Energous Corp Q2 FY2023 earnings call

• Energous has 20 active proof-of-concepts (POCs), up from previous quarters. 8 are in the proof-of-validation phase and 1 is in production with a Fortune 100 company. - Developed and optimized 1 watt and 2 watt PowerBridge products. - Have 14 technology partners, 2 distribution partners, and 4 IoT system integrator partners. - Achieved 10 times POC growth since Q3 2022, with POCs across multiple markets in US, Europe, and APAC.

In Q2 2023, Energous recognized revenue of $117,000, which was a 21% increase from the prior quarter and a 50% increase from Q2 2022. Year-to-date revenue as of June 30th was about $214,000, a decrease of 52% compared to 2022. Cost of revenue in Q2 was about $83,000, a decrease of $56,000 from the prior quarter and $189,000 from Q2 2022. Total GAAP costs and expenses in Q2 were $6.2 million, a decrease of approximately $1.1 million year-over-year. Net loss for the quarter was approximately $4 million on a GAAP basis, with non-GAAP net loss at $5.3 million.

• Anticipate year-over-year growth of 20% or more, weighted towards the second half of the year. - GAAP and non-GAAP cash operating expenses expected to trend downwards as the company aligns financial operations with market strategy.

Q: On the POCs, 20 in total, how are they segregated between early and those near validation/production?

A: There are 6 early POCs, and 8 are in proof-of-validation. The one in production went from POC to production in 6-9 months.

Q: Regarding the production installation with a Fortune 100 company, how should we think about the ramp-up?

A: Due to NDA constraints, details of the Fortune 100 company can't be discussed, but the deployment is in the logistics area and deployed with Thinaer.

Q: Could the number of POCs double by year-end and could the company handle it?

A: Yes, the company is prepared as they have developed internal tools and clear technical guidelines, allowing them to handle a doubling of POCs if needed