Energous Corp 10-Q for FY2024 Q3

Energous Corp (WATT)

10-Q 2024-11-13 For: 2024-09-30

Added on April 10, 2026

About this 10-Q

Energous Corp filed this 10-Q on November 13, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $230K; up 36.1% from $169K a year earlier
Net loss: $3.41M; compared with a net loss of $4.11M a year earlier
Diluted EPS: -$0.50; compared with -$0.86 a year earlier

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


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


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


PART I - FINANCIAL INFORMATION	3

Item 1. Financial Statements (unaudited)	3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3. Quantitative and Qualitative Disclosure About Market Risk	32

Item 4. Controls and Procedures	32

PART II – OTHER INFORMATION	33

Item 1. Legal Proceedings	33

Item 1A. Risk Factors	33

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3. Defaults Upon Senior Securities	33

Item 4. Mine Safety Disclosures	33

Item 5. Other Information	33

Item 6. Exhibits	34


	As of
	September 30, 2024		December 31, 2023
	(unaudited)			(1)
ASSETS
Current assets:
Cash and cash equivalents	$	1,451	$	13,876
Restricted cash		—		60
Accounts receivable, net		152		102
Inventory		737		430
Prepaid expenses and other current assets		511		539
Total current assets		2,851		15,007

Property and equipment, net		404		429
Operating lease right-of-use assets		695		1,240
Total assets	$	3,950	$	16,676
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,538	$	1,879
Accrued expenses		956		1,254
Accrued severance expense		37		134
Warrant liability		207		620
Operating lease liabilities, current portion		767		707
Deferred revenue		11		27
Total current liabilities		3,516		4,621

Operating lease liabilities, long-term portion		—		557
Total liabilities		3,516		5,178

Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized as of September 30, 2024 and December 31, 2023; no shares issued or outstanding as of September 30, 2024 and December 31, 2023.		—		—
Common Stock, $0.00001 par value, 200,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 7,774,275 and 5,471,121 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		1		1
Additional paid-in capital		396,744		393,539
Accumulated deficit		(396,311)		(382,042)
Total stockholders’ equity		434		11,498
Total liabilities and stockholders’ equity	$	3,950	$	16,676


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


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


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Revenue	$	230	$	169	$	340	$	383
Costs and expenses:
Cost of revenue		306		48		537		270
Research and development		1,701		2,460		6,489		8,419
Sales and marketing		699		774		2,391		3,074
General and administrative		1,022		1,699		4,443		5,764
Severance expense		83		269		1,377		359
Total costs and expenses		3,811		5,250		15,237		17,886
Loss from operations		(3,581)		(5,081)		(14,897)		(17,503)
Other income (expense), net:
Offering costs related to warrant liability		—		—		—		(592)
Change in fair value of warrant liability		159		788		413		2,685
Interest income		10		179		215		648
Total other income (expense), net		169		967		628		2,741
Net loss	$	(3,412)	$	(4,114)	$	(14,269)	$	(14,762)
Basic and diluted loss per common share	$	(0.50)	$	(0.86)	$	(2.21)	$	(3.30)
Weighted average shares outstanding, basic and diluted		6,834,170		4,762,187		6,446,274		4,467,436


