What changed in Energous Corp's 10-K — 2023 vs 2024
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Paragraph-level year-over-year comparison of Energous Corp's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.
+244 added−196 removedSource: 10-K (2025-02-27) vs 10-K (2024-03-28)
Top changes in Energous Corp's 2024 10-K
244 paragraphs added · 196 removed · 160 edited across 8 sections
- Item 1A. Risk Factors+116 / −105 · 93 edited
- Item 7. Management's Discussion & Analysis+78 / −37 · 23 edited
- Item 1. Business+39 / −42 · 34 edited
- Item 5. Market for Registrant's Common Equity+3 / −5 · 3 edited
- Item 1C. Cybersecurity+4 / −3 · 3 edited
Item 1. Business
Business — how the company describes what it does
34 edited+5 added−8 removed23 unchanged
Item 1. Business
Business — how the company describes what it does
34 edited+5 added−8 removed23 unchanged
2023 filing
2024 filing
Biggest changeCurrent FCC Approvals for Energous Technology FCC ID Description Grant Date 2ADNG-MLA1599 Digital Transmission System Bluetooth Accessory 2.4GHz 12/30/2014 2ADNG-MT100 Close Coupled 5.8 GHz Charger Pad 05/24/2016 2ADNG-NF130 RF Wireless Charger and Receiver 5.8 GHz 05/02/2017 2ADNG-NF130 Digital Transmission System for Bluetooth 2.4 GHz 05/02/2017 2ADNG-MS300 Wireless Charger 913 MHz 12/26/2017 2ADNG-MS300 Digital Transmission System for Bluetooth 2.4 GHz 12/26/2017 2ADNG-MS300A WPT Client Device 913 MHz 01/05/2018 2ADNG-MS300A Digital Transmission System WPT Client Device with BLE 2.4 GHz 01/05/2018 2ADNG-NF230 RF Wireless Charger 918 MHz 04/09/2018 2ADNG-NF230 Digital Transmission System for Bluetooth 2.4 GHz 04/09/2018 2ADNG-NF330 RF Wireless Charger 918MHz 07/29/2019 2ADNG-NF330 Digital Transmission System for Bluetooth 2.4 GHz 07/29/2019 2ADNG-MS550 RF Wireless Charger 918MHz 04/21/2020 2ADNG-MS550 Digital Transmission System for Bluetooth 2.4 GHz 04/21/2020 2ADNG-MS550 RF Wireless Charger 918MHz 09/30/2020 2ADNG-MS550 Digital Transmission System for Bluetooth 2.4 GHz 09/30/2020 2ADNG-VN15 RF Wireless Charger 918MHz 10/19/2021 2ADNG-VN15 Digital Transmission System for Bluetooth 2.4 GHz 10/19/2021 2ADNG-VN1810 RF Wireless Charger 918MHz 11/30/2021 2ADNG-VN1810 Digital Transmission System for Bluetooth 2.4 GHz 11/30/2021 2ADNG-VN25 RF Wireless Charger 918MHz 01/14/2022 2ADNG-VN25 Digital Transmission System for Bluetooth 2.4 GHz 01/14/2022 2ADNG-VN55 RF Wireless Charger 918MHz 06/02/2022 2ADNG-VN55 Digital Transmission System for Bluetooth/Zigbee 2.4 GHz 06/02/2022 2ADNG-VN1820 RF Wireless Charger 918MHz 08/10/2022 2ADNG-VN1820 Digital Transmission System for Bluetooth 2.4 GHz 08/10/2022 2ADNG-VN55 RF Wireless Charger 918MHz 11/14/2023 2ADNG-VN55 Digital Transmission System for Bluetooth/Zigbee 2.4 GHz 11/14/2023 As of December 31, 2023, we announced completion of the regulatory process for our PowerBridge wireless charging technology in US, Canada, Europe, India, China, UK, Korea, Australia and New Zealand, for unlimited distance wireless charging.
Biggest changeEnergous has received Part 15 and Part 18 FCC approvals our products and has received regulatory approvals from many international agencies. 6 Table of Contents Current FCC Approvals for Energous Technology FCC ID Description Grant Date 2ADNG-MLA1599 Digital Transmission System Bluetooth Accessory 2.4GHz 12/30/2014 2ADNG-MT100 Close Coupled 5.8 GHz Charger Pad 05/24/2016 2ADNG-NF130 RF Wireless Charger and Receiver 5.8 GHz 05/02/2017 2ADNG-NF130 Digital Transmission System for Bluetooth 2.4 GHz 05/02/2017 2ADNG-MS300 Wireless Charger 913 MHz 12/26/2017 2ADNG-MS300 Digital Transmission System for Bluetooth 2.4 GHz 12/26/2017 2ADNG-MS300A WPT Client Device 913 MHz 01/05/2018 2ADNG-MS300A Digital Transmission System WPT Client Device with BLE 2.4 GHz 01/05/2018 2ADNG-NF230 RF Wireless Charger 918 MHz 04/09/2018 2ADNG-NF230 Digital Transmission System for Bluetooth 2.4 GHz 04/09/2018 2ADNG-NF330 RF Wireless Charger 918MHz 07/29/2019 2ADNG-NF330 Digital Transmission System for Bluetooth 2.4 GHz 07/29/2019 2ADNG-MS550 RF Wireless Charger 918MHz 04/21/2020 2ADNG-MS550 Digital Transmission System for Bluetooth 2.4 GHz 04/21/2020 2ADNG-MS550 RF Wireless Charger 918MHz 09/30/2020 2ADNG-MS550 Digital Transmission System for Bluetooth 2.4 GHz 09/30/2020 2ADNG-VN15 RF Wireless Charger 918MHz 10/19/2021 2ADNG-VN15 Digital Transmission System for Bluetooth 2.4 GHz 10/19/2021 2ADNG-VN1810 RF Wireless Charger 918MHz 11/30/2021 2ADNG-VN1810 Digital Transmission System for Bluetooth 2.4 GHz 11/30/2021 2ADNG-VN25 RF Wireless Charger 918MHz 01/14/2022 2ADNG-VN25 Digital Transmission System for Bluetooth 2.4 GHz 01/14/2022 2ADNG-VN55 RF Wireless Charger 918MHz 06/02/2022 2ADNG-VN55 Digital Transmission System for Bluetooth/Zigbee 2.4 GHz 06/02/2022 2ADNG-VN1820 RF Wireless Charger 918MHz 08/10/2022 2ADNG-VN1820 Digital Transmission System for Bluetooth 2.4 GHz 08/10/2022 2ADNG-VN55 RF Wireless Charger 918MHz 11/14/2023 2ADNG-VN55 Digital Transmission System for Bluetooth/Zigbee 2.4 GHz 11/14/2023 2ADNG-YND1800 RF Wireless Charger 918MHz 08/21/2024 2ADNG-YND1800 Digital Transmission System for Bluetooth 2.4 GHz 08/21/2024 As of December 31, 2024, we announced completion of the regulatory process for our PowerBridge wireless charging technology in the U.S., Canada, Europe, India, China, UK, Korea, Australia and New Zealand, for unlimited distance wireless charging.
We expect that our PowerBridge transmitter systems will have the ability to broadcast wireless power to wireless power enabled receiving devices for charging. PowerBridge transmitters may play a significant role in the charging of low power IoT devices– such as ESLs, RF tags, and IoT sensors.
We expect that our PowerBridge transmitter systems will have the ability to broadcast wireless power to wireless power enabled receiving devices for charging. Our PowerBridge transmitters may play a significant role in the charging of low power IoT devices– such as ESLs, RF tags, and IoT sensors.
It has the ability to transmit power at distances up to ~11 inches (30cm) which can be increased with the use of resonance repeaters It also has more flexibility of placement than magnetic induction. 4 Energy Harvesting. There are multiple companies looking at harvesting energy that may be present in certain environments.
It has the ability to transmit power at distances up to ~11 inches (30cm) which can be increased with the use of resonance repeaters It also has more flexibility of placement than magnetic induction. Energy Harvesting. There are multiple companies looking at harvesting energy that may be present in certain environments.
The public can obtain any documents that we file with the SEC at www.sec.gov. Copies of each of our filings with the SEC can also be viewed and downloaded free of charge at our website, https://ir.energous.com/, after the reports and amendments are electronically filed with or furnished to the SEC. 8
The public can obtain any documents that we file with the SEC at www.sec.gov. Copies of each of our filings with the SEC can also be viewed and downloaded free of charge at our website, https://ir.energous.com/, after the reports and amendments are electronically filed with or furnished to the SEC.
For our technology to become a ubiquitous solution for charging at-a-distance, we intend to pursue and build an ecosystem strategy, engaging not only potential customers for our transmitter, receiver, and power amplifier IC’s but also their upstream and downstream value chain partners.
For our technology to become a ubiquitous solution for charging at-a-distance, we intend to pursue and build an ecosystem strategy, engaging not only potential customers for our transmitter, receiver, and power amplifier IC’s and solutions but also their upstream and downstream value chain partners.
Far Field Transmitters: Transmitters based on the Energous Far Field technology, which we refer to as the Wireless PowerBridge, are expected to provide low power charging for multiple devices with the capability of extending the range through the deployment of multiple PowerBridges.
Far Field Transmitters: Transmitters based on the Energous Far Field technology, which we refer to as the Wireless PowerBridge, are expected to provide low power charging for multiple devices with the capability of extending the range through the deployment of multiple Energous PowerBridge transmitters.
Receiver Target Markets We believe there are many potential uses for our receiver technology, including: • IOT devices including asset trackers, sensors, retail displays, security devices • Smart home, medical, industrial, and other sensors • ESLs • Logistics and asset tracking tags and sensors • Peripheral devices such as computer mice and keyboards • Remote controls • Gaming consoles and controllers • Hearing aids • Rechargeable batteries • Automotive accessories • Smart textiles • Wearables • Medical devices This list is meant to be illustrative only; we cannot guarantee that we will address any of these markets, and we may decide to address a market that is not on the list.
Receiver Target Markets We believe there are many potential uses for our receiver technology, including: ● IoT devices including asset trackers, sensors, retail displays, security devices ● Smart home, medical, industrial, and other sensors ● ESLs ● Logistics and asset tracking tags and sensors ● Peripheral devices such as computer mice and keyboards ● Remote controls ● Gaming consoles and controllers 5 Table of Contents ● Hearing aids ● Rechargeable batteries ● Automotive accessories ● Smart textiles ● Wearables ● Medical devices This list is meant to be illustrative only; we cannot guarantee that we will address any of these markets, and we may decide to address a market that is not on the list.
We are closely monitoring the impact of these factors on all aspects of our business, including their impact on our operations, financial position, cash flows, inventory, supply chains, global regulatory approvals, purchasing trends, customer payments, and the industry in general, in addition to the impact on our employees.
We are closely monitoring the impact of these factors on all aspects of our business, including their impact on our operations, financial position, cash flow, inventory, supply chains, global regulatory approvals, purchasing trends, customer payments, and the industry in general, in addition to the impact on our employees.
As the market and our technology reaches a more mature phase, we are now engaging larger, top-tier customers able to use our WPNT in mass quantities. We are also working with companies with much longer product cycles in multiple vertical markets to integrate our technology into a cost-effective strategic solution specific to their respective use cases.
As the market and our technology reaches a more mature phase, we are now engaging larger, top-tier customers able to use our WPN solutions in mass quantities. We are also working with companies with much longer product cycles in multiple vertical markets to integrate our technology into a cost-effective strategic solution specific to their respective use cases.
PowerBridges share a number of technical characteristics with Wi-Fi routers in that: (1) both devices operate in the airwaves in the unlicensed industrial, scientific and medical bands, (2) both devices owe their success to the utility and convenience they bring to the consumer, (3) both devices rely on antennas, and (4) both devices “pair” or provide hand off capabilities which allow for networks to provision large sites.
Our PowerBridge transmitters share a number of technical characteristics with Wi-Fi routers in that: (1) both devices operate in the airwaves in the unlicensed industrial, scientific and medical bands, (2) both devices owe their success to the utility and convenience they bring to the consumer, (3) both devices rely on antennas, and (4) both devices “pair” or provide hand off capabilities which allow for networks to provision large sites.
We endeavor to: • Build multiple integrated circuits (“ICs”) to advance our technology; • Develop, license, and manufacture a complete transmitter system solution to enable wireless power network growth; • Develop reference designs to reduce early adopter risks, enable easier integration at lower costs, and foster adoption; • Continue to build additional value by converging networking, power, and data to provide smarter vertical solutions in the retail, industrial, healthcare, and logistic markets through our PowerBridge products designed for powering next generation IoT.
We endeavor to: ● Build multiple integrated circuits (“ICs”) to advance our technology; ● Develop, license, and manufacture a complete transmitter system solutions to enable wireless power network growth; ● Develop reference designs to reduce early adopter risks, enable easier integration at lower costs, and foster adoption; 1 Table of Contents ● Continue to build additional value by converging networking, power, and data to provide smarter vertical solutions in the retail, industrial, healthcare, and logistic markets through our PowerBridge products designed for powering next generation IoT devices.
