Energous Corp [WATT] Filings

10-Q 1 watt-20230630.htm 10-Q 10-Q

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 JUNE 30, 2023


☐	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 August 10, 2023, there were 92,069,632 shares of our Common Stock, par value $0.00001 per share, outstanding.

ENERGOUS CORPORATION

FORM 10-Q

FOR THE THREE MONTHS ENDED JUNE 30, 2023

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		23

Item 3. Quantitative and Qualitative Disclosure About Market Risk		28

Item 4. Controls and Procedures		28

PART II – OTHER INFORMATION		29

Item 1. Legal Proceedings		29

Item 1A. Risk Factors		29

Item 2. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities		42

Item 3. Defaults Upon Senior Securities		42

Item 4. Mine Safety Disclosures		42

Item 5. Other Information		42

Item 6. Exhibits		42

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Energous Corporation

CONDENSED BALANCE SHEETS


	As of
	June 30, 2023			December 31, 2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	19,959,768		$	26,287,293
Accounts receivable, net		168,084			143,353
Inventory		176,786			105,821
Prepaid expenses and other current assets		1,251,839			827,551
Total current assets		21,556,477			27,364,018

Property and equipment, net		389,659			429,035
Operating lease right-of-use assets		1,595,869			1,959,869
Total assets	$	23,542,005		$	29,752,922
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,053,204		$	900,765
Accrued expenses		1,462,742			1,790,414
Accrued severance expense		215,442			416,516
Warrant liability		1,238,000			–
Operating lease liabilities, current portion		699,673			705,894
Deferred revenue		58,091			29,727
Total current liabilities		4,727,152			3,843,316

Operating lease liabilities, long-term portion		915,854			1,264,131
Total liabilities		5,643,006			5,107,447

Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at June 30, 2023 and December 31, 2022; no shares issued or outstanding at June 30, 2023 and December 31, 2022.		–			–
Common Stock, $0.00001 par value, 200,000,000 shares authorized at June 30, 2023 and December 31, 2022; 92,040,276 and 78,944,954 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.		921			789
Additional paid-in capital		391,221,050			387,319,985
Accumulated deficit		(373,322,972	)		(362,675,299	)
Total stockholders’ equity		17,898,999			24,645,475
Total liabilities and stockholders’ equity	$	23,542,005		$	29,752,922

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

Energous Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Revenue	$	117,133		$	232,971		$	213,809		$	448,932
Costs and expenses:
Cost of revenue		82,818			271,384			221,631			474,633
Research and development		2,880,132			3,209,910			5,958,656			6,737,056
Sales and marketing		1,088,084			1,158,092			2,300,022			2,771,682
General and administrative		2,103,971			2,024,939			4,065,431			4,052,459
Severance expense		90,310			633,444			90,310			633,444
Total costs and expenses		6,245,315			7,297,769			12,636,050			14,669,274
Loss from operations		(6,128,182	)		(7,064,798	)		(12,422,241	)		(14,220,342	)
Other (expense) income:
Offering costs related to warrant liability		–			–			(591,670	)		–
Change in fair value of warrant liability		1,897,000			–			1,897,000			–
Interest income		236,016			47,049			469,238			49,875
Total other income		2,133,016			47,049			1,774,568			49,875
Net loss	$	(3,995,166	)	$	(7,017,749	)	$	(10,647,673	)	$	(14,170,467	)
Basic and diluted loss per common share	$	(0.04	)	$	(0.09	)	$	(0.12	)	$	(0.18	)
Weighted average shares outstanding, basic and diluted		91,241,080			77,125,105			86,351,876			77,028,549

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

Energous Corporation

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)


	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance at January 1, 2023		78,944,954	$	789	$	387,319,985		$	(362,675,299	)	$	24,645,475
Stock-based compensation - options		–		–		21,095			–			21,095
Stock-based compensation - restricted stock units ("RSUs")		–		–		476,242			–			476,242
Stock-based compensation - employee stock purchase plan ("ESPP")		–		–		24,740			–			24,740
Issuance of shares for RSUs		186,878		2		(2	)		–			–
Proceeds from contributions to the ESPP		–		–		65,134			–			65,134
Issuance of shares in an at-the-market ("ATM") placement, net of $68,637 in issuance costs		3,650,198		37		2,674,660			–			2,674,697
Issuance of shares in a sale of common stock, net of $3,166,139 in issuance costs and fair value of liability warrant		8,250,000		83		133,778			–			133,861
Net loss		–		–		–			(6,652,507	)		(6,652,507	)
Balance at March 31, 2023 (unaudited)		91,032,030	$	911	$	390,715,632		$	(369,327,806	)	$	21,388,737
Stock-based compensation - options		–		–		21,330			–			21,330
Stock-based compensation - RSUs		–		–		455,695			–			455,695
Stock-based compensation - PSUs		–		–		10,601			–			10,601
Stock-based compensation - ESPP		–		–		16,267			–			16,267
Issuance of shares for RSUs		681,434		7		(7	)		–			–
Proceeds from contributions to the ESPP		326,812		3		1,532			–			1,535
Net loss		–		–		–			(3,995,166	)		(3,995,166	)
Balance at June 30, 2023 (unaudited)		92,040,276	$	921	$	391,221,050		$	(373,322,972	)	$	17,898,999


