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Item 1. Business

2022-03-23 compared with 2021-03-24 · 128 added, 123 removed, 109 unchanged (70% of the section changed)

We have developed our WattUp® wireless power technology, consisting of proprietary semiconductor chipsets, software controls, hardware designs and antennas, that enables radio frequency (“RF”) based charging for electronic devices.

The WattUp technology has a broad spectrum of capabilities, including near field wireless charging and at-a-distance wireless charging at various distances.

In November 2016 we entered into a Strategic Alliance Agreement with Dialog Semiconductor plc (“Dialog”), an industry leader in Bluetooth low energy semiconductors and power management semiconductors.

In conjunction with the Strategic Alliance Agreement, Dialog manufactures and is the exclusive distributor of integrated circuit (“IC”) products that incorporate our designs and provides sales and logistic support to customers on a global basis.

We believe our proprietary WattUp technologies are well suited for many applications, including home automation, surface and implanted medical devices, electronic shelf labels, industrial IoT sensors, tracking devices, hearables, wearables, consumer electronics, public safety and military applications.

Potential future applications include smartphones, commercial and industrial robotics, as well as automotive solutions and other devices with charging requirements that would otherwise require battery replacement or a wired power connection.

We believe our technology is innovative in its approach, in that we are developing solutions that charge electronic devices with an RF energy zone.

We are developing solutions that deliver wire-free energy for near field charging applications and are also developing at-a-distance charging at distances up to approximately three feet, as well as low-power charging for distances up to 15 feet and beyond, some of which involve mobility charging.

We have developed our WattUp® wireless power technology, consisting of semiconductor chipsets, software controls, hardware designs and antennas, that enables radio frequency (“RF”) based charging for electronic devices.

The WattUp technology has a broad spectrum of capabilities to enable the next generation of wireless power networks, delivering power and data in a seamless device portfolio.

This includes near field and at-a-distance wireless charging with multiple power levels at various distances.

We believe our WattUp technologies will help facilitate the deployment of the growing IoT applications.

According to the recent report of the International Data Corporation, or the IDC, titled “Worldwide Global DataSphere IoT Device and Data Forecast, 2021–2025,” the IoT market is forecasted to grow to 39.3 billion devices by 2025.

The initial IoT applications that we are targeting are in the area of RF tags and electronic shelf labeling (“ESL”) for retail, industrial and healthcare markets.

We believe our technology is innovative in its approach, in that we are developing solutions that charge electronic devices using RF.

To-date, we have developed multiple transmitters and receivers, including prototypes as well as partner production designs.

The transmitters vary based on form factor, power specifications and frequencies, while the receivers are designed for applications including Bluetooth tracking tags, IoT sensors, hearing aids, electronic shelf

labels, fitness bands, health sensors and devices, smartwatches, smartphones, smartglasses , industrial applications, keyboards, mice, headsets, earbuds, headphones, and more.

We have engagements with companies in the consumer electronics (CE), industrial, military and medical device markets that are in the both evaluation and product cycle pre-production stages of integrating WattUp-technology into devices being developed for the end-user.

The first end product featuring our technology entered the market in 2019 and we expect additional WattUp enabled products to be announced and launched in 2021.

We are also in discussions with potential customers in the consumer and industrial spaces that are considering our solutions to supply low power distance charging for products that could enter the market in 2022.

In December 2017, we announced Federal Communications Commission (“FCC”) certification of our first-generation WattUp Mid Field transmitter, which simultaneously powers multiple devices at a distance of up to three feet.

The transmitters vary based on form factor, power specifications and frequencies, while the receivers support a myriad of applications including Bluetooth tracking tags, IoT sensors, ESLs, beacons, stock management devices, security cameras, handheld devices, smart automation, wearables, hearables, and more.

The first end product featuring our technology entered the market in 2019.

We started shipping our first at-a-distance WattUp PowerBridge enabled transmitters for commercial IoT applications in the fourth quarter of 2021, and we expect additional WattUp-enabled products to be announced as we move our business forward.

In December 2017, we announced the Federal Communications Commission , or the FCC certification of our first-generation WattUp Mid Field transmitter, which simultaneously powers multiple devices at a distanc e of up to three feet.