				Additional				Total
	Common Stock			Paid-in		Accumulated		Stockholders’
	Shares	Amount		Capital		Deficit		Equity
Balance as of January 1, 2024	5,471,121	$	1	$	393,539	$	(382,042)	$	11,498
Stock-based compensation - options	—		—		72		—		72
Stock-based compensation - restricted stock units (“RSUs”)	—		—		313		—		313
Stock-based compensation - employee stock purchase plan (“ESPP”)	—		—		19		—		19
Issuance of shares for RSUs	16,775		—		—		—		—
Proceeds from contributions to the ESPP	—		—		36		—		36
Issuance of shares in an at-the-market (“ATM”) placement, net of $2 in issuance costs	27,870		—		47		—		47
Issuance of shares in a sale of common stock, pre-funded warrants and warrants, net of $230 in issuance costs	570,000		—		1,770		—		1,770
Net loss	—		—		—		(6,599)		(6,599)
Balance as of March 31, 2024	6,085,766		1		395,796		(388,641)		7,156
Stock-based compensation - RSUs	—		—		159		—		159
Stock-based compensation - ESPP	—		—		(16)		—		(16)
Issuance of shares for RSUs	14,371		—		—		—		—
Net refunds due to ESPP participants	3,750		—		(33)		—		(33)
Pre-funded warrants exercised	450,409		—		—		—		—
Net loss	—		—		—		(4,258)		(4,258)
Balance as of June 30, 2024	6,554,296		1		395,906		(392,899)		3,008
Stock-based compensation - RSUs	—		—		128		—		128
Stock-based compensation - ESPP	—		—		1		—		1
Issuance of shares for RSUs	2,811		—		—		—		—
Proceeds from contributions to the ESPP	—		—		5		—		5
Issuance of shares in an ATM placement, net of $234 in issuance costs	1,217,168		—		704		—		704
Net loss	—		—		—		(3,412)		(3,412)
Balance as of September 30, 2024	7,774,275	$	1	$	396,744	$	(396,311)	$	434


	For the Nine Months Ended
	September 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(14,269)	$	(14,762)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		148		138
Stock-based compensation		676		1,395
Inventory net realizable value adjustment		—		166
Allowance for credit losses		—		(13)
Change in fair value of warrant liability		(413)		(2,685)
Offering costs allocated to warrants		—		592
Changes in operating assets and liabilities:
Accounts receivable, net		(50)		36
Inventory		(307)		(260)
Prepaid expenses and other current assets		28		(69)
Operating lease right-of-use assets		489		548
Accounts payable		(341)		(132)
Accrued expenses		(298)		(117)
Accrued severance expense		(97)		(214)
Operating lease liabilities		(441)		(534)
Deferred revenue		(16)		(5)
Net cash used in operating activities		(14,891)		(15,916)
Cash flows from investing activities:
Purchases of property and equipment		(123)		(97)
Net cash used in investing activities		(123)		(97)
Cash flows from financing activities:
Net proceeds from an ATM offering		751		3,558
Net proceeds from a sale of common stock and warrant issuance		1,770		2,677
Proceeds from contributions to the ESPP		8		70
Net cash provided by financing activities		2,529		6,305
Net decrease in cash, cash equivalents and restricted cash		(12,485)		(9,708)
Cash, cash equivalents and restricted cash - beginning		13,936		26,287
Cash, cash equivalents and restricted cash - ending	$	1,451	$	16,579
Supplemental disclosure of non-cash investing and financing activities:
Decrease in operating lease right-of-use assets and operating lease liabilities from incremental borrowing rate change	$	51	$	—
Increase in operating lease right-of-use assets and operating lease liabilities from lease modification	$	5	$	—


Device Type	Application
RF Tags	Cold Chain, Asset Tracking, Medical IoT
IoT Sensors	Cold Chain, Logistics, Asset Tracking
Electronic Shelf Labels	Retail and Industrial IoT


	For the three and	For the three and
	nine months ended	nine months ended
	September 30,	September 30,
	2024	2023
Warrants issued to investors	1,432,909	495,833
Options to purchase common stock	—	15,000
RSUs	517,303	83,687
PSUs	—	2,500
Total potentially dilutive securities	1,950,212	597,020


	Balance as of
	September 30, 2024		December 31, 2023
Raw materials	$	493	$	101
Work-in-process		—		52
Finished goods		244		277
Total	$	737	$	430


For the year ending December 31,	Amount
2024 (Remaining)	$	112
2025		686
Total future lease payments		798
Present value discount (8.0% weighted average)		(31)
Total operating lease liabilities	$	767


