−Removed: 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.
−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.
−Removed: This includes near field and at-a-distance wireless charging, with multiple power levels at various distances.
−Removed: We believe our WPNTs will facilitate the deployment of the growing universe of IoT applications.
−Removed: According to Statista 2024, the number of IoT connected devices worldwide is forecasted to grow to 29.4 billion units by 2030.
−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.
−Removed: We believe our technology is innovative in its approach, in that we are developing solutions that charge IoT devices using RF technology.
−Removed: To date, we have developed and released to production multiple transmitters and receivers, including prototypes and partner production designs.
−Removed: 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:
+Added: 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.
+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.
+Added: This innovation enhances operational visibility, control, and intelligent business automation.
+Added: Our solutions support both near-field and at-a-distance wireless charging, supplying power at multiple levels across varying distances.
+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.
+Added: Key applications include retail sensors, electronic shelf labels, asset trackers, air quality monitors, motion detectors, and other smart monitoring solutions.
+Added: We believe our technology represents a breakthrough in wireless power delivery, offering a differentiated approach to charging IoT devices via RF technology.
+Added: To date, we have developed and released multiple transmitter and receiver solutions, including prototypes and partner production designs.
+Added: 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.
Cold Chain, Asset Tracking, Medical IoT
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Retail and Industrial IoT
−Removed: The first end product featuring our technology entered the market in 2019.
−Removed: 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.
−Removed: Our common stock is quoted on The Nasdaq Capital Market under the symbol “WATT.” We were incorporated in Delaware in 2012.
−Removed: Our corporate headquarters is located at 3590 North First Street, Suite 210, San Jose, CA 95134.
−Removed: Our website can be accessed at www.energous.com.
+Added: The first WPN-enabled end product featuring our technology entered the market in 2019.
+Added: 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.
+Added: As we continue to innovate our technology applications, we anticipate the release of additional wireless power-enabled products.
+Added: 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.
+Added: Additional information is available on our website 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 Business Strategy
−Removed: 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.
−Removed: 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.
+Added: 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.
+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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● Build multiple integrated circuits (“ICs”) to advance our technology;
−Removed: • Develop, license, and manufacture a complete transmitter system solution to enable wireless power network growth;
+Added: ● 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;
−Removed: • 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.
−Removed: Our first applications include RF tags, ESLs, and IoT sensors;
+Added: ● 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.
+Added: 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”);
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● Develop and execute a strategy to gain global regulatory approval for ubiquitous unlimited distance charging;
−Removed: • 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.
−Removed: 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.
+Added: ● 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.
+Added: 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.
We intend to capitalize on our first-to-market advantage and prioritize protection of our intellectual property portfolio, as we believe this strategy will increase the barrier to entry for a competing platform to gain a solid foothold in the RF-based wireless charging market and compete with our technology in a meaningful way.
−Removed: 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.
+Added: 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.
−Removed: 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.
−Removed: 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.
+Added: 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.
+Added: 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.
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We are subject to continuing exposure relating to the current macroeconomic environment, including inflation and rising interest rates, geopolitical factors, including the ongoing conflict between Russia and Ukraine as well as in the Middle East and the responses thereto, and supply chain disruptions.
−Removed: 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.
+Added: 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.
Our Technology
−Removed: 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.
−Removed: Figure 1 below shows the current IC product line for Energous:
−Removed: 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.
−Removed: 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.
+Added: 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.
+Added: Figure 1 below shows the current IC product line for Energous Wireless Power Solutions:
+Added: 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.
+Added: 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.
−Removed: In 2023 we continued to leverage the growing ecosystem of investments made by a number of IoT leaders.
−Removed: 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.
−Removed: 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.
−Removed: During 2023, we also upgraded our IoT WPNT, connecting Juniper Mist WiFi Access Points to multiple PowerBridge transmitters at 1W, 2W, and 5W.
−Removed: 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 .
−Removed: Figure 2 below shows the block diagram for our 1W WattUp PowerBridge Transmitter
+Added: Figure 2 below shows the block diagram for our Energous PowerBridge PRO Transmitter System
Our Competition
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Transmitter System Target Markets
−Removed: Transmitters are devices that broadcast RF energy that can be accessed by WPNT enabled receivers for IoT applications.
+Added: Transmitters are devices that broadcast RF energy that can be accessed by WPN technology-enabled receivers for IoT applications.
We believe our transmitter target market can be divided into three distinct applications for our technology:
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To date we have released stand-alone transmitters in both near field and far field applications.
−Removed: Our plan in the future is to integrate our WPNT in third party devices:
+Added: Our plan in the future is to integrate our WPN technology in third party devices:
Near Field Transmitters:
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Far Field Transmitters:
−Removed: 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.
+Added: 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.
We expect that our PowerBridge transmitter systems will have the ability to broadcast wireless power to wireless power enabled receiving devices for charging.
−Removed: PowerBridge transmitters may play a significant role in the charging of low power IoT devices– such as ESLs, RF tags, and IoT sensors.
+Added: Our PowerBridge transmitters may play a significant role in the charging of low power IoT devices– such as ESLs, RF tags, and IoT sensors.
Transmitters Integrated into Third Party Devices:
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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.
−Removed: PowerBridges:
+Added: 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.
−Removed: PowerBridges provide the bridge to Wi-Fi, 5G and other Wide Area network technologies while also providing wireless power to in-range receiver devices.
−Removed: PowerBridges share a number of technical characteristics with Wi-Fi routers in that:
+Added: 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.
+Added: 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.
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We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations.
−Removed: 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.
+Added: 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.
The paths are:
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Government Regulation
−Removed: 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.
+Added: 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.
Our technology has been tested against U.S.
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Digital Transmission System for Bluetooth/Zigbee 2.4 GHz
−Removed: 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.
−Removed: As of March 1, 2024, products integrating this technology had received international regulatory approvals in over 110 countries.
+Added: 2ADNG-YND1800
+Added: RF Wireless Charger 918MHz
+Added: 2ADNG-YND1800
+Added: Digital Transmission System for Bluetooth 2.4 GHz
+Added: 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.
+Added: As of February 15, 2025, products integrating this technology had received international regulatory approvals in over 110 countries.
Manufacturing
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Human Capital
−Removed: As of March 1, 2024, we had 37 full-time employees, 30 of whom are Engineers.
+Added: 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.
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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.
−Removed: R isk Factors
−Removed: We are subject to many risks that may harm our business, prospects, results of operations and financial condition.
−Removed: This discussion highlights some of the risks that might adversely affect our future operating results in material ways.
−Removed: We believe these are the risks and uncertainties that are the most important ones we face.
−Removed: We cannot be certain that we will successfully address these risks, and if we are unable to address them, our business may not grow, our stock price may suffer and you could lose the value of your investment in the Company.
−Removed: Other risks and uncertainties that we do not currently recognize as material risks, or that are similar to risks faced by other companies in our industry, may also impair our business, prospects, results of operations and financial condition.
−Removed: The risks discussed below include forward-looking statements, and our actual results may differ substantially from what is in these forward-looking statements.
−Removed: Summary of Risk Factors
−Removed: Risks Related to Our Financial Condition
−Removed: • We have no history of generating meaningful product revenue, and we may never achieve or maintain profitability.
−Removed: • 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.
−Removed: • We may be adversely affected by the effects of inflation.
−Removed: Risks Related to Our Technology and Products
−Removed: • We may not be able to develop all the features we seek to include in our technology.
−Removed: • 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.