This transmitter underwent rigorous, multi-month testing to verify that it met consumer safety and regulatory requirements.

We believe this was the first certification of a Part 18 FCC-approved non-contact wireless charging transmitter, and that it establishes engineering design precedents that can streamline future regulatory approvals for our technology and for our customers’ end-products that employ our technology.

Our technology solution consists principally of transmitter controller ICs, power amplifier ICs and receiver ICs, as well as novel antenna designs, application prototypes and proprietary software algorithms.

In addition, in December 2021, we received FCC certification for unlimited distance charging.

Our technology solution consists principally of transmitter controller integrated circuits, or ICs, power amplifier ICs and receiver ICs, as well as novel antenna designs, application prototypes and proprietary software algorithms.

We submitted our first IC design for wafer fabrication in 2013 and since then have developed subsequent generations of transmitter and receiver ICs, antenna designs, and software algorithms.

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Our technology is readily scalable because the same ICs that are used for contact-based charging can be used for distance-based charging solutions.

We have developed two classes of chip solutions, a CMOS-based technology focused on low cost, small footprint and low power (less than 5 watts) and a GaAs/GaN-based technology capable of delivering higher power with greater efficiency.

We intend to continue to invest in research and development with high power capabilities of 20 watts and beyond at high levels of efficiency.

We also intend to continue to invest in improving product performance, efficiency, cost-performance, integration and miniaturization as required to reach multiple markets and expand the power-at-a-distance ecosystem, while maintaining a technology lead on potential competitors.

We have developed two classes of chip solutions, a CMOS-based technology focused on low cost, small footprint and low power (1 watt) and a GaAs/GaN-based technology capable of delivering higher power (greater than 1 watt) with greater efficiency.

We intend to continue to invest in improving product performance, efficiency, cost-performance, integration, regulatory approval and miniaturization as required to reach multiple markets and expand the power-at-a-distance ecosystem, while maintaining a technology lead on potential competitors.

We sell evaluation kits to potential customers of our technology, to allow their respective engineering and product management departments to test and evaluate the technology.

Our customers’ product development, technology integration and product introduction cycles occur over multiple quarters and generally more than a year to two years can elapse before first evaluation and final shipment of the customer’s product.

Our customers’ product development, technology integration and product introduction cycles occur over multiple quarters and generally span a period of more than a year to two years and can elapse before first evaluation and final shipment of the customer’s product.

Once our customers begin to sell products to end customers that incorporate our technology, we would expect the commercialization cycle to shorten over time as the technology matures and market acceptance grows.

We maintain exclusive rights to all intellectual property in our technology.

We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations.

As of March 1, 2021, the Energous IP portfolio contained 231 awarded patents organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize WPT technology.

We maintain the rights to all intellectual property in our technology.

We have implemented a comprehensive intellectual property strategy and are continuing to pursue patent protection for all key innovations.

As of December 31, 2021, the Energous IP portfolio contained over 200 awarded patents in the United States, which are organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize WPT technology.

The paths are:

Processing Algorithms, Antenna Designs, Transmitter and Receiver ASICs, Other Software Controls (e.g., Bluetooth â Management and Hardware (e.g., Board Layout).

Further, the company has more than 65 pending patent applications in the U.S.

In addition to the inventions covered by these patents, we have also identified specific inventions that we believe are novel and patentable.

We intend to file for patent protection for the most valuable of these, and for other inventions that we expect to develop.

This is a significant annual expense and we continually monitor the costs and benefits of each patent application and pursue those that we believe are most protective for our business and expand the core value of the Company.

This is a significant annual expense, and we continually monitor the costs and benefits of each patent application and pursue and maintain those that we believe are most protective for our business and expand our core value.

Our seasoned management team has both private and public company experience, as well as relevant industry experience.

In addition, we have identified and hired key engineering resources in the areas of IC development, antenna development, hardware, software and firmware engineering as well as integration and testing, which will allow us to continue to expand our technology and intellectual property and to meet our customers’ support requirements.

