Energous Corporation

Hello, good day, and welcome to the Interdisk Corporation third quarter 2023 financial results. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to Craig McPhail, investor relations. Please go ahead.

Thank you, Jeremy, 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 certainties that are detailed in the company's filings with the Securities and Exchange Commission. Except as otherwise required by federal laws, Energist disclaims any obligation or undertaking to publicly release updates or revisions to the four looking statements contained herein or elsewhere to reflect changes and 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, President and CEO of Energist Corporation. Please go ahead, Cesar.

Thanks, Greg. Good afternoon. Thank you for joining today. and welcome to the EnerGIS 2023 third quarter conference call. Joining me today is Susan Kim Van Dongen, our interim chief financial officer. Let me start first with a short business update. EnerGIS continues to successfully execute its smart IoT-centric strategy that we initiated in early 2022 when we repositioned and we retargeted the company to develop IoT power charging products at a distance using the intellectual property, regulatory knowledge, and market experience that had been built by the company from the previous years of operation, and which is backed by our 200-plus patent portfolio. The newest strategy has been focused on enabling new high-value IoT markets using energy wireless power networks. These networks allow our customers greater placement freedom, mobility, security, and lower installation costs by removing the need for wires and batteries across RF tags, electronic smart labels, and sensor applications, typically within a cloud-enabled environment. So how does a customer rollout of our technology happen? Typically, our customers initiate a wireless power network technology evaluation and then a POC proof of concept installation for their application. This is then followed by a proof of validation or POV phase, which can result in a high volume installation and volume purchase of Energes products. Understanding how Energes is progressing with its current customers and its addition of new customers through these POCs and POV implementation phases is an important indicator of the global adoption of EnerGIS technology and the timing of future revenue. This is why we update you every quarter on the number of our POC customers. The EnerGIS 1 watt power bridge product is the only advanced and regulatory certified product for wireless power network installations available on the market today. Last quarter, due to 2023, we announced a 10 times growth, yes, times 10 on our power bridge-based wireless network POC installations with multiple POC customers across the world and across different markets since we started reporting on POCs in Q3 2022. Let me mention again that we believe that the best indicators of increased interest in energy technology and potential revenue in the future quarters is our POC growth status. During this past quarter, Q3 2023, customer interest in our products accelerated. We believe that this was driven by a growing appreciation of the value proposition of wire-free charging and energy's wireless power networks, which help them to overcome their cost and operational bottlenecks. As we continue to roll out POC deployments and gain experience and knowledge of the technology system capabilities of businesses in our target markets, we have improved the efficiency of our IoT wireless power network installations. By learning from each POC deployment, we are able to leverage our experience to shorten the installation times. We have been reporting a steady growth in POC deployments over the past year. To remind everyone, we started with two POCs in Q3 2022. We grew to 10, 14, and 20 from Q4 2022 through Q2 2023. Now, I'm happy to report that we have 31 POCs across the U.S., Europe, and Asia across multiple markets, covering retail, industrial, medical, and smart office, smart home, represented a 15 times increase in just one year. As an additional note, I would like to mention that the majority of our customer trials are for real-time asset tracking for digitizing multiple retail or industrial products within large warehouses. While incumbent warehouses tracking technologies have been useful, they have seen little innovation in recent decades. We believe our POCs in these environments have generated efficiency and automation improvements that large-scale supply chains and logistic companies need nowadays. As a result, we're targeting large online suppliers and retail brands as our future customers. In summary, Energes is well-positioned as the leader to execute our proprietary smart IoT strategy across wireless power networks within our chosen segments. Our year-to-year growth expectation mentioned in past earnings call at 20% revenue growth target for 2023 is now dependent on the POC conversion rate of the current 31 POCs as customers place purchase orders into Q4 2023 and 2024. We will update you at our next earnings call. Our product roadmap supports both 1-watt and 2-watt power bridges, with a family of advanced EN4100, EN3210, and EN2223 semiconductor devices. Additionally, as we move forward, we will seek to evolve our roadmap to support a future 15 watt regulatory certified market in the US, which could dramatically open up markets to our wireless powered technology. Strategic partnerships within the wireless power ecosystem play an important role in the deployment, and today we're working closely with 17 technology partners, two distribution partners, and four IoT system integrator partners, with more expected to be added in Q4 2023. Now, let's discuss our recent progress on this front and give you a real example. In September 2023, we announced our partnership with VIA to target real-time asset tracking and inventory control for industrial logistics and retail applications. VIA products simplify secure computing in a way that improves responsiveness and bandwidth costs while uploading central cloud dependency through a full range of connectivity options capable of bypassing current customer limited information infrastructure. As part of the VIA partnership, The AT&T Mexico Innovation Lab combined the Energes wireless power and VIA Edge computing products to deliver a POC trial installation for real-time asset tracking geared towards large customer applications. We continue working with VIA to enable and add new potential customers in this field. In October, we attended the Wireless IoT Conference in Wiesbaden, Germany. This conference brought together key companies in the field of IoT RF tags and sensors, among others. At the conference, we launched our low-maintenance wireless sensor for IoT industrial applications in a new partnership with InPlay, which was previously announced in September. InPlay is a fabulous semiconductor company developing low-power communication technologies. Energy and InPlay demonstrated a temperature and humidity IoT sensor solution using the 1 watt power bridge on the transmit side and the InPlay 100 SoC low energy beacon capabilities on our battery-free IoT sensor receiver. Finally, in late October, our team installed an important trial POC in Germany with our customer, EcoByte. This critical trial brought together several companies and their products, demonstrating the energy's capabilities to free RF tags and sensors from wires and batteries in a real-time asset tracking logistics application using our wireless power network products. The companies that were part of this important effort included Identiv, a global U.S.-based digital security and identification leader, Rondon Group, GmbH & Company, a parent company managing several logistics-related companies in Germany, Ecobite, a digitization expert company, which is part of the Runden Group. WBG, Pulling GmbH and Company, a lowered carrier management company in Europe, also part of the Runden Group. Schmitz Cargo Bull AG, a German manufacturer of semi-trailers, trailers, and truck bodies. And Gerald Steiner, Brunnen GmbH. a German mineral water firm. This important trial demonstrates the ability to integrate energy technology into a broader system for real-time asset tracking in a logistics application across warehouses and trailers using digitized pallets and plastic containers. This is just one example of a POC that we were allowed to disclose. and as most of our customers prefer to keep such details under NDA, making it possible for us to demonstrate our current capabilities and talk about 31 ongoing trials in detail. However, hopefully, this example gives you an appreciation of a POC application, our competitiveness, and the type of customers we do business with. To summarize, Energist, has been executing and making significant progress as we reposition and retarget the company on smart IoT applications. We are working towards enabling new smart IoT wireless power network markets. Finally, on the financial side, I am pleased to report that in Q3 2023, we recognized revenue of approximately 169,000, representing a growth of 44% over the prior quarter. Additionally, we continue to manage our OPEX tightly, making efficiency improvements as we progress and align the company further to our strategy. This resulted in a 15% reduction in OPEX compared to Q3 2022 in our non-GAAP costs and expenses. I will now turn the call over to Susan.