	September 30, 2024		December 31, 2023
Stock options outstanding		—		15,000
RSUs outstanding		517,303		71,734
Warrants outstanding		1,432,909		495,833
Shares available for issuance under the 2013 Equity Incentive Plan		—		118,877
Shares available for issuance under the 2014 Non-employee Equity Compensation Plan		—		29,137
Shares available for issuance under the 2015 Performance Share Unit Plan		—		108,897
Shares available for issuance under the 2017 Equity Inducement Plan		—		51,084
Shares available for issuance under the 2024 Equity Incentive Plan		284,758		—
Shares available for issuance under the Employee Stock Purchase Plan		17,166		14,716
Total		2,252,136		905,278


		Weighted
		Average
		Grant
		Date Fair
	Total	Value
Outstanding at January 1, 2024	71,734	$	24.65
RSUs granted	551,000		1.18
RSUs forfeited	(71,474)		4.61
RSUs vested	(33,957)		23.35
Outstanding at September 30, 2024	517,303	$	2.50


	Nine Months Ended September 30,
	2024		2023
Stock price	$1.09-1.83		$4.80-16.72
Dividend yield	0	%	0	%
Expected volatility	76%-112%		59%-67%
Risk-free interest rate	5.26%-5.37%		4.42%-5.47%
Expected life	6 months		6 months


	As of September 30,			As of June 30,			As of March 31,			As of September 30,			As of June 30,			As of March 31,
	2024			2024			2024			2023			2023			2023
Share price	$	0.59		$	1.09		$	2.03		$	1.60		$	4.80		$	10.80
Exercise price	$	0.56		$	1.66		$	1.66		$	1.66		$	8.00		$	8.00
Term (in years)		4.49			4.75			5.00			5.50			5.75			6.00
Volatility		85	%		85	%		85	%		75	%		65	%		65	%
Risk-free rate		3.6	%		4.4	%		4.2	%		4.6	%		4.1	%		3.6	%
Dividend yield		0	%		0	%		0	%		0	%		0	%		0	%


	Three months ended September 30,
	2024			2023			$ Change		% Change
Cost of sales	$	306		$	48		$	258		538	%
Percent of total revenue		133	%		28	%


	Balance as of September 30, 2024
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	1,451	$	—	$	—	$	1,451
Liabilities:
Warrant liability	$	—	$	—	$	207	$	207


	Balance as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents	$	12,567	$	—	$	—	$	12,567
Liabilities:
Warrant liability	$	—	$	—	$	620	$	620


	Nine months ended September 30, 2024
	2024				2023
Revenue	$	340	100	%	$	383	100	%
Costs and expenses:
Cost of revenue		537	158	%		270	70	%
Research and development		6,489	1,909	%		8,419	2,198	%
Sales and marketing		2,391	703	%		3,074	803	%
General and administrative		4,443	1,307	%		5,764	1,505	%
Severance expense		1,377	405	%		359	94	%
Total operating expenses		15,237	4,481	%		17,886	4,670	%
Loss from operations		(14,897)	(4,381)	%		(17,503)	(4,570)	%
Other (expense) income:
Offering costs related to warrant liability		—	—			(592)	(155)	%
Change in fair value of warrant liability		413	121	%		2,685	701	%
Interest income		215	63	%		648	169	%
Total other (expense) income		628	185	%		2,741	(716)	%
Net loss	$	(14,269)	(4,197)	%	$	(14,762)	(3,854)	%


Exhibit Number		Description

3.1		Second Amended and Restated Certificate of Incorporation of Energous Corporation, as amended (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed on August 10, 2020).

3.2		Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Energous Corporation (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on August 15, 2023).

3.3		Amended and Restated Bylaws of Energous Corporation (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-193522) filed on March 13, 2014).

31.1+		Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934

32.1+		Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS†		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH†		Inline XBRL Taxonomy Extension Schema Document

101.CAL†		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF†		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB†		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE†		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)


	ENERGOUS CORPORATION
	(Registrant)

Date: November 13, 2024	By:	/s/ Mallorie Burak
		Name:	Mallorie Burak
		Title:	Chief Executive Officer and Chief Financial Officer
			(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)