In addition, our team consists of key engineering talents in the areas of IC development, antenna development, hardware, software and firmware engineering as well as integration and testing, which will allow us to continue to expand our technology and intellectual property and to meet our customers’ support requirements.

In conjunction with the Strategic Alliance Agreement, Dialog was the exclusive distributor of our integrated circuit (“IC”) products and provided sales and chip operations support to customers on a global basis.

On September 20, 2021, we were notified by Dialog, that it was recently acquired by Renesas Electronics Corporation and that it was terminating the Strategic Alliance Agreement, or the Alliance Agreement, between us and Dialog.

The Alliance Agreement allows for a transition and separation period which will conclude in or prior to September 2024.

During the wind down period, the Alliance Agreement’s terms will continue to apply to the Company’s products that are covered by certain existing customer relationships, except that the parties’ respective exclusivity rights have terminated.

As a result of the termination, we have been developing our own internal capabilities, as well as developing a network of contract manufacturers.

Our common stock is quoted on The Nasdaq Stock Market under the symbol “WATT”.

As of February 28, 202 1 , we had 5 4 full-time employees, 4 3 of whom were engineers.

We were incorporated in Delaware in 2012.

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The information contained on, or that may be obtained from our website, is not, and shall not be deemed to be, part of this Annual Report on Form 10-K.

Our Business Strategy

We believe that a large market opportunity lies in wire-free low-power charging at-a-distance, which might develop as the Wi-Fi ecosystem developed.

The goal is to ensure interoperability between transmitters and receivers that are based on our technology, regardless of who made them, installed them into finished goods, or marketed them.

The implementation of previous ubiquitous solutions, such as Wi-Fi and Bluetooth, illustrates our goal.

For example, Wi-Fi routers, regardless of their designer or manufacturer, work with Wi-Fi receivers installed in consumer electronics, regardless of manufacturer.

We endeavor to:

Build multiple ICs to advance the technology;

Develop, license and manufacture a complete Transmitter solution to enable WPN growth;

Develop reference designs to reduce early adopter risks, enable easier integration at lower costs and foster adoption;

Continue to build additional value by converging networking, power and data to provide smarter vertical solution in retail, industrial and healthcare through our WattUp PowerBridge products designed for powering next generation IoT.

First target applications include electronic shelf labels (ESLs) and RF tags;

Partner with leading technology and systems companies;

Provide game-changing benefits to the consumer in terms of utility and convenience;

Develop and execute on a strategy to gain global regulatory approval for ubiquitous unlimited distance charging;

Support the AirFuel™ Alliance (AFA) that is expected to lead to a qualification process to ensure compatibility of our WattUp technology across vendors and develop a common user experience at the application level.

For our technology to become a ubiquitous solution for charging at-a-distance, we intend to pursue an ecosystem strategy for our technology, engaging not only potential customers for our transmitter, receiver and power amplifier IC’s 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 make it less likely that a competing platform will be able to gain a solid foothold in the RF-based wireless charging market and compete with our technology in a meaningful way.

To engage with potential customers of the WattUp IC’s, we offer the Developer Kits consisting of a transmitter and a receiver along with the enabling software to allow 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.

We are developing processes and support capabilities to assist potential customers as they evaluate the technology and develop specific designs to incorporate it.

To validate our technology, we originally sought out customers that were smaller, more nimble early adopters with relatively short product cycles and the ability to ship fully integrated WattUp enabled devices to the consumer as quickly as possible.

At the same time, we began to engage with larger, top tier customers with the ability to ship WattUp enabled consumer and IoT devices in mass quantities.

We are also engaged with companies that have much longer product cycles in multiple vertical markets.

Since we are developing a new electronics charging paradigm, we expect many operational details of our strategy to continue to evolve as our technology matures, engineering breakthroughs occur and new partner collaborations are formed.

Impact of COVID-19 on Our Business

In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic.

The pandemic continues to affect the United States and the world.

We are monitoring the ongoing effects of COVID-19 (including continued outbreaks) and the related business and travel restrictions and changes to behavior intended to reduce its spread, and its 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.

The COVID-19 pandemic has delayed adoption of our technology by potential customers who have experienced workforce and supply chain disruptions, and who continue to evaluate their future prospects and business models, including partnerships with us.

