Core Insights - Energous Corporation reported a significant revenue increase of over 430% in Q1 2025 compared to Q1 2024, driven by a 483% increase in revenue from PowerBridge transmitter systems [2][5] - The company secured $13.8 million in net proceeds from its at-the-market offering program to support growth initiatives [2][11] - The company aims to reduce cash burn, achieving annualized cost savings of approximately $7.3 million [2] Financial Performance - Revenue for Q1 2025 was $0.3 million, up from approximately $0.1 million in Q1 2024, marking a 436% year-over-year increase [5] - Gross profit for Q1 2025 was approximately $0.1 million, a 307% improvement from a gross loss of $45,000 in the prior year [5] - Operating expenses decreased to $3.7 million in Q1 2025 from $6.6 million in Q1 2024, representing a 44% year-over-year improvement [5] Operational Highlights - The company shipped an additional $0.3 million in products after Q1 2025, primarily to multinational retailers and a multi-billion dollar power company [5] - Energous introduced two new products: the AI-driven PowerBridgeMOD and PowerBridge PRO+ with integrated gateway, enhancing its asset tracking solutions [11] - A major retailer is accelerating a multi-stage infrastructure modernization project, planning to deploy PowerBridge PRO transmitters in over 4,700 locations nationwide [11] Cash Position - As of March 31, 2025, the company had approximately $10.1 million in cash and cash equivalents, a significant increase from $1.4 million at the end of Q1 2024 [5][16]

Technology Development - The company has developed a scalable Wireless Power Network (WPN) technology that enables RF-based charging for IoT devices, enhancing operational visibility and intelligent business automation [10]. - The first WPN-enabled product was launched in 2019, with shipments of the first at-a-distance wireless PowerBridge transmitter systems commencing in Q4 2021 [12]. - The company aims to build multiple integrated circuits (ICs) to advance its technology and develop complete transmitter system solutions to enable wireless power network growth [15]. - The company is pursuing regulatory approvals for its technology, having received Part 15 and Part 18 FCC approvals in the U.S. and various international regulatory approvals [40]. - The company targets multiple markets for its receiver technology, including IoT devices, smart home sensors, and logistics tracking [35]. - The company plans to integrate its WPN technology into third-party devices, including industrial and medical applications, to expand its market reach [33]. - The company emphasizes the importance of interoperability in its technology, similar to the Wi-Fi ecosystem, to foster widespread adoption [14]. - The company is focused on developing cost-effective solutions that provide utility and convenience to customers, aiming to establish a ubiquitous charging solution [21]. - As of December 31, 2024, the company completed the regulatory process for its PowerBridge wireless charging technology in multiple regions, including the U.S., Canada, Europe, and China, enabling unlimited distance wireless charging [45]. Financial Performance - The company had an accumulated deficit of approximately $400.4 million as of December 31, 2024, indicating a significant financial challenge in achieving profitability [64]. - The company has no history of generating meaningful product revenue and may never achieve or maintain profitability, which poses a risk to investors [54]. - Revenue for 2024 was $768,000, a 62% increase from $474,000 in 2023, primarily driven by commercial sales of PowerBridge transmitters [185]. - Cost of revenue increased to $756,000 in 2024, representing 98% of total revenue, compared to $279,000 or 59% in 2023, indicating a significant rise in production costs [186]. - Operating expenses totaled $18.4 million in 2024, a decrease from $22.1 million in 2023, with research and development expenses accounting for $8.3 million in 2024 [185]. - The net loss for 2024 was $18.4 million, compared to a net loss of $19.4 million in 2023, reflecting a slight improvement in financial performance [185]. - Cash on hand as of December 31, 2024, was $1.4 million, with net cash used in operating activities of $17.6 million [195]. - The company raised net proceeds of $3.2 million through at-the-market offerings in 2024 [202]. - A new subordinated business loan agreement was entered into, providing for a term loan of $997,000, with repayments commencing on October 14, 2024 [206]. - The company anticipates cash flows generated from operations will be sufficient to meet liquidity needs for at least the next 12 months [175]. Operational Risks - The current economic environment poses risks, including inflation and supply chain disruptions, which the company is closely monitoring for their impact on operations and financial position [20]. - The company is subject to various risks, including the