Energous(WATT) - 2024 Q4 - Annual Results

Fiscal Year 2024 Financial Results 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] - 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][8] Company Highlights and Strategic Developments 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] - 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] - Engaged by a global leader in RFID solutions to develop a battery-free smart tag for retail IoT applications[8] - Strengthened its intellectual property portfolio by being granted 13 new patents in 2024[8] - Raised approximately $13.4 million, net of costs, between January 1 and February 12, 2025, to fund growth initiatives[8] Financial Statements 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 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 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 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 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] - 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] Forward-Looking Statements 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] - 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]