Energous Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

watt-10q_20200930.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER 001-36379

ENERGOUS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		46-1318953
(State of incorporation)		(I.R.S. Employer Identification No.)

3590 North First Street, Suite 210, San Jose, CA 95134

(Address of principal executive office) (Zip code)

(408) 963-0200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, $0.00001 par value

WATT

The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☑
Non-accelerated filer	☐	Smaller reporting company	☑
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of November 4, 2020, there were 44,546,728 shares of our Common Stock, par value $0.00001 per share, outstanding.

ENERGOUS CORPORATION

FORM 10-Q

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

INDEX

PART I - FINANCIAL INFORMATION		3

Item 1. Financial Statements		3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		19

Item 3. Quantitative and Qualitative Disclosure About Market Risk		24

Item 4. Controls and Procedures		24

PART II – OTHER INFORMATION		25

Item 1. Legal Proceedings		25

Item 1A. Risk Factors		25

Item 2. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities		36

Item 3. Defaults Upon Senior Securities		36

Item 4. Mine Safety Disclosures		36

Item 5. Other Information		36

Item 6. Exhibits		36

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Energous Corporation

BALANCE SHEETS

	As of
	September 30, 2020			December 31, 2019
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	17,303,234		$	21,684,089
At-the-market ("ATM") funds receivable		3,165,868			–
Accounts receivable		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
Operating lease right-of-use assets		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 portion		765,209			1,402,193
Total liabilities		4,071,384			5,871,100

Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at September 30, 2020 and December 31, 2019; no shares issued or outstanding		–			–
Common Stock, $0.00001 par value, 200,000,000 and 50,000,000 shares authorized at September 30, 2020 and December 31, 2019, respectively; 43,062,944 and 33,203,806 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively.		431			333
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

The accompanying notes are an integral part of these condensed financial statements.

Energous Corporation

CONDENSED 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 development		4,003,642			5,190,056			12,909,378			17,505,751
Sales and marketing		1,500,068			1,242,105			4,386,881			3,985,467
General and administrative		2,117,848			1,910,408			7,240,925			8,007,548
Cost of services revenue		–			–			126,539			–
Total operating expenses		7,621,558			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:
Interest income		3,221			117,842			67,134			336,575
Total other income		3,221			117,842			67,134			336,575
Net loss	$	(7,556,837	)	$	(8,184,227	)	$	(24,359,239	)	$	(29,007,691	)
Basic and diluted loss per common share	$	(0.18	)	$	(0.27	)	$	(0.62	)	$	(0.98	)
Weighted average shares outstanding, basic and diluted		41,861,614			30,736,736			39,116,532			29,717,361

The accompanying notes are an integral part of these condensed financial statements.

Energous Corporation

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance at January 1, 2020		33,203,806	$	333	$	282,153,201		$	(263,140,660	)	$	19,012,874
Stock-based compensation - restricted stock units ("RSUs")		–		–		2,321,820			–			2,321,820
Stock-based compensation - performance share units ("PSUs")		–		–		(88,348	)		–			(88,348	)
Stock-based compensation - employee stock purchase plan ("ESPP")		–		–		42,827			–			42,827
Issuance of shares for RSUs		396,559		4		(4	)		–			–
Proceeds from contributions to the ESPP		–		–		113,059			–			113,059
Issuance of shares in an at-the-market ("ATM") offering, net of $141,322 in issuance costs		4,351,652		44		5,506,836			–			5,506,880
Net loss		–		–		–			(8,597,736	)		(8,597,736	)
Balance March 31, 2020 (unaudited)		37,952,017		381		290,049,391			(271,738,396	)		18,311,376
Stock-based compensation - restricted stock units ("RSUs")		–		–		2,028,599			–			2,028,599
Stock-based compensation - employee stock purchase plan ("ESPP")		–		–		41,308			–			41,308
Issuance of shares for RSUs		232,995		2		(2	)		–			–
Proceeds from contributions to the ESPP		144,370		1		104,144			–			104,145
Issuance of shares in an at-the-market ("ATM") offering, net of $236,528 in issuance costs		3,355,928		33		9,216,578			–			9,216,611
Net loss		–		–		–			(8,204,666	)		(8,204,666	)
Balance, June 30, 2020 (unaudited)		41,685,310	$	417	$	301,440,018		$	(279,943,062	)	$	21,497,373
Stock-based compensation - restricted stock units ("RSUs")		–		–		1,876,686			–			1,876,686
Stock-based compensation - employee stock purchase plan ("ESPP")		–		–		96,056			–			96,056
Issuance of shares for RSUs		361,608		4		(4	)		–			–
Proceeds from contributions to the ESPP		–		–		121,692			–			121,692
Issuance of shares in an at-the-market ("ATM") offering, net of $240,060 in issuance costs		1,016,026		10		3,007,048			–			3,007,058
Net loss		–		–		–			(7,556,837	)		(7,556,837	)
Balance, September 30, 2020 (unaudited)		43,062,944	$	431	$	306,541,496		$	(287,499,899	)	$	19,042,028