Our plan in the future is to integrate our WPNT in third party devices: Near Field Transmitters: Because of its advantages over other forms of contact-based wireless charging, including incorporation into multiple form factors and potential compatibility with future distance transmitters, we expect transmitters using our Near Field wireless power technology to be the first wireless transmitter products on the market.
Our plan in the future is to integrate our WPN technology in third party devices: 4 Table of Contents Near Field Transmitters: Because of its advantages over other forms of contact-based wireless charging, including incorporation into multiple form factors and potential compatibility with future distance transmitters, we expect transmitters using our Near Field wireless power technology to be the first wireless transmitter products on the market.
Our first applications include RF tags, ESLs, and IoT sensors; • Partner with leading technology providers, systems integrators and value-added resellers (“VARs”); • Provide cost effective benefits to customers in terms of utility and convenience; • Develop and execute a strategy to gain global regulatory approval for ubiquitous unlimited distance charging; and • Support the AirFuel Alliance (“AFA”), which recently announced that AirFuel RF, the radio frequency-based wireless charging technology from AirFuel Alliance, is now an industry standard, underpinning the compatibility of our WPNT across a variety of vendors and development of a common user experience at the application level.
Our first applications include RF tags, electronic shelf labels (“ESLs”) and IoT sensors; ● Partner with leading technology providers, systems integrators, and value-added resellers (“VARs”); ● Provide cost effective benefits to customers in terms of utility and convenience; ● Develop and execute a strategy to gain global regulatory approval for ubiquitous unlimited distance charging; and ● Support the AirFuel Alliance (“AFA”), which recently announced that AirFuel RF, the radio frequency-based wireless charging technology from AFA, is now an industry standard, underpinning the compatibility of our WPN technology across a variety of vendors and development of a common user experience at the application level.
We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations. As of March 1, 2024, the Energous IP portfolio contained over 250 issued patents organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize wireless power technology.
We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations. As of February 15, 2025, the Energous IP portfolio contained over 250 issued patents organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize wireless power technology.
Transmitter System Target Markets Transmitters are devices that broadcast RF energy that can be accessed by WPNT enabled receivers for IoT applications.
Transmitter System Target Markets Transmitters are devices that broadcast RF energy that can be accessed by WPN technology-enabled receivers for IoT applications.
Our management and employees are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. Seasonality The industrial markets in which we are involved have minimal seasonal impact.
Our management and employees are expected to exhibit and promote honest, ethical and respectful conduct in the workplace. 7 Table of Contents Seasonality The industrial markets in which we are involved have minimal seasonal impact.
As of March 1, 2024, products integrating this technology had received international regulatory approvals in over 110 countries. 7 Manufacturing As a fabless semiconductor company in the research and development stage, we foresee our manufacturing strategy to follow an outsourced manufacturing process. We are engaged with contract manufacturing partners in the United States and internationally.
As of February 15, 2025, products integrating this technology had received international regulatory approvals in over 110 countries. Manufacturing As a fabless semiconductor company in the research and development stage, we foresee our manufacturing strategy to follow an outsourced manufacturing process. We are engaged with contract manufacturing partners in the United States and internationally.
Human Capital As of March 1, 2024, we had 37 full-time employees, 30 of whom are Engineers. None of these employees are covered by a collective bargaining agreement, and we believe our relationship with our employees is good. We also employ consultants, including technical advisors, on an as-needed basis, for their technical expertise.
Human Capital As of February 15, 2025, we had 26 full-time employees, 14 of whom are engineers. None of these employees are covered by a collective bargaining agreement, and we believe our relationship with our employees is good. We also employ consultants, including technical advisors, on an as-needed basis, for their technical expertise.
The transmitters vary based on form factor and power specifications and frequencies, while the receivers are designed to support a myriad of wireless charging applications, including: Device Type Application RF Tags Cold Chain, Asset Tracking, Medical IoT IoT Sensors Cold Chain, Logistics, Asset Tracking Electronic Shelf Labels Retail and Industrial IoT 1 The first end product featuring our technology entered the market in 2019.
Our transmitters vary in form factor, power specifications, and operating frequencies, while our receivers are engineered to support a wide range of wireless charging applications across multiple device categories. including: Device Type Application RF Tags Cold Chain, Asset Tracking, Medical IoT IoT Sensors Cold Chain, Logistics, Asset Tracking Electronic Shelf Labels Retail and Industrial IoT The first WPN-enabled end product featuring our technology entered the market in 2019.
As part of the regulatory approval process, devices incorporating our technology must obtain approvals under FCC Part 15 and/or FCC Part 18 in the U.S., depending on the specific application. Energous has received Part 15 and Part 18 FCC approvals our products and has received regulatory approvals from many international agencies.
As part of the regulatory approval process, devices incorporating our technology must obtain approvals under FCC Part 15 and/or FCC Part 18 in the U.S., depending on the specific application.
For example, the wireless power transmitter technology could be integrated into a Wi-Fi router on the ceiling of a manufacturing floor or hospital ward, providing both internet connectivity and wireless power to any devices within range. 5 PowerBridges: We see the combination of wireless power routers and wireless bridges as a natural integration point and a synergistic application of both technologies.
For example, the wireless power transmitter technology could be integrated into a Wi-Fi router on the ceiling of a manufacturing floor or hospital ward, providing both internet connectivity and wireless power to any devices within range.
To engage with potential customers, we offer several evaluation kits consisting of a transmitter and a receiver along with a custom software application (“WattUp”), allowing potential strategic partners to test the technology in their labs.
To engage with potential customers, we offer several evaluation kits consisting of a transmitter and a receiver along with a custom software application, allowing potential strategic partners to test the technology in their labs. The kits form a base “building block” component that is scalable to meet the needs of specific applications.
Item 1. Business Overview We have developed our wireless power networks technology (“WPNT”), consisting of semiconductor chipsets, software controls, hardware designs and antennas, that enable radio frequency (“RF”) based charging for Internet of Things (“IoT”) devices.
Item 1. Business Overview We have developed a scalable, over-the-air Wireless Power Network (“WPN”) technology that integrates advanced semiconductor chipsets, software controls, hardware designs, and antenna systems to enable radio frequency (“RF”)-based charging for Internet of Things (“IoT”) devices.
The kits form a base “building block” component that is scalable to meet the needs of specific applications. 2 To validate our technology, we originally engaged with customers that were smaller, more nimble early adopters with relatively short product cycles, with the aim of shipping fully integrated WPNT devices to customers as quickly as possible.
To validate our technology, we originally engaged with customers that were smaller, more nimble early adopters with relatively short product cycles, with the aim of shipping fully integrated WPN solutions to customers as quickly as possible.
The implementation of previous ubiquitous solutions, such as Wi-Fi and Bluetooth, illustrates our goal. For example, Wi-Fi routers, regardless of their designer or manufacturer, work with Wi-Fi receivers installed in consumer electronics, regardless of manufacturer.
For example, Wi-Fi routers, regardless of their designer or manufacturer, work with Wi-Fi receivers installed in consumer electronics, regardless of manufacturer.
Our current generation ICs have significantly reduced the size and cost of both transmitter technology and our receiver technology, and products under development are designed to further reduce size and cost.
Our current generation ICs have significantly reduced the size and cost of both our transmitter technology and our receiver technology, and products under development are designed to further reduce size and cost. In addition, our ICs are designed for both lower-power and higher-power applications, efficiency and faster synchronization, while working within the constraints of multiple international regulatory environments.
Figure 1 below shows the current IC product line for Energous: Our small form factor antennas and one transmitter to multiple receivers capabilities produce significant advantages over RF-beamforming transmitters, which are larger, and higher cost wireless power technology implementations.
Our Technology Our award-winning, RF-based, scalable WPN solutions enable wireless charging, ranging from contact-based applications to at-a-distance applications, that charge over the air, transforming the way electronic devices are charged and powered. 2 Table of Contents Figure 1 below shows the current IC product line for Energous Wireless Power Solutions: Our small form factor antenna and one-transmitter-to-multiple receivers capabilities produce significant advantages over RF-beamforming transmitters, which are larger, and higher cost wireless power technology implementations.
PowerBridges provide the bridge to Wi-Fi, 5G and other Wide Area network technologies while also providing wireless power to in-range receiver devices.
PowerBridge Transmitters: We see the combination of wireless power routers and wireless bridges as a natural integration point and a synergistic application of both technologies. Energous PowerBridge transmitters provide the bridge to Wi-Fi, 5G and other Wide Area network technologies while also providing wireless power to in-range receiver devices.
Figure 2 below shows the block diagram for our 1W WattUp PowerBridge Transmitter Our Competition Competing methods for charging battery-powered devices include wall plug-in charging, inductive charging, magnetic resonance charging and more. To our knowledge, almost all consumer electronics equipped with a rechargeable battery come bundled with a charging method, such as a power cord.
Figure 2 below shows the block diagram for our Energous PowerBridge PRO Transmitter System 3 Table of Contents Our Competition Competing methods for charging battery-powered devices include wall plug-in charging, inductive charging, magnetic resonance charging and more.
So long as we make the business decision to continue paying maintenance and/or annuity fees, our issued patents have terms that would not expire earlier than 2030. 6 Government Regulation Our wire-free charging technology involves the transmission of power using RF energy, which is subject to regulation by the FCC, international regulators and may be subject to regulation by other federal, state, local and international agencies.
Government Regulation Our wire-free charging technology involves the transmission of power using RF energy, which is subject to regulation by the Federal Communications Commission (“FCC”), international regulators and may be subject to regulation by other federal, state, local and international agencies.
We believe our technology is innovative in its approach, in that we are developing solutions that charge IoT devices using RF technology. To date, we have developed and released to production multiple transmitters and receivers, including prototypes and partner production designs.
We believe our technology represents a breakthrough in wireless power delivery, offering a differentiated approach to charging IoT devices via RF technology. To date, we have developed and released multiple transmitter and receiver solutions, including prototypes and partner production designs.
Our Business Strategy We believe that a large market opportunity lies in wire-free low-power charging at-a-distance, which might develop as the Wi-Fi ecosystem developed. The goal is to ensure interoperability between transmitters and receivers that are based on our technology, regardless of who made them, installed them into finished goods, or marketed them.
The information contained on, or that may be obtained from our website, is not, and shall not be deemed to be, part of this Report. Our Business Strategy We believe that a large market opportunity lies in wire-free, low-power charging at-a-distance, which might develop as the Wi-Fi ecosystem develops.
Our corporate headquarters is located at 3590 North First Street, Suite 210, San Jose, CA 95134. Our website can be accessed at www.energous.com. The information contained on, or that may be obtained from our website, is not, and shall not be deemed to be, part of this Report.
Our common stock is listed on The Nasdaq Capital Market under the symbol “WATT.” Incorporated in Delaware in 2012, our corporate headquarters is located at 3590 North First Street, Suite 210, San Jose, CA 95134. Additional information is available on our website at www.energous.com.
We started shipping our first at-a-distance wireless PowerBridges for commercial IoT applications in the fourth quarter of 2021, and we expect additional wireless power enabled products to be released as we move our business forward. Our common stock is quoted on The Nasdaq Capital Market under the symbol “WATT.” We were incorporated in Delaware in 2012.
In the fourth quarter of 2021, we commenced shipments of our first at-a-distance wireless PowerBridge transmitter systems for commercial IoT applications and proof-of-concept deployments. As we continue to innovate our technology applications, we anticipate the release of additional wireless power-enabled products.
Removed
Our WPNT has a broad spectrum of capabilities to enable the next generation of wireless power networks, delivering power and data in a seamless device portfolio. This includes near field and at-a-distance wireless charging, with multiple power levels at various distances. We believe our WPNTs will facilitate the deployment of the growing universe of IoT applications.
Added
Our WPN technology provides a comprehensive suite of capabilities designed to power the next generation of wireless energy networks, seamlessly delivering power and data across diverse, battery-free device ecosystems. This innovation enhances operational visibility, control, and intelligent business automation. Our solutions support both near-field and at-a-distance wireless charging, supplying power at multiple levels across varying distances.
Removed
According to Statista 2024, the number of IoT connected devices worldwide is forecasted to grow to 29.4 billion units by 2030. The initial IoT applications we are targeting are RF tags for asset tracking and cold chain applications, electronic shelf labeling (“ESL”), and IoT sensors for retail, industrial, healthcare, and logistics markets.
Added
By enabling continuous wireless power transmission, our transmitter and receiver technologies facilitate the use of battery-free IoT devices, transforming asset and inventory tracking across multiple industries. Key applications include retail sensors, electronic shelf labels, asset trackers, air quality monitors, motion detectors, and other smart monitoring solutions.
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Our Technology Our award-winning, RF-based, scalable WPNT enables wireless charging, ranging from contact-based applications to at-a-distance applications, that charge over the air, transforming the way electronic devices are charged and powered.