−Removed: • Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources.
−Removed: • 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.
−Removed: • 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.
−Removed: • 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.
−Removed: • Future products based on our technology may require the user to purchase additional products to use with existing devices.
−Removed: 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.
−Removed: • Laboratory conditions differ from field conditions, which could reduce the effectiveness of our technology under development or other future products.
−Removed: Failures to move from laboratory to the field effectively would harm our business.
−Removed: • Safety concerns and legal action by private parties may affect our business.
−Removed: • Our industry is subject to intense competition and rapid technological change, which may result in technology that is more advanced or superior to ours.
−Removed: 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.
−Removed: • 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.
−Removed: • 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.
−Removed: • We require third-party components, including components from limited or sole source suppliers, to build our products.
−Removed: The unavailability of these components could substantially disrupt our ability to manufacture our products and fulfill sales orders.
−Removed: • Our dependence on commodities and certain components subjects us to cost volatility and potential availability constraints.
−Removed: • 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.
−Removed: • Reliance upon a few major customers may adversely affect our revenue and operating results.
−Removed: • 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.
−Removed: • 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.
−Removed: Risks Related to Our Intellectual Property and Other Legal Risks
−Removed: • It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection.
−Removed: • We depend upon a combination of patents, trade secrets, copyright and trademark laws to protect our intellectual property and technology.
−Removed: • We may be subject to patent infringement or other intellectual property lawsuits that could be costly to defend.
−Removed: • 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.
−Removed: • Our business is subject to data security risks, including security breaches.
−Removed: • 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.
−Removed: • If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
−Removed: Risks Related to Regulation of Our Business
−Removed: • Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
−Removed: Risks Related to Personnel
−Removed: • We are highly dependent on key members of our executive management team.
−Removed: 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.
−Removed: • Our success and growth depend on our ability to attract, integrate and retain high-level engineering talent.
−Removed: • We are subject to risks associated with our utilization of engineering consultants.
−Removed: Risks Related to Ownership of Our Common Stock
−Removed: • 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.
−Removed: • If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports.
−Removed: • You might lose all or part of your investment.
−Removed: • Our stock price is likely to continue to be volatile.
−Removed: • We have not paid dividends in the past and have no immediate plans to pay dividends.
−Removed: • 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.
−Removed: • We may be subject to securities litigation, which is expensive and could divert management attention.
−Removed: • 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.
−Removed: • Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable.
−Removed: • 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.
−Removed: General Risk Factors
−Removed: • If we fail to comply with the requirements for continued listing on Nasdaq, our common stock will be subject to delisting.
−Removed: 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.
−Removed: • Adverse macroeconomic conditions, natural disasters or reduced technology spending could adversely affect our business, operating results, and financial condition.
−Removed: • 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.
−Removed: Risks Related to Our Financial Condition
−Removed: We have no history of generating meaningful product revenue, and we may never achieve or maintain profitability.
−Removed: We have a limited operating history upon which investors may rely in evaluating our business and prospects.
−Removed: We have generated limited revenues to date, and as of December 31, 2023, we had an accumulated deficit of approximately $382 million.
−Removed: 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.
−Removed: There can be no assurance that our technology will be adopted widely, that we will ever earn revenues sufficient to support our operations, or that we will ever be profitable.
−Removed: Furthermore, there can be no assurance that we will be able to raise capital as and when we need it to continue our operations.
−Removed: If we are unable to raise sufficient additional capital, we may be required to delay, reduce or severely curtail our research and development or other operations, which could have a material adverse effect on our business, operating results, financial condition, long-term prospects and ability to continue as a viable business.
−Removed: If we are unable to generate revenues of sufficient scale to cover our costs of doing
−Removed: business, our losses will continue and we may not achieve profitability, which could negatively impact the value of your investment in our securities.
−Removed: 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.
−Removed: We may not have sufficient funds to fully implement our long-term business plans.
−Removed: We will need to raise additional capital through new financings, even if we begin to generate meaningful commercial revenue.
−Removed: For example, new product development for business partners may require considerable expense in advance of any substantial revenue being earned for such products.
−Removed: Such financings could include equity financing, which may be dilutive to our current stockholders, and debt financing, which could restrict our operations and ability to borrow from other sources.
−Removed: In addition, such securities may contain rights, preferences or privileges senior to those of current stockholders.
−Removed: 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.
−Removed: If we are unable to raise additional capital due to the volatile global financial markets, recent turmoil in the global banking sector, general economic uncertainty or any other factor, we may be required to curtail development of our technology or reduce operations as a result, or to sell or dispose of assets.
−Removed: 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.
−Removed: We may be adversely affected by the effects of inflation.
−Removed: Inflation has the potential to adversely affect our liquidity, business, financial condition and results of operations by increasing our overall cost structure.
−Removed: capital markets have experienced and continue to experience extreme volatility and disruption.
−Removed: Inflation rates in the U.S.
−Removed: have increased significantly since 2022 resulting in federal action to increase interest rates, adversely affecting capital markets activity.
−Removed: We expect certain inflationary elements to ease, with a moderate increase in 2024.
−Removed: 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.
−Removed: As a result of inflation, we have and may continue to experience cost increases, including increases in our supply chain costs.
−Removed: Although we may take measures to mitigate the impact of this inflation, if these measures are not effective, our business, financial condition, results of operations and liquidity could be materially adversely affected.
−Removed: Even if such measures are effective, any positive impact on our results of operations could be delayed and not immediately apparent.
−Removed: Additionally, because we purchase component parts from our suppliers, we may be adversely impacted by their inability to adequately mitigate inflationary, industry, or economic pressures.
−Removed: Similarly, inflationary pressures may also negatively impact consumer purchasing power, which could result in reduced demand for our products.
−Removed: Risks Related to Our Technology and Products
−Removed: We may not be able to develop all the features we seek to include in our technology.
−Removed: We have developed commercial products, as well as working prototypes, that utilize our technology.
−Removed: Additional features and performance specifications we seek to include in our technology have not yet been developed.
−Removed: For example, some customer applications may require specific combinations of cost, footprint, efficiencies and capabilities at various frequencies, charging power levels and distances.
−Removed: We believe our research and development efforts will yield additional functionality and capabilities for our products over time.
−Removed: 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.
−Removed: 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.
−Removed: We have developed both commercial products and working prototypes that use our technology at differing power levels and charging distances, but additional research and development is required to realize the potential of our technology for applications at increasing power levels and distances that can be successfully integrated into commercial products.
−Removed: Research and development of new technologies is, by its nature, unpredictable.
−Removed: 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.
−Removed: Although we intend to undertake development efforts with commercially reasonable diligence, there can be no assurance that our available resources will be sufficient to enable us to develop our technology to the extent needed to create future revenues to sustain our operations.
−Removed: Our technology must satisfy customer expectations and be suitable for use in consumer applications.
−Removed: 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.
−Removed: Technical problems leading to delays would cause us to incur additional expenses that would increase our operating losses.
−Removed: 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.
−Removed: In addition, we have made and will continue to make significant investments in the research and development of new and existing technologies and products.
−Removed: Investments in new technologies and enhancements to our existing technologies are speculative and technological feasibility may not be achieved.
−Removed: 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.
−Removed: We may not achieve significant revenue from our product investments for a number of years, if at all.
−Removed: Moreover, new technologies and products may not be profitable, and even if they are profitable, operating margins for new products may not be as high as the margins we originally anticipated.
−Removed: 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.