Further delays in this or other products could result from the ongoing pandemic.

These changes are due in part to changes in how business is conducted as a result of the pandemic, including state executive orders, local shelter-in-place orders, government-imposed quarantines and work-from-home policies in China, the United States, and elsewhere around the world.

We have implemented moderated work-from-home policies for our employees that will likely be in place through the end of 2022 and possibly longer.

The effects of state executive orders, local shelter-in-place orders, government-imposed quarantines and our work-from-home policies could negatively impact productivity, disrupt our research and development or other operations, and delay the planned launch of our customers’ new products that incorporate our technology, the magnitude of which will depend, in part, on the length and severity of the continuing restrictions and other limitations on our ability to conduct our business in the ordinary course.

Several vaccines have been approved for use since the fourth quarter of 2020, with vaccination rates increasing over 2021 and through early 2022.

Several new variants of COVID-19 have emerged, and were reported by health authorities to be more transmissible than other earlier variants.

Vaccines approved to date have lower efficacy in combating the transmission of some of these new variants, though vaccines appear to protect against severe illness.

Due to the continuing developments and fluidity of this situation, the magnitude and duration of the pandemic and its impact on our operations and liquidity, mainly due to supply chain shortages, are still uncertain as of the date of this report.

Our Technology

The wire-free charging technology we are developing employs transmitter technology that creates an RF energy zone around a fixed or mobile receiving device.

Figure 1 below shows a basic conceptual design of a mid-field wireless charging solution based on our technology.

Today this technology is able to send RF energy from the transmitter to single receiving device, or to multiple receiving devices.

Concept of a Mid Field Wire-Free Charging Solution

First, our proprietary transmitter technology locates the target receiver(s) using standard Bluetooth ® communications and our proprietary technology.

Our software controls then cause the transmitter to generate a controlled RF-waveform.

Receivers equipped with our antennas and ICs, and controlled by our software, are able to harvest power from the RF energy zone.

We believe that our receiver technology will be incorporated into devices such as Bluetooth tracking tags, IoT sensors, hearing aids, electronic shelf labels, fitness bands, health sensors and devices, smartwatches, smartphones, smartglasses, industrial applications, keyboards, mice, headsets, earbuds, headphones, and other small electronics that contain embedded batteries or super capicators.

Our small form factor antennas and one transmitter to many receivers capabilities represent significant advantages over larger, costly coils required for first generation inductive based, contact WPT implementations.

The one to many capabilities of the WattUp technology can be of significant benefit to OEM’s with broad product lines like hearing aid manufacturers where a single transmitter can support multiple SKUs for behind the ear, in the ear and in the canal devices substantially reducing development, manufacturing and support costs.

The WattUp® technology enables wireless charging at contact as well as charging over the air, depending on application.

An award-winning, RF-based, scalable technology, WattUp transforms the way electronic devices are charged and powered.

WattUp® differs from older, rigid wireless charging systems because it supports charging in a variety of ways depending on the device and application.

Figure 1 below shows the current IC product line for Energous:

Our small form factor antennas and one transmitter to many receivers capabilities represent significant advantages over RF-beamforming transmitters, which are larger, and higher cost WPT implementations.

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.

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.

In 2021 we began to leverage the growing ecosystem of investments made by a number of IoT leaders.

While participating at the CES 2022, we demonstrated the world’s first IoT Wireless power network connecting Juniper Mist WiFi Access Points to multiple WattUp PowerBridge transmitters at 1W and 5W.

We showed 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 WattUp Software .

Figure 2 below shows the block diagram for our 1W WattUp PowerBridge Transmitter

In 2020, we released our WattUp PowerHub Developer Kit, which enables manufacturers to easily integrate charging-over-the-air technology into their products such as smart speakers, gaming consoles, access points and other devices to enable over-the-air charging of devices such as fitness bands, smartwatches, hearables, smart glasses, medical devices and more.

Figure 3 below shows the WattUp PowerHub

In 2016, we introduced our WattUp Near Field Transmitter Technology and a small form factor receiver, which were developed as a result of our efforts to reduce cost and size.