Added
The goal is to ensure interoperability between transmitters and receivers that are based on our technology, regardless of who makes them, installs them into finished goods, or markets them. The implementation of previous ubiquitous solutions, such as Wi-Fi and Bluetooth, illustrates our goal.
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In addition, our ICs are designed for both lower-power and higher-power applications, efficiency and faster synchronization, while working within the constraints of multiple international regulatory environments. 3 In 2023 we continued to leverage the growing ecosystem of investments made by a number of IoT leaders.
Added
To our knowledge, almost all consumer electronics equipped with a rechargeable battery come bundled with a charging method, such as a power cord.
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While exhibiting at the CES 2023, we demonstrated the world’s first smart football in partnership with Catapult, a global sports science and analytics company.
Added
So long as we make the business decision to continue paying maintenance and/or annuity fees, our issued patents have terms that would not expire earlier than 2030.
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We also demonstrated the world’s first battery-free CO2 sensor in partnership with Sensirion, a leader in sensor technology, and a full battery-free sensor for a lighting application targeting vertical farming in partnership with ams Osram AG, a global leader in intelligent sensors and emitters.
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During 2023, we also upgraded our IoT WPNT, connecting Juniper Mist WiFi Access Points to multiple PowerBridge transmitters at 1W, 2W, and 5W.
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We demonstrated charging receiver device interoperability by simultaneously powering RF tags from Wiliot controlled by their Sensing as a Service Cloud Software, ESL tags using e-Peas devices, an IoT Device using Atmosic’s BLE chips, and network edge computing, driven by Syntiant’s Artificial Intelligence voice recognition technology, all of which were managed by our WPNT Software .
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
93 edited+23 added−12 removed166 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
93 edited+23 added−12 removed166 unchanged
2023 filing
2024 filing
Biggest changeIf securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline. The trading market for our common stock depends in part on the research and reports that securities or industry analysts publish about us or our business.
Biggest changeThe trading market for our common stock depends in part on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. There can be no assurance that analysts will continue to cover us or provide favorable coverage.
If we do not keep pace with changes in the marketplace and the direction of technological innovation and customer demands, our technology and products may become less useful or obsolete and our operating results will suffer. 9 • If the quality of our products does not meet the expectations of our licensing partners or the end users of our licensing partners’ products or regulatory or industry standards, then our sales and operating earnings, and ultimately our reputation, could be negatively impacted. • If our products do not effectively interoperate with wireless networks and the wireless devices that integrate them, future sales of our products could be negatively affected. • We require third-party components, including components from limited or sole source suppliers, to build our products.
If we do not keep pace with changes in the marketplace and the direction of technological innovation and customer demands, our technology and products may become less useful or obsolete and our operating results will suffer. ● If the quality of our products does not meet the expectations of our licensing partners or the end users of our licensing partners’ products or regulatory or industry standards, then our sales and operating earnings, and ultimately our reputation, could be negatively impacted. ● If our products do not effectively interoperate with wireless networks and the wireless devices that integrate them, future sales of our products could be negatively affected. ● We require third-party components, including components from limited or sole source suppliers, to build our products.
If we experience a material weakness in our internal controls, we may fail to detect errors in our financial accounting, which may require a financial statement restatement or otherwise harm our operating results, cause us to fail to meet our SEC reporting obligations or listing requirements of The Nasdaq Stock Market, ("Nasdaq"), adversely affect our reputation, cause our stock price to decline or result in inaccurate financial reporting or material misstatements in our annual or interim financial statements.
If we experience a material weakness in our internal controls, we may fail to detect errors in our financial accounting, which may require a financial statement restatement or otherwise harm our operating results, cause us to fail to meet our SEC reporting obligations or listing requirements of The Nasdaq Stock Market, (“Nasdaq”), adversely affect our reputation, cause our stock price to decline or result in inaccurate financial reporting or material misstatements in our annual or interim financial statements.
It is possible that we will continue to derive a significant portion of our revenue from a concentrated group of customers in the 18 future. If, among other things, a major customer fails to pay us or reduces their order volume, our revenue would be impacted and our operating results and financial condition could be materially harmed.
It is possible that we will continue to derive a significant portion of our revenue from a concentrated group of customers in the future. If, among other things, a major customer fails to pay us or reduces their order volume, our revenue would be impacted and our operating results and financial condition could be materially harmed.
Creating a licensing business relationship often takes substantial effort, as we expect to have to convince the counterparty of the efficacy of our technology, meet design and manufacturing requirements, satisfy marketing and product needs, and comply with selection, review, and contracting requirements. It is critical that we continue to evolve our intellectual property 22 portfolio, particularly in 5G.
Creating a licensing business relationship often takes substantial effort, as we expect to have to convince the counterparty of the efficacy of our technology, meet design and manufacturing requirements, satisfy marketing and product needs, and comply with selection, review, and contracting requirements. It is critical that we continue to evolve our intellectual property portfolio, particularly in 5G.
Commercial success depends on many factors including demand for innovative technology, availability of materials and equipment, selling price the market is willing to bear, competition and effective licensing or product sales. We may not achieve significant revenue from our product investments for a number of years, if at all.
Commercial success depends on many factors including demand for innovative technology, availability of materials and equipment, a selling price the market is willing to bear, competition and effective licensing or product sales. We may not achieve significant revenue from certain of our product investments for a number of years, if at all.
Our management and other personnel are expected to devote a substantial amount of time to compliance initiatives associated with our public reporting company status. Those costs will increase significantly if we cease to qualify as a smaller reporting company. 25 We may be subject to securities litigation, which is expensive and could divert management attention.
Our management and other personnel are expected to devote a substantial amount of time to compliance initiatives associated with our public reporting company status. Those costs will increase significantly if we cease to qualify as a smaller reporting company. We may be subject to securities litigation, which is expensive and could divert management attention.
Such a competitive market could put upward pressure on labor costs for engineering talent. We may incur significant costs to attract and retain highly qualified talent, and we may lose new employees to our competitors or other technology companies before we realize the benefit of our 23 investment in recruiting and training them.
Such a competitive market could put upward pressure on labor costs for engineering talent. We may incur significant costs to attract and retain highly qualified talent, and we may lose new employees to our competitors or other technology companies before we realize the benefit of our investment in recruiting and training them.
Due to the recurring fair value measurement, we expect that we will recognize non-cash gains or losses on the 2023 Warrants each reporting period and that the amount of such gains or losses could be material. The impact of changes in fair value on earnings may have an adverse effect on the market price of our common stock.
Due to the recurring fair value measurement, we expect that we will recognize non-cash gains or losses on the warrants each reporting period and that the amount of such gains or losses could be material. The impact of changes in fair value on earnings may have an adverse effect on the market price of our common stock.
For rechargeable devices that utilize our receiver technology, the technology may be embedded in a sleeve, case or other enclosure. For example, products such as remote controls or toys equipped with replaceable AA size or 14 other batteries would need to be outfitted with enhanced batteries and other hardware enabling the devices to be rechargeable by our system.
For rechargeable devices that utilize our receiver technology, the technology may be embedded in a sleeve, case or other enclosure. For example, products such as remote controls or toys equipped with replaceable AA size or other batteries would need to be outfitted with enhanced batteries and other hardware enabling the devices to be rechargeable by our system.
Prices for some of these materials have experienced significant volatility as a result of changes in the levels of global demand, supply disruptions, including port, transportation and distribution delays or interruptions, and other factors. As a result, we have seen a significant increase in costs that has negatively impacted our results of operations.
Prices for some of these materials have experienced significant volatility as a result of changes in the levels of global demand, supply disruptions, including port, transportation and distribution delays or interruptions, tariffs, and other factors. As a result, we have seen a significant increase in costs that has negatively impacted our results of operations.
Our inability to retain these individuals could impede our business plan and growth strategies, which could have a negative impact on our business and the value of your investment. • Our success and growth depend on our ability to attract, integrate and retain high-level engineering talent. 10 • We are subject to risks associated with our utilization of engineering consultants.
Our inability to retain these individuals could impede our business plan and growth strategies, which could have a negative impact on our business and the value of your investment. ● Our success and growth depend on our ability to attract, integrate and retain high-level engineering talent. ● We are subject to risks associated with our utilization of engineering consultants.
With each such remeasurement, the warrant liability is adjusted to fair value, with the change in fair value recognized in our statement of operations and therefore our 26 reported earnings. As a result of the recurring fair value measurement, our financial statements and results of operations may fluctuate quarterly based on factors which are outside of our control.
With each such remeasurement, the warrant liability is adjusted to fair value, with the change in fair value recognized in our statement of operations and therefore our reported earnings. As a result of the recurring fair value measurement, our financial statements and results of operations may fluctuate quarterly based on factors which are outside of our control.
However, these protections may not be available in all jurisdictions and may be inadequate to prevent our 19 competitors or other third-party manufacturers from copying, reverse engineering or otherwise obtaining and using our technology, proprietary rights or products, which would adversely affect our ability to compete in the market.
However, these protections may not be available in all jurisdictions and may be inadequate to prevent our competitors or other third-party manufacturers from copying, reverse engineering or otherwise obtaining and using our technology, proprietary rights or products, which would adversely affect our ability to compete in the market.
Efforts to obtain regulatory approval for devices using our technology are costly and time consuming, and there can be no assurance that requisite regulatory approvals will be forthcoming. If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.
Efforts to obtain regulatory approval for devices using our technology are costly and time consuming, and there can be no assurance that requisite regulatory approvals will be obtained. If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.
Because our products are embedded in other end-use products and rely on stable transmissions, the performance of our products could unintentionally jeopardize the performance of our licensing partners’ product performance. Defects or errors in our technology may discourage existing and future partners from using our technology to develop a range of commercial products.
Because our products are embedded in other end-use products and rely on stable transmissions, the performance of our products could unintentionally jeopardize the performance of our licensing partners’ products. Defects or errors in our technology may discourage existing and future partners from using our technology to develop a range of commercial products.
We take steps to protect the security and integrity of the information we collect, process, store and transmit, but there is no guarantee that inadvertent or unauthorized use or disclosure will not occur or that third 21 parties will not gain unauthorized access to this information despite such efforts.
We take steps to protect the security and integrity of the information we collect, process, store and transmit, but there is no guarantee that inadvertent or unauthorized use or disclosure will not occur or that third parties will not gain unauthorized access to this information despite such efforts.
Future products based on our technology may require the user to purchase additional products to use with existing devices. To the extent these additional purchases are inconvenient or costly, the adoption of our technology under development or other future products could be slowed, which would harm our business.
Future products based on our technology may require the user to purchase additional products to use with existing devices. To the extent these additional purchases are inconvenient or costly, the adoption of our technology under development or other future products could be slowed or delayed, which would harm our business.
To the extent these additional purchases are inconvenient or costly, the adoption of our technology under development or other future products could be slowed, which would harm our business. • Laboratory conditions differ from field conditions, which could reduce the effectiveness of our technology under development or other future products.
To the extent these additional purchases are inconvenient or costly, the adoption of our technology under development or other future products could be slowed or delayed, which would harm our business. ● Laboratory conditions differ from field conditions, which could reduce the effectiveness of our technology under development or other future products.
If we are unable to generate revenues of sufficient scale to cover our costs of doing 11 business, our losses will continue and we may not achieve profitability, which could negatively impact the value of your investment in our securities.
If we are unable to generate revenues of sufficient scale to cover our costs of doing business, our losses will continue and we may not achieve profitability, which could negatively impact the value of your investment in our securities.
Our ability to generate revenues and achieve profitability will depend on our ability to execute our business plan, complete the development and approval of our technology, incorporate the technology into products that customers wish to buy, and, if necessary, secure additional financing.
Our ability to generate revenues and achieve profitability will largely depend on our ability to execute our business plan, complete the development and approval of our technology, incorporate the technology into products that customers wish to buy, and, if necessary, secure additional financing.
Our competitive position also depends on our ability to: • generate widespread awareness, acceptance and adoption by the consumer and enterprise markets of our technology under development and future products; • design a product that may be sold at an acceptable price point; • develop new or enhanced technologies or features that improve the convenience, efficiency, safety or perceived safety, and productivity of our technology under development and future products; • properly identify existing and evolving customer needs and deliver new products or product enhancements to address those needs; • limit the time required from proof of feasibility to routine production; • limit the timing and cost of regulatory approvals; • adapt to evolving regulatory requirements; • attract and retain qualified personnel; • protect our inventions with patents or otherwise develop proprietary products and processes; and • secure sufficient capital resources to expand both our continued research and development, and sales and marketing efforts.
Our competitive position also depends on our ability to: ● generate widespread awareness, acceptance and adoption by the consumer and enterprise markets of our technology under development and future products; ● design a product that may be sold at an acceptable price point; ● develop new or enhanced technologies or features that improve the convenience, efficiency, safety or perceived safety, and productivity of our technology under development and future products; ● properly identify existing and evolving customer needs and deliver new products or product enhancements to address those needs; ● limit the time required from proof of feasibility to routine production; ● limit the timing and cost of regulatory approvals; ● adapt to evolving regulatory requirements; ● attract and retain qualified personnel; ● protect our inventions with patents or otherwise develop proprietary products and processes; and 16 Table of Contents ● secure sufficient capital resources to expand both our continued research and development, and sales and marketing efforts.