−Removed: Expanding our business operations as we intend will impose new demands on our financial, technical, operational and management resources.
−Removed: 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.
−Removed: To date we have operated primarily in the research and development phase of our business.
−Removed: 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.
−Removed: For example, if we do not invest in developing and upgrading our technical, administrative, operating and financial control systems, or if unexpected expansion difficulties arise, including issues relating to our research and development activities, then retention of experienced scientists, managers and engineers could become more challenging and have a material adverse effect on our business, results of operations and financial condition.
−Removed: 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.
−Removed: We may successfully complete the technical development of our products, but still fail to develop a commercially successful product.
−Removed: Market acceptance of an RF-based charging system as a preferred method for
−Removed: charging electronic devices will be crucial to our success.
−Removed: The following factors, among others, may affect the level of market acceptance of our products:
−Removed: • the price of products incorporating our technology relative to other products or competing technologies;
−Removed: • the rate of innovation of competing technologies;
−Removed: • user perceptions of the convenience, safety, efficiency and benefits of our technology;
−Removed: • the effectiveness of sales and marketing efforts of our commercialization partners and of our competitors;
−Removed: • the support and rate of acceptance of our technology and solutions with our development partners;
−Removed: • press and blog coverage, social media coverage, and other publicity factors that are not within our control;
−Removed: • regulatory developments and the failure to obtain any required regulatory approvals for the use of our products or the products of our licensing partners.
−Removed: If we are unable to successfully commercialize, including to achieve or maintain market acceptance of our technology, and if related products do not win widespread market acceptance, our business will be significantly harmed.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Defects or errors in our technology may discourage existing and future partners from using our technology to develop a range of commercial products.
−Removed: These defects or errors could also result in product liability, service level agreement claims or warranty claims.
−Removed: 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.
−Removed: 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.
−Removed: Our strategy depends on our customers developing successful commercial products using our technology and selling them into the retail, industrial, healthcare and smart/home office markets.
−Removed: We need to understand procurement and buying cycles to be successful in licensing our technology.
−Removed: We anticipate it is possible that demand for our technology may vary in different segments of the consumer electronics market, such as hearing aids, wearables, toys, watches, accessories, laptops, tablet, mobile phones and gaming systems.
−Removed: Such consumer markets are often seasonal, with peaks in and around the December holiday season and the August-September back-to-school season.
−Removed: 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.
−Removed: Future products based on our technology may require the user to purchase additional products to use with existing devices.
−Removed: 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.
−Removed: For rechargeable devices that utilize our receiver technology, the technology may be embedded in a sleeve, case or other enclosure.
−Removed: For example, products such as remote controls or toys equipped with replaceable AA size or
−Removed: other batteries would need to be outfitted with enhanced batteries and other hardware enabling the devices to be rechargeable by our system.
−Removed: In each case, an end user would be required to retrofit the device with a receiver and may be required to upgrade the battery technology used with the device (unless, for example, compatible battery technology and a receiver are built into the device).
−Removed: These additional steps and expenses may offset the convenience of our products for users and discourage customers from licensing our technology.
−Removed: Such factors may inhibit adoption of our technology, which could harm our business.
−Removed: We have not developed an enhanced battery for use in devices with our technology, and our ability to enable use of our technology with devices that require an enhanced battery will depend on our ability to develop a commercial version of such a battery that could be manufactured at a reasonable cost.
−Removed: If a commercially practicable enhanced battery of this nature is not developed, our business could be harmed, and we may need to change our strategy and target markets, which could have a material adverse impact on our financial condition and results of operations.
−Removed: Laboratory conditions differ from field conditions, which could reduce the effectiveness of our technology under development or other future products.
−Removed: Failures to move from laboratory to the field effectively would harm our business.
−Removed: When used in the field, our technology may not perform as expected based on performance under controlled laboratory conditions.
−Removed: For example, in the case of distance charging, a laboratory configuration of transmission obstructions will be arranged for testing, but in consumer use receivers may be obstructed in many different and unpredictable ways.
−Removed: These conditions may significantly diminish the power received at the receiver or the effective range of the transmitter.
−Removed: The failure of products using our technology to meet the expectations of users in the field could harm our business.
−Removed: Safety concerns and legal action by private parties may affect our business.
−Removed: We believe that our technology is safe.
−Removed: However, it is possible that we could discover safety issues with our technology or that third-parties may raise concerns relating to RF-based charging in a similar manner as has occurred with some other wireless technologies as they were put into residential and commercial use, such as the safety concerns that were raised by some regarding the use of cellular telephones and other devices to transmit data wirelessly in close proximity to the human body.
−Removed: In addition, while we believe our technology is safe, users of our technology under development or other future products who suffer from medical ailments may blame the use of products incorporating our technology for the triggering or worsening of those ailments, as occurred with a small number of users of cellular telephones.
−Removed: A discovery of safety issues relating to our technology could have a material adverse effect on our business and any legal action against us claiming that our technology caused harm could be expensive, divert management attention and adversely affect us or cause our business to fail, whether or not such legal actions were ultimately successful.
−Removed: Even if they are not real, perceived safety issues could result in reduced sales, as could safety incidents or reports occurring solely with respect to the products of our competitors or licensing partners, which could negatively impact attitudes towards our technology and similar technologies.
−Removed: 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.
−Removed: Our industry is subject to intense competition and rapid technological change, which may result in technology that is more advanced or superior to ours.
−Removed: 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.
−Removed: The consumer electronics industry in general, and the charging segments in particular, are subject to intense competition and rapidly evolving technologies, evolving regulations and industry standards and frequent introductions of new products and services.
−Removed: 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.
−Removed: 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.
−Removed: To compete successfully, we will need to demonstrate the advantages of our products and technologies over established alternatives and other emerging methods of power delivery.
−Removed: Traditional wall plug-in recharging remains an inexpensive alternative to our technology.
−Removed: 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.
−Removed: Furthermore, some competitors may have greater resources than we have and may be better established in the market than we are.
−Removed: We cannot be certain which other companies may have already decided to or may in the future choose to enter our markets.
−Removed: For example, consumer electronics products companies may invest substantial resources in wireless power or other recharging technologies and may decide to enter our target markets.
−Removed: Successful developments of competitors that result in new approaches for recharging could reduce the attractiveness of our products and technologies or render them obsolete.
−Removed: Our future success will depend in large part on our ability to establish and maintain a competitive position in current and future technologies.
−Removed: Rapid technological development may render our technology or future products based on our technology obsolete.
−Removed: 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.
−Removed: 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.
−Removed: In addition, we may not have the financial resources, technical expertise, marketing, distribution or support capabilities to compete successfully in the future.
−Removed: Our competitive position also depends on our ability to:
−Removed: • generate widespread awareness, acceptance and adoption by the consumer and enterprise markets of our technology under development and future products;
−Removed: • design a product that may be sold at an acceptable price point;
−Removed: • 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;
−Removed: • properly identify existing and evolving customer needs and deliver new products or product enhancements to address those needs;
−Removed: • limit the time required from proof of feasibility to routine production;
−Removed: • limit the timing and cost of regulatory approvals;
−Removed: • adapt to evolving regulatory requirements;
−Removed: • attract and retain qualified personnel;
−Removed: • protect our inventions with patents or otherwise develop proprietary products and processes;
−Removed: • secure sufficient capital resources to expand both our continued research and development, and sales and marketing efforts.
−Removed: If our technology does not compete well based on these or other factors, our business could be materially and adversely harmed.