Energous Corporation

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED)

	Common Stock					Additional Paid-in			Accumulated			Total Stockholders'
	Shares			Amount		Capital			Deficit			Equity
Balance at January 1, 2019		26,526,303		$	265	$	243,111,741		$	(224,741,571	)	$	18,370,435
Stock-based compensation - restricted stock units ("RSUs")		–			–		3,083,567			–			3,083,567
Stock-based compensation - employee stock purchase plan ("ESPP")		–			–		87,825			–			87,825
Issuance of shares for RSUs		434,522			4		(4	)		–			–
Shares withheld for payroll tax on RSUs		(1,329	)		–		(10,207	)		–			(10,207	)
Shares withheld for payroll tax on performance share units ("PSUs")		(44,481	)		–		(329,159	)		–			(329,159	)
Exercise of stock options		80,201			1		400,102			–			400,103
Proceeds from contributions to the ESPP		–			–		173,167			–			173,167
Issuance of shares and warrant in a private placement, net of $1,680,844 in issuance costs		3,333,333			33		23,319,123			–			23,319,156
Net loss		–			–		–			(11,019,468	)		(11,019,468	)
Balance, March 31, 2019 (unaudited)		30,328,549		$	303	$	269,836,155		$	(235,761,039	)	$	34,075,419
Stock-based compensation - restricted stock units ("RSUs")		–			–		2,675,184			–			2,675,184
Stock-based compensation - employee stock purchase plan ("ESPP")		–			–		122,749			–			122,749
Issuance of shares for RSUs		189,220			2		(2	)		–			–
Proceeds from contributions to the ESPP		85,765			1		145,421			–			145,422
Net loss		–			–		–			(9,803,996	)		(9,803,996	)
Balance, June 30, 2019 (unaudited)		30,603,534		$	306	$	272,779,507		$	(245,565,035	)	$	27,214,778
Stock-based compensation - restricted stock units ("RSUs")		–			–		2,037,620			–			2,037,620
Stock-based compensation - employee stock purchase plan ("ESPP")		–			–		62,055			–			62,055
Issuance of shares for RSUs		280,053			3		(3	)		–			–
Shares returned		(38,666	)		–		–			–			-
Proceeds from contributions to the ESPP		–			–		147,809			–			147,809
Net loss		–			–		–			(8,184,227	)		(8,184,227	)
Balance, September 30, 2019 (unaudited)		30,844,921		$	309	$	275,026,988		$	(253,749,262	)	$	21,278,035

The accompanying notes are an integral part of these condensed financial statements.

Energous Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Nine Months Ended September 30,
	2020			2019
Cash flows from operating activities:
Net loss	$	(24,359,239	)	$	(29,007,691	)
Adjustments to reconcile net loss to:
Net cash used in operating activities:
Depreciation and amortization		286,990			652,266
Stock based compensation		6,318,948			8,069,000
Changes in operating lease right-of-use assets		570,460			599,582
Bad debt expense		33,000			–
Changes in operating assets and liabilities:
Accounts receivable		3,794			(40,950	)
Prepaid expenses and other current assets		(331,367	)

Price	3.32	EPS	-1
Shares	31	P/E	-2
MCap	102	P/FCF	-5
Net Debt	-23	EBIT	-41
TEV	80	TEV/EBIT	-2
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-09
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-13
10-Q	2019-09-30	Filed 2019-11-12
10-Q	2019-06-30	Filed 2019-08-09
10-Q	2019-03-31	Filed 2019-05-10
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-11-09
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-16
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-16
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-15
10-Q	2015-09-30	Filed 2015-11-12
10-Q	2015-06-30	Filed 2015-08-13
10-Q	2015-03-31	Filed 2015-05-13
10-K	2014-12-31	Filed 2015-03-30
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-13
10-Q	2014-03-31	Filed 2014-05-14

8-K	2020-11-09	Earnings, Exhibits
8-K	2020-10-20	Officers, Exhibits
8-K	2020-09-30	Other Events, Exhibits
8-K	2020-08-05	Earnings, Exhibits
8-K	2020-07-24	Amend Bylaw, Shareholder Vote, Exhibits
8-K	2020-05-26
8-K	2020-05-06
8-K	2020-04-21
8-K	2020-02-26
8-K	2019-11-07
8-K	2019-10-11
8-K	2019-08-28
8-K	2019-08-15
8-K	2019-08-08
8-K	2019-05-15
8-K	2019-04-30
8-K	2019-03-28
8-K	2019-03-28
8-K	2019-02-27
8-K	2019-02-27
8-K	2018-10-30
8-K	2018-08-01
8-K	2018-05-16
8-K	2018-05-01
8-K	2018-03-21
8-K	2018-02-15
8-K	2018-01-11
8-K	2018-01-10

EX-10.2	watt-ex102_137.htm
EX-31.1	watt-ex311_10.htm
EX-31.2	watt-ex312_9.htm
EX-32.1	watt-ex321_8.htm

WATT 10Q Quarterly Report

Energous Earnings 2020-09-30