If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected. We pursue the licensing of our technology as a primary means of revenue generation.
If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected. We may pursue the licensing of our technology as a primary means of revenue generation.
Security breaches, computer malware, computer hacking attacks and other compromises of information security measures have become more prevalent in the business world and may occur on our systems or those of our vendors in the future.
Security breaches, computer malware, computer hacking attacks, ransomware and other compromises of information security measures have become more prevalent in the business world and may occur on our systems or those of our vendors in the future.
Risks Related to Our Intellectual Property and Other Legal Risks • It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection. • We depend upon a combination of patents, trade secrets, copyright and trademark laws to protect our intellectual property and technology. • We may be subject to patent infringement or other intellectual property lawsuits that could be costly to defend. • We could become subject to product liability claims, product recalls, and warranty claims that could be expensive, divert management’s attention and harm our business. • Our business is subject to data security risks, including security breaches. • If we are not able to satisfy data protection, security, privacy and other government- and industry-specific requirements or regulations, our business, results of operations and financial condition could be harmed. • If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
Risks Related to Our Intellectual Property and Other Legal Risks ● It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection. 9 Table of Contents ● We depend upon a combination of patents, trade secrets, copyright and trademark laws to protect our intellectual property and technology. ● We may be subject to patent infringement or other intellectual property lawsuits that could be costly to defend. ● We could become subject to product liability claims, product recalls, and warranty claims that could be expensive, divert management’s attention and harm our business. ● Our business is subject to data security risks, including security breaches. ● If we are not able to satisfy data protection, security, privacy and other government- and industry-specific requirements or regulations, our business, results of operations and financial condition could be harmed. ● If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
We may not possess the resources to or may not choose to pursue patent protection outside the United States or any or every country other than the United States where we may eventually decide to sell our future products.
We may not possess the resources to or may not choose to pursue patent protection outside the United States or any or every country other than the United States where we may eventually decide to sell our products.
Because of the number of patents issued and patent applications filed in our technical areas or fields (including some pertaining specifically to wireless charging technologies), our competitors or other third parties have currently and may in the future assert that our products and technology and the methods we employ in the use of our products and technology are covered by United States or foreign patents held by them.
Because of the number of patents issued and patent applications filed in our technical areas or fields (including some pertaining specifically to wireless charging technologies), our competitors or other third parties may in the future assert that our products and technology and the methods we employ in the use of our products and technology are covered by United States or foreign patents held by them.
Although our management has determined that our internal control over financial reporting was effective as of December 31, 2023, we cannot assure you that we will not identify any material weakness in our internal control in the future. We qualify as a “smaller reporting company” and are therefore not required to file an auditor attestation report.
Although our management has determined that our internal control over financial reporting was effective as of December 31, 2024, we cannot assure you that we will not identify any material weakness in our internal control in the future. We qualify as a “smaller reporting company” and are therefore not required to file an auditor attestation report.
Market acceptance of an RF-based charging system as a preferred method for 13 charging electronic devices will be crucial to our success.
Market acceptance of an RF-based charging system as a preferred method for charging electronic devices will be crucial to our success.
Any such issues identified prior to the shipment of the products may cause delays in 16 shipping products to customers, or even the cancellation of orders by customers.
Any such issues identified prior to the shipment of the products may cause delays in shipping products to customers, or even the cancellation of orders by customers.
Our warrants that are accounted for as liabilities and the changes in value of our warrants could have a material effect on the market price of our common stock or our financial results. We account for the 2023 Warrants in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.
Our warrants that are accounted for as liabilities and the changes in value of our warrants could have a material effect on the market price of our common stock or our financial results. We account for our outstanding warrants in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.
Risks Related to Our Technology and Products • We may not be able to develop all the features we seek to include in our technology. • We make significant investments in our products and may be unable to demonstrate the commercial feasibility of the full capability of our technology or achieve profitability. • Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources. • If products incorporating our technology are launched commercially but do not achieve widespread market acceptance, we will not be able to generate the revenue necessary to support our business. • Our products, or the products of our licensing partners, could be susceptible to errors, defects, or unintended performance problems that could result in lost revenue, liability or delayed or limited market acceptance. • As products incorporating our technology are launched commercially, we may experience seasonality or other unevenness in our financial results in consumer markets or a long and variable sales cycle in enterprise markets. • Future products based on our technology may require the user to purchase additional products to use with existing devices.
Risks Related to Our Technology and Products ● We may not be able to develop all the features we seek to include in our technology. ● We have and will continue to make significant investments in our products, but may be unable to demonstrate the commercial feasibility of the full capability of our technology or achieve profitability. ● Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources. ● If products incorporating our technology are launched commercially but do not achieve widespread market acceptance, we will not be able to generate the revenue necessary to support our business. 8 Table of Contents ● Our products, or the products of our licensing partners, could be susceptible to errors, defects, or unintended performance problems that could result in lost revenue, liability or delayed or limited market acceptance. ● As products incorporating our technology are launched commercially, we may experience seasonality or other unevenness in our financial results in consumer markets or a long and variable sales cycle in enterprise markets. ● Future products based on our technology may require the user to purchase additional products to use with existing devices.
If we experience significant delays in developing our technology and products based on it for use in potential commercial applications, particularly after incurring significant expenditures, our business may fail, and you could lose all or part of the value of your investment in the Company.
If we experience significant delays in developing our technology and products based on it for use in potential commercial applications, particularly after incurring significant expenditures, our business may fail, and you could lose all or part of the value of your investment in our stock.
Also, because the claims of published patent applications can change between publication and patent grant, there may be published patent applications that may ultimately issue with claims that we infringe. There could also be existing patents that one or more of our technologies, products or parts may infringe and of 20 which we are unaware.
Also, because the claims of published patent applications 20 Table of Contents can change between publication and patent grant, there may be published patent applications that may ultimately issue with claims that we infringe. There could also be existing patents that one or more of our technologies, products or parts may infringe and of which we are unaware.
As of December 31, 2023, based on our history of operating losses it is possible that a portion of our NOLs will not be fully realizable. Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable.
As of December 31, 2024, based on our history of operating losses it is possible that a portion of our NOLs will not be fully realizable. Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable.
The following factors, among others, may affect the level of market acceptance of our products: • the price of products incorporating our technology relative to other products or competing technologies; • the rate of innovation of competing technologies; • user perceptions of the convenience, safety, efficiency and benefits of our technology; • the effectiveness of sales and marketing efforts of our commercialization partners and of our competitors; • the support and rate of acceptance of our technology and solutions with our development partners; • press and blog coverage, social media coverage, and other publicity factors that are not within our control; and • regulatory developments and the failure to obtain any required regulatory approvals for the use of our products or the products of our licensing partners.
The following factors, among others, may affect the level of market acceptance of RF-based charging systems and our products: ● the price of products incorporating our technology relative to other products or competing technologies; ● the rate of innovation of competing technologies; ● user perceptions of the convenience, safety, efficiency and benefits of our technology; ● the effectiveness of sales and marketing efforts of our commercialization partners and of our competitors; ● the support and rate of acceptance of our technology and solutions with our development partners; ● press and blog coverage, social media coverage, and other publicity factors that are not within our control; and ● regulatory developments and the failure to obtain any required regulatory approvals for the use of our products or the products of our licensing partners.
Risks Related to Ownership of Our Common Stock • We are a “smaller reporting company,” and the reduced disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors. • If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports. • You might lose all or part of your investment. • Our stock price is likely to continue to be volatile. • We have not paid dividends in the past and have no immediate plans to pay dividends. • We expect to continue to incur significant costs as a result of being a public reporting company and our management will be required to devote substantial time to meet our compliance obligations. • We may be subject to securities litigation, which is expensive and could divert management attention. • Our ability to use Federal net operating loss carry forwards to reduce future tax payments may be limited if our taxable income does not reach sufficient levels. • Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable. • Our warrants that are accounted for as liabilities and the changes in value of our warrants could have a material effect on the market price of our common stock or our financial results.
Risks Related to Ownership of Our Common Stock ● We are a “smaller reporting company,” and the reduced disclosure requirements applicable to smaller reporting companies could make our common stock less attractive to investors. ● If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports. ● You might lose all or part of your investment. ● We have not paid dividends in the past and have no immediate plans to pay dividends. ● We expect to continue to incur significant costs as a result of being a public reporting company and our management will be required to devote substantial time to meet our compliance obligations. ● We may be subject to securities litigation, which is expensive and could divert management attention. ● Our ability to use Federal net operating loss carryforwards to reduce future tax payments may be limited if our taxable income does not reach sufficient levels. ● Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable. 10 Table of Contents ● Our warrants that are accounted for as liabilities and the changes in value of our warrants could have a material effect on the market price of our common stock or our financial results.
If such spectrum usage continues to increase through the proliferation of consumer electronics and products competitive with our products, the resultant higher levels of noise in the bands of operation our products use could decrease the effectiveness of our products, which could adversely affect our ability to sell our products, including as a result of reduced sales of our licensing partners’ products.
If such spectrum usage continues to increase through the proliferation of consumer electronics and products competitive with our products, the resultant higher levels of noise in the bands of operation our products use could decrease 18 Table of Contents the effectiveness of our products, which could adversely affect our ability to sell our products, including as a result of reduced sales of our licensing partners’ products.
Item 1A. R isk Factors We are subject to many risks that may harm our business, prospects, results of operations and financial condition. This discussion highlights some of the risks that might adversely affect our future operating results in material ways. We believe these are the risks and uncertainties that are the most important ones we face.
Item 1A. Risk Factors We are subject to many risks that may harm our business, prospects, results of operations and financial condition. This discussion highlights some of the risks that might adversely affect our future operating results in material ways. We believe these are the risks and uncertainties that are the most important ones we face.
Weak global and regional macroeconomic conditions, including labor shortages, supply chain and transportation disruptions, rising interest rates and inflation, low spending environments, geopolitical instability, warfare and uncertainty, weak economic conditions in certain regions or a reduction in technology spending regardless of macroeconomic conditions, including as a result of the ongoing conflict between Russia and the Ukraine and the global response thereto, could adversely affect our business, operating results, and financial condition, including resulting in longer sales cycles, a negative impact on our ability to attract and retain new customers or expand our platform or sell additional products 27 to our existing customers, lower prices for our products, higher default rates among our current suppliers and customers and reduced sales to new or existing customers.
Weak global and regional macroeconomic conditions, including labor shortages, supply chain and transportation disruptions, rising interest rates and inflation, low spending environments, geopolitical instability, warfare and uncertainty, tariffs, trade protectionism or other barriers to trade, weak economic conditions in certain regions or a reduction in technology spending regardless of macroeconomic conditions, including as a result of the ongoing conflict between Russia and the Ukraine and the global response thereto, could adversely affect our business, operating results, and financial condition, including resulting in longer sales cycles, a negative impact on our ability to attract and retain new customers or expand our platform or sell additional products to our existing customers, lower prices for our products, higher default rates among our current suppliers and customers and reduced sales to new or existing customers.
If the license agreements we enter into do not prove to be advantageous to us, our business and results of operations will be adversely affected. Risks Related to Regulation of Our Business Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
If the license agreements we enter into do not prove to be advantageous to us, our business and results of operations will be adversely affected. 22 Table of Contents Risks Related to Regulation of Our Business Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
Large Internet companies and websites have from time to time disclosed sophisticated and targeted attacks on portions of their websites, and an increasing number have reported such attacks resulting in breaches of their information security. We and our third-party vendors are at risk of suffering from similar attacks and breaches.
Large Internet companies and websites have from time to time disclosed sophisticated and targeted attacks on 21 Table of Contents portions of their websites, and an increasing number have reported such attacks resulting in breaches of their information security. We and our third-party vendors are at risk of suffering from similar attacks and breaches.
The unavailability of these components could substantially disrupt our ability to manufacture our products and fulfill sales orders. • Our dependence on commodities and certain components subjects us to cost volatility and potential availability constraints. • Our products rely on the availability of unlicensed RF spectrum and if such spectrum were to become unavailable through overuse or licensing, the performance of our products could suffer and our revenues from their sales could decrease. • Reliance upon a few major customers may adversely affect our revenue and operating results. • If our licensing partners do not effectively manage inventory of their products which integrate our technology, fail to timely resell such products or overestimate expected future demand, they may reduce purchases in future periods, causing our revenues and operating results to fluctuate or decline. • If we are not able to effectively forecast demand or manage our inventory, we may be required to record write-downs for excess or obsolete inventory.