−Removed: 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.
−Removed: Some of the products we sell, and some of the products our licensing partners sell which integrate our products, may have quality issues resulting from the design or manufacture of our products, or from the software, hardware or components used in those products.
−Removed: Sometimes, these issues may be caused by components we purchase from our suppliers.
−Removed: Any such issues identified prior to the shipment of the products may cause delays in
−Removed: shipping products to customers, or even the cancellation of orders by customers.
−Removed: If quality issues are discovered in our products after they have been shipped to our customers, we would be required to resolve such issues in a timely manner that is the least disruptive to our customers.
−Removed: Such pre-shipment and post-shipment quality issues can have legal, financial and reputational ramifications, including:
−Removed: (i) delays in the recognition of revenue, loss of revenue or future orders, (ii) customer-imposed penalties for failure to meet contractual requirements, (iii) increased costs associated with repairing or replacing products, and (iv) a negative impact on our reputation.
−Removed: In some cases, if the quality issue affects the product's performance, safety or regulatory compliance, then such a “defective” product may need to be “stop-shipped” or recalled.
−Removed: Depending on the nature of the quality issue and the number of products in the field, it could cause us to incur substantial recall or corrective field action costs, in addition to the costs associated with the potential loss of future orders and the damage to our reputation.
−Removed: In addition, we may be required, under certain customer contracts, to pay damages for failed performance that might exceed the revenue that we receive from the contracts.
−Removed: Recalls and field actions involving regulatory non-compliance could also result in fines and additional costs.
−Removed: Recalls and field actions could result in third-party litigation by persons or companies alleging harm or economic damage as a result of the use of the products.
−Removed: In addition, privacy advocacy groups and other technology and industry groups have established or may establish various new or different self-regulatory standards that may place additional obligations on us.
−Removed: Our customers may expect us to meet voluntary certifications or adhere to other standards established by third-parties.
−Removed: If we are unable to maintain these certifications or meet these standards, it could reduce demand for our products and adversely affect our business.
−Removed: 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 .
−Removed: Our products are designed to interoperate with wireless networks using Wi-Fi technology and certain wireless devices produced by our licensing partners.
−Removed: These networks and devices have varied and complex specifications.
−Removed: As a result, we must ensure that our products interoperate effectively with these existing and planned networks and devices.
−Removed: To meet these requirements, we must continue development and testing efforts that require significant capital and employee resources.
−Removed: We may not accomplish these development efforts quickly or cost-effectively, or at all.
−Removed: If our products do not interoperate effectively, orders for our products could be delayed or cancelled, which would harm our revenue, operating results and reputation, potentially resulting in the loss of existing and potential licensing partners.
−Removed: The failure of our products to interoperate effectively with wireless devices may result in significant warranty, support and repair costs, divert the attention of our engineering personnel from our product development efforts and cause significant customer relations problems.
−Removed: In addition, our licensing partners may require our products to comply with new and rapidly evolving security or other certifications and standards.
−Removed: If our products are late in achieving or fail to achieve compliance with these certifications and standards, or our competitors first achieve compliance with these certifications and standards, such end customers may not purchase our products, which would harm our business, operating results, financial condition and cash flows.
−Removed: We require third-party components, including components from limited or sole source suppliers, to build our products.
−Removed: The unavailability of these components could substantially disrupt our ability to manufacture our products and fulfill sales orders.
−Removed: We rely on third-party components to build our products, and we generally rely on our third-party manufacturers to obtain the components necessary for the manufacture of our products.
−Removed: We use our forecast of expected demand to determine our material requirements.
−Removed: 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.
−Removed: 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.
−Removed: If orders exceed forecasts, or available supply, we may have inadequate supplies of certain materials and components, which could have a material adverse effect on our ability to meet customer delivery requirements and to recognize revenue.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: In addition, if our component suppliers cease manufacturing needed components, we could be required to redesign our products to incorporate components from alternative sources or designs, a process which could cause significant delays in the manufacture and delivery of our products.
−Removed: Unpredictable price increases for such components may also occur.
−Removed: The unavailability of these components could substantially disrupt our ability to manufacture our products and fulfill sales orders.
−Removed: We currently depend on a limited number of suppliers for several critical components for our products, and in some instances, we use sole or single source suppliers for our components to simplify design and fulfillment logistics.
−Removed: Neither we nor our third-party manufacturers carry substantial inventory of our product components.
−Removed: Many of these components are also widely used in other product types.
−Removed: Shortages are possible and our ability to predict the availability of such components may be limited.
−Removed: In the event of a shortage or supply interruption from our component suppliers, we may not be able to develop alternate or second sources in a timely manner, on commercially reasonable terms or at all, and the development of alternate sources may be time-consuming, difficult and costly.
−Removed: Any resulting failure or delay in shipping products could result in lost revenues and a material and adverse effect on our operating results.
−Removed: If we are unable to pass component price increases along to our end customers or maintain stable pricing, our gross margins could be adversely affected and our business, financial condition, results of operations and prospects could suffer.
−Removed: Our dependence on commodities and certain components subjects us to cost volatility and potential availability constraints.
−Removed: Our profitability may be materially affected by changes in the market price and availability of certain raw materials and components, some of which are linked to the commodity markets.
−Removed: The principal raw materials and components used in our products are aluminum, copper, steel, bimetals, optical fiber, plastics and other polymers, capacitors, memory devices and silicon chips.
−Removed: 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.
−Removed: As a result, we have seen a significant increase in costs that has negatively impacted our results of operations.
−Removed: We have adjusted our prices for our products, but we may have to adjust prices again in the future.
−Removed: Delays in implementing price increases or a failure to achieve market acceptance of price increases could have a material adverse impact on our results of operations.
−Removed: 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.
−Removed: 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.
−Removed: Our products are designed to operate in unlicensed RF spectrum, which is used by a wide range of consumer devices and is becoming increasingly crowded.
−Removed: 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.
−Removed: Our business could be further harmed if currently unlicensed RF spectrum becomes licensed in the United States or elsewhere.
−Removed: We and our licensing partners that use our products in manufacturing their own may be unable to obtain licenses for RF spectrum.
−Removed: Even if the unlicensed spectrum remains unlicensed, existing and new governmental regulations may require we make changes in our products.
−Removed: The operation of our products in the United States or elsewhere in a manner not in compliance with local law could result in fines, operational disruption, or harm to our reputation.
−Removed: Reliance upon a few major customers may adversely affect our revenue and operating results.
−Removed: We rely on a relatively small number of customers for a significant portion of our revenue.
−Removed: Our top three customers represented approximately 70% of our revenue for the year ended December 31, 2023.
−Removed: It is possible that we will continue to derive a significant portion of our revenue from a concentrated group of customers in the
−Removed: 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.
−Removed: Additionally, if we were to lose any material customer or our customers were to consolidate or merge with other companies, we may not be able to maintain product sales at similar volume or pricing levels and such loss or reduced sales volume or pricing could have a material adverse effect on our business, cash flows and results of operations.
−Removed: 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.
−Removed: Our licensing partners purchase and maintain inventories of their products, which integrate our products, to meet future demand and have only limited rights to return the products they have purchased from us.
−Removed: If our licensing partners purchase more product from us than is required to meet demand in a particular period, causing their inventory levels to grow, they may delay or reduce additional future purchases, causing our quarterly results to fluctuate and adversely impacting our ability to accurately predict future earnings.
−Removed: 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.
