Energous Corporation

Good day and welcome to the NRGIS first quarter 2022 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. 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 2. Please note this event is being recorded. I would now like to turn the conference over to Matt Sullivan, Investor Relations. Please go ahead.

Thank you, Andrew, 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'd like to turn the call over to Cesar Johnston, CEO of Energis. Please go ahead, Cesar.

Thanks, Matt. Good afternoon, and welcome to the Energis 2022 First Quarter Conference Call. Joining me this afternoon is Bill Manina, our Acting Chief Financial Officer. As you saw on our first quarter press release that came out this afternoon, we reported a revenue of approximately 216,000 in Q1 2022, which represents a 49% increase over the same quarter for 2021. This highlights the growing interest in our wireless power networks technology. And we are very pleased to report that for the first time in the company's history, we are shipping measurable quantities of product. The energy's vision is that wireless power is crucial to unlocking significant and realized potential, speeding up and expanding the deployment of IoT devices. Our one-up wireless charging technology is designed not only to enable mobility for devices as we charge them while in motion and over the air at large distances, but also to enable freedom of placement flexibility for fixed IoT sensors, trackers, and other IoT devices without the constraints of wires or the need to change batteries. We are finding that there is particularly solid customer interest in wirelessly powered RF tags and electronic shelf labels. We believe that early adoption of wireless power in these areas would lead to future IoT deployments in retail, industrial, medical, smart home, and smart office market environments. We also believe these target markets hold tremendous potential for energies. In our previous Q4 2021 earnings call, we mentioned three near-term business goals which we would like to give an update on today. The first was to fulfill the commercial delivery of one wide water power bridge orders. As noted on our last call, our first shipment of water power bridges was delivered in Q4 2021. We are happy to report that in Q1 2022, despite continuing supply chain challenges, we fulfill an increasing number of units of our one watt water power bridges transmitters. These transmitters are built with Energes semiconductor and software technology and are being used today by several end customers in trials and demonstration type deployments. Our power bridge wireless power network solution in conjunctions with low power IoT pixel tags from our partner, Williott, are receiving early positive feedback as customers can now see firsthand the value of Wilio's IoT pixels wirelessly energized at distances greater than 10 meters. And going forward, our aim is to generate volume demand for our water power bridges from these trials. And as we get visibility to larger order volumes, we expect to be able to significantly reduce our cost of revenue. The second near-turn goal, as we discussed last quarter, was to identify a beachhead RF tag application and related addressable markets, targeting our first production pilot deployment. One potential application that we have identified is the need to wirelessly power asset tracking devices. This application has attracted initial interest from multiple companies who are evaluating our WADA PowerBridge IoT wireless network solutions. We will report further on this initiative as our collaboration progresses. Our third stated near-term goal is to identify a market launch customer for electronic shelf labels, or ESLs. Powering ESLs is a major challenge for the industry due to reliance on cumbersome cables and battery replacement. We are actively developing a wireless power network system for ESL deployments, and we are productively engaged with a global ESL device leader. Now, to support our IoT business focus, we recently announced new appointments to the Energy Board of Advisors. These new advisors are highly experienced and well-recognized in the industry for their past accomplishments along with their overall vision for the future of IoT. We are excited to have Bob Friday, Alessandro Piovacari, and Mark Tindall as part of our team, and we look forward to working with them as they contribute to our efforts. We have spent considerable effort obtaining regulatory approval to ensure that we can sell our products free from restriction in the major geographic markets. I would like to now update you on the significant regulatory certifications progress the company has recently made for IoT wireless charging at a distance. Since our first one watt water power bridge certification in the US in October 2021, we have received new certifications in the European Union, India, Canada, and most recently in China last month in April. which represents a six-month time span of sequential RF wireless charging certifications, highlighting our leadership position for worldwide regulatory certifications for wireless power networks. As we have noted in the past, the IoT ecosystem continues to expand rapidly and is expected to grow from 12 billion devices today to nearly 40 billion by 2025, according to IDC in their report entitled Worldwide Global Data Sphere