SAN JOSE, CA – Energous Corporation, a company specializing in radio frequency-based wireless charging technology with a market capitalization of $4 million, has announced it is now in compliance with Nasdaq’s minimum stockholders’ equity requirement.
According to InvestingPro data, the company maintains a weak financial health score of 1.01, reflecting ongoing operational challenges. The news follows a previous notification of non-compliance received by the company from the Nasdaq Listing Qualifications department in December 2024.
The company, which is listed under the trading symbol (NASDAQ:WATT), was previously warned that it did not meet the Stockholders’ Equity Requirement as set forth in Nasdaq Listing Rule 5550(b)(1). However, on Monday, Energous reported that it had received formal notice from Nasdaq confirming its current compliance with the rule based on disclosures made in a recent Current Report on Form 8-K filed on January 16, 2025.
While this development secures Energous’ position on the Nasdaq for the time being, the company has been advised that it may face delisting in the future if it does not demonstrate continued compliance with the Stockholders’ Equity Requirement in its next periodic report for the period in which compliance was achieved.
InvestingPro analysis reveals that while the company holds more cash than debt on its balance sheet, it is quickly burning through available cash, with a concerning current ratio of 0.81.
The compliance notice is a positive step for Energous, whose business address is located at 3590 North First Street, Suite 210, San Jose, California. The company, originally known as DvineWave Inc. before changing its name in May 2013, focuses on the development and commercialization of its WattUp technology, a wireless charging solution that provides power at a distance to multiple devices.
Energous’ CEO and CFO, Mallorie Burak, affirmed the company’s commitment to maintaining compliance with all Nasdaq listing requirements. This announcement is based on a press release statement and reflects the latest developments regarding Energous’ regulatory and financial status.
In other recent news, Energous Corporation, a wireless charging technology company, is facing potential delisting from the Nasdaq Stock Market due to non-compliance with the minimum stockholders’ equity requirement, as well as the minimum bid price requirement. In response, the company is planning to submit a plan to regain compliance by January 2025. On a brighter note, Energous has announced a significant project with a Fortune 10 multinational retailer to modernize infrastructure across its retail locations.
The company plans to ship over 1,500 of its 2W PowerBridge transmitter systems by year-end, marking a substantial step in the deployment of wireless power networks. Analysts from InvestingPro project considerable sales growth for Energous this year. In addition, Mallorie Burak has been appointed as the permanent CEO of Energous.
The company has also secured FCC (BME:FCC) certification for its 2W PowerBridge transmitter system and formed strategic partnerships with Annukin, Ecobyte, and Peak Technologies. Analyst notes include Roth/MKM maintaining its Buy rating on Energous, albeit with a reduced price target, and Ladenburg Thalmann downgrading Energous from Buy to Neutral.
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