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Our Competition

Competing methods for charging battery-powered devices include wall plug-in charging, inductive charging, magnetic resonance charging, charging stations and more.

Competing methods for charging battery-powered devices include wall plug-in charging, inductive charging, magnetic resonance charging and more.

To our knowledge, almost all consumer electronics equipped with a rechargeable battery come bundled with a charging method, such as a power cord.

Studies indicate that consumers prefer wire-free, or untethered, charging solutions such as our WattUp technology.

We believe the advantages of our WattUp technology including size, cost, mobility, foreign object detection and portability coupled with the unique capability to charge devices both on contact as well as at-a-distance in a fully compatible ecosystem will foster broad adoption of the technology over time.

We believe the advantages of our WattUp technology including size, cost, mobility, foreign object detection and portability coupled with the unique

capability to charge devices both on contact as well as at-a-distance in a fully compatible ecosystem will foster broad adoption of the technology over time.

A variety of wireless charging technologies are on the market or under development today.

These competitive technologies fall into the following categories:

Magnetic Induction.

Magnetic induction uses a magnetic coil to create resonance, which can transmit energy over very short distances.

Inductive Coil Charging.

Inductive coil charging uses a magnetic coil to create resonance, which can transmit energy over very short distances.

Essentially this is a contact technology whereby the transmitter and receiver need to be closely aligned to charge.

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This technology uses coils that range in size depending on the power levels being transmitted.

It has the ability to transmit power at distances up to ~11 inches (30cm) which can be increased with the use of resonance repeaters.

Conductive charging uses conductive power transfer to eliminate wires between the charger (often a charging mat) and the charging device.

It requires the use of a charging board as the power transmitter to deliver the power, and a charging device, with a built-in receiver, to receive the power.

This technology requires direct metal contact between the charging board and the receiver.

Once the charging board recognizes the receiver, the charging begins.

RF Harvesting.

Harvesting RF energy is at the core of our WattUp technology.

Radio Frequency wireless charging is unique in that it sends radio waves over the air to a receiver that harvests the waves and converts them to power, thereby enabling the device to operate in its intended fashion without the need to connect directly to a power source.

RF harvesting typically utilizes directional antennas to target and deliver energy.

It has the ability to transmit power at distances up to ~11 inches (30cm) which can be increased with the use of resonance repeaters It also has more flexibility of placement than Magnetic.

Energy Harvesting.

There are multiple companies looking at harvesting energy that may be present in certain environments.

The energy harvested may come from a variety of sources, including Solar, Kinetic and Passive RF.

Passive RF harvesting refers to using antennas and devices to harvest RF that may already be present in an environment, such as Wi-Fi, mobile phones, cordless phones and other RF emitting devices.

Laser charging technology uses very short wavelengths of light to create a collimated beam that maintains its size over distance, using what is described as distributed resonance to deliver power to an optical receiver.

Ultrasound charging technology converts electric energy into acoustic energy in the form of ultrasound waves.

It then reconverts those waves through an “energy-harvesting” receiver.

Our Business Strategy

Pursuant to our Strategic Alliance Agreement, Dialog manufactures and distributes IC products incorporating our wire-free charging technology.

Dialog is the exclusive supplier of these products, which we believe may be useful in several vertical markets with large volumes of potential annual sales.

Our strategy is to support the development and proliferation of our WattUp ® technology to form a ubiquitous wire-free charging ecosystem.

We believe that a large market opportunity lies in wire-free low-power charging at-a-distance, which might develop as the Wi-Fi ecosystem developed.

The goal is to ensure interoperability between transmitters and receivers that are based on our technology, regardless of who made them, installed them into finished goods, or marketed them.

The implementation of previous ubiquitous solutions, such as Wi-Fi and Bluetooth, illustrates our goal.

For example, Wi-Fi routers, regardless of their designer or manufacturer, work with Wi-Fi receivers installed in consumer electronics, regardless of manufacturer.

