28 unchanged sentences
We believe our WattUp technologies will help facilitate the deployment of the growing IoT applications.
−Removed: According to the IDC (International Data Corporation) November 2021 IoT Spending Guide Forecast, the IoT market is forecasted to grow to nearly 40 billion devices by 2025.
−Removed: The initial IoT applications that we are targeting are in the area of RF tags and electronic shelf labeling (“ESL”) for the retail, industrial and healthcare markets.
+Added: According to the International Data Corporation (IDC) August 2022 Market Forecast, the IoT market is forecasted to grow to approximately $1.1 trillion in spending by 2026.
+Added: The initial IoT applications that we are targeting are in the area of RF tags, ESL) and IoT sensors for the retail, industrial, healthcare and smart home/office 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.
−Removed: The transmitters vary based on form factor, power specifications and frequencies, while the receivers support a myriad of wireless charging applications including Bluetooth tracking tags, IoT sensors, ESLs, beacons, stock management devices, security cameras, handheld devices, smart automation, wearables and hearables.
+Added: The transmitters vary based on form factor, power specifications and frequencies, while the receivers are designed to support a myriad of wireless charging applications including Bluetooth tracking tags, IoT sensors, ESLs, beacons, stock management devices, security cameras, handheld devices, smart automation, wearables and hearables.
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.
−Removed: Impact of COVID-19 on Our Business
−Removed: We continue to monitor the ongoing effects of COVID-19, including 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.
−Removed: We believe that the COVID-19 pandemic 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.
−Removed: Further delays in the adoption of our current or future products could result from the ongoing pandemic.
−Removed: At times, certain of our outsourcing partners, component suppliers and logistical service providers have experienced disruptions, resulting in supply shortages that have affected and may continue to affect our sales.
−Removed: Similar disruptions could occur in the future.
Critical Accounting Policies and Estimates
+Added: We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity” (“ASC 480”), and ASC 815, “Derivatives and Hedging” (“ASC 815”).
+Added: The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to our common stock, among other conditions for equity classification.
+Added: This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.
+Added: For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance.
+Added: For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as a liability at their initial fair value on the date of issuance, and each balance sheet date thereafter.
+Added: The liability will be re-measured at each balance sheet date until the warrants are exercised or expire.
+Added: Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.
+Added: The fair value of the warrants is estimated using an appropriate valuation model.
+Added: Such warrant classification is also subject to re-evaluation at each reporting period.
+Added: Offering costs associated with warrants classified as liabilities are expensed as incurred and are presented as offering cost related to warrant liability in the statement of operations.
+Added: Offering costs associated with the sale of warrants classified as equity are charged against proceeds.
Revenue Recognition
20 unchanged sentences
General and administrative expenses include costs for general and corporate functions, including personnel compensation, facility fees, travel, telecommunications, insurance, professional fees, consulting fees, general office expenses, and other overhead.
−Removed: Three Months Ended September 30 , 2022 and 2021
−Removed: During the three months ended September 30, 2022 and 2021, we recorded revenue of $223,201 and $201,364, respectively.
−Removed: The increase of $21,837 is primarily due to an increase in production-level systems sales volume.
−Removed: Costs and Expenses and Loss from Operations.
−Removed: Costs and expenses are made up of cost of revenue, research and development, sales and marketing, general and administrative and severance expense.
−Removed: Losses from operations for the three months ended September 30, 2022 and 2021 were $6,107,715 and $12,465,361, respectively.
−Removed: Cost of Revenue.
−Removed: Cost of revenue was $420,060 and $0, respectively, for the three months ended September 30, 2022 and 2021.
−Removed: For the three months ended September 30, 2022, cost of revenue is for our production-level systems that are sold to customers.
−Removed: We did not incur any cost of revenue during the three months ended September 30, 2021.
−Removed: Research and Development Costs.
−Removed: Research and development costs were $2,885,830 and $4,737,159, respectively, for the three months ended September 30, 2022 and 2021.