IoT Device and Data Forecast, 2021 to 2025. Beyond the successful regulatory approvals received over the past six months, we are excited to see the major movement in the U.S. for greater than one watt conducted power delivery at unlimited distance. Our long-term collaboration with the FCC since the early days when we first opened Part 18 on less than one meter, has now evolved into a Draft FCC Knowledge Database, or KDB, that allows Part 18 for a limited distance power transmission. This progress mirrors other worldwide efforts and solidifies the future of wireless power networks as a recognized emerging technology and solution with a path to becoming available in world markets. We believe that these regulatory achievements combined with the rise of the IoT markets, provide the perfect combination for rapid growth of connected devices as the next generation of industrial, retail, health, and smart office or smart home infrastructure are deployed. On the operational side, we have completed the transfer of the EN4100, EN3210, and EN3210 device supply chain to energies from our previous partner, Dialog Semiconductor, and we continue working on the transfer of the EN 2223 device supply chain. We have seen no major impacts in manufacturing as we continue to work with and source from our original foundry partner. This partner is the same firm that we have been using since day one, back when we fabricated our own designs, and is indeed the same firm that was used when we moved our operations to Dialog. Now that the supply chain is back under energies management, we're working directly with this foundry as we had done it in the past. On the business partnerships, we see business partnerships playing an important role in the deployment of energies IoT wireless power networks. We continue to develop relationships with partners that complement our vision to expand our business reach. As noted on our last call, we are engaged in a partnership with Wiliot, an emerging RF tag leader and maker of groundbreaking battery-less IoT pixels. Wiliot includes our one-watt water power bridge as the wireless power source in their starter kits, which was announced in January. And as part of our continued partnership, we will be participating in the Wiliot training session at RFID Journal live next week in Las Vegas. where we will be supporting their training event. We are excited to see the strong interest in this offering as our water power bridge wireless power network solution provides guaranteed levels of power with up to 100% IoT device visibility at greater than 10 meters. During Q1 2022, in partnerships with Atmosic, an emerging leader in low power VLE devices, we announced an IoT wirelessly charged sensor evaluation kit, which includes a one-watt power bridge with Atmosix ATM3 receivers, which is expected to become available in Q2 2022. Atmosix receivers will be powered over the air with our WADA power bridge, while establishing a BLE connection to transmit sensor data up to the power bridge with its capabilities for further sensor data transfer into a wireless network infrastructure for cloud data management processing. Also announced this quarter, Cintia is a new partner whose low-powered neural decision processors for artificial intelligence represent the addition of next-generation high-performance yet low-powered consuming IoT devices at the network edge with new data processing capabilities. Our aim is to become a critical provider in delivering the power and connectivity that will be required by artificial intelligence devices to process and upload data for cloud processing and, in certain applications, improve the network latency response. By using Energia's wide-app power bridge technology, Synthium Sound Processing adds a new generation of smart IoT devices, which can react and control IoT devices deployed in retail, industrial home, and office environments. In summary, energy's execution of its IoT wireless power networks is underway and showing solid progress in multiple technical, regulatory, and partnership areas. Our WADA power bridge products have now reached a number of potential end customers that are evaluating our solutions. The ramp-up of our semiconductor devices production is also in place. We expect that as we As with any new product, demand and interest may fluctuate as we ramp up and we will plan accordingly. Finally, we reiterate our long-term goals as we outlined last quarter. Our goals were support of the Air Fuel Alliance efforts to make the wireless power transmission a standard. Lead the ITU recommendation to align 900 megahertz wireless power transmission spectrum as the first designated wireless power spectrum worldwide. Certify high power that is greater than one what conducted power IoT power bridges transmitters in the US and EU without distance limitations. Fourth, identify potential market applications for ESL vertical markets and target first pilot deployments. Also, identify third vertical market and build end-to-end systems for customer technology demonstration. Finally, deliver year-over-year revenue growth driven by expanding IOT WPM deployments. We are focused on these long-term tasks and continue to make progress. We will update the audience as important accomplishments are made on these targets. I will now turn the call to Bill Manina, our Acting CFO. Bill. Thanks, Cesar.