Management to Host Conference Call on May 14, 2014 at 11:00 am ET
PLEASANTON, CA — (Marketwired) — 05/14/14 — Energous Corporation (“Energous” or “the Company”) (NASDAQ: WATT), developer of WattUp™, a disruptive wire-free charging technology, announced its financial results for the three months ended March 31, 2014 and provided a business update.
- Raised $24.8 million in net proceeds through an initial public offering of 4.6 million common shares which commenced trading on March 28th and closed on April 2nd
- Converted all notes outstanding to common stock following the completion of the IPO, extinguishing all debt
- Signed 4 Memorandum of Understandings (MOUs) year-to-date for WattUp Technology
- Closed $1 million strategic investment from Hanbit Electronics Co. Ltd. and entered into Joint Development Agreement (JDA) to facilitate the development of wire-free energy routers for consumer and automotive applications
- 50 pending U.S. patents and provisional patent applications, an increase of 13 from the IPO date
- Added to Wilshire 5000 Total Market Index on April 18, 2014
- Added four independent board members with relevant industry experience
“Energous is aggressively moving forward with its vision of commercializing the WattUp wire-free charging technology that can be deployed across multiple products and end markets,” stated Stephen R. Rizzone, President and CEO of Energous Corporation. “Responses from potential strategic partners in our initial target markets of mobile phones, accessories, and wearables have been extremely positive. We have signed four MOUs with strategic partners who have each agreed to further, in-depth technical evaluation, with the goal of executing a Joint Development Agreement that would incorporate our WattUp technology in consumer-facing products. We anticipate that the pace of customer engagements will continue as we expose our technology to OEMs, ODMs and semiconductor companies, within our target markets, who all recognize the need and the opportunity for a true wire-free charging solution that offers power at a distance with complete mobility and software control. Following the Wi-Fi roll-out blueprint, we have developed a methodical plan to accomplish our goals over the next eighteen months. Utilizing the proceeds from the IPO, we are accelerating the build out of the Company; increasing our investments in engineering, marketing and intellectual property. The Energous team intends to build a predictable, valuable, and game changing business that disrupts the current thinking on wire-free power.”
- All of the Company’s convertible notes were converted to approximately 1.9 million common shares immediately following the completion of our initial public offering.
- The Company currently has approximately 9.4 million shares outstanding and approximately 2.7 million warrants and options outstanding.
- For the first quarter of 2014, the Company incurred $2.0 million in operating expenses (including stock-based expense), which consisted of $0.9 million in R&D, $0.7 million in SG&A, and $0.4 million in marketing expenses.
- The Company reported a net loss (GAAP) of $31 million for the first quarter of 2014 which included a $28 million charge for the change in market value of derivative liabilities, a $0.5 million charge for stock-based compensation expense and $1.0 million in interest expense.
- The Company reported an adjusted EBITDA (non-GAAP) loss of $1.5 million for the first quarter of 2014.
- By converting all the outstanding notes to common shares, any future non-cash expenses related to the notes will have been eliminated.
In January, Energous met with approximately 30 companies at the Consumer Electronics Show (CES) in Las Vegas. This included consumer product OEMs and ODMs in addition to electronic component manufactures. This was our first broad scale opportunity to share our technology platform and go to market strategy. To date, Energous has communicated with over 50 companies which represent prospective future licensees.
Feedback was overwhelmingly positive and this led to the signing of four MOUs. An MOU is the first important step to any business relationship. An MOU will typically cover a period of several months and will allow both sides to explore product integration opportunities, perform deep technical analysis of the WattUp technology, and develop the go-to-market strategy and allocation of resources. This will enable both parties to collectively make an informed decision. If successful, the MOU acts as a framework for a binding JDA, which clearly defines both parties obligations during the development of a product. Energous signed a JDA with Hanbit for the development of WattUp enabled solutions, with a target of demonstrating their first solution at CES in January, 2015.
A successful JDA will provide the roadmap to a successful licensing agreement. Management views this as the only viable strategy to penetrate the marketplace quickly and broadly and provides the best avenue for WattUp to become ubiquitous over time.
Energous expects WattUp to be commercially available to licensees during the fourth quarter of 2014. The Company estimates that licensees will take 18 to 24 months to deliver consumer products to market. Initial products are anticipated to incorporate WattUp into covers for mobile phones and tablets, while other consumer products will likely incorporate WattUp into the product design.
2014 Milestones Roadmap
- Early adopters engaged with additional JDA agreements signed
- New ASIC for the transmitter and receiver completed
- Reference Designs released to Early Adopters
- Progress on the Regulatory Approvals
- Continued expansion of the IP Patent Portfolio
Energous will host a conference call at 11:00 am ET on May 14, 2014 to discuss its first quarter 2014 results. Please use the following information:
Date: Wednesday, May 14, 2014
Time: 11:00 am Eastern Time
Conference Line (U.S.): 1-877-941-8416
International Dial-In: 1-480-629-9808
Conference ID: 4681726
Please dial in at least 10-minutes before the call to ensure timely participation.
A playback of the call will be available until 11:59 pm ET on May 28, 2014. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin number 4681726.
About Energous Corporation
Energous Corporation is developing WattUp™, a wire-free charging technology that will transform the way people charge and power their electronic devices at home, in the office, in the car and beyond. WattUp is a revolutionary, patent- and trademark-pending solution that delivers intelligent, scalable power via the same radio bands as a Wi-Fi router. WattUp differs from current wireless charging systems in that it delivers meaningful, useable power, at a distance, while allowing users to roam while charging. The result is a true wire-free experience that saves users from having to remember to plug in their devices or place them on a mat. Energous will initially license WattUp to the wearable and mobile-accessory markets and will expand to other markets such as Wi-Fi routers and smartphones over time. For more information, please visit www.energous.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the “safe harbor” created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “anticipate” or other comparable terms. All statements in this release that are not based on historical fact are “forward looking statements”. While management has based any forward looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our recently filed registration statement on Form S-1. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Use of Non-GAAP Financial Information
In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, the Company presents adjusted EBITDA which is a non-GAAP measure. The adjusted EBITDA is determined by taking the net loss and adding interest, taxes, depreciation, amortization, stock-based compensation and the change in fair value of derivative liabilities. The Company believes that this non-GAAP measure, viewed in addition to and not in lieu of the Company’s reported GAAP results, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. A reconciliation table to the comparable GAAP measure is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
Source: Energous Corporation
Released May 14, 2014