−Removed: The decrease of $1,851,329 is primarily due to a $1,385,345 decrease in compensation, consisting of a $933,492 decrease in stock-based compensation, primarily due to equity awards becoming fully vested during the previous year and the transfer of the current CEO to the General and Administrative Department late last year after his promotion and a $451,853 decrease in payroll costs due to a lower headcount within the department, a $336,059 decrease in chip design, engineering supplies and components, a $44,370 decrease in regulatory testing, a $43,165 decrease in patent-related legal fees and a $42,717 decrease in regulatory legal fees.
−Removed: Sales and Marketing Costs.
−Removed: Sales and marketing costs for the three months ended September 30, 2022 and 2021 were $1,093,640 and $1,922,128, respectively.
−Removed: The decrease of $828,488 is primarily due to a $650,293 decrease in compensation, consisting of a $455,665 decrease in stock-based compensation, primarily due to equity awards becoming fully vested during the previous year and a lower headcount within the department and a $194,628 decrease in payroll costs due to a lower headcount within the department, a $114,320 decrease in public relations, consulting and third party services expenses and a $51,605 decrease in marketing and promotional expense.
−Removed: General and Administrative Expenses.
−Removed: General and administrative costs for the three months ended September 30, 2022 and 2021 were $1,931,386 and $1,990,266, respectively.
−Removed: The decrease of $58,880 is primarily due to a $245,166 decrease in recruiting fees, a $134,169 decrease in investor relations, consulting and third-party services and a $40,422 decrease in annual meeting costs, partially offset by a $242,884 increase in compensation, consisting of a $155,834 increase in stock-based compensation from recently granted executive equity awards and an $87,052 increase in payroll costs due to the former CEO and former CFO only receiving partial pro-rated bonus payments during the third quarter of 2021, a $50,286 increase in travel costs, a $30,447 increase in accounting and audit fees, a $25,432 increase in software and training expense and a $15,108 increase in supplies.
−Removed: In t e r e s t Income .
−Removed: In t e r e s t income fo r t h e three m on t h s e nd e d September 30, 2022 w a s $142,840 a s c o m p a r e d t o interest income of $835 fo r t h e three m on t h s e nd e d September 30, 2021 .
−Removed: The increase of $142,005 is primarily due to higher savings interest rates.
−Removed: N e t L o ss .
−Removed: A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e three m on t h s e nd e d September 30, 2022 was $5,964,875 a s c o m p a r e d t o $12,464,526 fo r t h e three m on t h s e nd e d September 30, 2021 .
−Removed: Nine Months Ended September 30, 2022 and 2021
−Removed: During the nine months ended September 30, 2022 and 2021, we recorded revenue of $672,133 and $531,389, respectively.
−Removed: The increase of $140,744 is primarily due to an increase in production-level systems sales volume.
+Added: Three Months Ended March 31, 2023 and 2022
+Added: During the three months ended March 31, 2023 and 2022, we recorded revenue of $96,676 and $215,961, respectively.
+Added: The decrease of $119,285 is primarily due to a decrease in production-level systems sales volume.
Costs and Expenses and Loss from Operations.
−Removed: Costs and expenses are made up of cost of revenue, research and development, sales and marketing, general and administrative and severance expense.
−Removed: Losses from operations for the nine months ended September 30, 2022 and 2021 were $20,328,057 and $32,009,987, respectively.
+Added: Costs and expenses are made up of cost of revenue, research and development, sales and marketing and general and administrative.
+Added: Losses from operations for the three months ended March 31, 2023 and 2022 were $6,294,059 and $7,155,544, respectively.
Cost of Revenue.
−Removed: Cost of revenue was $894,693 and $0, respectively, for the nine months ended September 30, 2022 and 2021.
−Removed: For the nine months ended September 30, 2022, cost of revenue is for our production-level systems that are sold to customers.
−Removed: We did not incur any cost of revenue during the nine months ended September 30, 2021.
+Added: Cost of revenue was $138,813 and $203,249, respectively, for the three months ended March 31, 2023 and 2022.
+Added: The decrease of $64,436 is primarily due to a decrease in sales volume.
Research and Development Costs.