potential inability to develop all desired features in its technology and the need for additional capital to support operations [54]. - The company relies on third-party components, which could disrupt manufacturing and sales if unavailable, highlighting supply chain vulnerabilities [56]. - Future debt obligations may limit the company's ability to invest in capacity, technology, or other business areas, potentially adversely affecting financial condition and operating results [67]. - Inflation has increased the company's overall cost structure, impacting liquidity and financial condition, with expectations of moderate increases in certain areas in 2025 [69]. - The company faces intense competition and rapid technological changes, which may affect the relevance of its products [84]. - The company must navigate potential safety concerns related to its technology, which could lead to legal actions and impact sales [82]. - The company may experience challenges in transitioning technology from laboratory conditions to real-world applications, affecting performance [81]. - The company relies on a limited number of suppliers for critical components, which may lead to disruptions in manufacturing and fulfillment of sales orders [96]. - The company faces significant cost increases due to volatility in the prices of raw materials and components, which could adversely impact financial results [97]. - The company faces challenges in maintaining product quality, which could lead to delays in revenue recognition and potential penalties from customers [89]. - The company must ensure effective interoperability of its products with wireless networks and devices, as failure to do so could harm future sales [91]. - The company is dependent on unlicensed RF spectrum for its products, and any changes in availability could negatively affect performance and revenue [99]. - The company may incur substantial costs related to recalls or corrective actions if quality issues arise with its products [90]. - The company faces risks related to international trade policies, which could increase costs and affect demand for its technology [98]. Human Resources and Management - The company employs 26 full-time employees, with 14 being engineers, indicating a lean operational structure focused on technical development [47]. - The company is highly dependent on a small number of key executives, and losing any of them could impede business growth and strategy implementation [128]. - Attracting and retaining high-level engineering talent is critical for the company's success, but competition for such talent is intense [129]. - The company utilizes engineering consultants to enhance productivity, but reliance on third-party service providers poses operational risks [130]. Legal and Compliance - The company is exposed to risks related to patent infringement lawsuits, which could be costly and distract management from core operations [112]. - Regulatory approvals for the company's RF energy technology are costly and time-consuming, and failure to obtain them could adversely affect business operations [127]. - The company must navigate evolving privacy and data protection regulations, which could impose additional compliance costs and impact operations [124]. - The company has received notice from Nasdaq on December 4, 2024, for non-compliance with the minimum stockholders' equity requirement [147]. - The company regained compliance with the Stockholders' Equity Requirement on January 21, 2025, but may face future delisting if compliance is not maintained [149]. - The company expects to incur significant costs associated with being a public reporting company, which will increase if it ceases to qualify as a smaller reporting company [140]. - The company is subject to potential securities litigation due to stock price volatility, which could divert management attention and resources [141]. Market Dynamics - Market acceptance of the company's RF-based charging systems is crucial for revenue generation, with various factors influencing this acceptance [76]. - The company anticipates seasonal demand variations, particularly during the December holiday season and back-to-school periods [79]. - The top two customers accounted for approximately 76% of the company's revenue for the year ended December 31, 2024, indicating a high revenue concentration risk [102]. - The market price of the company's common stock has fluctuated significantly since its IPO in 2014, influenced by various external factors [138]. - The company may face challenges in maintaining effective internal control over financial reporting, which could impact investor confidence [135]. - The company’s stock price may be adversely affected by changes in the fair value of its warrants, which are classified as liabilities [146]. - The company’s operations could be impacted by adverse macroeconomic conditions, including rising interest rates and geopolitical instability [150].