Accordingly, in partnership with Dialog, we endeavor to:

Build multiple ICs to advance the technology;

Partner with leading product companies;

Develop reference designs to reduce early adopter risks, enable easier integration at lower costs and foster adoption;

Provide game-changing benefits to the consumer in terms of utility and convenience;

Design initial iterations of the technology to be small but scalable implementations that are compatible on both a local and enterprise scale;

Invest in ease of use;

Develop a strategy to build out the ecosystem in consumer, enterprise, industrial and military;

Implement a plan to initially sell ICs migrating to a combination of selling ICs and integrating our device libraries into third-party silicon such as Bluetooth Low Energy and Power Management Chips;

Develop and execute on a strategy to gain global regulatory approval for both contact-based charging and distance charging;

In order for our technology to become a ubiquitous solution for charging at - a - distance, we intend to pursue an ecosystem strategy for our technology, engaging not only potential customers for our transmitter, receiver and power amplifier IC’s but also their upstream and downstream value chain partners.

We believe our strategic relationship with Dialog has the potential to enable us to accelerate and increase the breadth of penetration in multiple markets rather than by manufacturing and distributing products ourselves.

We believe this relationship allows us to resolve supply chain problems for consumer electronics and IoT companies as well as leverage Dialog’s sales force while we concentrate our efforts and resources on engineering, development and commercialization projects to accelerate the introduction and adoption of WattUp solutions.

To engage with potential customers of the WattUp IC’s, we have developed evaluation kits consisting of a transmitter and a receiver along with the enabling software to allow 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.

We are developing processes and support capabilities to assist potential customers as they evaluate the technology and develop specific designs to incorporate it.

At the same time, we began to engage with larger, top tier customers with the ability to ship WattUp enabled consumer and IoT devices in mass quantities.

We are also engaged with companies that have much longer product cycles in multiple vertical markets As our partnership with Dialog enters its fifth year, the majority of new customer introductions are made through Dialog, comprised of companies diverse in size and end markets.

Since we are developing a new electronics charging paradigm for consumers, we expect many operational details of our strategy to continue to evolve as our technology matures, engineering breakthroughs occur and our engagements with our strategic partner Dialog and our top tier customers advance and mature.

Our Target Markets

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Stand-alone transmitters that are either sold independently or bundled as part of a pairing with WattUp-enabled receiver devices;

Transmitters that are integrated into third party industrial, military medical and consumer devices;

Transmitters that could be integrated into Wi-Fi routers to form a single device that provides both connectivity and wire-free power for a particular area.

Transmitters that are integrated into third party industrial, medical and enterprise devices;

Transmitters that could be integrated into Bridge and Wi-Fi routers to form a single device that provides both connectivity and wire-free power for a particular area.

We plan to release stand-alone and integrated transmitter technology in three categories:

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These contact-based charging solutions are ideally suited for many electronic devices in both consumer and industrial markets such as wearables, IoT devices and other small electronics that require a small form factor receiver and a low-cost charging solution.

They are also suitable for larger, more power-hungry devices such as smartphones, smart watches and tablets.

They are also suitable for larger, more power-hungry devices such as smart watches and tablets.

Initially these transmitters will be one-to-one (one transmitter to one receiver), with future versions being single transmitters for multiple receivers.

WattUp Mid Field Transmitter

We expect that transmitters using our WattUp Mid Field technology will be geared to consumer desktop and industrial, military and medical markets and for charging at a range of a few centimeters to one meter.

We also intend for the Mid Field transmitters to have tracking ability to support mobile applications and multiple receiving devices.

WattUp Mid Field transmitters may include small transmitters designed to power industrial, medical, military and consumer electronics and IoT devices.

We expect that transmitters using our WattUp Mid Field technology, which we refer to as the WattUp PowerHub, will be geared to consumer desktop and industrial and medical markets and for charging at a range of a few centimeters to one meter.

We also intend for the WattUp PowerHub transmitters to have tracking ability to support mobile applications and multiple receiving devices.

WattUp PowerHub transmitters may include small transmitters designed to power industrial, medical, consumer electronics and IoT devices.

The same technology may also be integrated into third party devices such as smart speakers, computer monitors, nightstand consumer electronics, accessories such as low voltage portable battery chargers and integrated automotive applications, as well as additional industrial, medical, and public safety applications.

