Relations Contact: Bishop IR Mike Bishop (415) 894-9633 IR@energous.com
