Energous Corporation

Good afternoon, and welcome to the Energist Corporation third quarter 2021 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Matt Sullivan, of Investor Relations. Please go ahead.

Thank you, Anthony, and welcome everyone. Before we begin, I would like to remind participants that during today's call, the company will make forward-looking statements. These statements, whether in prepared remarks or during the Q&A session, are subject to inherent risks and uncertainties that are detailed in the company's filings with the Securities and Exchange Commission. Except as otherwise required by federal securities laws, Energist disclaims any obligation or undertaking to publicly release updates or revisions to the forward-looking statements contained herein or elsewhere to reflect changes in expectations with regard to those events, conditions, and circumstances. Also, please note that during this call, Energist will be discussing non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in today's press release, which is posted on the company's website. Now, I would like to turn the call over to Cesar Johnston, Acting CEO of Energist. Please go ahead, Cesar.

Thanks, Matt. Good afternoon, and welcome to the Energist 2021 Third Quarter Conference Call. Joining me today is Bill Manina, our Acting Chief Financial Officer. The third quarter of 2021 was significant in energies for several key reasons. Number one, we continue to sharpen our vision for the company with a focus on far-field technologies and the deployment of wireless power networks. Number two, and this is very important, we receive FCC approval for our one-watt power bridge transmitter technology for active energy harvesting power transfer at any distance, no distance limitation. And number three, we establish new partnerships with IoT market leaders that will drive the demand for wireless power delivered at a distance into 2022 and beyond. We at Energes are at an important inflection point that we believe will move the company into the next phase as we leverage the significant and accelerated investments being made by a number of companies in low-power edge devices, including electronic shelf labels, retail tags, IoT sensors, and low-power edge computing. We are gaining recognition as a leading player in the development of RF power transmission semiconductor devices for deployment of a new generation of wireless power networks. Our vision of RF power transmission at a distance within the context of market needs and regulatory constraints continues to evolve and is driving development and availability of our WADA power bridge transmitter solutions at 1 watt and five and a half watt conducted power. We recently announced FCC approval for our one watt solution, which complements our earlier European Union regulatory certification for unlimited distance wireless charging. Given this positive traction, we are pleased to share that we have started production of our one watt WADA power bridge transmitters to fulfill orders for our first wireless power network customer with deliverables beginning in Q4 of 2021. We believe that our wireless power networks would broadly serve the power needs of the IoT ecosystem, where wireless power networks will support numerous receiver devices in multiple vertical market segments. from retail to industrial to healthcare with their related tags, sensors, and CPUs. When receiving power wirelessly from an energy-powered network, these receivers can be deployed with smaller batteries and even with no batteries at all, leading to greener, lower cost, and easier to maintain IoT deployments. As an example, IoT wireless power receivers could support artificial intelligence processing at the edge of an IoT network for audio or video processing, improving device uptime, polling cycles, and timeliness of data flows. Currently, many new features of IoT devices struggle to be implemented due to the limits of ambient energy harvesting. Their power demands and battery depletion cycles Injecting power wirelessly into these environments can greatly improve IoT device performance and deployment feasibility. Looking at our financial performance, we are pleased to report that third quarter revenues rose to $201,000 compared to $61,500 in the 2020 third quarter. Sequentially, third quarter revenues were up from $185,000 in the second quarter. Bill will provide a more detailed breakdown of our financial results, including our balance sheet, which we recently further strengthened through our previously announced ATM financing. Now for an update on our operations. Our search for a CEO continues, and we have no immediate updates. In August 2021, and now going into our agreement with Renesas, Renesas closed their previously announced acquisition of Dialog Semiconductor. And as a consequence, Energes was notified during the quarter that Renesas wished to amicably terminate our existing agreement with Dialog. Our agreement provides for an orderly transition upon notice of termination, and we have begun transferring manufacturing operations back to our company for the four energy devices that were part of the agreement, namely the EN4100, which is our transmitter, the EN3210, our one-watt power amplifier, the EN2223, and the EN2210 receivers, which are all CMOS devices. I would like to point out, and it's important to note, that these four devices were 100% designed and engineered by ENERGYS. And we own all of the IP, and we have exclusive rights to them. Now, why is it important to point this out? Because as designers and the team that actually engineered these devices, we have deep technical knowledge of them, and we have a deep understanding also of the dialog processes, which will allow for a smooth transition of packaging and test back to energies. We will use our existing production and test capabilities, which we employ today for other devices in our portfolio, and which, by the way, were not part of the dialogue agreement. Furthermore, the production foundry that these devices are fabricated at is a third-party company with whom both dialogue and energies have