Welcome!

News Feed Item

Energous Corporation Provides First Quarter 2014 Update

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.

Year-To-Date Highlights:

  • 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."

Financial Results

  • 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.

Business Update:

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

Conference Call

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
Webcast: http://public.viavid.com/confirmation/confirmwebcast.php?id=o5arn5ec

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.

--Financial Tables Follow--



                            Energous Corporation
                           (f/k/a DvineWave Inc.)
                       (A Development Stage Company)
                          CONDENSED BALANCE SHEETS

                                                           As of
                                               ----------------------------
                                                 March 31,     December 31,
                                                    2014           2013
                                               -------------  -------------
                    ASSETS                      (unaudited)
  Current assets:
    Cash and cash equivalents                  $     730,279  $   1,953,780
    Prepaid expenses and other current assets        319,779        127,197
                                               -------------  -------------
    Total current assets                           1,050,058      2,080,977
                                               -------------  -------------

  Property and equipment, net                        193,138        189,612
  Deferred offering costs                            336,977         88,319
  Other assets                                         6,959          6,959
                                               -------------  -------------
    Total assets                               $   1,587,132  $   2,365,867
                                               =============  =============

     LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                             $     752,300  $     361,038
  Accrued expenses                                   379,487        243,623
  Convertible promissory notes, net                1,750,037        829,298
  Derivative liabilities                          34,268,000      6,277,000
                                               -------------  -------------
    Total current liabilities                     37,149,824      7,710,959
                                               -------------  -------------

  Deposit to purchase common stock                   300,000              -
                                               -------------  -------------
    Total liabilities                             37,449,824      7,710,959
                                               -------------  -------------

Commitments and contingencies

Stockholders' deficit
  Preferred Stock, $0.00001 par value,
   10,000,000 and 0 shares authorized at March
   31, 2014 and December 31, 2013,
   respectively; no shares issued or
   outstanding.                                            -              -
  Common Stock, $0.00001 par value, 50,000,000
   and 40,000,000 shares authorized at March
   31, 2014 and December 31, 2013,
   respectively; 2,708,217 shares issued and
   outstanding at March 31, 2014 and December
   31, 2013.                                              27             27
  Additional paid-in capital                         689,372        197,249
  Deficit accumulated during the development
   stage                                         (36,552,091)    (5,542,368)
                                               -------------  -------------
    Total stockholders' deficit                  (35,862,692)    (5,345,092)
                                               -------------  -------------
    Total liabilities and stockholders'
     deficit                                   $   1,587,132  $   2,365,867
                                               =============  =============



                            Energous Corporation
                           (f/k/a DvineWave Inc.)
                       (A Development Stage Company)
                     CONDENSED STATEMENTS OF OPERATIONS
                                (Unaudited)

                                                             For the Period
                                                               October 30,
                                                                  2012
                                                               (inception)
                              For the Three   For the Three      through
                              Months Ended    Months Ended      March 31,
                             March 31, 2014  March 31, 2013       2014
                             --------------  --------------  --------------

Operating expenses:
  Derivative instrument
   issuance                  $            -  $            -  $      887,062
  Research and development          929,213          41,209       3,056,206
  General and administrative        669,289          13,131       1,878,369
  Marketing                         422,031               -         655,653
                             --------------  --------------  --------------
    Loss from operations         (2,020,533)        (54,340)     (6,477,290)

Other (expense) income:
  Change in fair value of
   derivative liabilities       (27,991,000)              -     (28,168,000)
  Interest (expense) income,
   net                             (998,190)             16      (1,906,801)
                             --------------  --------------  --------------
    Other (expense) income,
     net                        (28,989,190)             16     (30,074,801)
                             --------------  --------------  --------------

Net loss                     $  (31,009,723) $      (54,324) $  (36,552,091)
                             ==============  ==============  ==============

Basic and diluted net loss
 per common share            $       (11.45) $        (0.02)
                             ==============  ==============

Weighted average shares
 outstanding, basic and
 diluted                          2,708,217       2,188,880
                             --------------  --------------



                            Energous Corporation
                           (f/k/a DvineWave Inc.)
                       (A Development Stage Company)
                     CONDENSED STATEMENTS OF CASH FLOWS
                                (Unaudited)

                                                             For the Period
                                                               October 30,
                                                                  2012
                              For the Three   For the Three    (inception)
                              Months Ended    Months Ended       through
                             March 31, 2014  March 31, 2013  March 31, 2014
                             --------------  --------------  --------------
Cash flows from operating
 activities:
Net loss                     $  (31,009,723) $      (54,324) $  (36,552,091)
Adjustments to reconcile net
 loss to net cash used in
 operating activities:
      Depreciation and
       amortization                  24,213               -          28,930
      Stock based
       compensation                 492,123               -         508,271
      Amortization of debt
       discount                     920,739               -       1,626,028
      Warrant expense                     -               -         724,000
      Change in fair market
       value of derivative
       liabilities               27,991,000               -      28,168,000
      Write off of abandoned
       trademark                          -               -           4,725
Changes in operating assets
 and liabilities:
      Prepaid expenses and
       other current assets        (192,582)        (28,167)       (319,779)
      Other assets                        -               -          (6,959)
      Accounts payable              391,262          (1,525)        752,300
      Accrued expenses              135,864          30,950         379,487
      Other current
       liabilities                        -          25,000               -
                             --------------  --------------  --------------
    Net cash used in
     operating activities        (1,247,104)        (28,066)     (4,687,088)
                             --------------  --------------  --------------

Cash flows from investing
 activities:
  Purchase of property and
   equipment                        (27,739)              -        (222,068)
  Costs of trademark                      -               -          (4,725)
                             --------------  --------------  --------------
    Net cash used in
     investing activities           (27,739)              -        (226,793)
                             --------------  --------------  --------------

Cash flows from financing
 activities:
  Proceeds from the sale of
   common stock                           -         160,417         210,681
  Payment of deferred
   offering costs                  (248,658)        (12,120)       (336,977)
  Repurchase of restricted
   common stock                           -               -         (29,553)
  Proceeds from the sale of
   senior secured
   convertible notes                      -               -       5,500,009
  Deposit to purchase common
   stock                            300,000               -         300,000
                             --------------  --------------  --------------
    Net cash provided by
     financing activities            51,342         148,297       5,644,160
                             --------------  --------------  --------------

Net (decrease) increase in
 cash and cash equivalents       (1,223,501)        120,231         730,279
  Cash and cash equivalents
   - beginning                    1,953,780             994               -
                             --------------  --------------  --------------
  Cash and cash equivalents
   - ending                  $      730,279  $      121,225  $      730,279
                             ==============  ==============  ==============



                            Energous Corporation
                           (f/k/a DvineWave Inc.)
                       (A Development Stage Company)
                   Reconciliation of Non-GAAP Information
                                (unaudited)

                                                For the Three Months Ended
                                                         March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------

Adjusted EBITDA

Net loss (GAAP)                                $ (31,009,723) $     (54,324)
Add back (deduct) items:
  Interest expense (income), net                     998,190            (16)
  Depreciation and amortization                       24,213              -
  Stock-based compensation                           492,123              -
  Change in fair value of derivative
   liabilities                                    27,991,000              -
                                               -------------  -------------
Adjusted EBITDA                                $  (1,504,197) $     (54,340)
                                               =============  =============


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...