Energous Corp Q3 FY2022 earnings call

• Announced first two retail deployments of WattUp PowerBridges in Australia with Flagship and Wiliot, demonstrating wireless power transfer to IoT devices without batteries.
• Received FCC approval for 15W WattUp PowerBridge, expanding regulatory approved distance and power levels. Also gained regulatory approvals in Australia, New Zealand, complementing earlier approvals in U.S., Canada, EU, UK, India, and China.
• UN ITU approved and recommended 900 megahertz band for wireless power transfer, supporting Energous' technology choice. Formed strategic partnerships, e.g., with e-peas for Wireless Energy Harvesting Evaluation Kit and with Atmosic for Wireless Power Sensor Evaluation Kit.
• Made progress on 2022 goals: fulfilled commercial delivery of 1W WattUp PowerBridges, identified beachhead RF-tag application with first production pilot deployments, and continued work on electronic shelf label system. Long-term goals include supporting AirFuel Alliance, ITU band recommendation, certifying high-power transmitters, and identifying third vertical market.

In the third quarter of 2022, Energous recognized approximately $223,000 in revenue, a 11% increase compared to the same quarter last year ($201,000). Cost of revenue for Q3 was approximately $420,000, an increase due to product sales making up a larger percentage of revenue and an inventory write-down. Year-to-date, total GAAP cost and expenses were $21 million, a decrease of just under 36% compared to the prior year. Non-GAAP net loss for Q3 was approximately $5.2 million, $560,000 lower than Q2 and $1.3 million lower than Q3 of the prior year.

• Continues to forecast year-over-year revenue growth driven by expanding IoT wireless power network deployments.
• Progress on long-term goals: supporting AirFuel Alliance in developing wireless power transfer standard, UN ITU's 900 MHz band recommendation opening markets, and achieving certification of 15W WattUp PowerBridge in U.S. and earlier EU certification for high-power transmitters.

Q: Suji Desilva with ROTH Capital asked about geographies with the best near-term opportunity.

A: Cesar Johnston mentioned certifications in multiple geographies, with Australia having two deployments, and excitement about U.S., UK, China due to certifications there.

Q: Jon Hickman with Ladenburg Thalmann asked about gating factors before dozens of deployments.

A: Cesar Johnston said they're starting with proof-of-concept engagements, and as customers complete proof-of-concepts, they'll expand deployments in stores, with potential from evaluation kits leading to more deployments