independently had long-lasting business relations. Simultaneously, on the sales support side, the Energes team has been deeply engaged with dialogue on potential customer opportunities, providing technical sales and business support to our joint customers, and the Energes team has now direct ownership of the full customer funnel. In summary, we do not expect a negative material impact to our business as we transition manufacturing and sales, and as we complete the business transition, we expect that working together with the Renesas Dialog team at the transfer of the operations will proceed smoothly. Now, moving on the technical side, we would like to provide you more background of our WADA power transmitters and our vision to be the backbone for WADA-based wireless power networks, which we believe represents a significant market opportunity for the company, and we're very, very excited about it. During the third quarter, we strengthened our position supporting the application of our active harvesting technology. WattApp wireless power networks operate in a similar architectural manner as communication networks by deploying multiple transmitters across a given power transmission area. Energia's WattApp power transmitters merge our power network needs with communication networks via our VLE link. This results in a transmission device, in this case once more PowerBridge, that can be deployed in a ubiquitous manner to immediately build what-app wireless power networks supporting an ecosystem of multiple types of IoT received devices simultaneously receiving multiple levels of power. As an example, IoT-connected devices with varying power needs, such as stacks and sensors, can be installed in retail, industrial, and healthcare markets, adding to a potential total addressable market of 30 billion devices by the year 2025, as stated in the report by Estatistas. Statista's Internet of Things, and non-IoT active device connections worldwide from 2010 to 2025. In addition to the first achievements of production of our one-watt power bridge transmitters, we mentioned earlier, we recently announced its availability via a developer kit. which allows designers of IoT edge devices to rapidly explore the benefits of deploying Energia's WADAP-based wireless power networks in their solutions. Furthermore, our WADAP Power Hub technology, which has been developed on a common technology platform and approaches our WADAP power bridge transmitters, received European Union certification back in May 2021. Our RF semiconductor devices, along our WADAP software developer kit and advanced antennas are the key ingredients to build our WADAP-powered bridge transmitters, which can be deployed to complement, again, as previously discussed, any communication infrastructure and allow us to gather IoT receiver data by effectively concentrating valuable and monetizable data into a cloud infrastructure. For example, Our water power bridge is easily attached to a Wi-Fi access point, leveraging our customers' existing investment to provide rapidly deployed and consistent power coverage if desired. Our VLE communications interface can be leveraged to provide additional data communication channels, even performing data concentration and data relaying to Wi-Fi APs and IoT devices. Now a quick update on our partners. Looking ahead, we believe that Engex is now positioned to be a significant player in the development of IoT wireless power networks. We continue to productively partner with multiple companies that share and complement our vision and technologies. We have previously discussed and announced our partnership with E-Peace, E-Ink, Atmosic, and Technology, and we are productively uniting our individual efforts to leverage our collective investments. This quarter, and this is a very important and we're happy to announce, a new partnership with Williott. The collaboration positions energies to support Williott as the leader in the deployment of ultra-low power smart tags, or as they call it, IoT pixels. which will revolutionize the extraction of relevant and monetizable data into the Williott Cloud. Williott's technology is an important development in the real-world deployment of next-generation RFID-like networks, providing a new emerging market. On the regulatory side, we continue to see progress internationally, and we are opening new markets for wireless power transmission. As previously discussed in our previous earning calls, we see significant advantages in the 900 megahertz band compared to other bands, which are more crowded and suffer from higher propagation losses, which enable energy-as-what-app solutions, substation technology advantages in both efficiency and range. Additionally, we're seeing steady progress at the International Telecommunications Union, ITU, towards full global allocation of wireless power transmission, including the 900 megahertz band. And in Japan, we're seeing the Broadband Wireless Forum continuing its progress on RF-based wireless power transmission. We continue our engagement and our discussions with the FCC, and we, with industry collaboration, are part of an expert filing that now is focused on obtaining regulatory approval of higher performance next-generation systems. Finally, we're pleased to share with you that earlier today, we announced that we have received two CES awards. The first for embedded technology, and the second for sustainability, ECO design, and smart home. These awards recognize our wireless power network technology. Energies will present at CES 2022 in January, demonstrating the award-winning WADA power bridge transmitters, and with multiple partners to display an end-to-end WADAP energy harvesting ecosystems of transmitters and receivers and all operating IoT and edge sensors, including CPUs as well. We will also include demonstrations of our power hub and our near-field technologies. In summary, Our water power bridge at a distance charging transmitters are ready to support the advent of the IOTH as we open the U.S. and EU markets for wireless powered networks. I will now turn the call over to Bill Manina, our acting CFO. Bill.