[Fiscal Year 2024 Financial Results](index=1&type=section&id=Fiscal%20Year%202024%20Financial%20Results) Energous reported a 62% year-over-year revenue increase to $0.8 million for fiscal year 2024, driven by a significant shift towards PowerBridge transmitter sales, which constituted 88% of the revenue FY 2024 Key Financial Metrics (vs. FY 2023) | Metric | FY 2024 | FY 2023 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $0.8 million | $0.5 million | +62% YoY | | **Total OpEx (GAAP)** | $19.2 million | $22.6 million | -15% YoY | | **Non-GAAP OpEx** | $16.2 million | $20.0 million | -19% YoY | | **Net Loss (GAAP)** | $(18.4) million | $(19.4) million | 5% improvement | | **Net Loss per Share (GAAP)** | $(2.57) | $(4.15) | 38% improvement | | **Non-GAAP Net Loss** | $(16.2) million | $(19.1) million | 15% improvement | - A significant shift in revenue composition occurred in 2024, with **88% of revenue** generated from PowerBridge transmitter sales, compared to 2023 when 80% of revenue came from non-recurring engineering services and micro-chip sales[6](index=6&type=chunk) - Cash and cash equivalents were approximately **$1.4 million** at year-end 2024, but increased to approximately **$11.7 million** as of February 25, 2025, following a capital raise[6](index=6&type=chunk)[8](index=8&type=chunk) [Company Highlights and Strategic Developments](index=1&type=section&id=Company%20Highlights) In 2024, Energous achieved significant commercial traction, with PowerBridge transmitter revenue surpassing all cumulative sales since its 2021 launch, securing a major contract with a Fortune 10 retailer and strengthening its IP portfolio - Revenue from PowerBridge transmitter shipments in 2024 alone surpassed all cumulative revenue for the product since its introduction in Q4 2021, marking a significant adoption milestone[5](index=5&type=chunk) - Awarded the first phase of a multi-stage project by a Fortune 10 multinational retailer to deploy PowerBridge transmitters in more than **4,700 locations**[8](index=8&type=chunk) - Engaged by a global leader in RFID solutions to develop a battery-free smart tag for retail IoT applications[8](index=8&type=chunk) - Strengthened its intellectual property portfolio by being granted **13 new patents** in 2024[8](index=8&type=chunk) - Raised approximately **$13.4 million**, net of costs, between January 1 and February 12, 2025, to fund growth initiatives[8](index=8&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The financial statements provide a detailed view of Energous' financial position and performance for the year ended December 31, 2024, including Balance Sheets, Statements of Operations, and non-GAAP reconciliations [Balance Sheets](index=4&type=section&id=BALANCE%20SHEETS) As of December 31, 2024, Energous reported total assets of **$3.8 million**, a significant decrease from **$16.7 million** in 2023, primarily due to reduced cash and a stockholders' deficit of **$(1.1) million** Balance Sheet Summary (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,353 | $13,876 | | **Total current assets** | $2,912 | $15,007 | | **Total assets** | $3,795 | $16,676 | | **Total current liabilities** | $4,872 | $4,621 | | **Total liabilities** | $4,872 | $5,178 | | **Total stockholders' equity (deficit)** | $(1,077) | $11,498 | [Statements of Operations](index=5&type=section&id=STATEMENTS%20OF%20OPERATIONS) For FY 2024, Energous generated revenue of **$768 thousand** with a gross profit of **$12 thousand**, recording a GAAP net loss of **$(18.4) million**, an improvement from **$(19.4) million** in 2023 due to reduced operating expenses Statement of Operations Summary (in thousands, except per share data) | Account | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Revenue** | $768 | $474 | | **Gross profit** | $12 | $195 | | **Total operating expenses** | $18,422 | $22,294 | | **Loss from operations** | $(18,410) | $(22,099) | | **Net loss** | $(18,398) | $(19,367) | | **Basic and diluted net loss per share** | $(2.57) | $(4.15) | [Reconciliation of Non-GAAP Information](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Information) The company