−Removed: We maintain inventory of our products and, to a lesser extent, raw materials that we believe are sufficient to allow timely fulfillment of sales, subject to the impact of supply shortages.
−Removed: Growth in our sales and new product launches may require us to build inventory in the future.
−Removed: Higher levels of inventory expose us to a greater risk of carrying excess or obsolete inventory, which may in turn lead to write-downs.
−Removed: We may also record write-downs in connection with the end-of-life for specific products.
−Removed: Decisions to increase or maintain higher inventory levels are typically based upon uncertain forecasts or other assumptions.
−Removed: Because the markets in which we compete are volatile, competitive and subject to rapid technology and price changes, if the assumptions on which we base these decisions turn out to be incorrect, our financial performance could suffer and we could be required to write-off the value of excess products or components inventory.
−Removed: In addition, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with suppliers that allow them to procure inventory based upon criteria as defined by us, such as forecasted demand.
−Removed: We may be liable to purchase excess product or aged material from our suppliers following reasonable mitigation efforts, resulting in an adverse impact on our cash flows, operating expenses, results of operation and financial condition.
−Removed: Risks Related to Our Intellectual Property and Other Legal Risks
−Removed: It is difficult and costly to protect our intellectual property and our proprietary technologies, and we may not be able to ensure their protection.
−Removed: Our success depends significantly on our ability to obtain, maintain and protect our proprietary rights to our technologies.
−Removed: Patents and other proprietary rights provide uncertain protections, and we may be unable to protect our intellectual property.
−Removed: For example, we may be unsuccessful in defending our patents and other proprietary rights against third party challenges.
−Removed: If we do not have the resources to defend our intellectual property, the value of our intellectual property and our licensed technology will decline.
−Removed: In addition, some companies that integrate our technology into their products may acquire rights in the technology that limit our business or increase our costs.
−Removed: If we are not successful in protecting our intellectual property effectively, our financial results may be adversely affected and the price of our common stock could decline.
−Removed: We depend upon a combination of patents, trade secrets, copyright and trademark laws to protect our intellectual property and technology.
−Removed: We rely on a combination of patents, trade secrets, copyright and trademark laws in the United States and similar laws in other countries, nondisclosure agreements, noncompetition covenants and other contractual provisions and technical security measures to protect our intellectual property rights and proprietary information.
−Removed: However, these protections may not be available in all jurisdictions and may be inadequate to prevent our
−Removed: 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.
−Removed: Although we are attempting to obtain patent coverage for our technology where available and where we believe appropriate, there are aspects of the technology for which patent coverage may never be sought or received.
−Removed: 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.
−Removed: Our ability to prevent others from making or selling duplicate or similar technologies will be impaired in those countries in which we would have no patent protection.
−Removed: Although we have patent applications on file in the United States and elsewhere, the patents might not issue, might issue only with limited coverage, or might issue and be subsequently successfully challenged by others and held invalid or unenforceable.
−Removed: Similarly, even if patents are issued based on our applications or future applications, any issued patents may not provide us with any competitive advantages.
−Removed: There can be no assurance that our competitors will not independently develop technologies that are substantially equivalent or superior to our technology or design around our proprietary rights.
−Removed: Competitors may be able to design around our patents or develop products that provide outcomes comparable or superior to ours.
−Removed: Our patents may be held invalid or unenforceable as a result of legal challenges or claims of prior art by third parties, and others may challenge the inventorship or ownership of our patents and pending patent applications.
−Removed: In addition, if we secure protection in countries outside the United States, the laws of some foreign countries may not protect our intellectual property rights to the same extent as do the laws of the United States.
−Removed: In the event a competitor infringes upon our patent or other intellectual property rights, enforcing those rights may be difficult and time consuming.
−Removed: Even if successful, litigation to enforce our intellectual property rights or to defend our patents against challenge could be expensive and time consuming and could divert our management’s attention.
−Removed: We may not have sufficient resources to enforce our intellectual property rights or to defend our patents against a challenge.
−Removed: Our strategy is to deploy our technology into the market by licensing patent and other proprietary rights to third parties and customers.
−Removed: Disputes with our licensees may arise regarding the scope and content of these licenses.
−Removed: Further, our ability to expand into additional fields with our technologies may be restricted by existing licenses or licenses we may grant to third parties in the future.
−Removed: The policies we use to protect our trade secrets might not be effective in preventing misappropriation of our trade secrets by others.
−Removed: In addition, confidentiality and other restrictive agreements executed by our customers, employees, consultants and advisors might not be enforceable or might not provide meaningful protection for our trade secrets or other proprietary information in the event of unauthorized use or disclosure.
−Removed: Litigating a trade secret claim is expensive and time consuming, and the outcome is unpredictable.
−Removed: Moreover, our competitors may independently develop equivalent knowledge methods and know-how.
−Removed: If we are unable to protect our intellectual property rights, we may be unable to prevent competitors from using our own inventions and intellectual property to compete against us, and our business may be harmed.
−Removed: We may be subject to patent infringement or other intellectual property lawsuits that could be costly to defend.
−Removed: Because our industry is characterized by competing intellectual property, we may become involved in litigation based on claims that we have violated the intellectual property rights of others.
−Removed: Determining whether a product infringes a patent involves complex legal and factual issues, and the outcome of patent litigation actions is often uncertain.
−Removed: No assurance can be given that third party patents containing claims covering our products, parts of our products, technology or methods do not exist, have not been filed, or could not be filed or issued.
−Removed: 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.
−Removed: In addition, because patent applications can take many years to issue and because publication schedules for pending applications vary by jurisdiction, there may be applications now pending which may result in issued patents that our technology under development or other future products would infringe.
−Removed: 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.
−Removed: There could also be existing patents that one or more of our technologies, products or parts may infringe and of
−Removed: which we are unaware.
−Removed: As the number of competitors in the market for wire-free power and alternative recharging solutions increases, and as the number of patents issued in this area grows, the possibility of patent infringement claims against us increases.
−Removed: Some of our competitors may be able to sustain the costs of complex patent litigation more effectively than we can because they have substantially greater resources.
−Removed: In addition, any uncertainties resulting from the initiation and continuation of any litigation could have a material adverse effect on our ability to raise the funds necessary to continue our operations.
−Removed: 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.
−Removed: If we are unable to obtain a license or successfully redesign, we might be prevented from selling our technology under development or other future products.
−Removed: If there is a determination that we have infringed the intellectual property rights of a competitor or other person, we may be required to pay damages, pay a settlement, or pay ongoing royalties, or be enjoined.
−Removed: In these circumstances, we may be unable to sell our products or license our technology at competitive prices or at all, and our business and operating results could be harmed.
−Removed: Even if there is a determination that we have not infringed the intellectual property rights of a competitor or other person, litigation can be a significant distraction to management and could subject us to significant legal costs, adversely affecting our cash flows and operating results.
−Removed: 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.
−Removed: Our business exposes us to potential liability risks that are inherent in the marketing and sale of products used by consumers.
−Removed: We may be held liable if our technology causes injury or death or is found otherwise unsuitable.
−Removed: While we believe our technology is safe, users could allege and possibly prove defects (some of which could be alleged or proved to cause harm to users or others) because we design our technology to perform complex functions involving RF energy in close proximity to users.
−Removed: A product liability claim, regardless of its merit or eventual outcome, could result in significant legal defense costs and reduced demand for our products.
−Removed: The coverage limits of the insurance policies we may choose to purchase to cover related risks may not be adequate to cover future claims.
