Business Wire | Nov 9, 2020 04:01PM EST

Energous Corporation Reports Third Quarter 2020 Financial Results

Nov. 09, 2020

SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 09, 2020--Energous Corporation (NASDAQ: WATT), the developer of WattUp(r), a revolutionary Wireless Charging 2.0 technology today announced financial results for the third quarter ended Sept. 30, 2020 and provided an update on its operational progress.

Recent Highlights

* Energous partner NewSound received FCC approval for WattUp(r)-enabled hearing aid * Energous announced a strategic partnership with Xentris Wireless to develop ruggedized products for demanding military applications using Energous' radio frequency (RF) based charging technology * POSCO, in conjunction with the partnership efforts of PiBex, SK Telesys and Energous, has successfully completed the field trial of a WattUp enabled ultra-wide band industrial tracking device * Energous announced the introduction of the EN7410M module, a new wireless charging transmitter module * Energous announced that it has received a Class II permissive change to the existing MS-550 FCC Grant, extending the charging zone up to one meter * Energous appointed Sheryl Wilkerson to its Board of Directors

"Interest in our charging solutions continues to expand across a variety of vertical markets, including military, industrial, and medical sensors and tracking applications. We continue to develop partnerships to drive the ecosystems toward the broad adoption of WattUp," said Stephen R. Rizzone, president and CEO of Energous Corporation. "Our progress in the quarter has enabled the WattUp technology to have a smaller footprint that we believe will offer a more cost effective and appealing solution to all type of device manufacturers. We believe we are building a solid foundation for growth."

Unaudited 2020 Third Quarter Financial Results

For the third quarter ended Sept. 30, 2020, Energous recorded:

* Revenue of $61,500 * Operating expenses of approximately $7.6 million (GAAP), comprised of $4.0 million in research and development, and $3.6 million in selling, general and administrative expenses * Net loss of $(7.6) million, or $(0.18) per basic and diluted share * Adjusted EBITDA (a non-GAAP financial measure) loss of $(5.5) million * $17.3 million in cash and cash equivalents and $3.2 million in financing funds receivable (from our at-the-market "ATM" financing transaction) at the end of the third quarter, with no debt

2020 Third Quarter Conference Call

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

When Monday, Nov. 9, 2020

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

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

Passcode 1177008

Telephonic replay Accessible through Nov. 23, 2020

877-344-7529 (domestic); 412-317-0088 (international); passcode 10149394

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(r) 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 227 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

September 30, December 31, 2020 2019

ASSETS

Current assets:Cash and cash equivalents $ 17,303,234 $ 21,684,089

At-the-market ("ATM") funds receivable 3,165,868 -

Accounts receivable, net 26,350 63,144

Prepaid expenses and other current assets 781,598 450,231

Total current assets 21,277,050 22,197,464

Property and equipment, net 346,836 626,524

Right-of-use lease asset 1,487,116 2,057,576

Other assets 2,410 2,410

Total assets $ 23,113,412 $ 24,883,974

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:Accounts payable $ 1,045,466 $ 1,671,519

Accrued expenses 1,403,601 2,063,097

Operating lease liabilities, current portion 845,108 722,291

Deferred revenue 12,000 12,000

Total current liabilities 3,306,175 4,468,907

Operating lease liabilities, long-term 765,209 1,402,193 portionTotal liabilities 4,071,384 5,871,100

Stockholders' equity:Preferred Stock, $0.00001 par value,10,000,000 shares authorized at September30, 2020 andDecember 31, 2019; no shares issued or - - outstanding.Common Stock, $0.00001 par value,200,000,000 and 50,000,000 shares authorizedatSeptember 30, 2020 and December 31, 2019,respectively; 43,062,944 and 33,203,806shares issued and outstanding at September 431 333 30, 2020 and December 31, 2019,respectively.Additional paid-in capital 306,541,496 282,153,201

Accumulated deficit (287,499,899 ) (263,140,660 )

Total stockholders' equity 19,042,028 19,012,874

Total liabilities and stockholders' equity $ 23,113,412 $ 24,883,974

Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2020

2019

2020

2019

Revenue$

61,500

$

40,500

$

237,350

$

154,500

Operating expenses:Research and development4,003,642

5,190,056

12,909,378

17,505,751

Sales and marketing1,500,068

1,242,105

4,386,881

3,985,467

General and administrative2,117,848

1,910,408

7,240,925

8,007,548

Cost of services revenue-

-

126,539

-

Total operating expenses7,621,558

8,342,569

24,663,723

29,498,766

Loss from operations(7,560,058

)

(8,302,069

)

(24,426,373

)

(29,344,266

)

Other income (expense):Interest income3,221

117,842

67,134

336,575

Total3,221

117,842

67,134

336,575

Net loss$

(7,556,837

)

$

(8,184,227

)

$

(24,359,239

)

$

(29,007,691

)

Basic and diluted net loss per common share$

(0.18

)

$

(0.27

)

$

(0.62

)

$

(0.98

)

Weighted average shares outstanding, basic and diluted41,861,614

30,736,736

39,116,532

29,717,361

Energous Corporation

STATEMENTS OF OPERATIONS

(Unaudited)

For the Three Months Ended For the Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Revenue $ 61,500 $ 40,500 $ 237,350 $ 154,500

Operatingexpenses:Research and 4,003,642 5,190,056 12,909,378 17,505,751 developmentSales and 1,500,068 1,242,105 4,386,881 3,985,467 marketingGeneral and 2,117,848 1,910,408 7,240,925 8,007,548 administrativeCost of - - 126,539 - servicesrevenueTotal 7,621,558 8,342,569 24,663,723 29,498,766 operatingexpensesLoss from (7,560,058 ) (8,302,069 ) (24,426,373 ) (29,344,266 )operations Other income(expense):Interest 3,221 117,842 67,134 336,575 incomeTotal 3,221 117,842 67,134 336,575

Net loss $ (7,556,837 ) $ (8,184,227 ) $ (24,359,239 ) $ (29,007,691 )

Basic anddiluted net $ (0.18 ) $ (0.27 ) $ (0.62 ) $ (0.98 )loss percommon share Weightedaverage shares 41,861,614 30,736,736 39,116,532 29,717,361 outstanding,basic anddilutedEnergous Corporation

Reconciliation of Non-GAAP Information

(Unaudited)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2020

2019

2020

2019

Net loss (GAAP)$

(7,556,837

)

$

(8,184,227

)

$

(24,359,239

)

$

(29,007,691

)

Add (subtract) the following items:Interest income(3,221

)

(117,842

)

(67,134

)

(336,575

)

Depreciation and amortization69,361

175,403

286,990

652,266

Stock-based compensation1,972,742

2,099,675

6,318,948

8,069,000

Adjusted EBITDA (non-GAAP)$

(5,517,955

)

$

(6,026,991

)

$

(17,820,435

)

$

(20,623,000

)

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

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