10-Q 1 watt-20230630.htm 10-Q 10-Q
falseEnergous CorpQ20001575793--12-310.333one yearfive years0001575793watt:EmployeeStockPurchasePlanMember2022-04-012022-06-300001575793srt:MaximumMemberus-gaap:PerformanceSharesMemberwatt:MrJohnstonMembersrt:ScenarioForecastMember2024-01-012024-12-310001575793us-gaap:PerformanceSharesMember2023-01-012023-06-300001575793us-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300001575793watt:AccruedExpensesMembersrt:ExecutiveOfficerMember2023-04-012023-06-300001575793watt:TwoThousandThirteenEquityIncentivePlanMember2023-06-140001575793us-gaap:WarrantMemberus-gaap:PrivatePlacementMemberwatt:DialogSemiconductorPlcMember2017-06-2800015757932022-12-310001575793us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001575793watt:CostaMesaCaliforniaMember2021-10-012021-10-010001575793watt:ChipDevelopmentExpenseMemberwatt:DialogSemiconductorPlcMember2023-04-012023-06-300001575793watt:SalesAgreementMember2021-01-012021-12-310001575793watt:TwoThousandAndFifteenPerformanceShareUnitPlanMember2023-06-300001575793us-gaap:EmployeeStockOptionMember2023-01-012023-06-3000015757932023-01-012023-06-300001575793us-gaap:CommonStockMember2021-12-3100015757932022-06-300001575793watt:TwoThousandsSeventeenEquityInducementPlanMember2022-07-2000015757932023-03-282023-03-280001575793watt:ProductDevelopmentProjectsRevenueMember2022-01-012022-06-300001575793watt:MrNeerajSahejpalMember2022-04-292022-04-290001575793watt:ChipDevelopmentExpenseMemberwatt:DialogSemiconductorPlcMember2022-04-012022-06-300001575793watt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793us-gaap:RetainedEarningsMember2022-04-012022-06-3000015757932021-12-162021-12-160001575793us-gaap:PerformanceSharesMemberwatt:MrJohnstonMember2022-07-192022-07-200001575793watt:ExpiringOnMarchTwentyEightTwoThousandTwentyNineMemberus-gaap:WarrantMember2023-01-012023-06-300001575793watt:ThreeCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001575793us-gaap:RetainedEarningsMember2021-12-310001575793watt:FourCustomerMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-12-310001575793us-gaap:PerformanceSharesMember2022-01-012022-12-310001575793us-gaap:CommonStockMember2023-01-012023-03-310001575793us-gaap:CommonStockMember2022-04-012022-06-300001575793watt:EmployeeStockPurchasePlanMember2023-04-012023-06-300001575793watt:StrategicAllianceAgreementMemberus-gaap:RelatedPartyMemberwatt:DialogSemiconductorPlcMember2022-01-012022-06-300001575793us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001575793us-gaap:AdditionalPaidInCapitalMember2022-03-310001575793watt:StrategicAllianceAgreementMember2016-11-012016-11-300001575793us-gaap:SellingAndMarketingExpenseMember2022-01-012022-06-300001575793srt:MaximumMemberus-gaap:PerformanceSharesMemberwatt:MrJohnstonMembersrt:ScenarioForecastMember2024-12-312024-12-3100015757932022-01-012022-12-310001575793us-gaap:WarrantMember2022-01-012022-06-300001575793us-gaap:PerformanceSharesMember2022-12-310001575793watt:MrNeerajSahejpalMember2023-06-3000015757932021-01-012021-12-310001575793us-gaap:RestrictedStockUnitsRSUMember2023-06-300001575793watt:MrRizzoneMember2015-01-012015-01-0100015757932023-03-310001575793us-gaap:EmployeeStockOptionMember2022-01-012022-12-310001575793us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001575793us-gaap:SellingAndMarketingExpenseMember2023-04-012023-06-300001575793watt:ExpiringOnMarchFirstTwoThousandTwentyFourMemberus-gaap:WarrantMember2023-06-300001575793watt:StrategicAllianceAgreementMemberus-gaap:RelatedPartyMemberwatt:DialogSemiconductorPlcMember2023-04-012023-06-300001575793watt:MrJohnstonMember2023-01-012023-06-300001575793us-gaap:PerformanceSharesMemberwatt:MrJohnstonMember2022-01-012022-09-300001575793us-gaap:PerformanceSharesMemberwatt:MrJohnstonMember2021-12-092021-12-090001575793us-gaap:PerformanceSharesMemberwatt:MrJohnstonMember2022-01-012022-12-3100015757932020-09-232020-09-240001575793us-gaap:PerformanceSharesMember2023-01-012023-06-300001575793us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001575793us-gaap:RestrictedStockUnitsRSUMemberwatt:TwoThousandsSeventeenEquityInducementPlanMember2023-01-012023-06-300001575793us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001575793watt:SalesAgreementMember2023-01-012023-03-310001575793watt:NonemployeeEquityCompensationPlans2014Member2020-05-260001575793us-gaap:SellingAndMarketingExpenseMember2022-04-012022-06-300001575793watt:ThreeCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001575793us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-06-300001575793us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001575793srt:MaximumMemberwatt:SalesAgreementMember2020-09-232020-09-240001575793srt:MaximumMemberwatt:CostaMesaCaliforniaMember2021-10-012021-10-010001575793watt:SanJoseCaliforniaMember2022-05-200001575793watt:ProductDevelopmentProjectsRevenueMember2022-04-012022-06-300001575793watt:ProductDevelopmentProjectsRevenueMember2023-04-012023-06-300001575793us-gaap:RetainedEarningsMember2023-06-300001575793us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001575793watt:ThreeCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001575793us-gaap:PrivatePlacementMemberwatt:DialogSemiconductorPlcMember2016-11-072017-06-2800015757932022-04-012022-06-300001575793us-gaap:GeneralAndAdministrativeExpenseMember2023-04-012023-06-300001575793watt:MrJohnstonMember2021-12-092021-12-090001575793us-gaap:PerformanceSharesMember2023-04-012023-06-3000015757932023-08-100001575793srt:MaximumMemberus-gaap:PerformanceSharesMemberwatt:MrJohnstonMembersrt:ScenarioForecastMember2023-01-012023-12-310001575793watt:TwoThousandsSeventeenEquityInducementPlanMember2023-06-300001575793watt:EmployeeStockPurchasePlanMember2023-06-3000015757932023-01-012023-03-310001575793watt:MrRizzoneMember2023-06-300001575793us-gaap:RetainedEarningsMember2023-01-012023-03-310001575793us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001575793us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001575793watt:EmployeeStockPurchasePlanMember2022-01-012022-06-300001575793watt:MrJohnstonMemberwatt:JohnstonAAndRCICAgreementMember2021-12-092021-12-090001575793us-gaap:AdditionalPaidInCapitalMember2023-03-310001575793watt:MrWilliamManninaMemberwatt:ActingChiefFinancialOfficerMemberus-gaap:SubsequentEventMember2023-07-202023-07-200001575793us-gaap:EmployeeStockOptionMember2022-06-300001575793watt:NonemployeeEquityCompensationPlans2014Member2023-06-300001575793watt:StrategicAllianceAgreementMemberus-gaap:RelatedPartyMemberwatt:DialogSemiconductorPlcMember2023-01-012023-06-300001575793us-gaap:SellingAndMarketingExpenseMember2023-01-012023-06-300001575793us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001575793us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793watt:SeveranceExpenseMember2022-04-012022-06-3000015757932023-03-280001575793us-gaap:RetainedEarningsMember2022-06-300001575793us-gaap:EmployeeStockOptionMemberwatt:EmployeeStockPurchasePlanMember2022-06-300001575793us-gaap:CommonStockMemberwatt:EmployeeMemberus-gaap:RestrictedStockUnitsRSUMemberwatt:TwoThousandsSeventeenEquityInducementPlanMember2023-01-012023-06-300001575793watt:ThreeCustomerMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001575793us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793us-gaap:RetainedEarningsMember2022-01-012022-03-310001575793watt:WarrantsTwoThousandTwentyThreeMember2023-04-012023-06-300001575793watt:EmployeeStockPurchasePlanMember2015-04-292015-04-300001575793watt:TwoThousandThirteenEquityIncentivePlanMemberwatt:EmployeeMemberus-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793us-gaap:TechnologyServiceMember2023-01-012023-06-300001575793us-gaap:WarrantMember2022-04-012022-06-300001575793watt:StrategicAllianceAgreementMemberus-gaap:RelatedPartyMemberwatt:DialogSemiconductorPlcMember2022-04-012022-06-300001575793srt:MaximumMemberus-gaap:PerformanceSharesMemberwatt:MrJohnstonMember2022-01-012022-12-310001575793us-gaap:EmployeeStockOptionMember2023-06-300001575793watt:SanJoseCaliforniaMember2022-10-012022-10-310001575793watt:DialogMember2023-06-300001575793watt:SalesAgreementMember2023-01-012023-06-300001575793us-gaap:TechnologyServiceMember2023-04-012023-06-300001575793us-gaap:RetainedEarningsMember2022-12-310001575793watt:AccruedExpensesMembersrt:ExecutiveOfficerMember2023-01-012023-06-300001575793us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-06-300001575793us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001575793us-gaap:WarrantMember2023-04-012023-06-300001575793watt:TwoThousandThirteenEquityIncentivePlanMember2023-06-300001575793watt:MrRizzoneMember2023-01-012023-03-3100015757932020-07-012020-09-300001575793us-gaap:PerformanceSharesMember2023-06-300001575793us-gaap:RetainedEarningsMember2023-04-012023-06-300001575793us-gaap:CommonStockMember2023-06-300001575793us-gaap:RestrictedStockUnitsRSUMemberwatt:TwoThousandsSeventeenEquityInducementPlanMember2017-12-280001575793us-gaap:CommonStockMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-01-012023-06-300001575793watt:ExpiringOnMarchTwentyEightTwoThousandTwentyNineMemberus-gaap:WarrantMember2023-06-300001575793us-gaap:AdditionalPaidInCapitalMember2022-06-3000015757932023-04-012023-06-300001575793watt:NonemployeeEquityCompensationPlans2014Memberus-gaap:CommonStockMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExercisePriceMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793us-gaap:CommonStockMember2022-12-310001575793watt:DialogSemiconductorPlcMember2023-06-300001575793srt:MaximumMemberwatt:SalesAgreementMember2021-10-032021-10-040001575793us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001575793srt:MaximumMemberus-gaap:PerformanceSharesMemberwatt:MrJohnstonMembersrt:ScenarioForecastMember2023-12-312023-12-310001575793watt:EmployeeStockPurchasePlanMember2015-04-300001575793watt:WarrantsTwoThousandTwentyThreeMember2023-01-012023-06-300001575793us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001575793us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExercisePriceMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793watt:FourCustomerMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2023-01-012023-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExpectedDividendRateMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793us-gaap:CommonStockMember2023-04-012023-06-300001575793us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793us-gaap:WarrantMember2023-01-012023-06-300001575793watt:CostaMesaCaliforniaMember2021-10-310001575793watt:EmployeeStockPurchasePlanMember2023-06-140001575793us-gaap:EmployeeStockOptionMember2022-12-310001575793watt:TwoThousandThirteenEquityIncentivePlanMemberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793watt:TwoThousandThirteenEquityIncentivePlanMemberus-gaap:EmployeeStockOptionMember2023-01-012023-06-300001575793watt:SeparationAgreementMemberwatt:MrRizzoneMember2021-07-092021-07-090001575793us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001575793us-gaap:AdditionalPaidInCapitalMember2022-12-310001575793watt:EmployeeStockPurchasePlanMember2023-01-012023-06-300001575793watt:SalesAgreementMember2022-01-012022-12-310001575793us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001575793watt:ExpiringOnMarchFirstTwoThousandTwentyFourMemberus-gaap:WarrantMember2023-01-012023-06-300001575793us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793us-gaap:RetainedEarningsMember2023-03-310001575793watt:TwoThousandThirteenEquityIncentivePlanMemberus-gaap:EmployeeStockOptionMembersrt:ChiefExecutiveOfficerMember2022-02-012022-02-280001575793us-gaap:CommonStockMember2022-01-012022-03-310001575793watt:ChipDevelopmentExpenseMemberwatt:DialogSemiconductorPlcMember2023-01-012023-06-3000015757932022-01-012022-06-300001575793watt:MrNeerajSahejpalMemberus-gaap:RestrictedStockUnitsRSUMember2022-04-290001575793watt:SeveranceExpenseMember2022-01-012022-06-300001575793watt:SalesAgreementMember2020-01-012020-12-310001575793us-gaap:EmployeeStockOptionMemberwatt:EmployeeStockPurchasePlanMember2023-01-012023-06-300001575793us-gaap:CommonStockMember2022-03-3100015757932021-12-310001575793us-gaap:AccountingStandardsUpdate201602Member2023-06-300001575793us-gaap:RestrictedStockUnitsRSUMember2023-06-300001575793srt:MinimumMemberwatt:NonemployeeEquityCompensationPlans2014Memberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793us-gaap:CommonStockMember2023-03-310001575793watt:AtTheMarketMember2023-01-012023-03-310001575793us-gaap:MeasurementInputExpectedDividendRateMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793srt:MaximumMember2020-09-232020-09-240001575793us-gaap:RestrictedStockUnitsRSUMember2022-12-310001575793us-gaap:FairValueMeasurementsRecurringMember2022-12-310001575793watt:AccruedExpensesMembersrt:ExecutiveOfficerMembersrt:ScenarioForecastMember2023-07-012024-03-310001575793us-gaap:AdditionalPaidInCapitalMember2023-06-300001575793us-gaap:EmployeeStockOptionMemberwatt:EmployeeStockPurchasePlanMember2023-06-300001575793us-gaap:FairValueMeasurementsRecurringMember2023-06-300001575793us-gaap:ResearchAndDevelopmentExpenseMember2023-04-012023-06-300001575793us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001575793us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputPriceVolatilityMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-3000015757932021-06-012021-06-300001575793us-gaap:PerformanceSharesMember2023-04-012023-06-3000015757932023-06-300001575793watt:TwoThousandThirteenEquityIncentivePlanMemberus-gaap:EmployeeStockOptionMember2022-02-012022-02-2800015757932022-01-012022-03-310001575793watt:TwoThousandAndFifteenPerformanceShareUnitPlanMember2021-06-160001575793us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001575793us-gaap:AdditionalPaidInCapitalMember2021-12-310001575793us-gaap:EmployeeStockOptionMemberwatt:EmployeeStockPurchasePlanMember2022-01-012022-06-300001575793us-gaap:CommonStockMember2022-06-3000015757932015-06-252015-06-250001575793srt:MaximumMemberwatt:NonemployeeEquityCompensationPlans2014Memberus-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001575793watt:ChipDevelopmentExpenseMemberwatt:DialogSemiconductorPlcMember2022-01-012022-06-300001575793us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-06-300001575793watt:SanJoseCaliforniaMembersrt:MaximumMember2022-10-012022-10-310001575793us-gaap:CommonStockMemberwatt:WarrantsTwoThousandTwentyThreeMember2023-03-310001575793us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-3000015757932020-10-012020-12-310001575793us-gaap:RetainedEarningsMember2022-03-310001575793watt:ProductDevelopmentProjectsRevenueMember2023-01-012023-06-300001575793watt:SaleOfCommonStockMember2023-01-012023-03-310001575793us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Memberwatt:WarrantsTwoThousandTwentyThreeMember2023-06-300001575793us-gaap:EmployeeStockOptionMember2023-04-012023-06-3000015757932022-03-31xbrli:purexbrli:shareswatt:Votewatt:Customerwatt:Installmentiso4217:USDiso4217:USDxbrli:shares

 

 

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

OR

 

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.

3


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.

4


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.

5


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.

6


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.