−Removed: If sales of products incorporating our technology increase or we suffer future product liability claims, we may be unable to maintain product liability insurance in the future at satisfactory rates or with adequate amounts.
−Removed: A product liability claim, any product recalls or excessive warranty claims, whether arising from defects in design or manufacture or otherwise, could negatively affect our sales or require a change in the design or manufacturing process, any of which could harm our reputation, harm our relationship with licensors of our products, result in a decline in revenue and harm our business.
−Removed: In addition, if a product that we or a licensing partner design is defective, whether due to design or manufacturing defects, improper use of the product or other reasons, we or our licensing partner may be required to notify regulatory authorities and/or to recall the product.
−Removed: A required notification to a regulatory authority or recall could result in an investigation by regulatory authorities into the products incorporating our technology, which could in turn result in required recalls, restrictions on the sale of such products or other penalties.
−Removed: The adverse publicity resulting from any of these actions could adversely affect the perceptions of our customers and potential customers.
−Removed: These investigations or recalls, especially if accompanied by unfavorable publicity, could result in our incurring substantial costs, losing revenues and damaging our reputation, each of which would harm our business.
−Removed: The ability of our products to operate effectively can be negatively impacted by many different elements unrelated to our products.
−Removed: Although certain technical problems experienced by consumers of the products incorporating our products may not be caused by our products, users may perceive them to be the underlying cause of poor performance of the wireless network.
−Removed: This perception, even if incorrect, could harm our business.
−Removed: Our business is subject to data security risks, including security breaches.
−Removed: We collect, process, store and transmit substantial amounts of information, including information about our customers.
−Removed: 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
−Removed: parties will not gain unauthorized access to this information despite such efforts.
−Removed: 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.
−Removed: 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.
−Removed: We and our third-party vendors are at risk of suffering from similar attacks and breaches.
−Removed: Although we take steps to maintain confidential and proprietary information on our information systems, these measures and technology may not adequately prevent security breaches and we rely on our third-party vendors to take appropriate measures to protect the security and integrity of the information on those information systems.
−Removed: Because techniques used to obtain unauthorized access to or to sabotage information systems change frequently and may not be known until launched against us, we may be unable to anticipate or prevent these attacks.
−Removed: In addition, a party that is able to illicitly obtain a customer’s identification and password credentials may be able to access our customer’s accounts and certain account data.
−Removed: We rely on email and other electronic means of communication to connect with our existing and potential customers.
−Removed: Our customers may be targeted by parties using fraudulent spoofing and phishing emails to misappropriate passwords, payment information or other personal information or to introduce viruses through Trojan horse programs or otherwise through our customers’ computers, smartphones, tablets or other devices.
−Removed: Despite our efforts to mitigate the effectiveness of such malicious email campaigns through product improvements, spoofing and phishing may damage our brand and increase our costs.
−Removed: Any actual, perceived or suspected security breach or other compromise of our security measures or those of our third-party vendors, whether as a result of hacking efforts, denial-of-service attacks, viruses, malicious software, break-ins, phishing attacks, social engineering or otherwise, could harm our reputation and business, damage our brand and make it harder to retain existing customers or acquire new ones, require us to expend significant capital and other resources to address the breach, and result in a violation of applicable laws, regulations or other legal obligations.
−Removed: We could also be exposed to a risk of loss or litigation and potential liability under laws, regulations and contracts that protect the privacy and security of personal information.
−Removed: Our insurance policies may not be adequate to reimburse us for direct losses caused by any such security breach or indirect losses due to resulting customer attrition.
−Removed: Any of these events or circumstances could materially adversely affect our business, financial condition and operating results.
−Removed: 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.
−Removed: The regulatory frameworks relating to privacy, data protection and information security matters are rapidly evolving and are likely to remain uncertain for the foreseeable future.
−Removed: The cost of compliance with, and other burdens imposed by new privacy and data security laws may limit the use and adoption of our products and could have an adverse impact on our business, results of operations and financial condition.
−Removed: Although we work to comply with applicable privacy and data security laws and regulations, industry standards, contractual obligations and other legal obligations, those laws, regulations, standards and obligations are evolving and may be modified, interpreted and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another.
−Removed: As such, we cannot assure ongoing compliance with all such laws, regulations, standards and obligations.
−Removed: Any failure or perceived failure by us to comply with applicable laws, regulations, standards or obligations, or any actual or suspected security incident, whether or not resulting in unauthorized access to, or acquisition, release or transfer of personally identifiable information or other data, may result in governmental enforcement actions and prosecutions, private litigation, fines and penalties or adverse publicity, and could cause our licensing partners to lose trust in us, which could have an adverse effect on our reputation and business.
−Removed: If we are not able to secure advantageous license agreements for our technology, our business and results of operations will be adversely affected.
−Removed: We pursue the licensing of our technology as a primary means of revenue generation.
−Removed: 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.
−Removed: It is critical that we continue to evolve our intellectual property
−Removed: portfolio, particularly in 5G.
−Removed: If we do not maintain a strong portfolio that is applicable to current and future standards, products and services, our future licensing revenues could be negatively impacted.
−Removed: There can be no assurance that we will be able to gain access to potential licensing partners, or that they will ultimately decide to integrate our technology with their products.
−Removed: We also cannot guarantee that existing licensing partners will continue their relationships with us.
−Removed: We may not be able to secure license agreements with customers on advantageous terms, and the timing and volume of revenue earned from license agreements will be outside of our control.
−Removed: 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.
−Removed: Risks Related to Regulation of Our Business
−Removed: Domestic and international regulators may deny approval for our technology, and future legislative or regulatory changes may impair our business.
−Removed: 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.
−Removed: It may also be subject to regulation by other agencies.
−Removed: Regulatory concerns include whether human exposure to RF emissions falls below specified thresholds.
−Removed: Higher levels of exposure require separate approval.
−Removed: For example, transmitting more power over a certain distance or transmitting power over a greater distance may require separate regulatory approvals.
−Removed: In addition, we design our technology to operate in a RF band that is also used for Wi-Fi routers and other wireless consumer electronics, and we also design it to operate at different frequencies as demanded for some customer applications.
−Removed: Applications at different frequencies may require separate regulatory approvals.
−Removed: 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.
−Removed: If approvals are not obtained in a timely and cost-efficient manner, our business and operating results could be materially adversely affected.
−Removed: In addition, legal or regulatory developments could impose additional restrictions or costs on us that could require us to redesign our technology or future products, or that are difficult or impracticable to comply with, all of which would adversely affect our revenues and financial results.
−Removed: Risks Related to Personnel
−Removed: We are highly dependent on key members of our executive management team.
−Removed: 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.
−Removed: Our ability to implement our business plan depends, to a critical extent, on the continued efforts and services of a very small number of key executives.
−Removed: If we lose the services of any of the key members of our executive management team, we could be required to expend significant time and money in the pursuit of replacements, which may result in a delay in the implementation of our business plan and plan of operations.
−Removed: If it becomes necessary to replace any key executives, we can give no assurance that we could find satisfactory permanent replacements for these individuals at all or on terms that would not be unduly expensive or burdensome to us.
−Removed: We do not currently carry any key-person life insurance that would help us recoup our costs in the event of the death or disability of any of these executives.
−Removed: Our success and growth depend on our ability to attract, integrate and retain high-level engineering talent.
−Removed: Because of the highly specialized and complex nature of our business, our success depends on our ability to attract, hire, train, integrate and retain high-level engineering talent.
−Removed: Competition for such personnel is intense because we compete for talent against many large profitable companies and our inability to adequately staff our operations with highly qualified and well-trained engineers could render us less efficient and impede our ability to develop and deliver a commercial product.
−Removed: Further, in recent years, the increased availability of hybrid or remote working arrangements has expanded the pool of companies that can compete for our employees and employment candidates.
−Removed: A number of such competitors for talent are significantly larger than us and/or offer compensation in excess of what we offer or other benefits that we do not offer.
−Removed: Such a competitive market could put upward pressure on labor costs for engineering talent.
−Removed: 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
−Removed: investment in recruiting and training them.
−Removed: Volatility or lack of performance in our stock price may also affect our ability to attract and retain qualified personnel.
−Removed: We are subject to risks associated with our utilization of engineering consultants.
−Removed: To improve productivity and accelerate our development efforts while we build out our own engineering team, we use experienced consultants to assist in selected development projects.
−Removed: We take steps to monitor and regulate the performance of these independent third parties.
−Removed: However, arrangements with third party service providers may make our operations vulnerable if these consultants fail to satisfy their obligations to us as a result of their performance, changes in their own operations, financial condition, or other matters outside of our control.
−Removed: Effective management of our consultants is important to our business and strategy.
−Removed: The failure of our consultants to perform as anticipated could result in substantial costs, divert management’s attention from other strategic activities, or create other operational or financial problems for us.
−Removed: 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.
−Removed: Risks Related to Ownership of Our Common Stock
−Removed: 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.
−Removed: We are a “smaller reporting company,” meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a “smaller reporting company,” and have either:
−Removed: (i) a public float of less than $250 million or (ii) annual revenues of less than $100 million during the most recently completed fiscal year and a public float of less than $700 million.
−Removed: As a “smaller reporting company,” we are subject to reduced disclosure obligations in our SEC filings compared to other issuers, including with respect to disclosure obligations regarding executive compensation in our periodic reports and proxy statements.
−Removed: Until such time as we cease to be a “smaller reporting company,” such reduced disclosure in our SEC filings may make it harder for investors to analyze our operating results and financial prospects.
−Removed: If some investors find our common stock less attractive as a result of any choices to reduce future disclosure we may make, there may be a less active trading market for our common stock and our stock price may be more volatile.
−Removed: If we are unable to maintain effective internal control over financial reporting, investors may lose confidence in the accuracy of our financial reports.
−Removed: As a public company, we are required to maintain internal control over financial reporting and to report any material weaknesses in such internal controls.
−Removed: 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.
−Removed: We qualify as a “smaller reporting company” and are therefore not required to file an auditor attestation report.
−Removed: 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.
−Removed: Further, if there are material weaknesses or failures in our ability to meet any of the requirements related to the maintenance and reporting of our internal controls over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and that could cause the price of our common stock to decline.
−Removed: We could become subject to investigations by Nasdaq, the SEC or other regulatory authorities, which could require additional management attention and financial resources which could adversely affect our business.
−Removed: In addition, our internal control over financial reporting will not prevent or detect all errors and fraud.
−Removed: Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance
−Removed: that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.
−Removed: You might lose all or part of your investment.
−Removed: Investing in our common stock involves a high degree of risk.
−Removed: As an investor, you might never recoup all, or even part of, your investment and you may never realize any return on your investment.
−Removed: You must be prepared to lose all your investment.
−Removed: Our stock price is likely to continue to be volatile.
−Removed: The market price of our common stock has fluctuated significantly since our initial public offering in 2014.
−Removed: The price of our common stock is likely to continue to fluctuate significantly in response to many factors that are beyond our control, including:
−Removed: • regulatory announcements and approvals;
−Removed: • actual or anticipated variations in our operating results;
−Removed: • 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;
−Removed: • recent uncertainty in the global banking sector;
−Removed: • regional conflicts around the world, terrorist acts, acts of war or periods of widespread civil unrest;
−Removed: • natural disasters and other calamities, including global pandemics such as the COVID-19 pandemic;
−Removed: • changes in the economic performance and/or market valuations of other technology companies;
−Removed: • our announcements of significant strategic partnerships, regulatory developments and other events;
−Removed: • announcements, innovations and other developments by other companies in our industry;
−Removed: • articles published or rumors circulated by third parties regarding our business, technology or licensing partners;
−Removed: • additions or departures of key personnel;
−Removed: • sales or other transactions involving our capital stock.
−Removed: We have not paid dividends in the past and have no immediate plans to pay dividends.
−Removed: We plan to reinvest all of our earnings, to the extent we have earnings, in order to market our products and technology and to cover operating costs and to otherwise become and remain competitive.
−Removed: We do not plan to pay any cash dividends with respect to our securities in the foreseeable future.
−Removed: We cannot assure you that we would, at any time, generate sufficient surplus cash that would be available for distribution to the holders of our common stock as a dividend.
−Removed: 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.
−Removed: As a public reporting company, we incur significant legal, accounting and other expenses.
−Removed: We are subject to reporting requirements of the Exchange Act and rules subsequently implemented by the SEC that require us to establish and maintain effective disclosure controls and internal controls over financial reporting, as well as some specific corporate governance practices.
−Removed: Our management and other personnel are expected to devote a substantial amount of time to compliance initiatives associated with our public reporting company status.
−Removed: Those costs will increase significantly if we cease to qualify as a smaller reporting company.
−Removed: We may be subject to securities litigation, which is expensive and could divert management attention.
−Removed: Our stock price has fluctuated in the past, reacting to news such as our past announcements of FCC approvals and it may be volatile in the future.
−Removed: In the past, companies that have experienced volatility in the market price of their securities have been subject to securities class action litigation, and we may be the target of litigation of this sort in the future.
−Removed: Securities litigation is costly and can divert management attention from other business concerns, which could seriously harm our business and the value of your investment in our company.
−Removed: 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.
−Removed: As of December 31, 2023, we had Federal net operating loss (“NOL”) carry forwards of approximately $297,696,000.
−Removed: Under the Internal Revenue Code of 1986, as amended, NOLs arising in tax years ending on or before December 31, 2017 can generally be carried forward to offset future taxable income for a period of 20 years, and NOLs arising in tax years ending after December 31, 2017 can generally be carried forward indefinitely.
−Removed: 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.
−Removed: 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.
−Removed: Our charter documents and Delaware law may inhibit a takeover that stockholders consider favorable.
−Removed: Provisions of our certificate of incorporation and bylaws, and applicable Delaware law, may delay or discourage transactions involving an actual or potential change in control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares, or transactions that our stockholders might otherwise deem to be in their best interests.
−Removed: The provisions in our certificate of incorporation and bylaws:
−Removed: • authorize our Board to issue preferred stock without stockholder approval and to designate the rights, preferences and privileges of each class;
−Removed: if issued, such preferred stock would increase the number of outstanding shares of our capital stock and could include terms that may deter an acquisition of us;
−Removed: • limit who may call stockholder meetings;
−Removed: • do not permit stockholders to act by written consent;
−Removed: • do not provide for cumulative voting rights;
−Removed: • provide that all vacancies may be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum.
−Removed: In addition, Section 203 of the Delaware General Corporation Law may limit our ability to engage in any business combination with a person who beneficially owns 15% or more of our outstanding voting stock unless certain conditions are satisfied.
−Removed: This restriction lasts for a period of three years following the share acquisition.
