Exhibit 99.1

 

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Energous Corporation Reports Fourth Quarter and

Full Year 2019 Financial Results

SAN JOSE, Calif. – Feb. 26, 2020 – Energous Corporation (NASDAQ: WATT), the developer of WattUp®, a revolutionary Wireless Charging 2.0 technology, today announced financial results for the fourth quarter and full year ended December 31, 2019 and provided an update on its operational progress.

Recent Highlights

 

   

Japan regulatory approval received for its WattUp wireless charging technology

 

   

Energous announced that its partners PiBEX and SK Telesys are developing an ultra-wideband (UWB) tracking tag for POSCO, which will include integration with the WattUp RF wireless charging technology

 

   

Announced the availability of its smart glasses developer kits

“With the Japan certification, combined with both the technological and customer progress, we have increasing confidence in a revenue ramp in 2020,” said Stephen R. Rizzone, president and CEO of Energous Corporation. “We are on track to forge ahead with several partnerships and other opportunities, including ZPower and POSCO, to help broaden the installed base of WattUp.”

Unaudited 2019 Fourth Quarter Financial Results

For the fourth quarter ended Dec. 31, 2019, Energous recorded:

 

 

Revenue of $45,643

 

 

Operating expenses of approximately $9.5 million (GAAP), comprised of $5.7 million in research and development, and $3.8 million in selling, general and administrative expenses

 

 

Net loss of $9.4 million, or $0.29 per basic and diluted share

 

 

Adjusted EBITDA (a non-GAAP financial measure) loss of $6.8 million

 

 

$21.7 million in cash and cash equivalents at the end of the fourth quarter, with no debt

Unaudited 2019 Full-Year Financial Results

For the year ended December 31, 2019, Energous recorded:

 

   

Revenue of approximately $200,000

 

   

Operating expenses of $39.0 million, comprised of $23.2 million in research and development, and $15.8 million in selling, general and administrative costs


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Net loss of $38.4 million, or a loss of $1.27 per basic and diluted share.

 

   

Adjusted EBITDA (a non-GAAP financial measure) loss of $27.4 million.

2019 Fourth Quarter and Year End Conference Call

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

When: Wednesday, Feb. 26, 2020

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

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

Passcode: 4409078

Telephonic replay: Accessible through Mar. 11, 2020

877-344-7529 (domestic); 412-317-0088 (international); passcode 10138670

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 220 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,”


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“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 FCC certification of our technology, regulatory approvals internationally, and customer releases of products utilizing our technology. 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: 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.

– Financial Tables Follow –


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Energous Corporation

BALANCE SHEETS

(Unaudited)

 

     As of  
     December 31, 2019     December 31, 2018  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 21,684,089     $ 20,106,485  

Accounts receivable, net

     63,144       44,550  

Prepaid expenses and other current assets

     450,231       581,040  

Prepaid rent, current

     —         56,668  
  

 

 

   

 

 

 

Total current assets

     22,197,464       20,788,743  
  

 

 

   

 

 

 

Property and equipment, net

     626,524       1,219,016  

Right-of-use lease assets

     2,057,576       —    

Other assets

     2,410       2,410  
  

 

 

   

 

 

 

Total assets

   $ 24,883,974     $ 22,010,169  
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 1,671,519     $ 1,861,385  

Accrued expenses

     2,063,097       1,778,349  

Operating lease liabilities, current portion

     722,291       —    

Deferred revenue

     12,000       —    
  

 

 

   

 

 

 

Total current liabilities

     4,468,907       3,639,734  
  

 

 

   

 

 

 

Operating lease liabilites, long-term portion

     1,402,193       —    
  

 

 

   

 

 

 

Total liabilities

     5,871,100       3,639,734  

Commitments and contingencies

    

Stockholders’ equity:

    

Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at
December 31, 2019 and December 31, 2018; no shares issued or outstanding.

     —         —    

Common Stock, $0.00001 par value, 50,000,000 shares authorized at
December 31, 2019 and December 31, 2018; 33,203,806 and 26,526,303 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively.

     333       265  

Additional paid-in capital

     282,153,201       243,111,741  

Accumulated deficit

     (263,140,660     (224,741,571
  

 

 

   

 

 

 

Total stockholders’ equity

     19,012,874       18,370,435  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 24,883,974     $ 22,010,169  
  

 

 

   

 

 

 


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Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

 

     For the Three Months Ended December 31,     For the Twelve Months Ended December 31,  
     2019     2018     2019     2018  

Revenue

   $ 45,643     $ 56,050     $ 200,143     $ 514,823  

Operating expenses:

        

Research and development

     5,723,059       8,067,461       23,228,810       32,871,685  

Sales and marketing

     1,433,500       1,564,399       5,418,967       6,185,159  

General and administrative

     2,352,718       2,948,110       10,360,266       12,387,389  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     9,509,277       12,579,970       39,008,043       51,444,233  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (9,463,634     (12,523,920     (38,807,900     (50,929,410

Other income (expense):

        

Interest income

     79,699       70,917       416,274       89,288  

Loss on retirement of property and equipment

     (7,463     —         (7,463     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

     72,236       70,917       408,811       89,288  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (9,391,398   $ (12,453,003   $ (38,399,089   $ (50,840,122
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic and diluted net loss per common share

   $ (0.29   $ (0.48   $ (1.27   $ (1.99
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding, basic and diluted

     31,880,706       26,066,151       30,262,642       25,486,270  
  

 

 

   

 

 

   

 

 

   

 

 

 

Energous Corporation

Reconciliation of Non-GAAP Information

(Unaudited)

 

     For the Three Months Ended December 31,     For the Twelve Months Ended December 31,  
     2019     2018     2019     2018  

Net loss (GAAP)

   $ (9,391,398   $ (12,453,003   $ (38,399,089   $ (50,840,122

Add (subtract) the following items:

        

Interest income

     (79,699     (70,917     (416,274     (89,288

Depreciation and amortization

     128,963       234,006       781,229       1,054,720  

Stock-based compensation

     2,577,580       3,949,010       10,646,580       16,753,754  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (non-GAAP)

   $ (6,764,554   $ (8,340,904   $ (27,387,554   $ (33,120,936
  

 

 

   

 

 

   

 

 

   

 

 

 

Contact

Energous Public Relations

PR@energous.com

(408) 963-0200

Investor Relations Contact

Bishop IR

Mike Bishop

(415) 894-9633

IR@energous.com

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