2023 Financial Results
-
2023 revenue of approximately
$0.5 million versus$0.9 million in 2022. -
Total costs and expenses were significantly reduced in 2023 from approximately
$27.5 million in 2022 to approximately$22.6 million in 2023, representing a cost reduction of$4.9 million year over year. The 2023 costs consist of approximately$0.3 million in cost of revenue,$10.8 million in research and development (R&D) expenses,$11.1 million in sales, marketing, general and administrative (SG&A) expenses, and approximately$0.4 million in severance expenses. -
Year-over-year net loss improvement with a net loss of approximately
$(19.4) million , or$(4.15) per basic and diluted share for the year endedDecember 31, 2023 , versus a net loss of approximately$(26.3) million , or$(6.78) per basic and diluted share, for the year endedDecember 31, 2022 . -
Net non-GAAP unaudited loss of approximately
$(19.1) million . -
Approximately
$13.9 million in cash and cash equivalents at the end of 2023, with no debt.
Recent Partnership Momentum
-
Energous andVelociti — which deploys advanced enterprise technology solutions to some of the largest brands in the world, joinedEnergous as a preferred system integration partner and worldwide value-added reseller (VAR) for its technology. The partnership provides expansion opportunities into new markets, applications and customers across retail, healthcare, logistics, warehousing and more. -
Energous and WiGL — a developer of touchless wireless charging for IoT devices for wireless power networks, to develop and commercialize IoT products that will be wirelessly powered over distance (tWPT).The U.S. Department of Defense’sAir Force Research Lab funded the project's first two phases. The third and final milestone of the partnership to develop and design WiGL’s touchless Wireless Power Transfer (tWPT) product was completed inFebruary 2024 , successfully meetingFederal Communication Commission (FCC) compliance. -
Energous and Identiv — a global digital security and identification leader in the Internet of Things (IoT) have partnered to bring real-time asset tracking to supply chain and logistics applications. This collaboration aims to wirelessly power Identiv’s ID-Pixels tags with Energous PowerBridge technology, enabling accurate and reliable sensor measurements that can be used throughout the supply chain, including in cold chain logistics. -
Energous and InPlay — a fabless semiconductor company, to demonstrate a battery-free temperature and humidity IoT sensor solution. This innovation harnesses the strengths ofEnergous' PowerBridge technology and InPlay's cutting-edge Bluetooth low-energy beacon system. -
Energous and Veea — a leader in integrated smart edge connectivity, computing and security technologies, to combine wireless power and edge computing for real-time asset tracking in rapidly growing IoT sectors. The combined technologies were showcased in a proof of concept at theAT&T Mexico Innovation Lab inMexico City .
Company Highlights
-
On
March 26, 2024 , the Company announced thatCesar Johnston was no longer serving as President & CEO ofEnergous . The Board established anOffice of the Chair , composed ofReynette Au , Chair of the Board, andMallorie Burak , Chief Financial Officer, who has also been named Principal Executive Officer for the interim period. -
On
January 16, 2024 , the Company announced the appointment ofMallorie Burak as Chief Financial Officer.Ms. Burak has over 17 years of experience in chief financial executive roles for private, NASDAQ, and OTCQX-listed technology companies. -
On
April 6 , Japan’s regulatory body approved Energous’1W WattUp PowerBridge for unlimited power distance transmission. This enablesEnergous to deploy its active energy harvesting technology throughout the technologically advanced Japanese market. -
Energous’ 2 Watt PowerBridge transmitter was launched on
May 9 , doubling the energizing capability of its 1W transmitter currently deployed in the field and advancing Energous’ goal of freeing IoT devices from the constraints of replaceable batteries and charging cords and extending power and range. -
AirFuel RF, the radio frequency-based wireless charging technology from
AirFuel Alliance , was established as an industry standard to further support the growing power needs of the rapidly expanding IoT ecosystem of devices such as sensors, smart tags, asset trackers and other IoT applications. Representatives ofEnergous have served on theAirFuel Alliance board of directors since 2016 and have supported the development of this new industry standard.
“As we enter into the second year of our smart IoT-centric strategy to introduce the power of wireless charging into complex commercial and industrial enterprises, we are pleased with the advances we have made in attracting more customers to our unique solutions,” said
2023 Results Conference Call
-
When
:
Thursday, March 28, 2024 -
Time
:
1:30 p.m. PT (4:30 p.m. ET ) - Phone : 888-317-6003 (domestic); +1 412-317-6061 (international)
- Participant entry # : 7297731
-
Conference replay
: Accessible through
April 11, 2024
877-344-7529 (domestic); +1 412-317-0088 (international); passcode 6156580 -
Webcast
: Accessible at Energous.com; archive available through
March 25
About
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
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
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 expenses relating 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.