−Removed: These provisions may have the effect of entrenching our management team and may deprive you of the opportunity to sell your shares to potential acquirers at a premium over prevailing prices.
−Removed: This potential inability to obtain a control premium could reduce the price of our common stock.
−Removed: 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.
−Removed: We account for the 2023 Warrants in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.
−Removed: 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.
−Removed: Accordingly, we classify each 2023 Warrants as a liability at its fair value.
−Removed: This liability is subject to re-measurement at each balance sheet date, with a resulting non-cash gain or loss related to the change in the fair value being recognized in earnings in the statements of operations.
−Removed: 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
−Removed: reported earnings.
−Removed: 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.
−Removed: 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.
−Removed: The impact of changes in fair value on earnings may have an adverse effect on the market price of our common stock.
−Removed: General Risk Factors
−Removed: If we fail to comply with the requirements for continued listing on Nasdaq, our common stock will be subject to delisting.
−Removed: 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.
−Removed: The continued listing standards of Nasdaq require, among other things, that the minimum bid price of a listed company’s stock be at or above $1.00.
−Removed: If the closing minimum bid price is below $1.00 for a period of more than 30 consecutive trading days, the listed company will fail to be in compliance with Nasdaq’s listing rules and, if it does not regain compliance within the grace period, will be subject to delisting.
−Removed: As previously reported, on January 20, 2023, we received a notice from the Nasdaq Listing Qualifications Department notifying us that for 30 consecutive trading days, the bid price of our common stock had closed below the minimum $1.00 per share requirement.
−Removed: In accordance with Nasdaq’s listing rules, we were afforded a grace period of 180 calendar days, or until July 19, 2023, to regain compliance with the bid price requirement.
−Removed: In order to regain compliance, the bid price of our common stock would need to close at a price of at least $1.00 per share for a minimum of 10 consecutive trading days.
−Removed: On July 20, 2023, Nasdaq notified us that we did not regain compliance by July 19, 2023, but that Nasdaq had granted us an additional 180-day period to regain compliance because we met the continued listing requirement for market value of publicly held shares and all other applicable Nasdaq listing requirements (other than the minimum closing bid price requirement) and we provided written notice to Nasdaq of our intention to cure the deficiency during the second compliance period by effecting a reverse stock split.
−Removed: On August 15, 2023, we executed a reverse stock split of our common stock at a ratio of 1-for-20.
−Removed: As a result of the reverse stock split, on August 30, 2023 we received notification from the Nasdaq Listing Qualifications Staff that we were in compliance with its minimum bid price requirement and the matter was closed.
−Removed: If our common stock is delisted from Nasdaq and is not eligible for quotation or listing on another market or exchange, our common stock will be subject to “penny stock” rules and trading of our shares of common stock could be conducted only in the over-the-counter market or on an electronic bulletin board established for unlisted securities.
−Removed: Delisting from Nasdaq could adversely affect our ability to raise additional financing through the public or private sale of equity securities, would significantly affect the ability of investors to trade our securities and would negatively affect the value and liquidity of our common stock.
−Removed: Delisting could also have other negative results, including the potential loss of confidence by employees, the loss of institutional investor interest and fewer business development opportunities.
−Removed: Adverse macroeconomic conditions, natural disasters or reduced technology spending could adversely affect our business, operating results, and financial condition.
−Removed: Our business depends on the overall demand for our technology and on the economic health of our current and prospective customers and retail consumers generally.
−Removed: In addition, the purchase of our products is often discretionary and may involve a significant commitment of capital and other resources.
−Removed: 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
−Removed: 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.
−Removed: There have been recent disruptions and uncertainty in the global banking system.
−Removed: For example, on March 10, 2023, Silicon Valley Bank (“SVB”), was closed by the California Department of Financial Protection and Innovation.
−Removed: On March 12, 2023, Signature Bank was closed by the New York State Department of Financial Services.
−Removed: On May 1, 2023, First Republic was closed by the California Department of Financial Protection and Innovation.
−Removed: In each case, the Federal Deposit Insurance Corporation (the “FDIC”) was appointed as receiver.
−Removed: While we do not have any exposure to SVB, Signature Bank, or First Republic, we do maintain our cash at financial institutions, often in balances that exceed the current FDIC insurance limits.
−Removed: 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.
−Removed: Moreover, such events, in addition to the global macroeconomic conditions discussed above, may cause further turbulence and uncertainty in the capital markets, which may adversely affect the trading price of our common stock and potentially our results of operations.
−Removed: Further, deterioration of the global macroeconomic environment and any regulatory action taken in response thereto may also adversely affect our business, operating results, and financial condition.
−Removed: Further, natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce, and the global economy, and thus could have an adverse effect on us.
−Removed: Our business operations are also subject to, among other things, interruption by fire, power shortages, flooding, and other events beyond our control.
−Removed: In the event of a natural disaster, including a major earthquake, blizzard, or hurricane, or a catastrophic event such as a fire, power loss, cyberattack, or telecommunications failure, we may be unable to continue our operations, the products which embody our technology may not function properly or at all, and we may endure system interruptions, reputational harm, delays in development of our products, lengthy interruptions in service, breaches of data security, loss of critical data, and reduced sales, all of which could have an adverse effect on our operating results.
−Removed: Climate change could result in an increase in the frequency or severity of such natural disasters.
−Removed: For example, our corporate offices are located in California, a state that frequently experiences earthquakes, wildfires, heatwaves and droughts.
−Removed: 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.
−Removed: 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.
−Removed: We do not have any control over these analysts.
−Removed: There can be no assurance that analysts will continue to cover us or provide favorable coverage.
−Removed: If one or more of the analysts who cover us downgrade our stock or change their opinion of our stock, our stock price would likely decline.
−Removed: 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.
−Removed: Unresolv ed Staff Comments
−Removed: Not applicable.
−Removed: Cybersecurity
−Removed: Risk Management and Strategy
−Removed: We believe cybersecurity is critical to supporting our vision and enabling our strategy.
−Removed: We face a multitude of cybersecurity threats that are common to most industries, such as ransomware and denial-of-service.
−Removed: Our customers, suppliers, and partners face similar cybersecurity threats and, while we have not been materially affected to date, a cybersecurity incident impacting us or any of these entities could materially adversely affect our operations, performance, and results of operations.
−Removed: These cybersecurity threats and related risks make it imperative that we maintain a strong focus on cybersecurity.
−Removed: 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.
−Removed: The Company also engages an IT consultant to frequently review and monitor policies, procedures and processes designed to mitigate the risk of cybersecurity threats.
−Removed: The IT consultant has regular communication with the Company's Chief Financial Officer to address any issues or concerns that may arise.
−Removed: 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.
−Removed: Any cybersecurity threats, breaches or other concerns are immediately communicated to the Board of Directors.
−Removed: 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.
−Removed: A new lease on this same property was signed in May 2022 for a term of three years starting from October 1, 2022.
−Removed: This space, with a total of 21,188 square feet, is used for our headquarters and for research and development efforts.
−Removed: In September 2021, we entered into a lease agreement for office space in Costa Mesa, CA, starting from October 1, 2021, which was utilized by our engineers residing in Southern California and had a total of 1,387 square feet.
−Removed: This lease expired on September 30, 2023 and was not renewed.
−Removed: Legal Proceedings
−Removed: 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.
−Removed: We may, however, be subject to various claims and legal actions arising in the ordinary course of business from time to time.
−Removed: Mine Saf ety Disclosures
−Removed: Not applicable.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.