The unavailability of these components could substantially disrupt our ability to manufacture our products and fulfill sales orders. ● Our dependence on commodities and certain components subjects us to cost volatility and potential availability constraints. ● Changes in U.S. and international trade policies may adversely impact our business. ● Our products rely on the availability of unlicensed RF spectrum and if such spectrum were to become unavailable through overuse or licensing, the performance of our products could suffer and our revenues from their sales could decrease. ● Reliance upon a few major customers may adversely affect our revenue and operating results. ● If our licensing partners do not effectively manage inventory of their products which integrate our technology, fail to timely resell such products or overestimate expected future demand, they may reduce purchases in future periods, causing our revenues and operating results to fluctuate or decline. ● If we are not able to effectively forecast demand or manage our inventory, we may be required to record write-downs for excess or obsolete inventory.
As a result of current macroeconomic conditions and general global economic uncertainty (including as a result of the remaining effects of the global health pandemic, regional conflicts around the world, increases in inflation, fluctuating interest rates, disruptions to global supply chains, recent turmoil in the global banking sector, volatile global financial markets, the potential for government shutdowns and uncertainty regarding the federal budget and debt ceiling), political change, labor market shortages and other factors, we do not know whether additional capital will be available when needed, or that, if available, we will be able to obtain additional capital on reasonable terms.
As a result of current macroeconomic conditions and general global economic uncertainty (including as a result of, among other things, regional conflicts around the world, increases in inflation, fluctuating interest rates, disruptions to global supply chains, recent turmoil in the global banking sector, volatile global financial markets, the potential for government shutdowns and uncertainty regarding the federal budget and debt ceiling), political change, labor market shortages and other factors, we do not know whether additional capital will be available when needed, or that, if available, we will be able to obtain additional capital on reasonable terms.
Lead times for materials and components we order vary significantly, and depend on factors such as the specific supplier, contract terms and demand for a component at a given time. If forecasts exceed orders, we may have excess and/or obsolete inventory, which could have a material adverse effect on our business, operating results and financial condition.
Lead times for materials and components we order vary significantly, and depend on factors such as the specific 17 Table of Contents supplier, contract terms and demand for a component at a given time. If forecasts exceed orders, we may have excess and/or obsolete inventory, which could have a material adverse effect on our business, operating results and financial condition.
Despite our quality assurance testing, our technology may contain undetected defects or errors that may affect the proper use of our products or the products of our licensing partners’ which incorporate them.
Despite our quality assurance testing, our technology may contain undetected defects or errors that may affect the proper use of our products or the products of our licensing partners which incorporate them.
Our ability to use our NOLs will be dependent on our ability to generate taxable income, and the NOLs that arose in tax years ending on or before December 31, 2017 could expire before we generate sufficient taxable income to take advantage of the NOLs.
Our ability to use our NOLs will be dependent on our ability to generate taxable income, and the NOLs that arose in tax years ending on or before December 31, 2017 25 Table of Contents could expire before we generate sufficient taxable income to take advantage of the NOLs.
Any real or perceived safety issues relating to our products, our licensing partners’ products or competing technologies in the marketplace could negatively affect our business, revenue, and profits. Our industry is subject to intense competition and rapid technological change, which may result in technology that is more advanced or superior to ours.
Any real or perceived safety issues relating to our products, our licensing partners’ products or competing technologies in the marketplace could negatively affect our business, revenue, and profits. 15 Table of Contents Our industry is subject to intense competition and rapid technological change, which may result in technology that is more advanced or superior to ours.
If one or more of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline. 28 Item 1B. Unresolv ed Staff Comments Not applicable.
If one or more of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial markets, which could cause our stock price or trading volume to decline. Item 1B. Unresolved Staff Comments Not applicable.
However, the existence of inflation in the economy has resulted in, and may continue to result in, higher interest rates and capital costs, shipping costs, supply shortages, increased costs of labor, labor shortages, weakening exchange rates and other similar effects.
However, the existence of inflation in the economy has resulted in, and may continue to result in, higher interest 12 Table of Contents rates and capital costs, shipping costs, supply shortages, increased costs of labor, labor shortages, weakening exchange rates and other similar effects.
Such guidance provides that, because the 2023 Warrants do not meet the criteria for equity treatment thereunder, each 2023 Warrants must be recorded as a liability. Accordingly, we classify each 2023 Warrants as a liability at its fair value.
Such guidance provides that, because our warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, we classify each warrant as a liability at its fair value.
Terminating or transitioning arrangements with key consultants could result in additional costs and a risk of operational delays, potential errors and possible control issues as a result of the termination or during the transition.
Terminating or transitioning arrangements with key consultants 23 Table of Contents could result in additional costs and a risk of operational delays, potential errors and possible control issues as a result of the termination or during the transition.
The price of our common stock is likely to continue to fluctuate significantly in response to many factors that are beyond our control, including: • regulatory announcements and approvals; • actual or anticipated variations in our operating results; • general macroeconomic, political, industry and market conditions, including increases in inflation, fluctuating interest rates, volatile global financial markets, the potential of government shutdowns and uncertainty regarding the federal budget and debt ceiling, disruptions to global supply chains and transportation, and perceptions of future economic growth prospects in the economy at large; • recent uncertainty in the global banking sector; • regional conflicts around the world, terrorist acts, acts of war or periods of widespread civil unrest; • natural disasters and other calamities, including global pandemics such as the COVID-19 pandemic; • changes in the economic performance and/or market valuations of other technology companies; • our announcements of significant strategic partnerships, regulatory developments and other events; • announcements, innovations and other developments by other companies in our industry; • articles published or rumors circulated by third parties regarding our business, technology or licensing partners; • additions or departures of key personnel; and • sales or other transactions involving our capital stock.
The price of our common stock is likely to continue to fluctuate significantly in response to many factors that are beyond our control, including: ● regulatory announcements and approvals; ● actual or anticipated variations in our operating results; ● general macroeconomic, political, industry and market conditions, including increases in inflation, fluctuating interest rates, volatile global financial markets, the potential of government shutdowns and uncertainty regarding the federal 24 Table of Contents budget and debt ceiling, disruptions to global supply chains and transportation, and perceptions of future economic growth prospects in the economy at large; ● recent uncertainty in the global banking sector; ● regional conflicts around the world, terrorist acts, acts of war or periods of widespread civil unrest; ● natural disasters and other calamities, including global pandemics and other public health crises; ● changes in the economic performance and/or market valuations of other technology companies; ● our announcements of significant strategic partnerships, regulatory developments and other events; ● announcements, innovations and other developments by other companies in our industry; ● articles published or rumors circulated by third parties regarding our business, technology or licensing partners; ● additions or departures of key personnel; and ● sales or other transactions involving our capital stock or securities exercisable or convertible for our capital stock.
Such consumer markets are often seasonal, with peaks in and around the December holiday season and the August-September back-to-school season. Enterprises and commercial customers may have annual or other budgeting and buying cycles that could affect us, and, particularly if we are designated as a capital improvement project, we may have a long or unpredictable sales cycle.
Such consumer deployments may be seasonal, with peaks in and around the December holiday season and the August-September back-to-school season. Enterprise and commercial customers may have annual or other budgeting and buying cycles that could affect us, particularly if we are designated as a capital improvement project, we may have a long or unpredictable sales cycle.
If we become subject to a patent infringement or other intellectual property lawsuit and if the relevant patents or other intellectual property are upheld as valid and enforceable and we are found to have infringed or violated the terms of a license to which we are a party, we could be prevented from selling any infringing products of ours unless we could obtain a license or were able to redesign the product to avoid infringement.
If we become subject to a patent infringement or other intellectual property lawsuit and if the relevant patents or other intellectual property are upheld as valid and enforceable, we could be prevented from selling any infringing products of ours unless we could obtain a license or were able to redesign the product to avoid infringement.
Reliance upon a few major customers may adversely affect our revenue and operating results. We rely on a relatively small number of customers for a significant portion of our revenue. Our top three customers represented approximately 70% of our revenue for the year ended December 31, 2023.
Reliance upon a few major customers may adversely affect our revenue and operating results. We rely on a relatively small number of customers for a significant portion of our revenue. Our top two customers represented approximately 76% of our revenue for the year ended December 31, 2024.
Conversely, in an environment of falling commodities prices, we may be unable to sell higher-cost inventory before implementing price decreases, which could have a material adverse impact on our business, financial condition and results of operations.
Conversely, in an environment of falling commodities prices, we may be unable to sell higher-cost inventory before implementing price decreases, which could have a material adverse impact on our business, financial condition and results of operations. Changes in U.S. and international trade policies may adversely impact our business.
Summary of Risk Factors Risks Related to Our Financial Condition • We have no history of generating meaningful product revenue, and we may never achieve or maintain profitability. • We will need additional financings to achieve our long-term business plans, and there is no guarantee that it will be available on acceptable terms, or at all. • We may be adversely affected by the effects of inflation.
Summary of Risk Factors Risks Related to Our Financial Condition ● We have no history of generating meaningful product revenue, and we may never achieve or maintain profitability. ● We will need additional financings to achieve our long-term business plans, and there is no guarantee that it will be available on acceptable terms, or at all. ● Our short-term or future indebtedness could adversely affect our business, financial condition, and results of operations, as well as the ability to meet payment obligations. ● We may be adversely affected by the effects of inflation.
To date we have operated primarily in the research and development phase of our business. To be successful in commercializing our product offerings, we will need to expand our business operations, which will require us to incur significant expenses before we generate any material revenue and will impose new demands on our financial, technical, operational and management resources.
To be successful in commercializing our product offerings, we will need to expand our business operations, which will require us to incur significant expenses before we generate any material revenue and will impose new demands on our financial, technical, operational and management resources.
Inflation rates in the U.S. have increased significantly since 2022 resulting in federal action to increase interest rates, adversely affecting capital markets activity. We expect certain inflationary elements to ease, with a moderate increase in 2024.
Inflation rates in the U.S. have increased significantly in recent years resulting in federal action to increase interest rates, adversely affecting capital markets activity. We expect certain inflationary elements to ease, with a moderate increase in other areas in 2025.
We have generated limited revenues to date, and as of December 31, 2023, we had an accumulated deficit of approximately $382 million.
We have generated limited revenues to date, and as of December 31, 2024, we had an accumulated deficit of approximately $400.4 million.
We may be adversely affected by the effects of inflation. Inflation has the potential to adversely affect our liquidity, business, financial condition and results of operations by increasing our overall cost structure. The U.S. capital markets have experienced and continue to experience extreme volatility and disruption.
Inflation has adversely affected our liquidity, business, financial condition and results of operations by increasing our overall cost structure and may continue to do so in the future. The U.S. capital markets have experienced and continue to experience extreme volatility and disruption.
Our charging technology involves power transmission using RF energy, which is subject to regulation by the Federal Communications Commission (the “FCC”) in the United States and by comparable regulatory agencies worldwide. It may also be subject to regulation by other agencies. Regulatory concerns include whether human exposure to RF emissions falls below specified thresholds.
Our charging technology involves power transmission using RF energy, which is subject to regulation by the FCC in the United States and by comparable regulatory agencies worldwide. It may also be subject to regulation by other agencies. Regulatory concerns include whether human exposure to RF emissions falls below specified thresholds. Higher levels of exposure require separate approval.
Higher levels of exposure require separate approval. For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.
For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.
If other banks and financial institutions enter receivership or become insolvent in the future due to financial conditions affecting the banking system and financial markets, our ability to access our cash and cash equivalents, including transferring funds, making payments or receiving funds, may be threatened and could have a material adverse effect on our business and financial condition.
If other banks and financial institutions in which we hold funds for working capital and operating expenses enter receivership or become insolvent in the future, our ability to access our cash and cash equivalents, including transferring funds, making payments or receiving funds, may be threatened and could have a material adverse effect on our business and financial condition.
If, among other things, our products are not cost effective, brought to market in a timely manner, compliant with evolving industry standards, accepted in the market or recognized as meeting our licensing partners’ or retail consumers’ requirements, we could experience a material adverse effect on our business, financial condition, results of operations and cash flows. 15 In addition, because products incorporating our technology are expected to have long development cycles, we must anticipate changes in the marketplace and the direction of technological innovation and customer demands.
If, among other things, our products are not cost effective, brought to market in a timely manner, compliant with evolving industry standards, accepted in the market or recognized as meeting our licensing partners’ or retail consumers’ requirements, we could experience a material adverse effect on our business, financial condition, results of operations and cash flows.
Any inability to raise adequate funds on commercially reasonable terms or at all could have a material adverse effect on our business, results of operations and financial condition, including the possibility that a lack of funds could cause our business to fail and liquidate with little or no return to investors.
Any inability to maintain or raise adequate funds on commercially reasonable terms or at all could have a material adverse effect on our business, results of operations and financial condition, including the possibility that a lack of funds could cause our business to fail and liquidate with little or no return to investors. 11 Table of Contents Our short-term or future indebtedness could adversely affect our business, financial condition, and results of operations, as well as the ability to meet payment obligations.
If we fail to develop practical and economical commercial products based on our technology, or are unable to achieve profitability in commercializing those products, our business may fail and you could lose all or part of the value of your investment in our stock.
If we fail to develop practical and economical commercial products based on our technology, or are unable to achieve profitability in commercializing those products, our business may fail and you could lose all or part of the value of your investment in our stock. 13 Table of Contents Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources.