provides a reconciliation from GAAP to non-GAAP figures, adjusting for items like stock-based compensation, resulting in a non-GAAP net loss of **$(16.2) million** for 2024 GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Description | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Net loss (GAAP)** | $(18,398) | $(19,367) | | Adjustments (Stock-based comp, severance, etc.) | $2,189 | $(686) | | **Adjusted non-GAAP net loss** | $(16,209) | $(19,066) | GAAP to Non-GAAP Operating Expenses Reconciliation (in thousands) | Description | FY 2024 | FY 2023 | | :--- | :--- | :--- | | **Total operating expenses (GAAP)** | $18,422 | $22,294 | | Adjustments (Depreciation, stock-comp, severance) | $(2,232) | $(2,224) | | **Adjusted non-GAAP operating expenses** | $16,190 | $20,070 | [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures) Energous utilizes non-GAAP financial measures to supplement GAAP results, providing investors with a clearer evaluation of ongoing operational performance by excluding specific non-cash and non-recurring items - The company uses non-GAAP financial measures internally to analyze financial results and believes they are a useful supplement for investors to evaluate ongoing operational performance and trends[11](index=11&type=chunk) - Key adjustments to derive non-GAAP figures include excluding depreciation and amortization, stock-based compensation expense, severance expense, offering costs related to warrant liability, change in fair value of warrant liability, and the loss on the extinguishment of short-term debt[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard safe harbor language, cautioning that forward-looking statements are subject to various risks and uncertainties, including regulatory approvals and market competition, which could cause actual results to differ - The press release contains forward-looking statements regarding future plans, financial projections, partner collaborations, and technology functionality[10](index=10&type=chunk) - Key risk factors that could cause actual results to differ from expectations include timing of regulatory approvals, timing of customer product development, dependence on distribution partners, and intense industry competition[10](index=10&type=chunk)

Core Viewpoint - Energous Corporation reported significant financial growth in 2024, with a shift towards increased revenue from its PowerBridge transmitters, indicating a positive trend in market adoption of its wireless power solutions [1][5][7]. Financial Results - Revenue for the year ended December 31, 2024, was $0.8 million, a 62% increase from approximately $0.5 million in 2023 [5]. - In 2024, 88% of revenue was generated from PowerBridge transmitters, compared to 80% of 2023 revenue from non-recurring engineering services and micro-chip sales [5]. - Fourth quarter revenue for 2024 was $0.4 million, an 86% increase from approximately $0.2 million in the third quarter of 2024 [5]. - Total GAAP cost of revenue and operating expenses for 2024 was $19.2 million, down from $22.6 million in 2023 [5]. - Non-GAAP operating expenses decreased by approximately $4.0 million, or 19%, year over year, totaling $16.2 million in 2024 [5]. - The net loss for 2024 was approximately $(18.4) million, or $(2.57) per share, an improvement from a net loss of $(19.4) million, or $(4.15) per share, in 2023 [5][17]. - Cash and cash equivalents as of December 31, 2024, were approximately $1.4 million, increasing to approximately $11.7 million by February 25, 2025 [5]. Company Highlights - The company was granted 13 new patents in 2024, enhancing its intellectual property portfolio [5]. - Energous rebranded its PowerBridge transmitters, with the PowerBridge PRO offering 8W EIRP capabilities and the PowerBridge LITE providing 4W EIRP capabilities [5]. - A significant contract was awarded by a Fortune 10 multinational retailer to deploy PowerBridge transmitters in over 4,700 locations [5]. - The company is developing a battery-free smart tag for a global leader in RFID-based solutions, aimed at enhancing visibility and asset tracking for retail IoT applications [5][7].