−Removed: Research and development costs were $ 9,622,886 and $ 15,432,097 , respectively, for the nine months ended September 30, 2022 and 2021 .
−Removed: The de crease of $ 5,809,211 is primarily due to a $ 5,220,092 decrease in compensation, consisting of a $ 3,951,478 decrease in stock-based compensation from the recognition of PSU award expense in 2021 and the transfer of the current CEO to the General and Administrative department towards the end of 2021 after his promotion and $ 1,268,614 decrease in payroll costs from a lower headcount within the department, a $ 514,143 decrease in chip design, engineering supplies and components, a $99,947 decrease in consulting and third party services and an $82,062 decrease in regulatory legal fees, partially offset by a $130,125 increase in recruiting fees and a $124,228 increase in postage from shipping components and demonstration units for customer demonstrations and regulatory testing .
+Added: Research and development costs were $3,078,524 and $3,527,146, respectively, for the three months ended March 31, 2023 and 2022.
+Added: The decrease of $448,622 is primarily due to a $320,939 decrease in compensation, consisting of a $176,627 decrease in payroll costs and a $144,312 decrease in stock-based compensation, an $87,786 decrease in consulting and third-party services expenses and a $35,707 decrease in regulatory legal fees.
Sales and Marketing Costs.
−Removed: Sales and marketing costs for the nine months ended September 30, 2022 and 2021 were $3,865,322 and $6,157,697, respectively.
−Removed: The decrease of $2,292,375 is primarily due to a $2,185,832 decrease in compensation, consisting of a $1,702,250 decrease in stock-based compensation from the recognition of PSU award expense during 2021 and a lower headcount within the department and a $483,582 decrease in payroll costs from a lower headcount within the department, a $270,562 decrease in public relations, consulting and third party services, a $115,238 decrease in marketing and promotional expenses and a $63,091 decrease in legal fees, partially offset by a $234,303 increase in tradeshow expense and an $88,720 increase in recruiting fees.
+Added: Sales and marketing costs for the three months ended March 31, 2023 and 2022 were $1,211,938 and $1,613,590, respectively.
+Added: The decrease of $401,652 is primarily due to a $208,413 decrease in compensation, consisting of a $132,939 decrease in payroll costs and a $75,474 decrease in stock-based compensation, a $101,876 decrease in engineering supplies used by the sales and marketing staff, a $66,739 decrease in tradeshow expense and a $59,214 decrease in public relations, consulting and third-party services expenses, partially offset by a $43,000 increase in recruiting fees.
General and Administrative Expenses.
−Removed: General and administrative costs for the nine months ended September 30, 2022 and 2021 were $5,983,845 and $6,934,410, respectively.
−Removed: The decrease of $950,565 is primarily due to a $681,306 decrease in compensation, consisting of a $581,114 decrease in stock-based compensation primarily from company-wide PSU expense during 2021 and a $100,192 decrease in payroll costs from a lower headcount within the department, a $255,009 decrease in legal fees, an $87,202 decrease in recruiting fees, an $83,178 decrease in annual meeting costs and a $65,505 decrease in investor relations, consulting and third party services, partially offset by an $87,564 increase in travel costs, a $72,674 increase in accounting and audit fees, a $47,480 increase in training, dues and subscriptions and a $35,102 increase in insurance premiums.
+Added: General and administrative costs for the three months ended March 31, 2023 and 2022 were $1,961,460 and $2,027,520, respectively.
+Added: The decrease of $66,060 is primarily due to a $108,472 decrease in recruiting fees, a $71,048 decrease in investor relations, consulting and third-party services expenses, a $55,043 decrease in stock-based compensation, a $21,605 decrease in training expense and an $18,207 decrease in annual meeting costs, partially offset by a $209,106 increase in legal fees.
+Added: Offering costs related to warrant liability.
+Added: Offering costs related to warrant liability were $591,670 for the three months ended March 31, 2023.
+Added: We did not incur any such costs for the three months ended March 31, 2022.
In t e r e s t Income .
−Removed: In t e r e s t income fo r t h e nine m on t h s e nd e d September 30, 2022 w a s $192,715 a s c o m p a r e d t o interest income of $3,869 fo r t h e nine m on t h s e nd e d September 30, 2021 .
