SAN JOSE, CA – Energous (NASDAQ:WATT) Corporation (NASDAQ:WATT), a developer of radio frequency-based charging solutions, received a notice from Nasdaq on Thursday, August 29, 2024, indicating the company's non-compliance with the minimum bid price requirement. The notice stated that Energous's common stock had closed below the $1.00 minimum bid price for the past 30 consecutive business days, violating Nasdaq's Listing Rule 5550(a)(2).
The company, formerly known as DvineWave Inc., has been given 180 days, until February 25, 2025, to regain compliance. To do so, the stock must maintain a closing bid price of at least $1.00 for ten consecutive business days within this period.
If Energous fails to meet this requirement, it may be granted a second 180-day period to achieve compliance, provided it satisfies all other initial listing standards for The Nasdaq Capital Market, except for the bid price.
Energous expressed its intention to actively monitor its stock's closing bid price and consider options to address the deficiency. However, the company cautioned that there is no guarantee it will be able to meet the Nasdaq's continued listing criteria.
The current situation has no immediate impact on the trading of Energous's common stock, which continues to be listed on The Nasdaq Capital Market under the ticker symbol "WATT". The notice from Nasdaq serves as a warning and does not affect the stock's tradability at this time.
In other recent news, Energous Corporation, recognized for its advancements in wireless power technology, has received FCC certification for its 2W PowerBridge transmitter system, marking a significant step in the development of safer and more efficient wireless power networks.
The company also secured multiple orders for its 2W PowerBridge transmitter systems from a top Fortune 10 multinational retailer, following a successful proof of concept for a comprehensive wireless power network.
Energous has also formed strategic partnerships with Annukin, Ecobyte, and Peak Technologies, aiming to boost the adoption of its wireless power solutions, particularly in the Internet-of-Things sector. In addition, the company has entered into a distribution partnership with DigiKey to broaden the availability of its wireless power solutions within the rapidly growing IoT market.
Analyst firm Roth/MKM maintained its Buy rating on Energous, albeit with a reduced price target, while Ladenburg Thalmann downgraded Energous from Buy to Neutral. In a recent development, Cesar Johnston stepped down from his roles as President and CEO but will maintain his position on the company's Board of Directors.
An Office of the Chair has been established to lead operations in the interim. These are some of the recent developments at Energous Corporation.
InvestingPro Insights
In light of Energous Corporation's recent notification from Nasdaq regarding its non-compliance with the minimum bid price requirement, it is pertinent to consider additional insights from InvestingPro that may offer investors a broader perspective on the company's financial health and stock performance. According to InvestingPro data, Energous has a market capitalization of approximately $5.97 million, which is relatively small, suggesting a higher risk profile typical of micro-cap stocks. The company's revenue for the last twelve months as of Q2 2024 stands at $0.37 million, having experienced a significant decline of nearly 40%. This revenue contraction is mirrored in the quarterly figures, with a decrease of over 60% in Q2 2024.
InvestingPro Tips highlight that, despite holding more cash than debt, Energous is rapidly depleting its cash reserves and is not expected to be profitable this year. This financial trajectory is reflected in its stock performance, with a substantial price decline of over 66% in the past year. Notably, analysts are forecasting sales growth in the current year, which could be a positive signal for potential recovery. However, the stock's volatility and the recent hit it has taken, with an 11.8% drop just in the past week, could be cause for investor caution.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available for Energous Corporation at https://www.investing.com/pro/WATT, providing a comprehensive view of the company's financial position and market performance.
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