Financial Performance - Energous Corporation (WATT) incurred a loss of 50 cents per share in the third quarter of 2024, an improvement from a loss of 83 cents per share in the same quarter last year [1] - The company reported net revenues of $230 thousand, reflecting a year-over-year increase of 36.1% driven by higher shipments of the commercial Power Bridge transmitter system [1] - The net loss decreased by 29.5% to $3.6 million, while the cost of sales increased over 100% year over year to $306 thousand [3] Segmental Discussion - WATT reports its revenues under a single segment named Wireless Charging System Solutions, which includes revenues from product development projects and production-level systems [2] Expense Management - General and administrative expenses decreased by 39.9% year over year to $1 million, and research and development expenses declined by 30.9% to $1.7 million [3] Balance Sheet - As of the end of the third quarter, WATT had cash and cash equivalents of $1.5 million, a significant decrease from $13.9 million at the end of the fourth quarter of 2023 [4] - Accounts payable were reported at $1.5 million, down from $1.9 billion at the end of the year-ago quarter [4] Market Position - WATT currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed financial statements for the three months ended March 31, 2024, detailing changes in assets, liabilities, equity, and cash flows [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased to **$13.1 million** from **$16.7 million** due to lower cash, with liabilities increasing to **$5.9 million** from accrued severance Condensed Balance Sheet Data (in thousands) | Account | March 31, 2024 (unaudited) | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $10,655 | $13,876 | | Total current assets | $11,681 | $15,007 | | Total assets | $13,092 | $16,676 | | **Liabilities & Equity** | | | | Accrued severance expense | $1,469 | $134 | | Total current liabilities | $5,567 | $4,621 | | Total liabilities | $5,936 | $5,178 | | Total stockholders' equity | $7,156 | $11,498 | | Total liabilities and stockholders' equity | $13,092 | $16,676 | [Condensed Statements of Operations](index=4&type=section&id=Condensed%20Statements%20of%20Operations) For Q1 2024, revenue was **$64,000**, with a **$6.7 million** operating loss and **$6.6 million** net loss, impacted by **$1.6 million** severance Condensed Statement of Operations Data (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $64 | $97 | | Total costs and expenses | $6,729 | $6,391 | | Severance expense | $1,563 | $0 | | Loss from operations | $(6,665) | $(6,294) | | Net loss | $(6,599) | $(6,653) | | Basic and diluted loss per common share | $(1.11) | $(1.63) | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$5.1 million**, while financing activities provided **$1.9 million**, leading to a net decrease in cash of **$3.2 million** Condensed Statement of Cash Flows Data (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,073) | $(5,364) | | Net cash used in investing activities | $(1) | $0 | | Net cash provided by financing activities | $1,853 | $5,417 | | Net decrease in cash, cash equivalents and restricted cash | $(3,221) | $53 | | Cash, cash equivalents and restricted cash - ending | $10,715 | $26,340 | [Note 1 - Business Organization, Nature of Operations](index=7&type=section&id=Note%201%20-%20Business%20Organization%2C%20Nature%20of%20Operations) The company develops wireless power networks technology for IoT devices, and a 1-for-20 reverse stock split was retroactively applied in August 2023 - The company develops **wireless power networks technology (WPNT)** using **RF-based charging** for **IoT devices** in markets such as retail, industrial, and medical[21](index=21&type=chunk)[22](index=22&type=chunk) - A **1-for-20 reverse stock split** was effected on August 16, 2023 All share and per-share data have been retroactively adjusted[24](index=24&type=chunk)[25](index=25&type=chunk) [Note 2 – Liquidity and Management Plans](index=8&type=section&id=Note%202%20%E2%80%93%20Liquidity%20and%20Management%20Plans) The company, with **$10.7 million** cash as of March 31, 2024, relies on securities offerings to fund operations and expects to pursue additional financing - As of March 31, 2024, the company had **$10.7 million** in cash and cash equivalents, which is expected to fund operations through **May 2025**[27](index=27&type=chunk) - The company has a history of **net losses** and relies on securities offerings for liquidity, having raised **$1.8 million** in Q1 2024[26](index=26&type=chunk) - Management expects to pursue **additional financing** through equity or debt offerings, bank financings, or strategic partnerships to sustain operations[28](index=28&type=chunk) [Note 6 – Commitments and Contingencies](index=13&type=section&id=Note%206%20%E2%80%93%20Commitments%20and%20Contingencies) The company recorded **$1.5 million** severance for its CEO, has **$1.1 million** in lease commitments, and is winding down its Dialog alliance - Following the departure of CEO Cesar Johnston in March 2024, the company recorded **$1.5 million** in severance expense, including accelerated stock-based compensation[69](index=69&type=chunk) - The company has total future lease payments of **$1.1 