	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance at January 1, 2022		76,667,205	$	767	$	383,383,550		$	(336,400,039	)	$	46,984,278
Stock-based compensation - options		–		–		10,313			–			10,313
Stock-based compensation - RSUs		–		–		745,620			–			745,620
Stock-based compensation - ESPP		–		–		40,973			–			40,973
Issuance of shares for RSUs		387,823		4		(4	)		–			–
Proceeds from contributions to the ESPP		–		–		104,217			–			104,217
Net loss		–		–		–			(7,152,718	)		(7,152,718	)
Balance at March 31, 2022 (unaudited)		77,055,028	$	771	$	384,284,669		$	(343,552,757	)	$	40,732,683
Stock-based compensation - options		–		–		21,330			–			21,330
Stock-based compensation - RSUs		–		–		601,029			–			601,029
Stock-based compensation - ESPP		–		–		41,428			–			41,428
Issuance of shares for RSUs		215,746		2		(2	)		–			–
Proceeds from contributions to the ESPP		193,797		2		60,509			–			60,511
Net loss		–		–		–			(7,017,749	)		(7,017,749	)
Balance at June 30, 2022 (unaudited)		77,464,571	$	775	$	385,008,963		$	(350,570,506	)	$	34,439,232

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

Energous Corporation

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Six Months Ended June 30,
	2023			2022
Cash flows from operating activities:
Net loss	$	(10,647,673	)	$	(14,170,467	)
Adjustments to reconcile net loss to:
Net cash used in operating activities:
Depreciation and amortization		90,330			127,311
Stock based compensation		1,025,970			1,460,693
Changes in operating lease right-of-use assets		364,000			371,604
Inventory net realizable adjustment		142,313			–
Bad debt expense		(12,500	)		17,500
Change in fair value of warrant liability		(1,897,000	)		–
Offering costs allocated to warrants		591,670			–
Changes in operating assets and liabilities:
Accounts receivable		(12,231	)		55,819
Inventory		(213,278	)		(52,153	)
Prepaid expenses and other current assets		(424,288	)		(391,009	)
Accounts payable		152,439			(197,025	)
Accrued expenses		(327,672	)		(50,554	)
Accrued severance expense		(201,074	)		(230,619	)
Operating lease liabilities		(354,498	)		(403,029	)
Deferred revenue		28,364			7,981
Net cash used in operating activities		(11,695,128	)		(13,453,948	)
Cash flows from investing activities:
Purchases of property and equipment		(50,954	)		(112,509	)
Net cash used in investing activities		(50,954	)		(112,509	)
Cash flows from financing activities:
Net proceeds from an ATM offering		2,674,697			–
Net proceeds from a sale of common stock and warrant issuance		2,677,191			–
Proceeds from contributions to employee stock purchase plan		66,669			164,728
Net cash provided by financing activities		5,418,557			164,728
Net decrease in cash and cash equivalents		(6,327,525	)		(13,401,729	)
Cash and cash equivalents - beginning		26,287,293			49,071,414
Cash and cash equivalents - ending	$	19,959,768		$	35,669,685
Supplemental disclosure of non-cash investing and financing activities:
Increase in operating lease right-of-use assets and operating lease liabilities	$	–		$	2,071,336
Common stock issued for RSUs	$	9		$	6

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

Note 1 - Business Organization, Nature of Operations

Energous Corporation (the “Company”) was incorporated in Delaware on October 30, 2012. The Company has developed its WattUp® wireless power technology, consisting of proprietary semiconductor chipsets, software controls, hardware designs and antennas, that enables radio frequency (“RF”) based charging for electronic devices. The WattUp technology has a broad spectrum of capabilities, including near-field wireless charging and at-a-distance wireless charging at various distances. The Company believes its proprietary WattUp technology is well suited for many applications, including building and home automation, electronic shelf labels, industrial IoT sensors, surface and implanted medical devices, tracking devices, hearables, wearables, consumer electronics and public safety applications. Potential future applications include smartphones, commercial and industrial robotics, as well as automotive solutions and other devices with charging requirements that would otherwise require battery replacement or a wired power connection.

Note 2 – Liquidity and Management Plans

During the three and six months ended June 30, 2023, the Company recorded revenue of $117,133 and $213,809, respectively. During the three and six months ended June 30, 2023, the Company recorded net losses of $3,995,166 and $10,647,673, respectively. Net cash used in operating activities was $11,695,128 and $13,453,948 for the six months ended June 30, 2023 and 2022, respectively. The Company is currently meeting its liquidity requirements through the proceeds of securities offerings that raised net proceeds of $27,043,751 during 2021, $744,787 during 2022 and $5,351,888 during the first quarter of 2023, along with proceeds from contributions to the Company’s employee stock purchase plan (the “ESPP”) and payments received from customers.

Energous Corp [WATT] Filings
10-Q	[2023-08-15]
10-Q	[2023-05-17]
10-K	[2023-03-30]
10-Q	[2022-11-10]
10-Q	[2022-08-16]
10-Q	[2022-05-16]
10-K	[2022-03-23]
10-Q	[2021-11-15]
10-Q	[2021-08-11]
10-Q	[2021-05-17]
10-K	[2021-03-24]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-11]
10-K	[2020-03-13]
10-Q	[2019-11-12]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-K	[2019-02-28]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-16]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-16]
10-Q	[2016-11-09]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-12]
10-Q	[2015-08-13]
10-Q	[2015-05-13]
10-K	[2015-03-30]
S-1	[2014-11-12]
10-Q	[2014-11-10]
10-Q	[2014-08-13]
10-Q	[2014-05-14]
S-1	[2014-01-24]