Any such defects, errors, or unintended performance problems in our products, and any inability to meet the expectations of our licensing partners or retail consumers in a timely manner, could adversely impact our sales and result in loss of revenue or market share, failure to achieve market acceptance, diversion of development resources, injury to our reputation, increased insurance costs and increased service costs, any of which could materially harm our business.
Any such defects, errors, or unintended performance problems in our products, and any inability to meet the expectations of our licensing partners or retail consumers in a timely manner, could adversely impact our sales and result in loss of revenue or market share, failure to achieve market acceptance, diversion of development resources, injury to our reputation, increased insurance costs and increased service costs, any of which could materially harm our business. 14 Table of Contents As products incorporating our technology are launched commercially, we may experience seasonality or other unevenness in our financial results in consumer markets or a long and variable sales cycle in enterprise markets.
This could result in an interruption in the manufacture of our products, delays in shipments and fulfillment of customer orders, and deferral or loss of revenues. 17 Our third-party manufacturers may not be able to secure sufficient components at reasonable prices or of acceptable quality to build our products in a timely manner, adversely impacting our ability to meet demand for our products.
Our third-party manufacturers may not be able to secure sufficient components at reasonable prices or of acceptable quality to build our products in a timely manner, adversely impacting our ability to meet demand for our products.
Our ability to publicly or privately sell equity securities and the liquidity of our common stock could be adversely affected if our common stock is delisted. • Adverse macroeconomic conditions, natural disasters or reduced technology spending could adversely affect our business, operating results, and financial condition. • If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline.
If we cannot satisfy these requirements, Nasdaq could delist our common stock. ● Adverse macroeconomic conditions, natural disasters or reduced technology spending could adversely affect our business, operating results, and financial condition. ● If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our stock price and trading volume could decline.
Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources. Our ability to grow our business involves various risks, including the need to invest significant resources in unfamiliar and new markets and the possibility that we may not realize a return on our investments in the near future or at all.
Our ability to grow our business involves various risks, including the need to invest significant resources in unfamiliar and new markets and the possibility that we may not realize a return on our investments in the near future or at all. To date we have operated primarily in the research and development phase of our business.
However, there can be no assurance that we will be successful in achieving all the features we are targeting, and our inability to do so may limit the appeal of our technology to consumers. 12 We make significant investments in our products and may be unable to demonstrate the commercial feasibility of the full capability of our technology or achieve profitability.
However, there can be no assurance that we will be successful in achieving any of the features we are targeting, and our any inability to do so may limit the appeal of our technology to consumers.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance 24 that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected. You might lose all or part of your investment. Investing in our common stock involves a high degree of risk.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected. Our stock price is likely to continue to be volatile.
Research and development of new technologies is, by its nature, unpredictable. We could encounter unanticipated technical problems, the inability to identify products utilizing our technology that will be in demand with customers, getting our technology designed into those products, designing new products for manufacturability, regulatory hurdles and achieving acceptable price points for final products.
We could encounter unanticipated technical problems, fail to identify products utilizing our technology that will be in demand with customers or be successful in getting our technology designed into those products, encounter setbacks or other issues in designing products for manufacturability, face regulatory hurdles or have difficulty achieving acceptable price points for final products.
If we underestimate our requirements or our third-party suppliers are not able to timely deliver components, our third-party manufacturers may have inadequate materials and components required to produce our products.
If we underestimate our requirements or our third-party suppliers are not able to timely deliver components, our third-party manufacturers may have inadequate materials and components required to produce our products. This could result in an interruption in the manufacture of our products, delays in shipments and fulfillment of customer orders, and deferral or loss of revenues.
Directly competing technologies such as inductive charging, magnetic resonance charging, conductive charging, ultrasound and other yet unidentified solutions may have greater consumer acceptance than the technology we have developed. Furthermore, some competitors may have greater resources than we have and may be better established in the market than we are.
Traditional wall plug-in recharging remains an inexpensive alternative to our technology. Directly competing technologies such as inductive charging, magnetic resonance charging, conductive charging, ultrasound and other yet unidentified solutions may have greater consumer acceptance than the technology we have developed.
We cannot assure you that our competitors will not develop or market technologies that are more effective, economical or commercially attractive than our products or that would render our technologies and products obsolete. In addition, we may not have the financial resources, technical expertise, marketing, distribution or support capabilities to compete successfully in the future.
Many of our competitors have more corporate, financial, operational, sales and marketing resources than we have, as well as more experience in research and development. We cannot assure you that our competitors will not develop or market technologies that are more effective, economical or commercially attractive than our products or that would render our technologies and products obsolete.
Successful developments of competitors that result in new approaches for recharging could reduce the attractiveness of our products and technologies or render them obsolete. Our future success will depend in large part on our ability to establish and maintain a competitive position in current and future technologies.
Our future success will depend in large part on our ability to establish and maintain a competitive position in current and future technologies. Rapid technological development may render our technology or future products based on our technology obsolete.
Any delays in developing our technology that arise from factors of this sort would aggravate our exposure to the risk of having inadequate capital to fund the research and development needed to complete development of these products. Technical problems leading to delays would cause us to incur additional expenses that would increase our operating losses.
Any delays in developing our technology that arise, as a result of the factors described herein or otherwise, could aggravate our exposure to the risk of having inadequate capital to fund the research and development needed to complete development of our products.
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Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
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Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
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2023 filing
2024 filing
Biggest changeGovernance The Board of Directors oversees the risks of cybersecurity threats and communicates with the Chief Executive Officer and Chief Financial Officer regarding controls in place. Any cybersecurity threats, breaches or other concerns are immediately communicated to the Board of Directors.
Biggest changeAny material cybersecurity threats, breaches or other concerns are immediately communicated to the Board of Directors.
We asses, identify and manage material risks from cybersecurity threats through various policies, procedures and processes of our information technology ("IT") department, which include 1) review of IT security policy and change management policy review, 2) IT control procedures, 3) firewall reviews, 4) system backups and 5) procurement of cyber liability insurance.
We asses, identify and manage material risks from cybersecurity threats through various policies, procedures and processes of our information technology (“IT”) department, which include 1) review of IT security policy and change management policy review, 2) IT control procedures, 3) firewall reviews, 4) system backups and 5) procurement of cyber liability insurance.
The Company also engages an IT consultant to frequently review and monitor policies, procedures and processes designed to mitigate the risk of cybersecurity threats. The IT consultant has regular communication with the Company's Chief Financial Officer to address any issues or concerns that may arise.
The Company also engages an IT consultant to frequently review and monitor policies, procedures and processes designed to mitigate the risk of cybersecurity threats. The IT consultant has regular communication with the Company’s Chief Executive Officer and Chief Financial Officer to address any issues or concerns that may arise.
Added
Governance The Board of Directors oversees the risks of cybersecurity threats and communicates with the Chief Executive Officer and Chief Financial Officer regarding controls in place. The Board of Directors receives periodic briefings from the Chief Executive Officer and Chief Financial Officer, concerning cybersecurity, information security and technology risks, and our related risk mitigation programs.
Item 2. Properties
Properties — owned and leased real estate
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Item 2. Properties
Properties — owned and leased real estate
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2023 filing
2024 filing
Biggest changeItem 2. Pr operties In 2014, we entered into a lease agreement for our corporate headquarters located at Northpointe Business Center, 3590 North First Street in San Jose, California. A new lease on this same property was signed in May 2022 for a term of three years starting from October 1, 2022.
Biggest changeItem 2. Properties In 2014, we entered into a lease agreement for our corporate headquarters located at Northpointe Business Center, 3590 North First Street in San Jose, California. A new lease on this same property was signed in May 2022 for a term of three years starting from October 1, 2022.
Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
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Item 3. Legal Proceedings
Legal Proceedings — active lawsuits and investigations
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2023 filing
2024 filing
Biggest changeMine Saf ety Disclosures Not applicable. 29 PART II
Biggest changeMine Safety Disclosures Not applicable. 28 Table of Contents PART II
Item 3. Legal Proceedings We are not currently a party to any pending legal proceedings that we believe will have a material adverse effect on our business or financial conditions. We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time. Item 4.
Item 3. Legal Proceedings We are not currently a party to any legal proceedings that we believe will have a material adverse effect on our business or financial conditions. We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time. Item 4.
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
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Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
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2023 filing
2024 filing
Biggest changeAny future determination to pay cash dividends will be at the discretion of our Board of Directors, and will be dependent upon our financial condition, results of operations, capital requirements and such other factors as our Board of Directors deems relevant.
Biggest changeAny future determination to pay cash dividends will be at the discretion of our Board of Directors, and will be dependent upon our financial condition, results of operations, capital requirements and such other factors as our Board of Directors deems relevant. Issuer Purchases of Equity Securities None Item 6. Reserved Not applicable.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities Market Information for Common Stock Our common stock began trading on The Nasdaq Capital Market under the symbol “WATT” on March 31, 2014. Prior to that date, there was no public trading market for our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information for Common Stock Our common stock began trading on The Nasdaq Capital Market under the symbol “WATT” on March 31, 2014. Prior to that date, there was no public trading market for our common stock.
Holders of Record As of March 15, 2024, there were 5 stockholders of record of our common stock, and we believe we have significantly more beneficial owners of our common stock.
Holders of Record As of February 1, 2025, there were 5 stockholders of record of our common stock, and we believe we have significantly more beneficial owners of our common stock.
Removed
Issuer Purchases of Equity Securities None Unregistered Sales of Equity Securities For the purchase periods ended June 30, 2023 and December 31, 2023, the Company issued an aggregate of 20,336 shares of common stock to employees under the Company’s Employee Stock Purchase Plan.
Removed
The shares were issued pursuant to the exemption set forth in Section 4(a)(2) of the Securities Act on the basis that the shares were issued in a transaction not involving any public offering.
Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
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Item 7. Management's Discussion & Analysis
Management's Discussion & Analysis (MD&A) — revenue / margin commentary
23 edited+55 added−14 removed8 unchanged
2023 filing
2024 filing
Biggest changeDuring 2022, cash flows used in operating activities were $23,636,747, consisting of a net loss of $26,275,260, less non-cash expenses aggregating $3,936,182 (representing principally stock-based compensation of $2,918,817, decrease in right-of-use lease assets of $730,452 and depreciation and amortization expense of $246,156), a $770,031 decrease in operating lease liabilities, a $558,923 decrease in accrued severance, a $305,192 decrease in accounts payable and a $105,821 increase in inventory, partially offset by a $267,097 increase in accrued expense and a $99,512 decrease in accounts receivable.
Biggest changeCash Flows During 2024, cash flows used in operating activities were $17.6 million, consisting of a net loss of $18.4 million, less adjustments to reconcile net loss to net cash used in operating activities aggregating $1.1 million (principally stock-based compensation of $0.8 million, depreciation and amortization expense of $0.2 million, loss on extinguishment of short-term debt of $0.2 million, issuance of common stock to consultant of $0.1 million and accrued interest of $0.1 million, partially offset by change in fair value of warrant liability of $0.3 million), a $0.5 million decrease in operating lease liabilities, a $0.2 million decrease in accrued expenses, a $0.1 million decrease in accrued severance expense and a $0.1 million increase in inventory, partially offset by $0.7 million decrease in operating lease right-of-use assets.
Accordingly, we may pursue additional financing, which could include offerings of equity or debt securities, bank financings, commercial agreements with customers or strategic partners, and other alternatives, depending upon market conditions. There is no assurance that such financing would be available on terms that we would find acceptable, or at all.
Accordingly, we expect to pursue additional financing, which could include offerings of equity or debt securities, bank financing, commercial agreements with customers or strategic partners, and other alternatives, depending upon market conditions. There is no assurance that such financing will be available on terms that we would find acceptable, or at all.
Research and development expenses include costs associated with our efforts to develop our technology, including personnel compensation, consulting, engineering supplies and components, intellectual property costs, regulatory expense and general office expenses specifically related to the research and development department.
Research and development expenses include costs associated with our efforts to develop our technology, including personnel 31 Table of Contents compensation, consulting, engineering supplies and components, intellectual property costs, regulatory expense and general office expenses specifically related to the research and development department.
To date, we have developed and released to production multiple transmitters and receivers, including prototypes and partner production designs.
To date, we have developed and released multiple transmitter and receiver solutions, including prototypes and partner production designs.
The transmitters vary based on form factor and power specifications and frequencies, while the receivers are designed to support a myriad of wireless charging applications including: Device Type Application RF Tags Cold Chain, Asset Tracking, Medical IoT IoT Sensors Cold Chain, Logistics, Asset Tracking Electronic Shelf Labels Retail and Industrial IoT .
Our transmitters vary in form factor, power specifications, and operating frequencies, while our receivers are engineered to support a wide range of wireless charging applications across multiple device categories. including: Device Type Application RF Tags Cold Chain, Asset Tracking, Medical IoT IoT Sensors Cold Chain, Logistics, Asset Tracking Electronic Shelf Labels Retail and Industrial IoT The first WPN-enabled end product featuring our technology entered the market in 2019.