million** for its San Jose headquarters, with the lease term ending in **Q3 2025**[60](index=60&type=chunk)[61](index=61&type=chunk) - The **Strategic Alliance Agreement** with Dialog (acquired by Renesas) is in a wind-down period that will conclude in **September 2024**, terminating the parties' exclusivity rights[75](index=75&type=chunk) [Note 7 – Capital Stock and Warrants](index=16&type=section&id=Note%207%20%E2%80%93%20Capital%20Stock%20and%20Warrants) In February 2024, the company raised **$1.8 million** from a registered direct offering, detailing common stock reserved for future issuance - In February 2024, the company raised approximately **$1.8 million** in net proceeds from a **registered direct offering** of common stock, pre-funded warrants, and warrants[80](index=80&type=chunk) Common Stock Reserved for Future Issuance | Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Stock options outstanding | 11,250 | 15,000 | | RSUs outstanding | 102,179 | 71,734 | | Warrants outstanding | 1,883,318 | 495,833 | | Total Reserved | 2,401,248 | 905,278 | [Note 8 – Stock-Based Compensation](index=18&type=section&id=Note%208%20%E2%80%93%20Stock-Based%20Compensation) Total stock-based compensation was **$404,000** in Q1 2024, with **$130,000** for CEO severance due to accelerated vesting Stock-Based Compensation Expense (in thousands) | Department | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Research and development | $107 | $209 | | Sales and marketing | $80 | $105 | | General and administrative | $87 | $208 | | Severance expense | $130 | $0 | | **Total** | **$404** | **$522** | - Accelerated vesting for the former CEO resulted in stock-based compensation expense of approximately **$53,000** for options and **$77,000** for RSUs during the quarter[93](index=93&type=chunk)[98](index=98&type=chunk) [Note 12 – Customer Concentrations](index=24&type=section&id=Note%2012%20%E2%80%93%20Customer%20Concentrations) Significant customer concentration exists, with **87%** of Q1 2024 revenue from four customers and **92%** of accounts receivable from two - For Q1 2024, **four customers** accounted for **87%** of revenue[117](index=117&type=chunk) - As of March 31, 2024, **two customers** accounted for **92%** of the accounts receivable balance[117](index=117&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, noting flat revenue, increased operating loss from severance, and reliance on financing [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q1 2024 revenue was **$0.1 million**, with operating loss increasing to **$6.7 million** due to **$1.6 million** severance, despite R&D and S&M cost cuts - Revenue was **$0.1 million** for Q1 2024, a slight decrease from Q1 2023 due to lower transmitter sales volume[125](index=125&type=chunk) - Research and development costs decreased by **$0.7 million** (**24%**) YoY, primarily due to reduced employee compensation, engineering supplies, and legal fees[128](index=128&type=chunk) - Sales and marketing costs decreased by **$0.3 million** (**28%**) YoY, driven by lower payroll, stock-based compensation, and marketing/tradeshow costs[129](index=129&type=chunk) - A severance expense of **$1.6 million** was recorded in Q1 2024, mostly attributed to the departure of the former President and CEO[131](index=131&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company relies on securities offerings for liquidity, raising **$1.8 million** in Q1 2024, and anticipates additional capital for R&D and commercialization - The company is meeting liquidity requirements through securities offerings, raising net proceeds of **$1.8 million** in Q1 2024[136](index=136&type=chunk) - Management believes current cash, along with proceeds from future financing and cost reductions, will fund operations for at least the **next twelve months**[137](index=137&type=chunk) - In February 2024, the company raised approximately **$1.8 million** in net proceeds from a **registered direct offering** of common stock and warrants[141](index=141&type=chunk) Cash Flow Summary (in millions) | Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(5.1) | $(5.4) | | Net Cash Provided by Financing Activities | $1.9 | $5.4 | [Quantitative and Qualitative Disclosure About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company is not required to provide this information as it qualifies as a smaller reporting company - The company is not required to provide this information as it qualifies as a **smaller reporting company**[146](index=146&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of March 31, 2024, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were **effective** as of March 31, 2024[148](index=148&type=chunk) - There were **no changes** in **internal control over financial reporting** during Q1 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[149](index=149&type=chunk) [PART II – OTHER INFORMATION](index=31&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - The company is **not currently a party** to any **material legal proceedings**[151](index=151&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for fiscal year 2023 - **No material changes** have occurred to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2023[152](index=152&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[153](index=153&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter of 2024 - **No director or officer** adopted or terminated a **Rule 10b5-1 trading arrangement** during the quarter[155](index=155&type=chunk) [Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including corporate governance documents and required certifications

