watt-10q_20220331.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022

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

COMMISSION FILE NUMBER 001-36379

ENERGOUS CORPORATION

(Exact name of registrant as specified in its charter)

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

3590 North First Street, Suite 210, San Jose, CA 95134

(Address of principal executive office) (Zip code)

(408) 963-0200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of May 11, 2022, there were 77,065,782 shares of our Common Stock, par value $0.00001 per share, outstanding.

ENERGOUS CORPORATION

FORM 10-Q

FOR THE THREE MONTHS ENDED MARCH 31, 2022

INDEX

PART I - FINANCIAL INFORMATION		3

Item 1. Financial Statements		3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		19

Item 3. Quantitative and Qualitative Disclosure About Market Risk		22

Item 4. Controls and Procedures		22

PART II – OTHER INFORMATION		23

Item 1. Legal Proceedings		23

Item 1A. Risk Factors		23

Item 2. Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities		34

Item 3. Defaults Upon Senior Securities		34

Item 4. Mine Safety Disclosures		34

Item 5. Other Information		34

Item 6. Exhibits		35

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

Energous Corporation

CONDENSED BALANCE SHEETS

	As of
	March 31, 2022			December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	42,774,171		$	49,071,414
Accounts receivable, net		198,924			283,602
Inventory		68,480			–
Prepaid expenses and other current assets		431,670			874,886
Total current assets		43,473,245			50,229,902

Property and equipment, net		484,567			510,197
Operating lease right-of-use assets		432,249			618,985
Other assets		11,991			11,991
Total assets	$	44,402,052		$	51,371,075
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	934,913		$	1,205,957
Accrued expenses		1,342,782			1,523,317
Accrued severance expense		909,873			975,439
Operating lease liabilities, current portion		438,698			628,307
Deferred revenue		16,091			13,364
Total current liabilities		3,642,357			4,346,384

Operating lease liabilities, long-term portion		27,012			40,413
Total liabilities		3,669,369			4,386,797

Commitments and contingencies
Stockholders’ equity:
Preferred Stock, $0.00001 par value, 10,000,000 shares authorized at March 31, 2022 and December 31, 2021; no shares issued or outstanding.		–			–
Common Stock, $0.00001 par value, 200,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively; 77,055,028 and 76,667,205 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively.		771			767
Additional paid-in capital		384,284,669			383,383,550
Accumulated deficit		(343,552,757	)		(336,400,039	)
Total stockholders’ equity		40,732,683			46,984,278
Total liabilities and stockholders’ equity	$	44,402,052		$	51,371,075

The accompanying notes are an integral part of these condensed financial statements.

Energous Corporation

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended March 31,
	2022			2021
Revenue	$	215,961		$	145,065
Costs and expenses:
Cost of revenue		203,249			–
Research and development		3,527,146			4,591,244
Sales and marketing		1,613,590			1,794,212
General and administrative		2,027,520			2,287,396
Total costs and expenses		7,371,505			8,672,852
Loss from operations		(7,155,544	)		(8,527,787	)
Other income:
Interest income		2,826			2,024
Total other income		2,826			2,024
Net loss	$	(7,152,718	)	$	(8,525,763	)
Basic and diluted loss per common share	$	(0.09	)	$	(0.14	)
Weighted average shares outstanding, basic and diluted		76,930,919			61,567,003

The accompanying notes are an integral part of these condensed financial statements.

Energous Corporation

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

	Common Stock				Additional Paid-in			Accumulated			Total Stockholders'
	Shares		Amount		Capital			Deficit			Equity
Balance at January 1, 2022		76,667,205	$	767	$	383,383,550		$	(336,400,039	)	$	46,984,278
Stock-based compensation - options		–		–		10,313			–			10,313
Stock-based compensation - restricted stock units ("RSUs")		–		–		745,620			–			745,620
Stock-based compensation - employee stock purchase plan ("ESPP")		–		–		40,973			–			40,973
Issuance of shares for RSUs		387,823		4		(4	)		–			–
Proceeds from contributions to the ESPP		–		–		104,217			–			104,217
Net loss		–		–		–			(7,152,718	)		(7,152,718	)
Balance at March 31, 2022		77,055,028		771		384,284,669			(343,552,757	)		40,732,683

	Common Stock				Additional Paid-in		Accumulated			Total Stockholders'
	Shares		Amount		Capital		Deficit			Equity
Balance at January 1, 2021		61,292,412	$	614	$	344,024,638	$	(294,972,746	)	$	49,052,506
Stock-based compensation - RSUs		–		–		2,088,910		–			2,088,910
Stock-based compensation - ESPP		–		–		57,316		–			57,316
Issuance of shares for RSUs		627,412		6

SEC Form 10-Q filed by Energous Corporation