+Added: In t e r e s t income fo r t h e three m on t h s e nd e d March 31, 2023 w a s $233,222 a s c o m p a r e d t o interest income of $2,826 fo r t h e three m on t h s e nd e d March 31, 2022 .
The increase of $230,396 is primarily due to higher savings interest rates.
N e t L o ss .
−Removed: A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e nine m on t h s e nd e d September 30, 2022 was $20,135,342 a s c o m p a r e d t o $ 32,006,118 fo r t h e nine m on t h s e nd e d September 30, 2021 .
+Added: A s a r e s u l t o f t h e a bov e , n e t l o s s fo r t h e three m on t h s e nd e d March 31, 2023 was $6,652,507 a s c o m p a r e d t o $7,152,718 fo r t h e three m on t h s e nd e d March 31, 2022 .
L i q u i d it y a n d Cap it a l R e s o ur ces
−Removed: During the nine months ended September 30, 2022 and 2021, we recorded revenue of $672,133 and $531,389, respectively.
−Removed: We incurred net losses of $20,135,342 and $32,006,118 for the nine months ended September 30, 2022 and 2021, respectively.
−Removed: Net cash used in operating activities was $18,838,453 and $22,498,803 for the nine months ended September 30, 2022 and 2021, respectively.
−Removed: We are currently meeting our liquidity requirements through the proceeds of securities offerings that raised net proceeds of $53,556,202 during 2020 and $27,043,751 during the fourth quarter of 2021, proceeds from contributions to the ESPP and payments received from customers.
−Removed: We believe our cash on hand as of September 30, 2022, together with anticipated revenues, will be sufficient to fund our operations through November 2023.
+Added: During the three months ended March 31, 2023 and 2022, we recorded revenue of $96,676 and $215,961, respectively.
+Added: We incurred net losses of $6,652,507 and $7,152,718 for the three months ended March 31, 2023 and 2022, respectively.
+Added: Net cash used in operating activities was $5,364,355 and $6,356,971 for the three months ended March 31, 2023 and 2022, respectively.
+Added: We are currently meeting our liquidity requirements through the proceeds of securities offerings that raised net proceeds of $27,043,751 during 2021, $744,787 during 2022 and $5,351,888 during the first quarter of 2023, along with proceeds from contributions to the ESPP and payments received from customers.
+Added: We believe our cash on hand as of March 31, 2023, together with anticipated revenues, will be sufficient to fund our operations through May 2024.
Although we intend to continue our research and development activities, there can be no assurance that our available resources will be sufficient to enable us to generate revenues sufficient to sustain operations.
1 unchanged sentence
There is no assurance that such financing will be available on terms that we would find acceptable, or at all.
−Removed: During the nine months ended September 30, 2022, cash flows used in operating activities were $18,838,453, consisting of a net loss of $20,135,342, less non-cash expenses aggregating $2,940,282 (principally stock-based compensation of $2,158,915, amortization of operating lease ROU assets of $550,372 and depreciation and amortization expense of $200,995), a $594,703 decrease in operating lease liabilities, a $395,405 decrease in accrued severance expense, a $312,174 decrease in accounts payable, a $230,368 increase in prepaid expenses and other current assets and a $164,426 increase in inventory, partially offset by a $42,477 increase in deferred revenue.
−Removed: During the nine months ended September 30, 2021, cash flows used in operating activities were $22,498,803, consisting of a net loss of $32,006,118, less non-cash expenses aggregating $9,391,389 (principally stock-based compensation of $8,591,089, amortization of operating lease ROU assets of $594,089 and depreciation and amortization expense of $195,361) and a $1,102,832 increase in accrued severance expense, partially offset by a $636,984 decrease in operating lease liabilities, a $174,606 decrease in accounts payable, a $111,683 increase in accounts receivable and a $72,074 increase in prepaid expenses and other current assets.
−Removed: During the nine months ended September 30, 2022 and 2021, cash flows used in investing activities were $127,198 and $310,718, respectively.