Financial Performance - Revenue for Q1 2024 was approximately $0.1 million, unchanged from the same period in 2023[5] - Total costs and expenses for Q1 2024 were $6.7 million, compared to $6.4 million in Q1 2023[5] - Non-GAAP costs and expenses decreased to $4.8 million in Q1 2024, down from $5.8 million in Q1 2023, representing a 17% reduction year over year[5] - Net loss for Q1 2024 was approximately $(6.6) million, or $(1.11) per share, compared to a net loss of $(6.7) million, or $(1.63) per share in Q1 2023[5] - Non-GAAP net loss improved to approximately $(4.6) million in Q1 2024 from $(5.5) million in Q1 2023, reflecting a 16% year-over-year improvement[5] - Cash and cash equivalents as of March 31, 2024, totaled approximately $10.7 million, with no debt[5] Business Development - Energous is collaborating with Velociti to build Over-the-Air wireless power network POCs for international retailers[5] - WiGL is commercializing an Energous-powered wireless power network for smart homes[5] - Energous received positive feedback for its 2 Watt PowerBridge transmitter, achieving 98% wireless power coverage[5] - Anukin's successful POC in Mexico improved asset tracking coverage by over 92% using Energous technology[5]

Financial Data and Key Metrics Changes - The recognized revenue for 2023 was approximately $0.5 million, a decrease of about 44% compared to $0.9 million in 2022 [31] - The cost of revenue in 2023 was approximately $0.3 million, yielding a positive gross margin of 41%, an improvement from the negative 50% gross margin reported in 2022 [32] - The GAAP reported net loss for 2023 was $19.4 million, compared to a loss of $26.3 million in 2022, indicating a reduction in losses [35] Business Line Data and Key Metrics Changes - Energous has expanded its proof-of-concept (POC) trials from 2 in Q3 2022 to 38 by Q4 2023, indicating significant growth in customer engagement [23] - The company is moving into a deployment sales phase for several completed POC trials, focusing on real-time asset tracking and supply chain visibility [24] Market Data and Key Metrics Changes - The company reported 38 POC trials across the US, Europe, and Asia, covering various markets including retail, industrial, logistics, and supply chain applications [23] - The partnership with Velociti as a preferred system integrator is expected to enhance market penetration and expand opportunities across multiple sectors [21] Company Strategy and Development Direction - Energous is focused on capitalizing on its first-to-market advantage in wireless power networks and improving operational efficiencies [12] - The company aims to evolve its product roadmap to support a future 15 Watt regulatory certified market in the US, which will open new markets for its technology [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on its mission and take advantage of the market opportunity for wire-free, low-power charging at a distance [10] - The leadership team is excited to move forward and build the next phase of growth in a strategic manner [11] Other Important Information - The company ended 2023 with $13.9 million in cash and remains debt-free, having raised approximately $4.2 million through an ATM to supplement working capital [37] - Energous is working closely with 18 technology partners and expects to engage additional partners as it progresses through 2024 [28] Summary of Q&A Session - No questions were taken during the call, and participants were invited to submit questions via email [5]

Technology Development - The company has developed wireless power networks technology (WPNT) for RF-based charging of IoT devices, targeting a market expected to grow to 29.4 billion connected devices by 2030[13]. - The first end product featuring the technology was launched in 2019, with commercial shipments of PowerBridges starting in Q4 2021[15]. - The company aims to build an ecosystem for interoperability among transmitters and receivers, similar to the Wi-Fi model, to enhance market adoption[17][18]. - In 2023, the company showcased innovative products, including the world's first smart football and a battery-free CO2 sensor, at CES 2023[24]. - The company holds over 250 issued patents as of March 1, 2024, with a focus on processing algorithms, antenna designs, and ASICs[36]. - The technology has received FCC Part 15 and Part 18 approvals, ensuring compliance with U.S. safety standards[38]. - The company plans to integrate its WPNT technology into third-party devices, enhancing its market reach and application versatility[33]. - The company is committed to pursuing regulatory approvals globally to facilitate the widespread adoption of its wireless charging technology[37]. Financial Performance - As of December 31, 2023, the company had an accumulated deficit of approximately $382 million[56]. - Revenue for 2023 was $474,184, a decrease of 44.1% compared to $851,321 in 