Energous(WATT) - 2025 Q1 - Quarterly Results

Management's Remarks Management emphasized strategic execution, infrastructure efficiency, and partner relationships for wireless power network deployment, prioritizing cash burn reduction and capital securing for growth - The company is focused on executing strategic initiatives, fortifying partner relationships, and deploying its scalable, RF-based wireless power network solutions[3] - Reducing cash burn is a priority, with actions taken resulting in approximately $7.3 million in annualized cost savings[3] - Secured $13.8 million in net proceeds from an at-the-market offering in Q1 2025 to fund growth and strategic objectives[3][11] - Management expects continued steady revenue growth in the coming quarters[3] First Quarter 2025 Financial Results Energous reported significant Q1 2025 financial improvements, with revenue surging over 430%, positive gross margin, reduced operating expenses, and a lower net loss, strengthening its cash position Q1 2025 Key Financial Metrics (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $0.3 million | ~$0.1 million | +436% | | Gross Profit (Loss) | $0.1 million | $(45,000) | +307% | | GAAP Operating Expenses | $3.7 million | $6.6 million | -44% | | Non-GAAP Operating Expenses | $2.5 million | $4.7 million | -46% | | GAAP Net Loss | $(3.4) million | $(6.6) million | -49% | | GAAP EPS | $(0.12) | $(1.11) | +89% | | Non-GAAP Net Loss | $(2.5) million | $(4.6) million | -47% | - The revenue increase was primarily driven by a 483% year-over-year increase in sales of PowerBridge transmitter systems, indicating growing commercial adoption[4] - After the quarter ended, the company shipped an additional $0.3 million in products, mainly fulfilling orders for multinational retailers and a new order from a multi-billion dollar power company[4] - Cash and cash equivalents were approximately $10.1 million as of March 31, 2025[4] Company Highlights Energous achieved key Q1 2025 milestones, including securing new capital, growing enterprise order backlog, advancing a major Fortune 10 retailer deployment, and expanding its product portfolio with new asset tracking solutions - A Fortune 10 multinational retailer is accelerating a multi-stage project to deploy PowerBridge PRO transmitters in more than 4,700 locations nationwide[11] - The company is experiencing a growing backlog of enterprise orders, indicating increased market adoption of its wireless power network (WPN) solutions[11] - Introduced two new products: the AI-driven PowerBridgeMOD and the PowerBridge PRO+ with an integrated gateway, enhancing its enterprise asset tracking solutions[11] - Raised $13.8 million in net proceeds through its at-the-market offering program to fund growth initiatives and fulfill customer orders[11] Financial Statements Balance Sheets As of March 31, 2025, the company's balance sheet significantly strengthened, with cash and cash equivalents increasing from $1.4 million to $10.1 million, converting a stockholders' deficit into $9.5 million equity while total liabilities decreased Balance Sheet Summary (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $10,085 | $1,353 | | Total current assets | $11,885 | $2,912 | | Total Assets | $13,377 | $3,795 | | Total Liabilities | $3,881 | $4,872 | | Total stockholders' equity (deficit) | $9,496 | $(1,077) | Statements of Operations For Q1 2025, Energous reported revenue of $343,000, achieved a gross profit of $93,000, significantly reduced operating expenses to $3.7 million, and improved net loss to $3.4 million or $0.12 per share Statement of Operations Summary (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $343 | $64 | | Gross profit (loss) | $93 | $(45) | | Total operating expenses | $3,704 | $6,620 | | Loss from operations | $(3,611) | $(6,665) | | Net loss | $(3,366) | $(6,599) | | Basic and diluted net loss per share | $(0.12) | $(1.11) | Reconciliation of Non-GAAP Information The company provides non-GAAP financial measures to clarify operational performance by excluding specific items, reporting an adjusted non-GAAP net loss of $2.5 million and non-GAAP operating expenses of $2.5 million for Q1 2025 - Non-GAAP measures are used to supplement GAAP results and exclude items such as depreciation, stock-based compensation, severance, change in fair value of warrant liability, and expenses from abandoned financing transactions[10][13] GAAP to Non-GAAP Net Loss Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss (GAAP) | $(3,366) | $(6,599) | | Total Adjustments | $900 | $1,967 | | Adjusted net non-GAAP loss | $(2,466) | $(4,632) | GAAP to Non-GAAP Operating Expenses Reconciliation (in thousands) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating expenses (GAAP) | $3,704 | $6,620 | | Total Adjustments | $(1,167) | $(1,885) | | Adjusted non-GAAP operating expenses | $2,537 | $4,735 |