|
|||||||
BALANCE SHEETS | |||||||
As of | |||||||
|
|
||||||
ASSETS | (Unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents |
$ |
13,936,050 |
|
$ |
26,287,293 |
|
|
Accounts receivable, net |
|
101,554 |
|
|
143,353 |
|
|
Inventory |
|
429,638 |
|
|
105,821 |
|
|
Prepaid expenses and other current assets |
|
539,145 |
|
|
827,551 |
|
|
Total current assets |
|
15,006,387 |
|
|
27,364,018 |
|
|
Property and equipment, net |
|
428,904 |
|
|
429,035 |
|
|
Right-of-use lease asset |
|
1,240,042 |
|
|
1,959,869 |
|
|
Total assets |
$ |
16,675,333 |
|
$ |
29,752,922 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable |
$ |
1,879,334 |
|
$ |
900,765 |
|
|
Accrued expenses |
|
1,253,937 |
|
|
1,790,414 |
|
|
Accrued severance |
|
133,598 |
|
|
416,516 |
|
|
Warrant liability |
|
619,575 |
|
|
- |
|
|
Operating lease liabilities, current portion |
|
707,251 |
|
|
705,894 |
|
|
Deferred revenue |
|
27,082 |
|
|
29,727 |
|
|
Total current liabilities |
|
4,620,777 |
|
|
3,843,316 |
|
|
Operating lease liabilities, long-term portion |
|
556,879 |
|
|
1,264,131 |
|
|
Total liabilities |
|
5,177,656 |
|
|
5,107,447 |
|
|
Stockholders’ equity: | |||||||
Preferred Stock, |
|
- |
|
|
- |
|
|
Common Stock, |
|
930 |
|
|
789 |
|
|
Additional paid-in capital |
|
393,538,809 |
|
|
387,319,985 |
|
|
Accumulated deficit |
|
(382,042,062 |
) |
|
(362,675,299 |
) |
|
Total stockholders’ equity |
|
11,497,677 |
|
|
24,645,475 |
|
|
Total liabilities and stockholders’ equity |
$ |
16,675,333 |
|
$ |
29,752,922 |
|
|
|
|||||||
STATEMENTS OF OPERATIONS | |||||||
For the Twelve Months Ended |
|||||||
2023 |
2022 |
||||||
(Unaudited) |
|||||||
Revenue |
$ |
474,184 |
|
$ |
851,321 |
|
|
Costs and expenses: | |||||||
Cost of revenue |
|
279,083 |
|
|
1,277,565 |
|
|
Research and development |
|
10,810,570 |
|
|
12,497,781 |
|
|
Sales and marketing |
|
3,852,393 |
|
|
4,884,959 |
|
|
General and administrative |
|
7,272,464 |
|
|
8,078,950 |
|
|
Severance expense |
|
359,419 |
|
|
798,391 |
|
|
Total costs and expenses |
|
22,573,929 |
|
|
27,537,646 |
|
|
Loss from operations |
|
(22,099,745 |
) |
|
(26,686,325 |
) |
|
Other (expense) income: | |||||||
Offering costs related to warrant liability |
|
(591,670 |
) |
|
- |
|
|
Change in fair value of warrant liability |
|
2,515,425 |
|
|
- |
|
|
Interest income |
|
809,227 |
|
|
411,065 |
|
|
Total |
|
2,732,982 |
|
|
411,065 |
|
|
Net loss |
$ |
(19,366,763 |
) |
$ |
(26,275,260 |
) |
|
Basic and diluted net loss per common share |
$ |
(4.15 |
) |
$ |
(6.78 |
) |
|
Weighted average shares outstanding, basic and diluted |
|
4,663,594 |
|
|
3,874,295 |
|
|
|
|||||||
Reconciliation of Non-GAAP Information | |||||||
(Unaudited) | |||||||
For the Twelve Months Ended |
|||||||
2023 |
2022 |
||||||
Net loss (GAAP) |
$ |
(19,366,763 |
) |
$ |
(26,275,260 |
) |
|
Add (subtract) the following items: | |||||||
Depreciation and amortization |
|
187,209 |
|
|
246,156 |
|
|
Stock-based compensation * |
|
1,677,950 |
|
|
2,666,228 |
|
|
Severance expense |
|
359,419 |
|
|
798,391 |
|
|
Offering costs related to warrant liability |
|
591,670 |
|
|
- |
|
|
Change in fair value of warrant liability |
|
(2,515,425 |
) |
|
- |
|
|
Adjusted net non-GAAP loss |
$ |
(19,065,940 |
) |
$ |
(22,564,485 |
) |
|
* Note: Stock-based compensation excludes |
|||||||
Total costs and expenses (GAAP) |
$ |
22,573,929 |
|
$ |
27,537,646 |
|
|
Subtract the following items: | |||||||
Depreciation and amortization |
|
(187,209 |
) |
|
(246,156 |
) |
|
Stock-based compensation * |
|
(1,677,950 |
) |
|
(2,666,228 |
) |
|
Severance expense |
|
(359,419 |
) |
|
(798,391 |
) |
|
Adjusted non-GAAP costs and expenses |
$ |
20,349,351 |
|
$ |
23,826,871 |
|
|
* Note: Stock-based compensation excludes |
|||||||
Total research and development expenses (GAAP) |
$ |
10,810,570 |
|
$ |
12,497,781 |
|
|
Subtract the following items: | |||||||
Depreciation and amortization |
|
(169,409 |
) |
|
(160,201 |
) |
|
Stock-based compensation |
|
(658,041 |
) |
|
(1,134,106 |
) |
|
Adjusted non-GAAP research and development expenses |
$ |
9,983,120 |
|
$ |
11,203,474 |
|
|
Total sales, marketing, general and administrative expenses (GAAP) |
$ |
11,124,857 |
|
$ |
12,963,909 |
|
|
Subtract the following items: | |||||||
Depreciation and amortization |
|
(17,800 |
) |
|
(85,955 |
) |
|
Stock-based compensation |
|
(1,019,909 |
) |
|
(1,532,122 |
) |
|
Adjusted non-GAAP sales, marketing, general and administrative expenses |
$ |
10,087,148 |
|
$ |
11,345,832 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240328455188/en/
Energous Investor Relations:
Padilla IR
IR@energous.com
SHIFT COMMUNICATIONS
energous@shiftcomm.com
Source: