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Energous Corporation Reports 2016 Second-Quarter Results

SAN JOSE, CA--(Marketwired - August 09, 2016) - Energous Corporation ("Energous" or "the Company") (NASDAQ: WATT), the developer of WattUp, a revolutionary wire-free charging technology that provides over-the-air power at a distance, today announced financial results for the second quarter ended June 30, 2016 and provided an update on its operational progress.

Recent Highlights

  • Announced a private placement of $20 million from Malcolm Fairbairn, the principal of Ascend Capital LLC (a multi-billion dollar hedge fund manager based in California) and certain affiliates, representing an increase from their previously acquired stake in the company. They provided early stage funding to Energous at its founding and have been valued long-term investors.
  • Announced that the company met a significant delivery milestone in July with its top-tier strategic partner representing substantial progress toward achieving full integration into the partner's consumer devices. Also generated an invoice for engineering-related services, based on the achievement of additional technology milestones with the strategic partner.
  • Signed four new development and licensing agreements during the quarter, spanning the full complement of WattUp transmitter categories: Miniature, Midsize, and Full-size, bringing the total number of licensing agreements to five. The company is currently focusing on 30 active prospective licensees and plans to hire additional engineers to allow Energous to support an additional 50 who have expressed an interest in integrating the company's WattUp technology.
  • In addition to the four new licensing agreements, the company signed agreements to develop "proof of concept" prototypes with two tier-one companies. These engagements bypass an evaluation period and proceed directly to the integration of the WattUp technology in these potential licensees' respective consumer devices.
  • Said that expansion of its licensee base is occurring at a faster pace than the company's original projections.
  • Reconfirmed timeframes for path to expected market availability:
    • Received FCC approval for the Miniature WattUp transmitter design, which is expected to be incorporated into products from partners and shipped to consumers late this year/early next year.
    • Said the Midsize WattUp transmitter design, which will enable a charging zone of two to three feet for a desktop, automotive or similar application, is on pace to be commercially available by the end of the third quarter of 2017, and;
    • Restated that the Full-size WattUp transmitter design, which will enable a charging zone of 15 feet, is targeted for integration into partner products late 2017, early 2018.
  • Disclosed the company has specifically developed its WattUp technology to meet all current regulatory rules for RF exposure as well as all other rules to allow these devices to receive regulatory approval.
  • Announced that the Energous WattUp chipset is on schedule to be ready for mass production in the third quarter, and that the company expects to receive its first orders for the WattUp chipset in the fourth quarter of 2016.
  • Reiterated its previous forecast for exiting the third quarter of 2017 at a monthly cash flow break even run rate.

"Energous continues to execute at an aggressive pace to deliver on its vision of a WattUp ecosystem spanning a broad spectrum of devices, markets and technologies," said Stephen R. Rizzone, President and CEO. "We've made significant progress with our strategic partner, substantially grown our licensee base and prospect funnel, and our chipsets are on schedule to be ready for mass production in the third quarter. With the new investment from Ascend Capital and our first silicon and royalty revenues expected before the end of this year, our financial position is secure. We are poised to expand our company and accelerate...