The Office of the Chair will oversee strategic planning and direction of the Company, working closely with the Board, the senior leadership team, and other stakeholders to deliver the strategic mission of the Company. 31 Critical Accounting Estimates and Policies The following discussion and analysis of financial condition and results of operations is based upon our financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America.
Critical Accounting Estimates and Policies The following discussion and analysis of financial condition and results of operations is based upon our financial statements, which have been prepared in conformity with accounting principles generally accepted in the United States of America.
During 2023, cash flows provided by financing activities were $7,084,345, which consisted of $4,239,584 in net proceeds from the sale of shares of our common stock pursuant to our ATM offering program, $2,677,191 in net proceeds from the issuance and sale of common stock and warrants in registered offerings, $94,640 in net proceeds from the sale of common stock to the Chief Executive Officer and $72,930 in proceeds from the ESPP.
During 2023, cash flows provided by financing activities were $7.1 million, which consisted of $4.2 million in net proceeds from the sale of shares of our common stock under our prior at-the-market offering program, $2.7 million in net proceeds from the issuance and sale of common stock and warrants, $0.1 million in proceeds from a direct sale of common stock to the former Chief Executive Officer and $0.1 million in proceeds from the ESPP.
During 2023, cash flows used in operating activities were $19,248,510, consisting of a net loss of $19,366,763, less adjustments to reconcile net loss to net cash used in operating activities aggregating $816,144 (principally stock-based compensation of $1,677,950, amortization of operating lease ROU assets of $719,827, issuance costs allocated to warrant liability of $591,670, depreciation and amortization expense of $187,209 and inventory net realizable adjustment of $167,413, partially offset by a decrease in fair value of the warrant liability of $2,515,425), a $705,895 decrease in operating lease liabilities, a $536,477 decrease in accrued expenses, a $491,230 increase in inventory and a $282,918 decrease in accrued severance, partially offset by a $978,569 increase in accounts payable, a $288,406 increase in prepaid expenses and other current assets and a $54,299 decrease in accounts receivable.
During 2023, cash flows used in operating activities were $19.3 million, consisting of a net loss of $19.4 million, less adjustments to reconcile net loss to net cash used in operating activities aggregating $0.1 million (principally stock-based compensation of $1.7 million, issuance costs allocated to warrant liability of $0.6 million, depreciation and amortization expense of $0.2 million and inventory net realizable adjustment of $0.2 million, partially offset by a decrease in fair value of the warrant liability of $2.5 million), a $0.7 million decrease in operating lease liabilities, a $0.5 million decrease in accrued expenses, a $0.5 million increase in inventory and a $0.3 million decrease in accrued severance, partially offset by a $1.0 million increase in accounts payable, a $0.7 decrease in operating lease right-of-use assets, a $0.3 million increase in prepaid expenses and other current assets and a $0.1 million decrease in accounts receivable.
Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements as well as the reported expenses during the reporting periods.
GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements as well as the reported expenses during the reporting periods. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates.
General and administrative expenses include costs for general and corporate functions, including personnel compensation, facility fees, travel, telecommunications, insurance, professional fees, consulting fees, general office expenses, and other overhead. For the Years Ended December 31, 2023 and 2022 Revenues. During 2023 and 2022, we recorded revenue of $474,184 and $851,321, respectively.
General and administrative expenses include costs for general and corporate functions, including personnel compensation, facility fees, travel, telecommunications, insurance, professional fees, consulting fees, general office expenses, and other overhead.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We have developed our wireless power networks technology (“WPNT”), consisting of semiconductor chipsets, software controls, hardware designs and antennas, that enable radio frequency (“RF”) based charging for Internet of Things (“IoT”) devices.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview We have developed a scalable, over-the-air WPN technology that integrates advanced semiconductor chipsets, software controls, hardware designs, and antenna systems to enable RF-based charging for IoT devices.
Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although we believe that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from those estimates. Going Concern.
Although we believe that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from those estimates. Going Concern. Accounting Standards Codification (“ASC”) 205-40 Presentation of Financial Statements - Going Concern , requires management to assess our ability to continue as a going concern.
We believe that the estimated values used in our going concern analysis are based on reasonable assumptions. However, such assumptions are inherently uncertain and actual results could differ materially from those estimates. Results of Operations Expenses Cost of revenue consists of direct materials, direct labor and overhead for our production-level wireless charging systems.
Our significant estimates related to this analysis may include identifying business factors used in the forecasted financial results and liquidity. We believe that the estimated values used in our going concern analysis are based on reasonable assumptions. However, such assumptions are inherently uncertain and actual results could differ materially from those estimates. Warrants.
The first end product featuring our technology entered the market in 2019. We started shipping our first at-a-distance wireless PowerBridges for commercial IoT applications in the fourth quarter of 2021, and we expect additional wireless power enabled products to be released as we move our business forward.
In the fourth quarter of 2021, we commenced shipments of our first at-a-distance wireless PowerBridge transmitter systems for commercial IoT applications and proof-of-concept deployments. As we continue to innovate our technology applications, we anticipate the release of additional wireless power-enabled products.
Determining the extent to which conditions or events raise substantial doubt about our ability to continue as a going concern requires significant judgment and estimation by us. Our significant estimates related to this analysis may include identifying business factors used in the forecasted financial results and liquidity.
We anticipate cash flows generated from operations and our cash and cash equivalents will be sufficient to meet our liquidity needs for at least the next 12 months. 30 Table of Contents Determining the extent to which conditions or events raise substantial doubt about our ability to continue as a going concern requires significant judgment and estimation by us.
During 2022, cash flows provided by financing activities were $1,017,620, which consisted of $744,787 in net proceeds from the sale of shares of our common stock pursuant to our ATM offering program and proceeds from contributions to the ESPP of $272,833.
During 2024, cash flows provided by financing activities were $5.1 million, which primarily consisted of $3.2 million in net proceeds from the sale of shares of our common stock under the ATM Program, $1.8 million in net proceeds from a registered direct offering that included the sale of common stock, pre-funded warrants and warrants and net borrowings of $0.8 million from a short-term loan, partially offset by $0.3 million in repayments of financed insurance and $0.3 million in repayments of a short-term loan.
We did not have a warrant liability as of December 31, 2022. Change in Fair Value of Warrant Liability. Other income resulting from the change in fair value of the warrant liability was $2,515,425 during 2023. We did not have a warrant liability as of December 31, 2022. Interest Income.
We did not incur such cost during 2024. Other income resulting from the change in fair value of the warrant liability was $0.3 million during 2024 and $2.5 million during 2023. The changes for both periods were due to a lower market value of our common stock.
We incurred a net loss of $19,366,763 and $26,275,260 for 2023 and 2022, respectively. Net cash used in operating activities was $19,248,510 and $23,636,747 for 2023 and 2022, respectively.
We incurred a net loss of $18.4 million and $19.4 million for 2024 and 2023, respectively. Net cash used in operating activities was $17.6 million and $19.2 million for 2024 and 2023, respectively. As of December 31, 2024, we had cash on hand of $1.4 million.
Although we intend to continue our research and development activities, there can be no assurance that our available resources will be sufficient to enable us to generate revenues sufficient to sustain operations.
As we gain traction in the market with our new technology and continue to invest capital in transitioning and scaling the business from research and development of new technologies to commercial production, there can be no assurance that our available resources and revenue generated from our business operations will be sufficient to sustain our operations.
Interest income for 2023 was $809,227, compared to $411,065 for 2022, primarily due to higher interest rates for our money market account. Net Loss. As a result of the factors described above, net loss for 2023 was $19,366,763, compared to $26,275,260 for 2022. 33 Liquidity and Capital Resources During 2023 and 2022, we recorded revenue of $474,184 and $851,321, respectively.
We did not incur such cost during 2023. Net Loss. As a result of the factors described above, net loss for 2024 was $18.4 million, compared to $19.4 million for 2023. Liquidity and Capital Resources During 2024 and 2023, we recorded revenue of $0.8 million and $0.5 million, respectively.
During 2023 and 2022, cash flows used in investing activities were $187,078 and $164,994, respectively. The cash used in 2022 primarily consisted of the purchases of new testing equipment and website redesign. The cash used in 2022 primarily consisted of purchases of components to build new testing equipment and the purchases of engineering software licenses.
During 2024 and 2023, cash flows used in investing activities were $0.1 million and $0.2 million, respectively. The cash used in 2024 and 2023 was for the purchases of testing and computer equipment.
Our WPNT has a broad spectrum of capabilities to enable the next generation of wireless power networks, delivering power and data in a seamless device portfolio. This includes near field and at-a-distance wireless charging, with multiple power levels at various distances.
Our WPN technology provides a comprehensive suite of capabilities designed to power the next generation of wireless energy networks, seamlessly delivering power and data across diverse, battery-free device ecosystems. This innovation enhances operational visibility, control, and intelligent business automation. Our solutions support both near-field and at-a-distance wireless charging, supplying power at multiple levels across varying distances.
The decrease in revenue in 2023 is primarily due to a decrease in production-level systems sales volume. 32 Expenses. Costs and expenses are made up of cost of revenue, research and development, sales and marketing, general and administrative and severance expense. Operating expenses for 2023 and 2022 were $22,573,929 and $27,537,646, respectively. Cost of Revenue.
Operating expenses are made up of research and development, sales and marketing, general and administrative, and severance expense. Loss from operations was $18.4 million and $22.1 million, respectively, for 2024 and 2023.
Removed
The initial IoT applications we are targeting are RF tags for asset tracking and cold chain applications, electronic shelf labeling (“ESL”), and IoT sensors for retail, industrial, healthcare, and logistics markets. We believe our technology is innovative in its approach, in that we are developing solutions that charge IoT devices using RF technology.
Added
By enabling continuous wireless power transmission, our transmitter and receiver technologies facilitate the use of battery-free IoT devices, transforming asset and inventory tracking across multiple industries.
Removed
Recent Developments Effective March 24, 2024, Cesar Johnston is no longer serving as President and Chief Executive Officer of the Company. Mr. Johnston will remain a member of the Company’s Board of Directors. The Board has initiated a search to identify a permanent successor as chief executive officer of the Company.
Added
Key applications include retail sensors, electronic shelf labels, asset trackers, air quality monitors, motion detectors, and other smart monitoring solutions. 29 Table of Contents We believe our technology represents a breakthrough in wireless power delivery, offering a differentiated approach to charging IoT devices via RF technology.
Removed
In addition, as of March 24, 2024, the Board appointed Mallorie Burak to also serve as interim principal executive officer until the appointment of a permanent replacement chief executive officer for the Company. The Board also established an Office of the Chair, composed of Reynette Au, Chair of the Board, and Ms. Burak.
Added
Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“U.S.
Removed
ASC 205-40 Presentation of Financial Statements - Going Concern , requires management to assess our ability to continue as a going concern.
Added
We have determined that there was substantial doubt about our ability to continue as a going concern, but it was alleviated based on financing received in 2025, as well as current operating levels and further cost reductions implemented in the first quarter of 2025.
Removed
Cost of revenue was $279,083 and $1,277,565, respectively, for 2023 and 2022. The decrease of $998,482 is primarily due to a decrease in sales volume. Research and Development Expenses. Research and development costs for 2023 and 2022 were $10,810,570 and $12,497,781, respectively.
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We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480, “Distinguishing Liabilities from Equity” (“ASC 480”), and ASC 815, “Derivatives and Hedging” (“ASC 815”).
Removed
The $1,687,211 decrease in research and development expenses in 2023 is primarily due to a $476,065 decrease in stock-based compensation from older awards becoming fully expensed prior to the current year, a $368,844 decrease in engineering supplies, components and chip development due to project timing, a $208,929 decrease in consulting and third-party services, a $147,763 decrease in patent legal fees, a $143,700 decrease in recruiting expense, a $101,972 decrease in postage, a $93,430 decrease in regulatory testing and a $77,992 decrease in regulatory legal fees.
Added
The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s common stock, among other conditions for equity classification.
Removed
Sales and Marketing Expenses. Sales and marketing expenses for 2023 and 2022 were $3,852,393 and $4,884,959, respectively.
Added
This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.
Removed
The $1,032,566 decrease in sales and marketing expenses in 2023 is primarily due to a $366,181 decrease in compensation, consisting of a $286,222 decrease in payroll costs due to a lower headcount within the department and a $79,959 decrease in stock-based compensation, a $188,879 decrease in engineering supplies and components used by sales and marketing staff for customer demonstrations, an $85,280 decrease in tradeshow costs, an $80,720 decrease in recruiting expense, a $65,384 decrease in legal fees, a $61,882 decrease in depreciation, a $53,237 decrease in bad debt expense and a $43,886 decrease in supplies and general office expense.
Added
For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance.
Removed
General and Administrative Expenses. General and administrative costs for 2023 and 2022 were $7,272,464 and $8,078,950, respectively.
Added
For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as a liability at their initial fair value on the date of issuance, and each balance sheet date thereafter.