−Removed: The cash used in investing activities for the nine months ended September 30, 2022 consisted of the purchase of new testing equipment and engineering software.
−Removed: The cash used in investing activities for the nine months ended September 30, 2021 consisted of the cost of our new website, as well as the purchases of new testing equipment and engineering software.
−Removed: During the nine months ended September 30, 2022, cash flows provided by financing activities were $249,705, which consisted of entirely of proceeds from contributions to the ESPP.
−Removed: During the nine months ended September 30, 2021, cash flows provided by financing activities were $362,048, which consisted entirely of proceeds from contributions to the ESPP.
−Removed: On October 11, 2019, we entered into the At Market Issuance Sales Agreement between the Company, B.
−Removed: Riley Securities, Inc., Roth Capital Partners LLC and Ladenburg Thalmann & Co.
−Removed: Inc., as amended by that certain Amendment No.
−Removed: 1 to the At Market Issuance Sales Agreement, dated as of September 14, 2022, and that certain Amendment No.
−Removed: 2 to the At Market Issuance Sales Agreement, dated as of October 4, 2021, through which it may offer and sell up to $75,000,000 of shares of our common stock (the “ATM Program”).
−Removed: During the three months ended September 30, 2022, we did not sell any shares under the ATM Program.
−Removed: As of September 30, 2022, $7,088,127 remains available for sale under the ATM Program.
−Removed: We sold 438,411 shares of common stock under the ATM Program during the period from October 1, 2022 through November 7, 2022.
−Removed: Net proceeds from such sales were $453,180, after deducting issuance costs.
+Added: During the three months ended March 31, 2023, cash flows used in operating activities were $5,364,355, consisting of a net loss of $6,652,507, less adjustments to reconcile net loss to net cash used in operating activities aggregating $1,439,420 (principally issuance costs allocated to warrant liability of $591,670, stock-based compensation of $522,077, amortization of operating lease ROU assets of $181,357, inventory net realizable adjustment of $111,019 and depreciation and amortization expense of $45,797), a $420,368 decrease in accrued expenses, a $176,606 decrease in operating lease liabilities and a $166,906 decrease in accrued severance expense, partially offset by a $450,253 increase in accounts payable and a $178,072 decrease in prepaid expenses and other current assets.
+Added: During the three months ended March 31, 2022, cash flows used in operating activities were $6,356,971, consisting of a net loss of $7,152,718, less non-cash expenses aggregating $1,053,761 (principally stock-based compensation of $796,906, decrease in amortization of operating lease right-of-use assets of $186,736 and depreciation and amortization expense of $70,119), a $271,044 decrease in accounts payable, a $203,010 decrease in operating lease liabilities and a $180,535 decrease in accrued expenses, partially offset by a $443,216 decrease in prepaid expenses and other current assets.
+Added: During the three months ended March 31, 2023 and 2022, cash flows used in investing activities were $0 and $44,489, respectively.
+Added: The cash used in investing activities for the three months ended March 31, 2022 consisted of the purchase of new engineering software licenses.
+Added: During the three months ended March 31, 2023, cash flows provided by financing activities were $5,417,022, which consisted of $2,677,191 in net proceeds from the issuance and sale of common stock and warrants, $2,674,697 in net proceeds from the sale of shares of our common stock in an at-the-market (“ATM”) offering and $65,134 in proceeds from the ESPP.
+Added: During the three months ended March 31, 2022, cash flows provided by financing activities were $104,217, which consisted entirely of proceeds from contributions to the ESPP.
Research and development of new technologies is, by its nature, unpredictable.
1 unchanged sentence
Furthermore, since we have no committed source of financing, there can be no assurance that we will be able to raise capital as and when we need it to continue our operations.
−Removed: Quantitative and Qualitative Disclosure About Market Risk
−Removed: There has been no material change in our exposure to market risk during the three months ended September 30, 2022.
−Removed: See "Quantitative and Qualitative Disclosures about Market Risk" in Part II, Item 7A of our Form 10-K for the year ended December 31, 2021 for a discussion of our exposure to market risk.
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.