Energous Corporation

Good afternoon, and welcome to the NRGIS second quarter 2022 financial results conference call. All participants will be in a listen-only mode. Should you need any 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 that this event is being recorded. I would now like to turn the conference over to Matt Sullivan, Investor Relations. Please go ahead.

Thank you, Joe, and welcome, everyone. Before we begin, I would like to remind participants that during today's call, the company will be making 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 its 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 and expectations with regards 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, 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 Energist. Please go ahead, Cesar.

Thanks, Matt. Good afternoon, and welcome to the Energist 2022 second quarter conference call. Joining me is Bill Manina, our acting chief financial officer. We would like to start this call by sharing our latest news with you. As announced in our earlier press release this afternoon, we received a breakthrough FCC approval for our new 15-watt WADA power bridge. This significant achievement not only allows us and our partners to deploy wireless power networks capable of higher power delivery to support a broader range of IoT devices, but it also enables us to deliver such power at even further distances than previously authorized. Energy's 15 watt power bridge transmitters can enhance the wireless charging network performance in applications where high receiver coverage and high signal penetration are needed to energize hard to charge hidden receivers. This milestone supports our long term goal of advancing regulatory approvals for wireless power that allow for higher power and greater distances. This is why we are thrilled to announce that our new generation of WADA power bridge transmitters that are capable of charging at 15 times higher power than our one WADA power bridges with no distance limitations are now fully FCC certified. Additionally, on August 1st, 2022, we announced the first retail WADA power bridge deployment in the company's history. A wireless powered network implementing multiple WADA power bridges energizing thousands and thousands of smart RF tags or IoT pixels from our partner, Williott, under the software control of our customer, Flagship. Flagship's innovative software technology automatically tracks the movement of items in the store fitting room, or warehouse helping retailers understand and garner insights into in-store customer behavior. Beyond retail, similar applications of energy technology can also be replicated in multiple additional markets, including industrial IoT, medical, smart home, and smart office, opening new exciting opportunities for deployment of energy's wireless power networks and revolutionizing the next generation IoT experience. We believe that the scalability of what-app wireless power networks is unique in the industry and gives us a sustainable competitive advantage. Our focus strategy for what-app wireless power networks for IoT is showing positive results. In past month, we focused on RF tags and electronic shift label applications and have successfully demonstrated their system capabilities and functionality of our wireless power networks in real deployments. As previously highlighted in our fourth quarter 2021 conference call, our goal for 2022 is to support three applications this year. And we are now announcing that IoT sensors will be the additional third application that Enrgis will target, joining RF tags and electric shift labels. By focusing on these three applications, now in a position to access high-volume markets in retail, industrial, medical, smart homes, and the smart office. We would like to point out that as what-app wireless power networks for IoT are deployed, a new energized and connected world without wires and batteries is being created, enabling future applications and markets, which will take advantage of the initially deployed energy-based wireless power networks. We will update our progress on the IoT sensor application development as we move forward. Moving on to revenue for the quarter. As you saw in our earnings press release this afternoon, we reported a revenue of approximately $233,000 in Q2 2022, which represents a 26% increase over the same quarter for 2021. This 26% year-over-year increase in Q2 2022 as well as the previous 49% year-over-year increase in Q1 2022 compared to Q1 2021 continues to highlight the growing interest in our wireless power network technology as we ship measurable quantities of product and new orders are received. And now I will give a company update on the goals that we set for ourselves for 2022, sharing meaningful progress and results as we continue to deliver on our strategy. Our first short-term goal was to fulfill the commercial delivery of one WADA power bridge orders. We are proud to recognize that this goal has been met and we deliver our first shipment of these orders in Q4 2021 and we have since delivered subsequent shipments in first quarter and second quarter 2022 as new orders were received. Our second near-term goal was to identify a bench-head RF application and related addressable markets, targeting our first production pilot deployment, which has now been completed. We met this goal recently as we announced our first deployment of asset tracking devices with William & Flagship for retail markets last Monday, August 1st, 2022. Lastly, our third stated near-term goal was to complete the development of an electronic shelf labeled end-to-end system and target a first pilot deployment. We completed the development of the end-to-end system and demonstrated the system at CES 2022 in Las Vegas. We will give further updates on this near-term goal in the future. In our first quarter, 2022 earnings goal, we also reiterated several long-term goals, and I'd like to highlight those right now. Our long-term goals, number one and two, are the following. Support air fuel alliance efforts to develop a wireless power transfer standard, and number two, lead the ITU recommendation to align 900 megahertz wireless power spectrum as the first designated wireless power spectrum worldwide. I am pleased to report that NRGIS continues to be part of the efforts to develop the Air Fuel Alliance Wireless Power Transfer Standard while leading in all relevant ITU efforts to have 900 megahertz as the first designated power spectrum worldwide. Our third long-term goal is to certify high power greater than one what conducted power IoT wireless power network power bridge transmitters in the US and the European Union without distance limitations. With the 15 watt power bridge FCC certification in the US that we announced today, and our earlier greater than one watt certification in the European Union, I'm excited to report that we have achieved this objective. Long term goal number four is to identify potential applications of ESL vertical markets and target first pilot deployment. We continue to prioritize this goal form inroads that are important to a pilot deployment. Our long-term goal number five was to identify a third vertical market and to build an end-to-end system for customer technology demonstrations. We just announced that our third vertical market supporting IoT sensors, and we are in the process of developing a differentiated solution based on our core technology. Finally, our sixth and last stated long-term goal is to deliver year-over-year revenue growth driven by expanding IoT wireless power network deployments. As a management team, we are focused and committed on delivering year-over-year revenue growth driven by expanding IoT wireless power networks. And as we mentioned earlier, we are delivering on this goal as our last two quarters have shown revenue growth compared to the equivalent quarters in 2021. Also, in this quarter, I am very pleased to welcome Gianpaolo Marino as our new Vice President of Business Development and Marketing. Gianpaolo brings to Energies significant experiences in solidifying strategic partnerships and building platform solutions for IoT applications. In summary, it's been a very exciting quarter at Energies. Multiple short and long-term goals have been met. proving that our strategy on IoT wireless power networks is gaining momentum through the deployment of active energy RF wireless power networks. New and exciting technology and certification achievements. Energy is making RF wireless power networks a reality. I will now turn this call to Bill Manina, our Acting CFO. Bill.