2022, primarily due to a decrease in production-level systems sales volume[165]. - Operating expenses for 2023 were $22,573,929, down from $27,537,646 in 2022, reflecting a reduction in costs across various departments[166]. - The net loss for 2023 was $19,366,763, an improvement from a net loss of $26,275,260 in 2022[173]. - Cash flows used in operating activities were $19,248,510 in 2023, compared to $23,636,747 in 2022, indicating improved cash management despite ongoing losses[174]. - Cash flows provided by financing activities in 2023 totaled $7,084,345, significantly higher than $1,017,620 in 2022, reflecting successful capital raising efforts[179]. - Total revenue for the year ended December 31, 2023, was $474,184, a decrease of 44.2% compared to $851,321 in 2022[196]. - The company incurred operating losses and negative cash flows, raising concerns about its ability to continue as a going concern[189]. Market and Competition - The company is targeting multiple markets for its receiver technology, including smart home devices, medical sensors, and logistics applications[35]. - The company is subject to intense competition and rapid technological change, which may affect its operating results[49]. - The company faces intense competition and rapid technological changes, which may render its products less useful or obsolete if it fails to keep pace with market demands[74]. - The commercial success of the company's products depends on achieving widespread market acceptance, which is crucial for generating necessary revenue[65]. - The market for the company's technology remains nascent and unproven, with success dependent on various factors including customer acceptance and regulatory approvals[212]. Regulatory and Compliance - The company announced the completion of the regulatory process for its PowerBridge wireless charging technology in multiple countries, including the US, Canada, and Europe, for unlimited distance wireless charging[40]. - As of March 1, 2024, products integrating the PowerBridge technology had received international regulatory approvals in over 110 countries[40]. - Regulatory approvals for the company's technology are costly and time-consuming, and delays could materially affect business results[111]. - Safety concerns or legal actions related to the technology could adversely affect the company's business and market perception[72]. Operational Risks - Current global economic conditions, including inflation and geopolitical factors, pose risks to the company's operations and financial position[21]. - Inflation has significantly increased since 2022, leading to higher costs in supply chain, labor, and shipping, which may adversely affect the company's financial condition and results of operations[59]. - The company relies on third-party components, and the unavailability of these components could disrupt its ability to manufacture products[52]. - The company relies on a limited number of suppliers for critical components, with potential supply disruptions impacting manufacturing and revenue[84]. - The company may incur substantial costs related to product recalls or corrective actions due to quality issues, which could also damage its reputation and future orders[80]. Human Resources - The company employs 37 full-time employees, with 30 being engineers, and has a good relationship with its employees[42]. - The company is highly dependent on key executives, and losing them could impede business plans and growth strategies[112]. - Attracting and retaining high-level engineering talent is critical, and competition for such personnel is intense[113]. Stock and Securities - The company received a notice from Nasdaq on January 20, 2023, indicating that its stock price had closed below the minimum $1.00 per share requirement for 30 consecutive trading days[131]. - On August 15, 2023, the company executed a reverse stock split at a ratio of 1-for-20 to regain compliance with Nasdaq's minimum bid price requirement[132]. - The company's stock price has been volatile since its IPO in 2014, and this volatility is expected to continue[123]. - The company has never paid cash dividends and does not anticipate doing so in the foreseeable future, intending to retain future earnings for reinvestment[151]. Future Outlook - The company anticipates needing additional financing to achieve its long-term business plans, with no guarantee that it will be available on acceptable terms[58]. - The company expects its current cash on hand and anticipated revenues to be sufficient to fund operations through March 2025[175]. - The company plans to pursue additional cost and expense reductions and financing options to sustain operations, given the unpredictable nature of research and development[211].

Exhibit 99.1 Energous Corporation Reports 2023 Results SAN JOSE, Calif. – March 28, 2024 – Energous Corporation (NASDAQ: WATT), a leading developer of RF-based charging for wireless power networks, today announced financial results for the year ended December 31, 2023, and provided an update on recent partnerships and company highlights. 2023 Financial Results Recent Partnership Momentum · 2023 revenue of approximately $0.5 million versus $0.9 million in 2022. · Total costs and expenses were significantly r ...