WattUp Far Field Transmitters:

Transmitters based on WattUp Far Field technology are expected to provide low power charging for multiple devices within a radius of up to 15 feet or greater depending on application.

We expect that Far Field WattUp transmitters will have the ability to both “target” receivers at-a-distance as well as broadcast wireless power creating a sphere of power within which WattUp enabled receiving devices can be charged.

Far Field WattUp transmitters may play a significant role in the charging low power IoT devices in fixed locations – such as security cameras and sensors.

Transmitters based on WattUp Far Field technology, which we refer to as the WattUp PowerBridge, are expected to provide low power charging for multiple devices with the capability of extending the range through the deployment of multiple WattUp PowerBridges.

We expect that WattUp PowerBridge transmitters will have the ability to broadcast wireless power creating a sphere of power within which WattUp enabled receiving devices can be charged.

WattUp PowerBridge transmitters may play a significant role in the charging low power IoT devices in fixed locations – such as electronic shelf labels, RF tags, security cameras and sensors.

Transmitters Integrated into Third Party Devices:

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For example, the WattUp transmit technology could be integrated into a WiFi router on the ceiling of a manufacturing floor or hospital ward providing both internet connectivity and wireless power to any devices within range.

Wi-Fi Routers

We see the combination of the wire-free power router and the Wi-Fi router as a natural integration point and a synergistic application of both technologies.

A WattUp transmitter shares a number of technical characteristics with Wi-Fi routers in that both devices operate in the airwaves in the unlicensed industrial, scientific and medical bands, both devices owe their success to the utility and convenience they bring to the consumer, both devices rely on antennas, and both devices “pair” or provide hand off capabilities which allow for mesh networks to provision large sites.

We believe that our technology is applicable to both the commercial and residential Wi-Fi router markets.

As part of our go-to-market strategy under the Strategic Alliance Agreement, we are currently working with Dialog to identify potential customers to offer consumer and commercial applications of our transmitter technology.

WattUp PowerBridges:

We see the combination of wireless power router and the wireless bridges as a natural integration point and a synergistic application of both technologies.

WattUp PowerBridges provide the bridge to Wi-Fi, 5G and other Wide Area network technologies while also providing wireless power to in-range receiver devices.

WattUp PowerBridges share a number of technical characteristics with Wi-Fi routers in that;

(1) both devices operate in the airwaves in the unlicensed industrial, scientific and medical bands, (2) both devices owe their success to the utility and convenience they bring to the consumer, (3) both devices rely on antennas, and (4) both devices “pair” or provide hand off capabilities which allow for networks to provision large sites.

Receiver Target Markets

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IOT devices including asset trackers, sensors, retail displays, security devices

Smart Home, Medical, Industrial, and other Sensors

Electronic shelf labels

Logistics and asset tracking tags and sensors

• Peripheral devices such as computer mice and keyboards

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Gaming consoles and controllers

Smart Home, Medical, Industrial, Military and other Sensors

Rechargeable batteries

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• Smart textiles

Electronic shelf labeling

Logistics and asset tracking tags and sensors

Hand-held industrial devices (such as scanners and keypads)

Military and Public Safety devices

Medical devices

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We intend to continue to evaluate our target markets and choose new markets based on factors including (but not limited to) time-to-market, market size and growth, and the strength of our value proposition for a specific application.

Key Strategic Relationship

In November 2016, we entered into a Strategic Alliance Agreement with Dialog for the manufacture and distribution of IC products incorporating our wire-free charging technology.

Dialog is our exclusive supplier of these products for specified fields of use.

Our WattUp chipsets are ordered through and manufactured by Dialog, carry the Dialog brand and are shipped and supported by Dialog.

Dialog agreed to not distribute, sell or work with any third party to develop any competing products without our approval.

Energous and Dialog agreed on a revenue sharing arrangement and will collaborate on the commercialization of licensed products based on a mutually-agreed upon plan.

Our WattUp technology uses Bluetooth solutions, including Dialog’s SmartBond ® Bluetooth low energy solution, as the out-of-band communications channel between the wireless transmitter and receiver.

Dialog’s power management technology is used to distribute power from the WattUp receiver IC to the rest of the device while Dialog’s AC/DC Rapid Charge™ power conversion technology delivers power to the wireless transmitter.

Our Intellectual Property

As a company primarily focused on licensing, we expect that our most valuable asset will be our intellectual property.

Our most valuable asset is our intellectual property.

This includes U.S.

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We have implemented an aggressive intellectual property strategy and are continuing to pursue patent protection for new innovations.

As of March 10, 2022, the Energous IP portfolio contained over 200 issued patents organized along five (5) critical paths to implementation that we believe a competitor may have to navigate to commercialize WPT technology.

The paths are:

Processing Algorithms, Antenna Designs, Transmitter and Receiver ASICs, Other Software Controls (e.g., Bluetooth â Management and Hardware (e.g., Board Layout).

Further, the company has more than 65 pending patent applications in the U.S.

We intend to file for patent protection for the most valuable of these, as well as for other new inventions that we expect to develop.

Further, we have additional pending patent applications in the U.S.

We intend to file for patent protection for the most valuable of our inventions, as well as for other new inventions that we expect to develop.

This is a significant annual expense and we continually monitor the costs and benefits of each patent application and issued patent to ensure we pursue those that we believe are most protective for our business and expand our core value.

So long as we make the business decision to continue paying maintenance and/or annuity fees, our issued patents have terms that would not expire earlier than 2030.

Government Regulation

Our wire-free charging technology involves the transmission of power using RF energy, which is subject to regulation by the Federal Communications Commission (“FCC”), international regulators and may be subject to regulation by other federal, state, local and international agencies.

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.

Our technology has been tested against U.S.

21 unchanged sentences

Digital Transmission System for Bluetooth 2.4 GHz

Current FCC Approvals for Customer Products

SK Telesys Co., Ltd, based on Energous ID:

Xiamen New Sound Technology Co,.

Gokhale Method Enterprise

In February 2020, we announced completion of the regulatory process for our WattUp near-field wireless charging technology in Japan, a critical market in the Asia Pacific region for our customers and partners.

As of March 2, 2021, products integrating WattUp® technology had received international regulatory approvals and were approved to ship into 112 countries.

RF Wireless Charger 918MHz

Digital Transmission System for Bluetooth 2.4 GHz

RF Wireless Charger 918MHz

Digital Transmission System for Bluetooth 2.4 GHz

RF Wireless Charger 918MHz

Digital Transmission System for Bluetooth 2.4 GHz

In 2021, we announced completion of the regulatory process for our WattUp PowerBridge wireless charging technology in US, Canada, Europe and India, for unlimited distance wireless charging.

As of March 10, 2022, products integrating WattUp® technology had received international regulatory approvals in 112 countries.

Manufacturing

As a fabless semiconductor company in the research and development stage, we foresee our manufacturing strategy to follow an outsourced manufacturing process.

We are engaged with contract manufacturing partners in the United States and internationally.

Human Capital

As of February 28, 2021, we had 54 full-time employees, 43 of whom are engineers.

As of March 10, 2022, we had 48 full-time employees, 38 of whom are Engineers.

None of these employees are covered by a collective bargaining agreement, and we believe our relationship with our employees is good.

We also employ consultants, including technical advisors, on an as-needed basis to supplement existing staff.

Consultants and technical advisors provide us with expertise in electrical engineering, software development and other specialized areas of engineering and science.

We also employ consultants, including technical advisors, on an as-needed basis for their technical expertise.

Consultants and technical advisors provide us with expertise in electrical engineering, software development, market research and accounting.

We are committed to maintaining a workplace free from discrimination and harassment on the basis of color, race, gender, age, disability, sexual orientation, religion, expression, or any other status protected by applicable law.

Our management and employees are expected to exhibit and promote honest, ethical and respectful conduct in the workplace.

The industrial markets for which we are involved have minimal seasonal impact.

The consumer markets for the commercial products that we anticipate our technology can be used in vary in their seasonal impact.

Overall, we do not foresee a material seasonal impact to our revenue at this time.

Available Information

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What changed 10-K

Item 1. Business