Removed
The $806,486 decrease in general and administrative expense in 2023 is primarily due to a $722,294 decrease in compensation, consisting of an $432,254 decrease in stock-based compensation primarily due to reduced expense recorded for Board of Directors and executive equity awards and a $290,040 decrease in payroll costs primarily due to the departure of the former Acting Chief Financial Officer during 2023, a $151,844 decrease in recruiting expense, a $144,729 decrease in insurance premiums, a $101,972 decrease in postage, a $62,772 decrease in supplies and general office expense, a $57,258 decrease in training, dues and subscriptions, a $25,285 decrease in travel costs and a $23,110 decrease in Board of Director fees, partially offset by a $263,781 increase in legal fees, a $156,037 increase in investor relations, consulting and third party services expenses, an $83,107 increase in accounting and audit fees and a $41,857 increase in annual meeting expense.
Added
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the warrants is estimated using an appropriate valuation model. Such warrant classification is also subject to re-evaluation at each reporting period.
Removed
Severance Expense. Severance expense for 2023 and 2022 was $359,419 and $798,391, respectively. During 2023, severance expense was incurred in connection with the resignation of the former Acting Chief Financial Officer and the departure of six other employees.
Added
Offering costs associated with warrants classified as liabilities are expensed as incurred and are presented as offering cost related to warrant liability in the statement of operations. Offering costs associated with the sale of warrants classified as equity are charged against proceeds. Revenue Recognition. We follow ASC 606, “Revenue from Contracts with Customers” (“Topic 606”).
Removed
During 2022, severance expense was incurred in connection with the separation agreement with our former Senior Vice President of Marketing and Business Development. Loss from Operations. Loss from operations for 2023 and 2022 was $22,099,745 and $26,686,325, respectively, primarily due to the factors described above. Offering Costs from Warrant Liability. Offering costs related to warrant liability were $591,670 during 2023.
Added
In accordance with Topic 606, we recognize revenue using the following five-step approach: 1. Identify the contract with the customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price of the contract. 4. Allocate the transaction price to the performance obligations of the contract. 5. Recognize revenue when or as the performance obligations are satisfied.
Removed
We are currently meeting our liquidity requirements through the proceeds of securities offerings that raised net proceeds of $27,043,751 during 2021, $744,787 during 2022 and $6,916,775 during 2023, along with proceeds of $94,640 from the sale of stock to our CEO Cesar Johnston during 2023, contributions to the ESPP of $72,930 during 2023 and payments received from customers.
Added
Our revenue consists of its single segment of wireless charging system solutions. The wireless charging system revenue consists of revenue from product development projects and production-level systems. We record revenue associated with product development projects that we enter into with certain customers.
Removed
We believe our current cash on hand, together with the expected sale of common stock through registered offerings and pursuant to our ATM offering program during 2024, implementation of cost and expense reductions and anticipated revenues, will be sufficient to fund our operations through March 2025.
Added
In general, these product development projects are complex, and we do not have certainty about our ability to achieve the project milestones. The achievement of a milestone is dependent on our performance obligation and requires acceptance by the customer. We recognize this revenue at the point in time at which the performance obligation is met.
Added
The payment associated with achieving the performance obligation is generally commensurate with our effort or the value of the deliverable and is nonrefundable. Any deferred revenue is recognized upon achievement of the performance obligation or expiration of a support agreement.
Added
Results of Operations Costs and Expenses Cost of revenue consists of direct materials, direct labor and overhead for our production-level wireless charging systems.
Added
For the Years Ended December 31, 2024 and 2023 The following table sets forth selected Condensed Statements of Operations data (in thousands) and such data as a percentage of revenue: For the year ended December 31, 2024 2023 Revenue $ 768 100 % $ 474 100 % Cost of revenue 756 98 % 279 59 % Gross profit 12 2 % 195 41 % Operating expenses: Research and development 8,275 1,077 % 10,811 2,281 % Sales and marketing 3,066 399 % 3,852 813 % General and administrative 5,704 743 % 7,272 1,534 % Severance expense 1,377 179 % 359 76 % Total operating expenses 18,422 2,399 % 22,294 4,703 % Loss from operations (18,410) (2,397) % (22,099) (4,662) % Other income (expense), net: Offering costs related to warrant liability — — (592) (125) % Change in fair value of warrant liability 262 34 % 2,515 531 % Interest income, net — — 809 171 % Loss on extinguishment of short-term debt (219) (29) % — — Other expense (31) (4) % — — Total other income (expense), net 12 2 % 2,732 576 % Net loss $ (18,398) (2,396) % $ (19,367) (4,086) % Revenues.
Added
During 2024 and 2023, we recorded revenue of $0.8 million and $0.5 million, respectively. The increase in revenue in 2024 is primarily due to an increase in commercial sales of our PowerBridge transmitters, driven primarily by the delivery of transmitters to fulfill an initial order from a Fortune 10 retailer in the fourth quarter of 2024.
Added
In contrast, revenue recorded for 2023 was primarily attributable to engineering services, integrated circuit sales, and PowerBridge transmitters for use in proofs of concept.
Added
Cost of Revenue: For the year ended December 31, 2024 2023 $ Change % Change Cost of revenue $ 756 $ 279 $ 477 171 % Percent of total revenue 98 % 59 % Cost of revenue was $0.8 million and $0.3 million, respectively, for 2024 and 2023.
Added
The increase is primarily due to the cost of transmitters sold, as the initial sales of 2-watt PowerBridge transmitters that were shipped during 2024 were built in-house. We believe the cost of producing these transmitters will decrease in future quarters, as we utilize a contract manufacturer to build in larger production volumes.
Added
During 2023, revenue generated by transmitter sales represented a small percentage of the total revenue for that period, as the revenue for 2023 consisted mainly of non-recurring engineering fees for which the associated cost was included in research and development costs. 32 Table of Contents Operating expenses and Loss from Operations.
Added
Research and Development Costs: For the year ended December 31, 2024 2023 $ Change % Change Research and development $ 8,275 $ 10,811 $ (2,536) (23) % Percent of total revenue 1,077 % 2,281 % Research and development costs for 2024 and 2023 were $8.3 million and $10.8 million, respectively.
Added
The decrease of $2.5 million is primarily due to a $1.7 million decrease in employee compensation, consisting primarily of a $1.3 million decrease in personnel-related expenses and a $0.4 million decrease in stock-based compensation, a $0.2 million decrease in legal fees pertaining to patents, a $0.2 million decrease in software and maintenance costs, a $0.1 million decrease in test development costs, a $0.1 million decrease in consulting and third-party expenses and a $0.1 million decrease in travel and miscellaneous office expenses.
Added
Sales and Marketing Costs: For the year ended December 31, 2024 2023 $ Change % Change Sales and marketing $ 3,066 $ 3,852 $ (786) (20) % Percent of total revenue 399 % 813 % Sales and marketing costs for 2024 and 2023 were $3.1 million and $3.9 million, respectively.
Added
The decrease of $0.8 million is primarily due to a $0.8 million decrease in employee compensation, consisting of a $0.7 million decrease in personnel-related expenses due to a lower headcount within the department and a $0.1 million decrease in stock-based compensation, a $0.1 million decrease in tradeshow expense and a $0.1 million decrease in software, travel and miscellaneous office expenses, partially offset by a $0.2 million increase in consulting, third-party and public relations fees.
Added
General and Administrative Costs: For the year ended December 31, 2024 2023 $ Change % Change General and administrative $ 5,704 $ 7,272 $ (1,568) (22) % Percent of total revenue 743 % 1,534 % General and administrative costs for 2024 and 2023 were $5.7 million and $7.3 million, respectively.
Added
The decrease of $1.6 million is primarily due to a $0.5 million decrease in stock-based compensation, a $0.5 million decrease in consulting and third-party service fees, a $0.4 million decrease in insurance premiums, a $0.2 million decrease in accounting and auditing fees, a $0.1 million decrease in legal fees, a $0.1 million decrease in computer software and support, a $0.1 million decrease in annual meeting costs and a $0.1 million decrease in travel and miscellaneous office expenses, partially offset by a $0.3 million increase in stock registration expense and a $0.1 million increase in public relations and investor relations expenses.
Added
Severance Expense: For the year ended December 31, 2024 2023 $ Change % Change Severance expense $ 1,377 $ 359 $ 1,018 284 % Percent of total revenue 179 % 76 % Severance expense for 2024 and 2023 was $1.4 million and $0.4 million, respectively.
Added
The increase of $1.0 million is primarily due to the departure of the former CEO during 2024 for which $1.2 million in severance expense was recorded, partially offset by $0.3 million in severance expense recorded during 2023 due to the departure of the former CFO. 33 Table of Contents Other income (expense), net: For the year ended December 31, 2024 2023 $ Change % Change Offering costs related to warrant liability $ — $ (592) $ 592 100 % Change in fair value of warrant liability 262 2,515 (2,253) (90) % Interest income, net — 809 (809) (100) % Loss on extinguishment of short-term debt (219) — (219) (100) % Other expense (31) — (31) (100) % Total other income (expense), net $ 12 $ 2,732 $ (2,720) (100) % Offering costs related to warrant liability were $0.6 million during 2023.
Added
Net interest income for 2024 was $0, as $0.2 million in interest income from our money market account, offset $0.2 million in interest expense from a short-term loan. Interest income of $0.8 million during 2023 was from interest earned from our money market account. Loss on extinguishment of short-term debt was $0.2 million during 2024.
Added
We are currently meeting our liquidity requirements through the proceeds of securities offerings in at-the-market (ATM) offerings that raised net proceeds of $3.2 million during 2024 and $13.4 million during 2025 through February 25, 2025, as well as through a short-term loan on which we have a payable balance due of approximately $0.8 million as of December 31, 2024.
Added
As of February 25, 2025, the Company had $11.7 million in cash on hand. Based on current operating levels and further cost reduction efforts implemented in the first quarter of 2025, we believe we have sufficient cash on hand to fund the next 12 months of operations.
Added
If we are unsuccessful in implementing this plan, we will be required to make further cost and expense reductions or modifications to our on-going and strategic plans.
Added
February 2024 Equity Offering On February 15, 2024, we entered into a securities purchase agreement with an institutional investor, providing for the issuance and sale by us, in a registered direct offering (the “February 2024 Offering”), of (i) 570,000 shares of our common stock, (ii) pre-funded warrants to purchase up to 450,409 shares of common stock, and (iii) warrants to purchase up to an aggregate of 1,020,409 shares of common stock.
Added
Each share of common stock and pre-funded warrant was offered and sold together with an accompanying warrant at a combined price of $1.96 per share of common stock or pre-funded warrant, as applicable. The pre-funded warrants were 34 Table of Contents exercised at a price of $0.001 per share during April 2024.
Added
The other warrants to purchase 1,020,409 shares of common stock are still outstanding and have an exercise price of $1.84 per share. These warrants expire five years from the date of issuance. We received net proceeds of approximately $1.8 million from the February 2024 Offering, after deducting placement agent fees and estimated offering expenses.
Added
ATM Offering Program On June 21, 2024, we entered into the At the Market Offering Agreement with H.C. Wainwright & Co., LLC, as sales agent, pursuant to which we could issue and sell of up to $3.45 million in shares of our common stock (the “ATM Program”).
Added
During the three months and year ended December 31, 2024, we sold 5,634,585 shares and 6,851,753 shares, respectively, of our common stock under the Current ATM Program for net proceeds of approximately $2.4 million and $3.1 million, respectively (net of commissions and other related offering expenses of approximately $0.1 million and $0.3 million, respectively).
Added
After December 31, 2024, we settled sales of an additional 16,584,405 shares of our common stock for net proceeds of approximately $13.4 million (net of $0.7 million in commissions and issuance costs) under the ATM Program. These sales settled between January 2, 2025 and February 12, 2025.
Added
On February 13, 2025, we filed a prospectus supplement covering the offering, issuance and sale of an additional $80.0 million in shares of our common stock under the ATM Program.
Added
Between February 21, 2025 and February 26, 2025, the Company settled sales of 252,040 shares of common stock for net proceeds of approximately $38,000 under the ATM Program pursuant to the prospectus supplement filed on February 13, 2025.
Added
Agile Subordinated Loan Agreement Effective October 1, 2024, we entered into a subordinated business loan agreement (the “Original Loan Agreement”) with Agile Capital Funding, LLC and Agile Lending, LLC (collectively, the “Lender”), which provided for an initial term loan of $525,000, with the ability to receive additional term loans of up to $1.6 million, subject to certain conditions (such loans, the “Term Loan”).
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
1 edited+0 added−0 removed1 unchanged
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
Market Risk — interest-rate, FX, commodity exposure
1 edited+0 added−0 removed1 unchanged
2023 filing
2024 filing
Biggest changeItem 7A. Quantitative and Qualitati ve Disclosures About Market Risk. In the ordinary course of business, we may be exposed to certain market risks, such as interest rates.
Biggest changeItem 7A. Quantitative and Qualitative Disclosures About Market Risk. In the ordinary course of business, we may be exposed to certain market risks, such as interest rates.